Biotechnology investor Apple Tree Life Sciences Inc. and affiliated entities filed for Chapter 11 bankruptcy protection in Delaware on Tuesday, days after a Chancery Court judge ordered Russian billionaire Dmitry Rybolovlev to provide $97 million to support Apple Tree’s struggling medical portfolio.
In its petition, Apple Tree reported $1 billion to $10 billion in assets and only $100,000 to $500,000 in debt, highlighting the unusual scale of its financial structure. The filing follows months of turmoil after a fractured partnership with Rybolovlev pushed several Apple Tree portfolio companies to the brink of insolvency.
Dispute with Russian Billionaire
Rybolovlev and co-founder Seth Harrison, both medical doctors, launched the Apple Tree fund in 2012 to finance biotechnology ventures, according to Delaware Chancery Court filings. Rybolovlev, who amassed his fortune in the Russian fertilizer industry, initially committed over $1.4 billion to the fund through his family trust, Rigmora, promising further contributions starting in 2020.
However, their partnership began to unravel in 2022 amid market downturns in biotech and geopolitical instability following Russia’s invasion of Ukraine. Rigmora scaled back capital injections and imposed strict conditions, leaving Apple Tree’s ventures scrambling for funds.
By May 2024, Apple Tree alleged that Rigmora had reneged on its commitments, prompting a lawsuit to enforce capital calls totaling $101.1 million for 10 portfolio companies developing treatments for cancers, obesity, and other medical conditions.
