London-based pharmaceutical company Senzer has entered administration, after failing to get enough backing to float on the Alternative Investment Market.
Professional services firm Begbies Traynor has been appointed administrator of Senzer, which entered administration in early January.
Senzer developed and manufactured respiratory devices for medical cannabis use. Its core product was a breath-activated inhaler that allowed low dose inhalation therapies with targeted delivery directly to the respiratory tract.
The firm was also formulating treatments for Covid-19 using approved anti-viral pharmaceuticals.
City A.M. understands the company was preparing for an IPO, but faced investor concerns that derailed the process.
Senzer could not continue as a private company due to a lack of funding. After the flotation idea failed, the company faced pressure from creditors, one of which issued a formal demand for £335,000 by 14 December 2020, which Senzer was unable to pay.
The company, founded in 2015, was still considered relatively early stage, and lacked regulatory approval for its products.
Julie Palmer, regional managing partner at Begbies Traynor, and one of the administrators handling Senzer, said: “It’s a particularly difficult time for smaller companies at the moment trying to get to request stages.
“It’s hard enough for bigger pharmaceutical players, but with smaller companies it’s more of a lottery.”