Coronavirus Squeezed Bankrupt Diabetes Tech Seller Valeritas (1)

Valeritas Holdings Inc., a diabetes device company, cited the worsening coronavirus epidemic among reasons it had to file for Chapter 11 bankruptcy Sunday night.

Work stoppages in China tied to the virus are worsening the impact of a supply chain problem for Valeritas that started in December, court papers show. It was already facing a cash crunch and possible debt defaults when the manufacturing issue surfaced.

The company’s primary manufacturer in China “may experience production capability issues due to the uncertainty surrounding when these rural employees will return to work,” Chief Executive Officer John E. Timberlake said in ...