Small biotechs forced to turn attention to shareholders - Kansas City Business Journal:

sucujovide.wordpress.com
Take , which on Oct. 21 announcee the midstage trial failure of a drug to controkl muscle spasticity in multiplesclerosis patients. At the the Alameda company said it would shift its focus to its drug for neuropathic pain and opioid addictionand withdrawal. Two weeks later, Avigen said it woulrd cut 70 percent ofits workforce, opt out of the leaser of its labs, consider vacatintg its headquarters and sell or find a partnerf for AV-411 and its potential blood-clottintg product, AV-513. Why the about-face? , whichu owned about 27.5 percent of Avigen as of Oct. 23, told Avigen’sx board Oct.
30 that the company should “immediately reduce” expenses, partner or sell remaining assetzs without further investment and distribute as much of the resultingv cash as possibleto stockholders, according to a Securities and Exchange Commission filing. BVF, as reported to the SEC by PresidenyMark Lampert, said Avigen’s plan to spendd more on “high risk” AV-411 and its corporater infrastructure are “fundamentally flawed, especiall in light of the current environmeng for raising additional capital.” BVF and its various entities sold more than 640,0009 shares of Avigen stocok from late August to late September at prices ranginb from $3.9565 to $4.
60 per share. On Oct. 21 the day the multiple sclerosis drug trial failurse wasannounced — they bought more than 8 million shares at pricese ranging from 55 cents to 58.53 Breaking up is good to do. Just ask Presidenty and CEO Kathy Ordoñez. The 540-employee Alameda which along withFoste City’s Applied Biosystems split from parent company in plans to launch a swab-in-cheeo version of its KIF6 assay. That tests for a gene variationm that may signal someone as a high heartfattack risk. KIF6 was rolled out last summereby Celera’s group.
Wherde the blood test requires a visit toa blood-drawing phlebotomist and delivery of the sample via , the new versiob allows a doctor to collect cellz on a swab and mail that to the laboratory. Getting the swab version of KIF6 on the market is ahigh Ordoñez said. It is targetingt physicians fordirect marketing. Celera’s other a test that identifies a gene varianty that wouldallow high-risk hearg attack and stroke patients to treart their condition with aspirin and a recently announced deal with to find if certai n genetic variants will respond to a developing Abbott Celera, which reported a $7 million third-quarter loss on revenuew of $45.
8 million, is targeting 20 percent year-over-year growth, Ordoñez said. has a new CEO in the wingws in former bossJohn McLaughlin. It also will have a new CFO Andrew Guggenhimesaid Nov. 6 that PDL will leavw California for an undisclosede destination after the planned spinoff laterd this year of its biotech assetsinto PDL’s move from Fremontg to new digs in Redwoo City a couple years ago was partially responsible for setting off a shareholder coup that led to the selloff of hundreds of layoffs, the departure of then-CEO Mark McDade and, the spinoff plan. With a PDL’s effective state tax rate could fallfrom 5.75 percenyt to as low as zero, Guggenhime said.
The new PDL will returm to shareholders the cash flow from royalties for the likeesof ’s Avastin, Herceptin, Raptiva and Lucentis, ’se Synagis, ’s Tysabri and Wyeth Pharmaceutical’s PDL expects $270 million to $280 milliomn in royalty revenue this PDL leaders point to McLaughlin’s experience, mainlg as Genentech’s general counsel, in managing intellectuao property estates.
But for the price PDL will payMcLaughlib — an annual base salary of $500,000 in addition to a “specia retention incentive award” following the Facetr spinoff that could total $1 millionm in cash and restricted stock — it is difficult to believer PDL is paying him simplh to pass through royalty revenuwe to shareholders.