Shares of U.K.'s Neuropharm shot up 33 percent this morning when the developer announced that its board will explore the possibility of a return of cash to shareholders. The company is still hoping to pull off a deal for its lead autism candidate NPL-2008, which it put up for sale in November of last year. "The company is continuing talks with a potentially interested party, which is in the advanced stages of due diligence, but no indicative offer has yet been received from that party," Neuropharm says in a statement.
Neuropharm's shares took a beating early last year after the biotech reported that its late-stage trial for an experimental autism therapy flunked its primary endpoint. But its stock was revived upon rumors that it was getting close to a deal for NPL-2008. In its release, the company notes it has significantly reduced its cash burn and had £6.18 million ($9.2 million) on hand as of Dec. 31, 2009.
- here's Neuropharm's release
- read this Reuters report for more