IDM Pharma Announces Termination of UVIDEM Development Collaboration and Expected Restructuring in Connection With Evaluation of Strategic Alternatives
Monday December 31, 8:30 am ET
IRVINE, Calif., Dec. 31 /PRNewswire-FirstCall/ -- IDM Pharma, Inc. (Nasdaq: IDMI - News) today announced that as part of the Company's recent decision to evaluate strategic alternatives, the Company initiated discussions with sanofi-aventis. Following this, sanofi-aventis has notified the Company of its decision to discontinue participation in the development of UVIDEM, its investigational therapy being studied for the treatment of melanoma, with all rights to the product reverting to the Company.
In connection with this decision, the Company announced it expects to restructure, which it anticipates will involve staff reductions in the Company's workforce and a review of the assets and costs associated with products under development. The Company's restructuring plan is expected to be finalized and approved by the Company's Board of Directors during the first quarter of 2008. The Company expects to retain a core team in key functional areas and, as part of the Company's previously announced strategic initiatives, will continue to evaluate the UVIDEM clinical program, which recently completed Phase 2 studies with promising results.
The Company believes that these decisions have the following potential benefits:
-- IDM Pharma now has full rights to its product candidates including mifamurtide (L-MTP-PE), IDM-2101 and UVIDEM
-- The anticipated restructuring is expected to enable the Company to significantly reduce its infrastructure and operating expenses
-- The restructured company may be a more attractive partner in any potential strategic transaction going forward
"These decisions provide the company with increased flexibility in our assessment of strategic options," said Timothy P. Walbert, president and chief executive of IDM Pharma. "In addition, we are continuing to pursue potential regulatory approvals for mifamurtide (L-MTP-PE) and the possible further clinical development of IDM-2101."
The Company will work with sanofi-aventis to conclude the UVIDEM collaboration within the three month timeframe prescribed in their agreement. As of September 30, 2007, sanofi-aventis owned approximately 7.9% of the Company's outstanding common stock.
About UVIDEM
UVIDEM is a therapeutic specific immunostimulant developed to date by IDM Pharma in partnership with sanofi-aventis. UVIDEM consists of mature dendritic cells loaded with lysates from melanoma tumor cell lines. UVIDEM has been administered to 143 patients in clinical development. |
