As an initial step toward anticipated liquidation, Neose Technologies is selling a majority of its assets to Novo Nordisk and BioGeneriX for about $43 million in cash. In August, Neose received a delisting warning from the Nasdaq Global Market. The company has been trading below $1 since the beginning of this year.
Liquidating distributions, in an amount to be determined, are expected to begin shortly after the closing of the asset sales. Neose's preliminary estimate is that there would be between $15 million to $24 million available for distribution over time to common stockholders. This preliminary estimate of aggregate distribution amounts represents $0.27 to $0.45 per share of common stock. Neose closed trading yesterday at $0.23 per share.
Neose reports that it will retain certain intellectual property rights including those related to producing glycolipids. Novo Nordisk and BioGeneriX have separately been collaborating with Neose on its clinical programs.
BioGenerix is partnering on the development of glycoPEG-GCSF for neutropenia associated with myelosuppressive chemotherapy. A Phase II trial began in June to compare three doses of GlycoPEG-GCSF to the standard, fixed 6 mg dose of Neulasta®. Novo Nordisk has licenses to glycoPEGylated factors VIIa, VIII, and IX for the treatment of hemophilia. In June, the firm initiated a Phase I study with factor VIIa.
“The announcement of these asset sales follows an extensive review of a range of strategic alternatives for the company, including obtaining further financing to continue as an independent entity and exploring mergers and acquisitions,” explains George J. Vergis, Ph.D., Neose president and CEO.