Bankruptcy filings in the healthcare industry have decreased significantly in 2025, with only 18 cases reported by October compared to 57 in 2024 and 79 in 2023. Major companies like Genesis Healthcare Inc. and ModivCare Inc. have filed for Chapter 11 bankruptcy due to financial struggles and industry challenges.

Troubled biopharmaceutical company Navidea Biopharmaceuticals Inc. has also filed for Chapter 11 protection, citing financial distress from litigation, supply chain issues, and looming bankruptcy threats. The company listed $1 million to $10 million in assets and $10 million to $50 million in liabilities in its Subchapter V petition filed on October 1.

Navidea’s largest unsecured creditors include Winstead PC, Fredrickson & Byron P.A., and WorldCare Clinic LLC. The company filed a motion for approval of up to $940,000 in debtor-in-possession financing from secured creditor John Kimball Scott Jr. to navigate through the bankruptcy process.

The biopharmaceutical company specializes in immuno-targeted products like Lymphoseek, which aids in diagnosing metastatic cancers. Navidea sold its North American Lymphoseek assets to Cardinal Health for $80 million upfront in March 2017, receiving an additional lump sum payment to offset future royalties.

Navidea’s financial struggles stemmed from failed clinical trials, supply chain disruptions, and legal battles with former CEO Dr. Michael Goldberg. These challenges, along with the pressure of potential involuntary bankruptcy filings, led the company to seek Chapter 11 protection to reorganize its operations and finances.

Read more at Yahoo Finance: Major health care product company files for Chapter 11 bankruptcy