Record Number of Biotechs Under Strategic Review (BPAX, CEGE, EPIX, IDMI, NRGN, TPTX, LJPC, NFLD)
It is hard to know if this is a record of the number of biotech stocks which are under strategic review, but the number is above and beyond normal. Biosante Pharmaceuticals, Inc. (NASDAQ: BPAX), Cell Genesys, Inc. (NASDAQ: CEGE), EPIX Pharmaceuticals, Inc. (NASDAQ: EPIX), IDM Pharma, Inc. (NASDAQ: IDMI), Neurogen Corporation (NASDAQ: NRGN), and TorreyPines Therapeutics, Inc. (NASDAQ: TPTX) are all under strategic reviews and many of their futures are probably questionable at best. Even La Jolla Pharmaceutical Co. (NASDAQ: LJPC) is in this group; and Northfield Laboratories Inc. (NASDAQ: NFLD) fits loosely into this category while not being a classic biotech.
Biosante Pharmaceuticals, Inc. (NASDAQ: BPAX) has Deutsche as its advisor in its exploration of strategic alternatives. This stock is at $2.06 and its 52-week range is $0.81 to $5.85. This used to be a $10 stock and it has been public since 2001. Back in December, Kingsbridge committed to provide up to $25 million of capital for a period of two years. This one was set up to explore treatments for female sexual health, menopause, contraception, and male hypogonadism.
Cell Genesys, Inc. (NASDAQ: CEGE) retained Lazard last month to help it explore strategic alternatives now that most of its operations have been wound down. Some were once hoping it would have the same sort of hope that Dendreon had for prostate cancer, but that is history now. Amazingly enough, this one has been public since the early 1990′s and shares used to be massively higher than now.
EPIX Pharmaceuticals, Inc. (NASDAQ: EPIX) has JPMorgan to help it explore strategic alternatives. This one is at $0.30 and the 52-week range is $0.21 to $2.50. EPIX has been public since 1997 and was usually above $10.00 until late in 2005. It never saw that again. This is set up to treat diseases of the central nervous system and lung conditions.
IDM Pharma, Inc. (NASDAQ: IDMI) continues to review strategic options for itself after hiring JMP Securities as its advisor. The company said that the review will continue until the third quarter. Shares are at $1.70, and the 52-week range is $1.42 to $3.75. This has been public since 2005 and for all practical purposes it has never traded north of $10.00.
Neurogen Corporation (NASDAQ: NRGN) has MTS Health Partners as its advisor in the review of strategic alternatives. This one is (or was) focused on improved drugs for psychiatric and neurological disorders. Neurogen is pursuing a sale of the company or its assets, and is conserving capital while it pursues these options. AT $0.18, its 52-week trading range is $0.06 to $2.07. The company has been public since about 1992 and spent years and years at levels much higher than $10.00.
TorreyPines Therapeutics, Inc. (NASDAQ: TPTX) has Merriman Curhan Ford as its advisor for strategic alternatives and may be forced to file for bankruptcy or liquidate per its going concern note. At $0.26, its 52-week trading range is $0.15 to $1.60. If you can believe that this used to be north of $100 per share, it was. This came public in 1998 and the company said its aim is to develop versatile small molecule product candidates capable of treating a number of acute and chronic diseases and disorders such as migraine, chronic pain, xerostomia and cognitive disorders. That is probably all past tense.
The saddest part of this is that these are nowhere near all of the biotech companies with some operations that are exploring strategic alternatives. There are many other biotech zombies out there which are too many to cover.
La Jolla Pharmaceutical Co. (NASDAQ: LJPC) is reviewing its alternatives, yet the status there is not known after the ‘rights’ to possible lupus treatment was returned. Its stock is at $0.31 and the 52-week range is $0.04 to $3.20. Northfield Laboratories Inc. (NASDAQ: NFLD) is not what we would consider a biotech in the classic sense, but it failed miserably after a more than 10-year quest to create a Holy Grail of artificial blood or blood substitutes.
The long march continues. Unfortunately, this looks a lot like the Bataan Death March.
JON C. OGG
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