MediciNova bids for Avigen
On Tuesday, MediciNova (NASDAQ:MNOV; Osaka:4875) disclosed that it made an unsolicited offer on Monday to acquire Avigen (NASDAQ:AVGN) for 1.8 million shares and a convertible security equal to Avigen's net cash, less $7 million. The shares are worth $2.8 million based on MediciNova's close of $1.60 on Monday, before the bid was announced. The security would convert back into cash or into shares of MediciNova at $4. On Monday, Avigen said it expects to begin 2009 with $56 million in cash.
Avigen said it will consider the proposal in the new year. The company's sole clinical compound is ibudilast ( AV411), a glial attenuator that suppresses IL-1 beta, TNF alpha and IL-6, which is in a Phase IIa trial to treat opioid withdrawal symptoms. The company restructured in October and returned to Sanochemia (Xetra:SAC) its rights to tolperisone ( AV650), which failed a Phase IIb trial to treat spasticity associated with multiple sclerosis (MS). Earlier this month, Avigen sold its AV513, a non-anticoagulant sulfated polysaccharide (NASP) in preclinical testing to treat hemophilia, to Baxter (NYSE:BAX). ...