MediGene: Taking a bird in the hand

Skeptical markets are forcing European companies to reconsider their business plans in order to stretch limited cash. In a move to make its cash last to expected breakeven in 2005, MediGene AG last week announced plans to spin out its cardiovascular drug discovery program in order to concentrate purely on its oncology business.

MDG's decision follows the failure of its Etomoxir small molecule carnitine palmitoyl transferase 1 (CPT1) inhibitor in Phase II trials in congestive heart failure (CHF) (see BioCentury, June 17). The decision to drop development left MDG with a research-stage cardiovascular program. ...