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Vion Pharmaceuticals Files for Chapter 11 Bankruptcy
Date:12/17/2009

NEW HAVEN, Conn., Dec. 17 /PRNewswire-FirstCall/ -- VION PHARMACEUTICALS, INC. (OTC Bulletin Board: VION), a pharmaceutical company focused on the development of novel cancer therapeutics, announced that it had voluntarily filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Vion is continuing to operate its business as a debtor-in-possession pursuant to Sections 1107 and 1108 of the Bankruptcy Code.

"We believe that the Chapter 11 process will allow us to maximize the value of the Company's assets and, if necessary, to conduct an orderly winding up or liquidation of the Company," said Alan Kessman, Chief Executive Officer. He added, "We believe that Onrigin(TM), Triapine® and our other preclinical assets should continue to be developed, if not by us then by others, as patients with cancer need additional treatment options as they face this devastating disease."

The bankruptcy filing became necessary as a result of the Company's need to conduct an additional randomized trial of its lead anticancer compound, Onrigin(TM) (laromustine) Injection, prior to approval for use in the United States. Earlier this week, the Company disclosed that it had received a complete response letter from the U.S. Food and Drug Administration ("FDA") relating to its New Drug Application for Onrigin(TM) filed in February 2009. In that letter, the FDA advised that the Company complete a randomized study or studies to define the efficacy and safety of Onrigin(TM) in the patient population proposed for the indication, and that the study or studies be designed to demonstrate a survival benefit that is clearly attributable to Onrigin(TM) with an acceptable safety profile in a well-characterized patient population.

The Company also announced that it had filed for a Special Protocol Assessment ("SPA") with the FDA related to a randomized
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SOURCE Vion Pharmaceuticals, Inc.
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