Lamenting that sizeable cash reserves, an active and closely-watched mid-stage cancer trial and some hefty net operating loss carryforwards aren't enough to keep its stock price up, executives at CuraGen have brought in an investment banker to undertake a strategic review that will consider everything from a possible sale of the company to the acquisition of new assets.
"The board believes that management is making exciting progress as CR011 moves through the current Phase II clinical trials and that it has taken the necessary actions over the past two years to ensure that CuraGen is a well capitalized organization in a difficult external financing environment," said Robert E. Patricelli, chairman of the board. "The board further believes we should consider strategic alternatives that could enhance shareholder value."
Everything is on the table at CuraGen, including selling or licensing CR011. "The potential to move CR011-vcMMAE into more advanced development in both patients with breast cancer and patients with melanoma makes this a good time to seek strategic interest in the marketplace," said CEO Dr. Timothy M. Shannon. CuraGen reported $88 million in cash and investments at the end of last year and expects to have $76 million to $77 million on hand at the end of the second quarter.
- read the CuraGen release
ALSO: In a tersely worded release, Cambridge, MA-based Biopure added its name to the roster of biotechs triggering a strategic review. "The company has engaged Newbury Piret & Co. to advise on options, including evaluation of nonbinding proposals that have been received." Release