Dynogen files for bankruptcy protection

Dynogen Pharmaceuticals Inc., a Waltham biotech company, filed for Chapter 7 bankruptcy protection this week, meaning the company will likely be liquidated.

The company is just the latest to fold amid the country's worst economic downturn since the Great Depression, making it increasingly difficult for early-stage firms to raise money to develop new drugs or cutting-edge technologies.

Dynogen, which burned through at least $67 million in venture capital and other funding, said it owed between $10 million and $50 million to more than 100 creditors in its bankruptcy filing on Monday, while it had no more than $50,000 in assets.

The company had been trying to develop drugs for irritable bowel syndrome, overactive bladder disorder, and nocturnal gastroesophageal reflux disease (often associated with heartburn).

A year ago, Dynogen announced plans to merge with Apex Bioventures Corp. of Hillsborough, Calif. But the companies called off $98 million deal two months later, citing "current market conditions."
(By Todd Wallack, Globe staff)