Key medical device brand for files Chapter 11 bankruptcy

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Investors struggle with valuation on health care and medical companies, since having drugs and treatments in various stages of testing does not guarantee approval.

And it's more complicated than that because even getting a drug or treatment through FDA trials and receiving approval does not mean it will sell. Some drugs and treatments might solve real health issues, but never become successful because of cost, marketing challenges, or simply a lack of doctors' understanding of the drugs.

That's why there are armies of pharmaceutical reps calling on doctors to show them new treatments, drugs, and medical innovations.

Clearside Biomedical, Inc. has been a promising player in the delivery of therapies to the back of the eye through the suprachoroidal space. On its website, the company explained why that's an idea worth pursuing.

• The back of the eye is the location of many irreversible and debilitating visual impairments.

• The drug is compartmentalized in the suprachoroidal space, keeping it away from non-diseased tissues and entirely behind the visual field.

• Fluid spreads circumferentially and posteriorly when injected within the suprachoroidal space, bathing the choroid, retina, and adjacent areas with the drug.

The company experienced some success and has products already in the marketplace.

"Our SCS Microinjector enables an in-office, repeatable, non-surgical procedure for the targeted and compartmentalized delivery of a wide variety of therapies to the macula, retina, or choroid to potentially preserve and improve vision in patients with sight-threatening eye diseases," it shared on another web page.

Now, Clearside has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

What's next for Clearside Biomedical?

The company hopes to sell itself so it can keep operating.

"As part of the case, Clearside also intends to file a motion seeking authorization to pursue an auction and sale process under Section 363 of the U.S. Bankruptcy Code. The proposed bidding procedures, if approved by the court, would require interested parties to submit binding offers to acquire Clearside’s assets in whole or in part, which would be purchased free and clear of liens and interests," the company shared in a press release.

Clearside has filed a series of motions with the court seeking to ensure the continuation of normal operations during this process.

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“We believe that we have attractive assets based on our clinically proven SCS Microinjector platform and associated intellectual property, our successful suprachoroidal CLS-AX (axitinib injectable suspension) clinical development program, multiple suprachoroidal licensing agreements, and other related assets," CEO George Lasezkay shared.

Additional information about this process and proposed asset auction and sale, as well as other documents related to the restructuring and reorganization proceedings, is available through Clearside’s claims agent, Epiq Bankruptcy Solutions LLC.

Clearside Biomedical Chapter 11 bankruptcy at a glance

• Nov 24, 2025: Clearside Biomedical files Chapter 11 in Delaware to pursue a strategic sale.

• Assets: SCS Microinjector, XIPERE®, CLS‑AX (Phase 3), and several IND‑ready eye disease programs. Phase 3 ready asset, CLS-AX (axitinib injectable suspension), is targeting the treatment of wet AMD.

• Plan: Sell business via Section 363 auction while continuing normal operations.

• Cash on hand (June 2025): Around $9.4 million. Previously implemented reduction in force to conserve cash.

• Advisors: Cooley LLP & Richards, Layton & Finger (legal), Berkeley Research Group (financial). Source: Globe Newswire, PacerMonitor

Some analysts Saw Clearside Biomedical's problems coming

"Stifel downgraded Clearside Biomedical from Buy to Hold and slashed its price target to $2 from $8 as the company faces severe financial constraints," Investing.com reported. "The biotech company has reached the end of its cash runway without securing new capital and is now exploring strategic alternatives."

JonesTrading analyst Debanjana Chatterjee has maintained a neutral stance on Clearside Biomedical stock, despite its financial woes.

"Clearside Biomedical has a cash reserve of $9.4 million, which is set to decrease further, and is exploring strategic alternatives while all research and development activities are on hold. The outcome and timing of any strategic transaction are uncertain, leading to the decision to maintain a Hold rating," AInvest reported.

The company's CMO, medical doctor Victor Chong, remains bullish on Clearside's most established technology.

"Our proprietary SCS Microinjector platform is an established, in-office solution for delivering vision-preserving therapies to the back of the eye. The pipeline of promising clinical programs using our platform underscores its versatility across multiple treatment modalities. We remain committed to redefining care with therapies that offer both extended durability and flexible dosing to address serious retinal diseases,” he shared in a press release.

Outside doctors also support the theories behind the company's CS Microinjector platform.

"We wanted to provide ophthalmologists with a detailed roadmap for safely and effectively delivering medications into the eye's suprachoroidal space," said Dr. Charles Wykoff, a professor of clinical ophthalmology at Houston Methodist on the hospital's website.

"It's a new skill set for many physicians, but one with a lot of potential for expansion in the future."

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This story was originally published by TheStreet on Nov 24, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.