The UK's Vernalis saw its shares shoot up after the drug developer announced a dramatic restructuring that will eliminate more than half of its work force and put significant parts of its business up for sale. Out the door goes CEO Simon Sturge as Vernalis' U.S. operations and lead drug Apokyn go on the sales block. Analysts immediately began to speculate that the restructuring may put the company in play, with a buyer moving in to take control. New money is needed to meet its obligations to Endo Pharmaceuticals on the migraine drug Frova. Last October the FDA dealt a major blow to Vernalis when it rejected the company's application for another indication on Frova. Vernalis is contesting the decision. Vernalis' executive chairman Peter Fellner told Thomson Financial that the company has enough cash to continue operations for two years and was selling off further assets to beef up its cash stake.
- here's the release
- read the report in Hemscott