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New Release /// If we had a deal it would have been good for us
PRINCETON, N.J., July 28 /PRNewswire/ -- CYTOGEN Corporation
(NASDAQ:CYTO) today announced the status of its Cellcor subsidiary.
Over the last four months, extensive negotiations for the sale of Cellcor
were ongoing. Late stage negotiations have fallen through and the Board of
Directors is reviewing its options for sale or closure of the Cellcor
subsidiary to focus on its primary business of marketing Quadramet(R) and
ProstaScint(R). Cellcor management is currently seeking potential partners
for the future funding and development of autologous lymphocyte therapy (ALT),
however, operations will cease in approximately 45 days, should negotiations
not appear likely to be concluded promptly. Management of Cellcor has
expressed interest in a buyout of the operation which the Board is
considering, along with remaining open to discussions with other interested
parties.
The Company and its Board of Directors believe in the safety and efficacy
of ALT for the treatment of metastatic renal cell carcinoma but, as previously
announced, concluded that ALT is not compatible with the company's strategic
direction.
"We have been in extensive negotiations with a company interested in the
purchase of the Cellcor subsidiary, and have continued to fund operations to
date," stated John E. Bagalay, Jr., CYTOGEN's President and Chief Executive
Officer. "We were disappointed when negotiations which were well along
suddenly fell through. The Board has decided to commit another 45 days to a
determined effort to structure either a management buyout agreement or some
other partnership. However, unless this final effort is clearly on a
successful track within 45 days, all Cellcor operations will cease. We
believe that this decision is essential to the future success of CYTOGEN."
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
-0- 07/28/98
/CONTACT: Corporate Communications of CYTOGEN, 609-987-8221, or Angela M.
Bitting of Russell-Welsh, 650-312-0700, ext. 15, for CYTOGEN/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 224650/
/Web site: cytogen.com |
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