NeuroSearch to update its strategy, reduce staff
NeuroSearch’s transfer of the Huntexil project to Teva Pharmaceutical Industries is now so advanced that the company foresees a significant reduction in the activity level in the near future. Therefore, NeruoSearch will take measures to adjust the organization to the lower activity level and at the same time update its company strategy.
The board of directors and the executive management will initiate negotiations with the purpose of dismissal of the majority of the company's employees. The employees will be available to the company for a certain period after the dismissal. It is expected that the remaining organization will consist of three to six employees.
NeuroSearch will take preparatory steps to wind up the remaining activities and settle the company's obligations to be able to return available cash to the shareholders, possibly after a solvent liquidation process which is to be decided upon at a later Extraordinary General Meeting.
The remaining assets primarily include the deposited sales price relating to Huntexil of DKK $4.9 million which is expected to be released in continuation of the final transfer of the project as well as the company's land and building in Ballerup. NeuroSearch continuously seeks to sell the land and building and will also evaluate the possibility for renting out part of or the entire building in order to promote the possibility for a sale.
At the end of 2012, the capital resources consisting of cash and cash equivalents, including securities, was $14 million and mortgage debt stood at $17.5 million.
In addition, the board of directors and the executive management are working on realizing the value of the other remaining assets in NeuroSearch, the most important being three clinical projects: Tesofensine for the treatment of obesity (completed phase II); Seridopidine for the treatment of CNS diseases (completed phase I); and Ordopidine for the treatment of CNS diseases (completed phase I). The company also owns 28.6% ownership of NsGene and 17.8% ownership of Atonomics.
Furthermore, NeuroSearch made up a non-recognized tax asset of approximately $363 million at December 31, 2012 which—under certain conditions—may be utilized fully or partly by a potential buyer of NeuroSearch.
NeuroSearch is in dialogue with several companies regarding the possibility of a merger or similar kind of transaction as an alternative to winding up the company's activities. A merger or similar kind of transaction could bring new activities to the company which would enable continued operations of NeuroSearch. A decision will be presented to the company's shareholders at a future Extraordinary General Meeting as soon as sufficient basis for decision is present.