Migraine Patch Developer Zosano Goes Bankrupt, Will Sell Assets

Zosano Pharma Corp., a publicly traded developer of a migraine treatment patch, filed for Chapter 11 bankruptcy with plans to sell its assets.

The company filed for bankruptcy in Delaware late Wednesday, listing assets and liabilities of at least $10 million each in court papers. Zosano shares plunged 56% on Thursday morning.

The clinical-stage biopharmaceutical company has been losing money for years while developing a needle-covered patch for delivering drugs. Zosano had an accumulated deficit of $395.5 million and cash of $13.5 million as of March 31.

Zosano warned investors in its most recent earnings report ...