Biopharmaceutical Company Athenex Files for Bankruptcy, Faces Employee Layoffs in Buffalo
Buffalo, NY – Athenex, a global biopharmaceutical company once hailed as a “game-changer” for Western New York by former Governor Andrew Cuomo, has filed for bankruptcy and notified state labor authorities of upcoming layoffs affecting 123 employees. The company, which had offices in downtown Buffalo and Clarence, will close its doors on August 10, marking the end of a 20-year run that began in a University at Buffalo chemistry laboratory. The filing for bankruptcy and subsequent layoffs signify a disappointing outcome for a company that had received substantial financial support from the state but faced numerous setbacks over the years.
Athenex Files for Bankruptcy and Announces Employee Layoffs
Athenex, a global biopharmaceutical company, has filed for bankruptcy and notified state labor authorities of impending layoffs. The company’s bankruptcy filing and subsequent closure of its offices in downtown Buffalo and Clarence will result in the termination of 123 employees. The layoffs will be implemented in three phases, culminating in August. This development marks a significant setback for Athenex, which had once been touted as a transformative force for Western New York’s economy.
Unfulfilled Promises and Setbacks for Athenex
Athenex’s journey has been marked by unfulfilled promises and challenges that proved insurmountable. Backed by former Governor Andrew Cuomo’s Buffalo Billion economic development initiative, Athenex received $200 million in subsidies to construct a new manufacturing facility in Dunkirk and an additional $25 million for its headquarters in the Conventus Building. Cuomo had projected the creation of 1,400 jobs in Western New York through Athenex’s operations. However, the company failed to meet this employment target.
Over the years, Athenex encountered significant setbacks. In March 2021, the U.S. Food and Drug Administration (FDA) recommended the company conduct additional clinical trials for its drug to treat metastatic breast cancer. This news caused a sharp decline in Athenex’s stock value and necessitated a restructuring of the business. In February 2022, Athenex sold its leasehold interest in the Dunkirk facility for $40 million, using a portion of the proceeds to pay off debt. In August 2022, a jury awarded a former employee $635,000 after determining that Athenex had withheld the employee’s bonus and terminated him without cause.
Seeking Competent Bankruptcy Law Attorneys in Buffalo, New York
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Athenex’s bankruptcy filing and subsequent employee layoffs mark a disappointing turn of events for the once-promising biopharmaceutical company. Despite receiving substantial financial support from the state, Athenex faced numerous setbacks that ultimately led to its downfall. In times of bankruptcy, businesses in Buffalo, New York, can turn to USAttorneys.com for assistance. The platform provides access to competent bankruptcy law attorneys who can offer guidance and support throughout the bankruptcy process. If you require a Buffalo, New York bankruptcy law attorney, visit USAttorneys.com to find a trusted legal advocate to safeguard
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