Alza works balance sheet magic

Alza Corp.'s spin-off of Therapeutic Discovery Corp. to its shareholders, which is structured much like an R&D partnership without the partners, could provide a model for product development funding by other biotech companies, once they achieve earnings and have significant amounts of cash in the bank.

AZA last week said it will contribute $250 million in cash to TDC, which is being set up to develop proprietary products combining off-patent drugs with AZA's delivery technology. AZA, which now derives its income from royalties, has for several years aimed to develop proprietary products it can market itself...