Biotech Values

[mcbio]

Re: P&G dropping ATI-7505

ARYX was off 24% (Wed AH vs Tue close) on loss of PG as a partner for ATI-7505:

http://biz.yahoo.com/bw/080702/20080702005984.html

…despite the company’s cheesy attempt to soften the blow with data from a QTc study on a different compound (ATI-7505):

http://biz.yahoo.com/bw/080702/20080702005979.html

p.s. My main interest in ARYX is its “next-generation warfarin” compound called ATI-5923 (#msg-30170392).

During a recent presentation, management attributed P&G's decision to drop ATI-7505 to P&G's decision to exit the drug business entirely. Do you think this is a plausible explanation or just spin from management? I'm curious if there is something wrong with the drug or if this was just a macro decision from P&G. I guess it depends on the date when P&G actually did exit the drug business; if shortly after this announcement, it makes management's response more believable.