DURHAM, N.C. – Argolyn Bioscience, a promising developer of proprietary drug development technology backed by Intersouth Partners, is involved in a Chapter 7 bankruptcy “dissolution,” according to the Triangle Business Journal.

, which moved its headquarters to the Triangle from South Carolina in march of last year, had raised nearly $16 million in venture funding.

The when the company discovered potential problems with its lead peptide-based drug product as it neared clinical trial, the newspaper said.

Argolyn appeared to have all the ingredients for success – not only technology backed by at least five patents both also strong financial backers and an experienced management team. It also was in the process of raising additional capital, according to the Business Journal.

M. Nixon Ellis, a former executive at Triangle Pharmaceuticals and Trimeris, took over as CEO as Argolyn moved its headquarters to Durham from South Carolina. The company launched in 2002.

George Koszalka, another veteran of the life-science industry, joined Argolyn as its chief development officer.

Ellis, who goes by Nick, is a well-known executive in the Triangle, having worked for nearly 30 years with Burroughs Wellcome, the Wellcome Foundation, Triangle Pharmaceuticals and Trimeris. He held the chief operating officer role at Triangle and was president at Trimeris.

Koszalka, who is known as Barney, also worked at Trimeris. His more than two decades of experience includes stints at Burroughs Wellcome, Glaxo Wellcome and GlaxoSmithKline. He has been involved in the development of numerous drugs.

Argolyn, a spinout from the Medical University of South Carolina, was also backed by Quaker BioVentures.

Argolyn sought to develop drugs based on peptides. Targets are pain and psychosis. Peptides are used for more effective drug delivery.

In 2003, Argolyn secured $975,000 in funding from The Stanley Medical Research Institute. The firm also has disclosed more than $1.7 million in federal grants since 2003.