Eiger BioPharmaceuticals Inc (EIGRQ)

[chmcnfunds]

Celladon Plunges After Suspending MYDICAR Program, Among Others

This morning, Celladon (CLDN 2.20) confirmed its plans to suspend further research or development of its MYDICAR (AAV1/SERCA2a) program and its other pre-clinical programs including the Stem Cell Factor gene therapy and SERCA2b small molecule programs.

The company's process to seek a merger or sale is ongoing and it expects to provide further updates on the progress of this strategic plan in the coming quarter, which could include the sale of the Company or some or all of its assets, and/or a liquidation and distribution of the remaining cash to its shareholders.

The company currently estimates that if it were to liquidate during the third quarter of 2015, the net cash available for distribution to shareholders would be approximately $25-$30 million. The company also announced a second reduction in its workforce, with approximately half of the employees not previously notified of termination of employment being expected to depart in the third quarter.

Following this news, the stock tanked about 43% to $1.26/share, down from yesterday's close of $2.20/share.

Read more: http://www.briefing.com/investor/analysis/story-stocks/celladon-plunges-after-suspending-mydicar-program-among-others.htm#ixzz3eAwLrmde
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CLDN