Burdica Biomed Ltd. (SC332348): administration
- Status
- Administration ended
- Administration began
- 2014-02-05
- Administrators
- Kenneth W Pattullo
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2007-10-12
- Location
- Edinburgh
- Industry
- 21200 Manufacture of pharmaceutical preparations
Why it went into administration
- Cash flow / liquidity pressure
- Loss of a key customer, supplier or contract
- Sustained trading losses
From the administrators' statement
Burdica Biomed was incorporated and commenced trading in October 2007. The Company develops and manufactures biomedical women’s fertility health care products and sells these worldwide through a network of distributors. These products include an own brand product ‘Zestica’ which is sold through the distribution network and also other established named products which are manufactured on behalf of customers.
The directors of the Company have advised that the Company traded successfully until October 2012 when they began to suffer cash flow problems. This was as a result of the larger retailers exerting price pressure which had a detrimental impact on the Company's profit margin rendering the business unable to meet all of its liabilities. As a result of its cash flow problems and ongoing trading losses, the Company approached its largest customer, BBI Healthcare Limited (“BBI”), and subsequently entered into an asset purchase agreement, collaboration agreement and Manufacture agreement with BBI in order to introduce cash into the Company and allow trading to continue. The asset sale included the sale of all Patents and products to BBI for a cash injections of £225,000.
The directors have advised that the Company resumed trading successfully again until October 2013 at which time the majority of the new cash was spent and its cash flow problems resurfaced. In October 2013, the Company sold its remaining Trademarks to its Canadian distributors, Bescot Health Care Canada, Inc for £3,000. At the same time, negotiations were ongoing with BBI for a sale of the remaining manufacturing business. In tate December 2013, negotiations broke down and the Directors approached Begbies Traynor (Central) LLP for insolvency advice. We attended the Company's premises to carry out a review of the business in January 2014 to determine whether there were any prospects of continuing to trade. The outcome of that initial review was that the Company had insufficient resources to enable trading to continue without a significant cash injection and any interested purchasers would be limited as the Company had already sold all rights to its products to BBI.
Administrators' statement of proposals (2014-04-03) · Companies House register