Avigen rejects BVF takeover offer

Avigen has rejected a potential merger deal Biotechnology Value Fund (BVF). Late last month BFV offered $20.9 million for Avigen, which has been in a tough position since October when a mid-stage drug trial for spasticity associated with multiple sclerosis failed to meet its primary endpoint. In a statement, Avigen's board said that "after a thorough review with management and its financial and legal advisors" the offer was determined "inadequate and not in the best interests of stockholders." BFV had offered $1.00 per share.

"Our strategic review process is well underway. In the last few weeks, we have received multiple proposals that place significant value on the company's cash position, intellectual property, AV411 product development program, and public listing on NASDAQ," said Avigen's CEO Kenneth Chahine. "We are encouraged by this positive response and believe it can lead to significant additional value for all stockholders." Avigen's largest shareholder has been trying to engineer a merger with MediciNova, though no deal has been reached.

- take a look at Avigen's release

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