Company says that it is evaluating other proposals that offer better value.

Avigen has determined that the $20.5 million unsolicited offer from Biotechnology Value Fund (BVF) is too low. The board strongly recommends that stockholders not tender their shares into BVF’s offer and withdraw any previously tendered shares.

“We believe we can create more value for stockholders than the $1.00 per share that BVF has offered,” states Kenneth Chahine, Avigen CEO and director. “In the last few weeks, we have received multiple proposals that place significant value on the company’s cash position, intellectual property, AV411 product development program, and public listing on NASDAQ. We are encouraged by this positive response and believe it can lead to significant additional value for all stockholders.”

In a letter to shareholders, the board said that it was trying to facilitate discussions with  MediciNova, which in December 2008 proposed acquiring Avigen. Since making that unsolicited bid, however, MediciNova has been slow to advance discussions, according to Avigen.

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