D.Lu brought it up... Geez, how quickly we forget! Good ol' Morphelan- been around the block a few times. For anybody (CYTO stockholders, in particular), here is a reminder. The Story is a lot deeper, but...
CYTOGEN Announces Divestiture of Targon Venture
Receives $4 Million in Cash
PRINCETON, N.J., Aug. 14 /PRNewswire/ -- CYTOGEN Corporation
(Nasdaq: CYTO) today announced that it has reached a final agreement for the
unwinding of its Targon venture with Elan Corporation plc (NYSE: ELN).
Negotiations were previously disclosed.
Under the terms of the agreement, CYTOGEN will retain the assets
originally contributed by CYTOGEN to the venture, and will receive a net sum
of $4 million cash, $2 million of which represents a new convertible note
issued to Elan International Services, Ltd (EIS), an affiliate of Elan. The
note is convertible at the option of Elan into shares of CYTOGEN common stock
at a price of $2.80 per share.
EIS will acquire complete ownership of Targon Corporation and all
remaining assets, including Morphelan(TM) the opioid analgesic product
originally licensed by Elan to the venture. As such, the existing note from
CYTOGEN to EIS, in the amount of $10 million, relating to the license by
Targon of Morphelan, is canceled. CYTOGEN will record a gain from the sale of
its investment in Targon.
CYTOGEN Chief Executive Officer and President, Dr. John E. Bagalay Jr.,
commented, "We are concentrating our resources on profitability through
Quadramet and ProstaScint. We believe that it is not in the best interest of
CYTOGEN to commit resources to a venture, where projects, though important,
may differ in priority from CYTOGEN's strategic direction. However, we are
very pleased that Elan has increased its investment in CYTOGEN. We look
forward to continued association with Elan."
CYTOGEN is a biopharmaceutical company engaged in the development,
manufacture and commercialization of products for the targeted delivery of
diagnostics and therapeutic substances directly to disease sites. CYTOGEN has
demonstrated its ability to develop new technology from early discovery
through clinical development, regulatory approval and commercial scale
biologic manufacturing.
Information in this press release, which is not historical, is
forward-looking and involves risks and uncertainties. Actual results may
differ materially, for reasons discussed in the Company's filings with the
Securities and Exchange Commission, including risks related to unanticipated
expenses which may reduce the Company's ability to achieve maximum
efficiencies from the change in business strategies, the ability to find a
suitable partner for further development of the technology, and commercial
acceptance of the Company's products.
SOURCE CYTOGEN Corporation
Web Site: cytogen.com
Company News On Call: prnewswire.com or fax, |
