The proposed merger of contrast agent developers Palatin Technologies and Molecular Biosystems will not take place. Princeton, NJ-based Palatin has informed MBI that it has elected not to go ahead with the merger, saying the deal was not the best option for its shareholders.
"We took a long hard look at it, but felt at the end of the day that it was not in our best interest," said Palatin executive vice president and chief technical officer Carl Spana.
Palatin declined to give further reasons for its decision, which ends a definitive merger agreement the companies signed on November 12, 1999. Both firms had touted the deal as a means of building a stronger company with a broader product range and a more robust technology pipeline.
Now that the deal with MBI is off, Palatin will continue to investigate acquisition or partnership opportunities, Spana said.
"The idea behind the MBI deal was to build enough mass to get investors interested and have a lot of cutting edge imaging technology in the product portfolio," he said. "That's still a valid concept; it's just a matter of finding the right pieces to put together. There's a wealth of interesting opportunities out there."
In a press release, MBI said that it is currently reviewing its options. An MBI spokesperson declined to comment on what those options might be.
San Diego-based MBI currently has one product on the market: its Optison cardiac ultrasound contrast agent, whose current indications are for endocardial border delineation and left ventricular opacification. MBI is also developing MB-840, a liver-selective CT imaging agent with therapeutic potential.
For its part, Palatin has submitted a biologics license application (BLA) to the Food and Drug Administration for its LeuTech radiolabeled monoclonal antibody agent for the imaging of infection. In February the FDA accepted the application for full review, a process that typically takes 10-12 months. The company is also developing PT-14, a peptide-based therapeutic drug for sexual dysfunction. PT-14 has completed phase I clinical trials.
Both companies hold strategic alliances with Mallinckrodt for product distribution, and the St. Louis-based firm has an equity stake in both MBI and Palatin. MBI also partners with Chugai Pharmaceutical of Japan for commercialization of Optison in Japan, South Korea, and Taiwan. Chugai began phase III clinical trials in Japan in December for the agent (called FS069 in Japan) for the assessment of left ventricular opacification and myocardial perfusion imaging.
By Erik L. RidleyAuntMinnie.com staff writer
March 14, 2000
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