Japanese drugmaker Acelrx is preparing to file for bankruptcy protection as the U.K. government and U.A.E. regulators ramp up pressure on it over allegations of misconduct and inflated profits.
The Japanese pharmaceutical giant says it’s losing money on a $3.7 billion deal to supply medical devices to the U,A.A., and UNAIDS.
In the latest move, Acelrex on Monday filed for bankruptcy in Japan, its fourth in five years, after Japan’s Financial Services Agency issued a warning letter to Acelrix for alleged accounting irregularities and other mismanagement in its pharmaceutical business.
The company says it expects the company to be liquidated within five days.
It says the UDA, which is responsible for oversight of Japan’s banking sector, will assess Acelx’s ability to continue operations in the country.
“It is very likely that Acelrax’s finances will be materially impaired if it fails to comply with the relevant provisions of its (BSA) obligations,” the agency said in a statement.
Acelix says it has $5 billion in annual revenues and $7.5 billion of cash on hand, according to a filing with the Japanese Financial Services Authority.
The agency’s announcement follows a March 12 warning letter from the BSA that said Acelax failed to maintain “appropriate controls and procedures” to prevent the mismanagement of its pharmaceuticals business.
Acels drug development program was the largest in the world, according the Financial Times.
The BSA has repeatedly warned Acelox that its business practices could damage its reputation and lead to legal action.
The U.N. agency has said that Acetox, the company’s largest drug, could cause severe side effects in patients and that it should be avoided because it may have been misused in the past.
Acetylenac, a derivative of acetylcholine, is one of the top-selling drugs in the United States.
The drug has been approved for a number of conditions, including cancer, diabetes, heart disease and multiple sclerosis.
It is used to treat pain and spasms.
Acilix’s CEO, Yutaka Uchiyama, said the company was not seeking to take any action to take advantage of the BCA ruling, which he said could be the result of an “unfortunate misunderstanding.”
Acelyx said the B.S., a group of U.B.H. and UDA regulators, has launched an investigation into Acetix and its subsidiary Acelxa for allegedly manipulating drug data and for allegedly misrepresenting the financial condition of its subsidiary, Acetex.
Accelx said in its statement that it is considering filing a lawsuit in the UBH and UAA to address the BSU allegations.
In a statement, U.D.
A said it has “grave concerns” about Acetx’s “corrupt and illegal practices.”
U.U.N.’s U. Nations Financial Action Task Force said in March that it has been “very concerned” by the situation.
“The BSA’s recent decision does not help resolve the serious concerns we have raised,” the UN. financial agency said.
The Financial Services Committee of the UAB, which oversees banking and insurance regulation, also issued a statement in March calling on Acelxi to ensure it “does not abuse its financial resources or manipulate the BSO” to make a profit.
In an email, Acelfix’s chief executive, Takashi Uchizuka, said Acetxa is “committed to providing the world with safe and effective medicines and treatments.”
“This is our hope, and we will continue to work together to ensure this happens,” Uchihizuka said.
“We believe in our position as a global pharma company and the fact that we have the ability to bring this to fruition.”