A Perth-based drug company listed on the Australian Securities Exchange has collapsed into voluntary administration.
The Pharmanet Group is the latest company in the pharmaceutical space to collapse, after a string of pharmacies have gone under in recent months due to increasing regulatory pressure in the industry.
Jack James of Palisade Business Consulting was appointed as administrator of Pharmanet and its related subsidiaries, Thermalife International Pharmaceuticals, Pharmasolv Laboratories and Cambridge Scientific, on April 15.
The group focuses on products, drug development and cosmetic opportunities, including the manufacture of Thermalife Cream, an anti-inflammatory treatment.
Pharmanet Group turned over just $212,000 for the 2014 financial year, according to its annual report, against a loss of $2.1 million.
The administration follows a turbulent year for the company with mounting pressure from creditors.
Shares were suspended in March and again in October last year in relation to statutory demands from creditors. Shares have remained suspended since October 7.
The resolution to enter administration was passed by the board of directors.
The first meeting of creditors is scheduled for April 28 in Perth.
A statement to shareholders from administrator Jack James said the future of Pharmanet Group would be decided at a second meeting of creditors, which is yet to be scheduled.
“Should a recapitalisation proposal be approved by creditors, a meeting of shareholders will then be convened to obtain shareholder approval,” said James.
SmartCompany contacted Palisade Business Consulting but did not receive a response prior to publication.