Framingham, MA — Arch Therapeutics Inc., a biotech company specializing in wound care solutions, has filed for Chapter 11 bankruptcy protection, citing “capital market challenges” that have severely limited its ability to operate and grow. The move signals a potential end for the firm unless it can sell off its assets in the near future.
According to Boston Business Journal reporter Hannah Green, Arch’s flagship product—the AC5 Advanced Wound System—is FDA-cleared and designed to treat complex injuries such as pressure ulcers, venous leg ulcers, diabetic wounds, and surgical incisions. Despite the clinical promise of its technology, the company has struggled to attract sufficient investment and scale operations.
“The Framingham-based biotech is behind an FDA-cleared wound care product called the AC5 Advanced Wound System that is used to manage injuries such as pressure ulcers, venous leg ulcers, diabetic ulcers, and surgical wounds,” BBJ reported.
In court documents, CEO and co-founder Terrence Norchi said the company was previously listed on the OTCQB market but was downgraded to the OTC Expert Market due to insufficient capital. Arch made multiple unsuccessful attempts to list on either Nasdaq or the New York Stock Exchange.
“Despite substantial efforts, these attempts were ultimately unsuccessful,” Norchi said in an affidavit obtained by BBJ. “During this time, Arch entered into several vintages of convertible notes, which contained covenants requiring the debtors to continue pursuing an uplist. As uplisting remained elusive, the convertible instruments became increasingly challenging to secure, let alone service.”
According to BBJ, Norchi also detailed “considerable efforts” to raise funding or secure a strategic partnership, but none of those efforts bore fruit. As of now, Arch’s workforce consists of a single full-time employee who is currently unpaid, and support from a handful of consultants.
“Norchi said Arch’s financial position deteriorated to the point where it could not meet payroll or other obligations,” BBJ reported. “The company now consists of a single full-time employee who is unpaid and support from a small number of consultants.”
Arch is now seeking court approval to accept a $2 million secured term loan from Vivex Biologics Inc. to cover necessary expenses and facilitate the asset sale process.
While Chapter 11 bankruptcy is typically a reorganization tool, Norchi made it clear that Arch lacks the funding to restructure and will instead focus on selling its remaining assets. The decision reflects broader struggles in the biotech sector, particularly in the public markets.
“The public markets have not been kind to companies looking to complete initial public offerings in the last few years,” BBJ noted, adding that only one Massachusetts company has completed an IPO in 2025 so far.
This story includes reporting by Hannah Green of the Boston Business Journal. To read the full original article, visit Boston Business Journal.
