MediciNova delivers buyout offer to Avigen chair

On the same day that troubled Avigen was outlining its restructuring efforts and search for a buyer of all or party of the company, MediciNova says it sent the developer a buyout offer. No numbers were mentioned, but MediciNova says it communicated its offer on December 22 in a letter to Zola Horovitz, Ph.D., the chairman of the board of Avigen. "The letter delivered to Dr. Horovitz further refines MediciNova's expression of interest in acquiring Avigen."

With its stock down 85 percent over three months, Avigen has terminated all contracts with its partner Sanochemia to avoid future obligations; terminated all trials for AV650; expanded its efforts to find a partner for AV411 while deferring a mid-stage trial for neuropathic pain; laid off 70 percent of its staff and added $7 million in cash by selling its early-stage AV513 program to Baxter.

There's no word yet on Avigen's response.

- check out the press release

Related Articles:
Avigen outlines restructuring, possible M&A deal
Avigen slashes staff, shops drugs in restructuring
Avigen shares plunge on mid-stage trial failure