Proteus Kicks Off Bid to Sell Digital Health Tech in Bankruptcy

Proteus Digital Health Inc. was approved for initial relief to continue operating in bankruptcy and pursue efforts to sell its business designing ingestible sensors used to track medication effectiveness.

Redwood City, Calif.-based Proteus received interim approval Thursday during a telephonic hearing at the U.S. Bankruptcy Court for the District of Delaware to access its cash on hand and continue operating in the normal course while it seeks a value-maximizing bankruptcy transaction.

The company filed for Chapter 11 relief on June 15, saying it ran into a liquidity crisis while in the “pre-revenue” stage of developing its Proteus Discovery device. No ...