Intarcia Therapeutics, a one-time biotech unicorn that has been unable to secure approval for a diabetes implant, has lost the support of a major Chinese investor and is being forced to auction lab equipment for the cash it needs to remain in business.
China-based Luxin Venture Capital Group has written down to zero its investment in Intarcia, according to documents reviewed by STAT. Luxin invested $30 million in the company’s 2016 venture round.
But since then, Intarcia has seen the Food and Drug Administration reject its diabetes implant twice. The company is appealing the rejection, but Luxin Venture’s decision to write down its investment is a sign that investors might be losing confidence in Intarcia’s future.