Replidyne ends deal with Asubio, expects charge
Monday June 23, 5:55 pm ET
Replidyne ends deal with Asubio Pharma over lead drug candidate; expects $4.1 million charge
LOUISVILLE, Colo. (AP) -- Biotechnology company Replidyne Inc. on Monday said it ended a licensing deal with Asubio Pharma Co. for its lead drug candidate and expects a charge of about $4.1 million.
In May, Replidyne discontinued enrollment in a late-stage study testing its faropenem medoxomil oral antibiotic as a treatment for patients with acute exacerbation of chronic bronchitis. The company made the decision to terminate the deal Monday because it was unable to secure a partner for the clinical program.
It also ended a supply agreement with Nippon Soda Co.
Replidyne said the charges will include about $3.5 million in termination fees for Asubio and $600,000 in engineering costs for Nippon. Other payments going to Nippon include $900,000 for delay compensation.
"We are clearly disappointed that we have been unable to identify a partner for the faropenem program," said Kenneth J. Collins, president and chief executive of Replidyne. "We have decided to terminate this program in order to preserve cash and focus our attention on our previously discussed strategic initiatives and our C. difficile Infection (CDI) program and novel anti-infective programs based on DNA replication inhibition technology."
As of May 31, the company had cash and short term investments totaling $71.5 million.
Shares of Replidyne fell 14 cents, or 10.2 percent, to $1.23 in after-hours trading, after rising 2 cents to close at $1.37 during the regular trading session.
surf's up......crikey
