Nov 9 (Reuters) – Myrexis Inc said its board
decided to dissolve the biopharmaceutical company nearly nine
months after it suspended development activity on its
pre-clinical and clinical programs, sending its shares up 23
percent.
Myrexis, spun off from Myriad Genetics in 2009, had
been developing several experimental drugs for cancer and
autoimmune diseases.
“The Board of Directors and management, together with its
external advisers, devoted substantial time and effort in
identifying and pursuing opportunities to enhance shareholder
value; however, that process did not yield a potential
transaction,” Myrexis Chairman Gerald Belle said in a statement.
The company hired Stifel Nicolaus Weisel Bank in February to
help evaluate a range of strategic alternatives.
Myrexis estimated it will pay its shareholders between $72.9
million and $77.9 million, or between $2.72 to $2.91 per share,
based on the common stock outstanding as of Nov. 2.
The company, which has a market value of about $63 million,
said it will establish a reserve of between $7 million and $12
million to meet expenses.
Myrexis hired two biotech veterans in May, and planned to
convert itself into a vehicle that will acquire drugs that are
owned but under-exploited by other companies.
However, one of the veterans Richard Brewer died of cancer
in August.
The Salt Lake, Utah-based company’s shares rose as much as
23 percent in extended trade. They closed at $2.34 on Friday on
the Nasdaq.
(Reporting By Pallavi Ail in Bangalore; Editing by Sriraj
Kalluvila)
