spin-off

Myriad Genetics ponders splitting its business

John Carroll — Thu, 11 Sep 2008 11:17:22 -0400

Myriad Genetics' board of directors is considering a possible spinoff of its core molecular diagnostics business as it undertakes a strategic review of the company's options. Chairman of the Board John Henderson says that the board won't dally, though. He says the company should make a decision on its next big step by the end of the year.

The review comes shortly after Myriad Genetics' Flurizan earned a one-time payment of $100 million, only to founder soon after in a clinical trial. Most of its revenue comes from its molecular diagnostics business. A spin-off would essentially split the pharma work from molecular diagnostics.

"The board is committed to growing both of our business opportunities in a way that seeks to maximize shareholder value," said Henderson. "We are continuing our deliberations and intend to announce a decision before the end of the year

- check out Myriad's release
- read the AP story

Enzon may concentrate on novel drugs

John Carroll — Mon, 11 Aug 2008 11:19:49 -0400

A move by Enzon to spin off its biotech business has triggered interest in finding a buyer for its specialty pharmacy business instead. And that could leave the company devoted to developing new therapeutics. Enzon issued a release saying it could sell off its entire specialty pharmacy business or would consider selling off individual products: Oncaspar, DepoCyt, Abelcet and Adagen, as well as its Indianapolis, IN manufacturing facility.

"During our efforts to spin-off our biotechnology business, it became clear that we should also explore attractive opportunities for Enzon's other businesses," said CEO Jeffrey H. Buchalter. "Our decision to explore alternatives for our specialty pharmaceuticals business is an outgrowth of that thinking and has the potential to allow Enzon to focus exclusively on our novel biotechnology business as an alternative to our previously announced spin-off."

- check out Enzon's release

ImClone plays hard to get, considers spin-off

John Carroll — Mon, 04 Aug 2008 12:09:08 -0400

Don't expect Carl Icahn to be grabbing any first bid that comes his way--especially if it's Bristol-Myers Squibb's paltry $4.5 billion for ImClone, where the renegade investor now holds sway as chairman of the board. The company is studying the offer, but says the bid "substantially undervalues" its worth. And Icahn has reportedly told the board he doesn't favor the offer.

One option: Spin off the development side of the company into a new venture, which could be worth an estimated $1 billion.

"Based upon preliminary internal data, and recognizing that the pipeline products are in various stages of development, the board still believes that the company's pipeline business may be extremely valuable and significantly increase stockholder value as a separate business," the company said.

Whether the company is serious about a spin-off or just wants BMS to get on to its next, sweetened offer will soon become apparent.

- see ImClone's release
- read the story from the Star-Ledger

Integrated Biopharma spins off biotech company

Maureen Martino — Fri, 25 Jul 2008 12:14:56 -0400

New Jersey-based nutraceutical company Integrated Biopharma is spinning off its interest in iBioPharma to form a stand-alone biotech company. Chairman and CEO E. Gerald Kay said that iBioPharma will be able to raise capital and make pacts with other companies more effectively as a stand-alone than as a subsidiary of Integrated Biopharma. "We strongly believe in the long-term value of the propriety intellectual property developed and owned by iBioPharma, particularly in the growing area of vaccines and therapeutic proteins."

- check out this release

India’s Biocon spinning off its R&D division

John Carroll — Mon, 07 Jul 2008 10:51:39 -0400

India's Biocon is following the footsteps of a lineup of the subcontinent's biopharma companies in spinning off its R&D operations into a separate company. Sun, Wockhardt and Ranbaxy have all announced similar plans, which analysts say can help attract investors into the sector. Biocon's Kiran Mazumdar Shaw also said that Biocon is also preparing to establish its own tablet formulation manufacturing facility. That work has been done by a contract manufacturer.

- check out the story from the Economic Times

Enzon spins off biotech ops into $150M enterprise

Wed, 07 May 2008 06:59:57 -0400

Enzon Pharmaceuticals has decided to spin off its biotech operations into a new company, adopting a suggestion floated by none other than Carl Icahn. Icahn has been making quite a name for himself as a mover and shaker-upper in the biotech industry. Unlike Biogen Idec, which is now barricading the doors against Icahn's campaign to push a sale, Enzon appears to have quickly changed game plans under pressure from Icahn--separating its business into specialty pharma and biotechnology.

Icahn reported a 6.9 percent stake in the company last March, according to the Wall Street Journal, and swiftly suggested either a spin-off or sale of the company.

"The separation will enable the two businesses to compete more effectively in their respective markets and optimize their business goals, research initiatives and capital requirements," says Chief Executive Jeffrey H. Buchalter. Enzon CFO Craig Tooman will become president and CEO of the new company, which will start off with $150 million in the bank to fund R&D efforts. That's enough to fund operations for two to three years.

- see Enzon's release
- check out the article in the Wall Street Journal

Pfizer spins off Esperion as VCs ante up $22.75M

Thu, 01 May 2008 06:59:58 -0400

Pfizer has spun of Esperion Therapeutics into a new biotech company aiming to develop new therapies for cardiovascular and metabolic disease. A syndicate of investors funded the deal. Pfizer sold its interests in the former subdivision to Esperion, which raised $22.75 million from venture funds to finance its operations. Financial details on the spin-off were not disclosed. Pfizer retains an interest in the company.

"Pfizer's contribution to the formation of the new Esperion shows the Company is embracing new strategies to refocus its R&D and create value from exited compounds," said Martin Mackay, president of Pfizer Global Research & Development. "This transaction also enables Esperion to pursue its interests as a Michigan-based life science company while allowing Pfizer to support a new research venture and be involved in Esperion's potential success."

Aisling Capital, Alta Partners and Domain Associates co-led the tranched financing for Esperion, with Arboretum Ventures joining in. The new money will allow further development of Esperion's lead program for the treatment of dyslipidemias, as well as other HDL-related therapeutics.

- check out the Pfizer's release

SPOTLIGHT: Biocon establishing R&D sub

Mon, 28 Apr 2008 06:59:53 -0400

India's Biocon says it will transfer four molecules to a new R&D subsidiary, resisting a trend in the subcontinent of spinning off R&D into a new company. Its researchers are working on new drugs for diabetes, cardiovascular, inflammation, oncology and endocrinology. Report