Celladon cuts staff, considers liquidation following bad trial results
Celladon has confirmed plans to suspend further R&D of its MYDICAR (AAV1/SERCA2a) program and its other preclinical programs, including the Stem Cell Factor (mSCF) gene therapy and SERCA2b small molecule programs.
Earlier in June, the company announced the engagement of Wedbush PacGrow Healthcare as its exclusive financial advisor and a strategic plan to seek a merger or sale. This process is ongoing and the company expects to provide further updates on the progress of this strategic plan in the coming quarter, which could include the sale of the company or some or all of its assets, and/or a liquidation and distribution of the remaining cash to its shareholders.
"Our board of directors has unanimously determined that seeking a merger or sale, in lieu of further development of our remaining programs and assets, gives us the best opportunity to maximize shareholder value. We are aggressively pursuing that course," said Paul Cleveland, president and CEO of Celladon. "If we are unable to identify a merger or sale that provides superior value to our shareholders, we will move forward with a liquidation and distribution of net cash to shareholders."
The company currently estimates that if it were to liquidate during the third quarter of 2015, the net cash available for distribution to shareholders would be approximately $25-$30 million. This projection is based on the company's current expectations and assumptions, and the actual amount of net cash available for distribution in such a liquidation and distribution could differ materially from the Celladon's current estimate.
Celladon also announced a second reduction in its workforce, with approximately half of the employees not previously notified of termination of employment being expected to depart in the third quarter.