DSCO appears to be for sale:
Discovery Labs Retains Jefferies & Company to Assist in the Evaluation of Potential Strategic Alternatives
WARRINGTON, Pa., June 20, 2006 (PRIMEZONE) -- Discovery Laboratories, Inc. (Nasdaq:DSCO) today announced that it has engaged Jefferies & Company, Inc., the New York-based investment banking firm, to assist the Company in identifying and evaluating strategic alternatives intended to enhance the future growth potential of the Company's surfactant replacement therapy pipeline and maximize shareholder value. Discovery is considering multiple alternatives including, but not limited to, potential business alliances, commercial and development partnerships, financings, business combinations and other similar opportunities. No assurances can be given that this evaluation will lead to any specific action or transaction. Discovery does not plan to make future comments about the status of the evaluation of strategic alternatives unless there are material developments.
Discovery Laboratories, Inc. is a biotechnology company developing proprietary Surfactant Replacement Therapies (SRT) for multiple respiratory diseases. Surfactants are produced naturally in the lungs and are essential for breathing. Discovery's technology produces a precision-engineered surfactant that is designed to closely mimic the essential properties of natural human lung surfactant. Discovery believes that its proprietary pulmonary surfactant platform has the potential to address multiple respiratory diseases where there are few or no approved therapies available.
Robert J. Capetola, Ph.D., President and Chief Executive Officer of Discovery, commented, "The management and Board of Directors continuously evaluate our business to identify and develop opportunities for maximizing value for all shareholders. We look forward to working with Jefferies in this regard. While reviewing various strategic alternatives, the Company's immediate priorities are to address the manufacturing and regulatory requirements for FDA approval of Surfaxin(r), initiate Phase 2 clinical trials with Aerosurf(tm) and announce our next SRT programs to enter Phase 2 clinical development."
Discovery's lead product, Surfaxin, has received two Approvable Letters from the FDA for the prevention of Respiratory Distress Syndrome (RDS) in premature infants. In addition, Discovery recently concluded patient enrollment for its Phase 2 Bronchopulmonary Dysplasia (BPD) clinical trial evaluating the potential incremental benefit of Surfaxin versus standard of care. Discovery plans to report the top-line results for this trial in the fourth quarter of 2006. Discovery is also developing Aerosurf, its proprietary SRT administered in aerosolized form, for the treatment of multiple respiratory disorders. Discovery is preparing to initiate Phase 2 clinical studies in neonates with Aerosurf administered through nasal continuous positive airway pressure (nCPAP), potentially obviating the need for intubation and conventional mechanical ventilation. Discovery is also developing aerosol formulations of SRT to potentially address Acute Lung Injury (ALI), cystic fibrosis and other respiratory conditions.
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