HyperMed, Inc. of Burlington, MA has filed for Chapter 11 Bankruptcy. The company was founded in 1997, and for ten years has been developing a medical imaging device, the OxyVu. The OxyVu device is a hyperspectral tissue imaging system that differentiates between healthy and diseased tissue through a 20-second scan. HyperMed says the device can radically improve diagnosis and therapy for patients with diabetic foot ulcers and peripheral artery disease. OxyVu received FDA clearance in 2006. The device is intended to measure oxygenation levels in superficial tissues, which can assist in maximizing limb preservation.

The company currently has a notation on its website that it has ceased operations. According to public documents filed with the U.S. Bankruptcy Court, District of Massachusetts, the company's balance sheet indicates that the company has assets of $1,035,478 and liabilities of $2,868,360.

The company has also filed a motion requesting that the court approve of a private sale to Hyperspectral Imaging, Inc., of assets used in operation of HyperMed's business, and assumption and assignment of certain executor contracts.

The motion states that in 2008, HyperMed sought financing to complete clinical studies and begin commercial marketing of OxyVu. The company could not find adequate financing and closed in June of 2009.

According to the motion, HyperMed's remaining assets are its intellectual property (patents and copyrights), inventory, and office equipment. The motion notes that potential buyer Hyperspectral Imaging has agreed to pay HyperMed $250,000. Hyperspectral Imaging, Inc. is an affiliate of Greenwich Biotech Ventures II, LLC (GBV). GBV is HyperMed's prepetition lender, largest creditor and a shareholder of the company. GBV has agreed to waive a $2 million dollar-plus claim against HyperMed's estate.

HyperMed states in its petition that the purchase price is reasonable in light of both the waiver of GBV's claim and because HyperMed has received no similar or higher purchase offers.

A hearing is scheduled for early January regarding the Motion for Approval of Sale.

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