Emphasys Medical Looking for Buyers

After suffering a huge defeat, the board of directors of Emphasys Medical, which manufactures a valve that shifts air to the healthy parts of lungs in emphysema patients, has decided to put the Redwood City, Calif.-based company on the auction block. The company has hired Gerbsman Partners to help find a buyer.

The decision by the board comes on the heels of the U.S. Food and Drug Administration’s decision in an 11-2 vote to reject the medical device company’s lead project, the Zephyr Endobronchial Valve. The device, which easily earned European market clearance in 2003, is a minimally invasive treatment that is intended to help emphysema patients breathe more easily.

The firm, which previously employed 50 people, has let go all but five of its staff members since May.