The company had raised $65 million from investors to develop Dascor, which would treat pain associated with degenerative disc disease. Officials from Disc Dynamics said in the report that the FDA kept asking the company for more data before approving a trial and time and money ran out.
Most of Disc Dynamics’ 32 employees were laid off at the end of 2009, and Steve Healy retired as CEO of the company in July 2009, according to the report. Three remaining employees will sell off the company’s remaining assets.
Investors of small start-ups, such as Disc Dynamics, have criticized the FDA’s approval processes, saying it has become cost prohibitive, according to the report. Transoma Medical, based in Arden Hills, Minn., also recently closed.
Read the Star Tribune’s report on Disc Dynamics.
