Pharmacogenetics Diagnostic Laboratory LLC, is a Louisville company once saw significant growth. In fact, in 2013 it was named Louisville Business Fist’s 2013 business of the year. However, Louisville residents may be surprised to hear that it is now filing for Chapter 11 bankruptcy.
The company was founded in 2004. It performed genetic tests that determined how effective prescription drugs would be on an individual. The company’s aim was to bring genetic drug sensitivity testing to the mainstream medical community. In addition, the company also provided molecular diagnostic testing services as well as interpretive services to health care professionals.
However, the company has found that it needs to file for bankruptcy due to an assessment that there was an overpayment of claims to Medicare in the amount of $26 million. That being said, the company is contesting the assessment and believe it could be significantly reduced. In addition, the bankruptcy filings include a lesser claim of $1.9 million by one of the company’s creditors, Essential Molecular Testing Corp.
The company estimates that it’s total assets range somewhere from $500,001 to $1 million, but it’s total debts range from $10,000,001 to $50 million. It estimates it has between 200 to 999 creditors. In addition, it estimates that its only gross revenues in 2016 will amount to $8.8 million. The company has moved the court to permit it to keep on paying its 21 employees and to retain its own bank account.
As this shows, even the most successful of companies can one day find themselves in a perilous financial situation. It is a good thing, then, that business bankruptcy is available to help businesses get back on their feet financially. In some cases, the business is able to keep running after the bankruptcy, providing it with the clean slate it needs to move into the future.
Source: Louisville Business First, “PGXL Laboratories files for bankruptcy after huge Medicare overpayment claim,” Marty Finley, Nov. 10, 2016