TeGenero said in a staement that the “adverse reaction” suffered by the human guinea pigs to the arthritis and leukaemia drug TGN1412 had made it “impossible to attract the investment necessary for the company to continue operations”.

There was no reasonable prospect that the privately owned business could recover, TeGenero said.

In March six young volunteers became critically ill after being injected with TGN1412.

One of them, Ryan Wilson, a trainee plumber, remains in a wheelchair after suffering heart, liver and kidney failure, pneumonia and septicaemia.

TeGenero submitted its insolvency filing in the Bavarian city of Würzburg yesterday. Existing management will continue to run the business until insolvency procedures have started.

The company said that TGN1412 would be treated as one of its assets by administrators. It also said that its insolvency would not affect compensation claims by the six men, which are being handled by its insurers.British regulators have concluded that the severe reaction suffered by the volunteers was not due to errors in how the drug was made or tested.

TeGenero said yesterday that it would “continue to make its expertise available” to investigations into the trial.

Explore Health

• Expert Advice

• Health Features

• Mental Health

• Alternative Medicine

• Child Health

• Health Club