An anonymous reader quotes a report from The Wall Street Journal: Embattled lab-testing startup uBiome Inc. filed for bankruptcy protection Wednesday and put its assets up for sale after suspending testing of its clinical products. The San Francisco-based company filed for chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., and said it has lined up an $8 million bankruptcy loan to keep its business open while it looks for a buyer. The company, which is under federal investigation for its billing practices, laid off around half of its global workforce in July. UBiome had been trying to build a business on testing patients’ microbiomes based on emerging science that suggests microorganisms in the gut and other parts of the body can play a role in health. The startup had raised $83 million in a financing round from investors that included 8VC and Y Combinator. But the company has suspended the two lab tests for which it was billing insurance companies. Some of the companies had already largely or completely stopped paying claims. UBiome co-founders Jessica Richman and Zac Apte, who were earlier suspended from their positions as co-chief executives, resigned from the company’s board. In June, the board appointed Curtis Solsvig of restructuring firm Goldin Associates as acting CEO.
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https://science.slashdot.org/story/19/09/04/2224223/lab-testing-startup-ubiome-files-for-bankruptcy?utm_source=rss1.0mainlinkanon&utm_medium=feed