Here's the Bloomberg story, it's a bit more specific:
La Jolla, California, Jan. 15 (Bloomberg) -- Lidak
Pharmaceuticals, which has been seeking a marketing partner for
its new herpes drug, received a financing offer of $80 million to
$130 million from HealthMed Inc. to help distribute and sell the
anti-herpes treatment.
Lidak announced Dec. 31 that Bristol-Myers Squibb Co.
canceled its license to market Lidak's anti-herpes drug, Lidakol.
The drug is now facing U.S. Food and Drug Administration review
for marketing approval.
HealthMed's plan, which is being considered by a Lidak board
committee, is intended to hasten certain development projects and
assist in the marketing and distribution of Lidakol. Closely held
HealthMed, based in Santa Monica, California, is affiliated with
several large health companies.
HealthMed's proposal calls for the acquisition of Lidak's
voting stock, meaning HealthMed, acting as trustee, would gain
voting rights, while shareholders of money-losing Lidak would
keep the right to future earnings or dividends. HealthMed also
intends to restructure Lidak's board.
''We are very fortunate to be able to create this new
partnership,'' Lidak Chief Executive and President David Katz
said in a statement.
Katz sold about 30 percent of his stake in La Jolla,
California-based Lidak to HealthMed and agreed to put the rest of
his holdings in a voting trust with HealthMed as trustee.
Lidak rose 3/16 yesterday to 2 7/32. |
