TeGenero, the German biotechnology group responsible for the drug being tested in the disastrous clinical trial at Northwick Park Hospital in London earlier this year, filed for insolvency yesterday.

Six volunteers taking part in a clinical trial were left fighting for their lives after suffering extreme reactions to the company’s TGN 1412, which was being assessed for the treatment of chronic inflammatory diseases and leukaemia.

Although regulators concluded that the side effects had been caused by “an unexpected biological effect,” “the unforeseeable adverse reactions caused by TGN 1412 in the TGN 1412-HV Phase I trial have made it impossible to attract the investment necessary for the company to continue operations,” TeGenero said in a statement. It went on to say that current claims for compensation for the volunteers will be handled by its insurers.