CuraGen's Board of Directors to Evaluate Strategic Initiatives
18 Febrero 2009 - 5:30AM
PR Newswire (US)
Conference call to be hosted today at 11:00 a.m. ET BRANFORD,
Conn., Feb. 18 /PRNewswire-FirstCall/ -- CuraGen Corporation
(NASDAQ:CRGN) announced today that it is undertaking a review of a
broad range of strategic alternatives to enhance shareholder value.
Robert E. Patricelli, Chairman of the Board of CuraGen commented
that "The Board believes that management is making exciting
progress as CR011 moves through the current Phase II clinical
trials and that it has taken the necessary actions over the past
two years to ensure that CuraGen is a well capitalized organization
in a difficult external financing environment. The Board further
believes we should consider strategic alternatives that could
enhance shareholder value. These alternatives range from selling or
licensing CR011, to acquiring additional assets or business lines,
to selling the company. The company will retain an investment bank
to assist the Board with its strategic review. During our
evaluation process, management will remain focused on executing our
current business plan." Dr. Timothy M. Shannon, President and Chief
Executive Officer, also announced that CuraGen has retained
JSB-Partners to identify potential acquirers of CR011-vcMMAE. "In
an ongoing multi-center study in heavily pretreated patients with
breast cancer, CR011 is well tolerated and there is early evidence
of activity. Our Phase II program in melanoma also continues to
show promising activity", commented Dr. Shannon. "The potential to
move CR011-vcMMAE into more advanced development in both patients
with breast cancer and patients with melanoma makes this a good
time to seek strategic interest in the marketplace." There is no
assurance that this process will result in any changes to the
Company's current business plans or lead to any specific action or
transaction. While the process is underway, the Company does not
intend or expect to disclose any developments regarding the process
until, if ever, a definitive agreement is entered into or the board
determines to terminate the process. "We ended 2008 with $88
million of cash and investments on hand, have a clinically active
attractive Phase II development asset, and over $500 million in net
operating loss carryforwards (NOLs). Yet, our stock price does not
reflect the intrinsic value of our assets and we continue to trade
at a deep discount to our cash." commented Dr. Shannon. "We seek to
address these value disconnects through the strategic review
process." The Company also recently completed a privately
negotiated transaction with a holder of the Company's 4%
Convertible Subordinated Notes due February 2011 (the "2011 Notes")
in which the Company retired a total of $4.8 million of the 2011
Notes for an aggregate purchase price of $3.8 million or a 21%
discount off of face value. This transaction added $1.0 million of
net cash to the Company's balance sheet. The Company now has $14.1
million of the 2011 Notes outstanding. The Company's burn guidance
for the first half of 2009 remains unchanged at $7.0 to $8.0
million and the Company now expects to end the second quarter of
2009 with between $76 and $77 million of cash and investments.
Conference Call Details and Dial-in Information Date: Wednesday,
February 18, 2009 Time: 11:00 a.m. EST Dial-in: 877-856-1955
(domestic) 719-325-4796 (international) Webcast: Access available
at http://www.curagen.com/ Replays will be available starting at 2
pm, EST, February 18, 2009 until midnight, March 18, 2009 at
888-203-1112, passcode-8727431 Forward-Looking Statements
Statements in this press release regarding management's future
expectations, beliefs, intentions, goals, strategies, plans or
prospects, including statements relating to the Company's revenue,
expenses, depreciation, amortization, asset impairment charges,
losses, income, and future cash and investment positions, the
timing and expected results of our clinical programs, and the
development and marketability of planned drugs, may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by terminology such as "anticipate,"
"believe," "could," "could increase the likelihood," "estimate,"
"expect," "intend," "is planned," "may," "should," "will," "will
enable," "would be expected," "look forward," "may provide,"
"would" or similar terms, variations of such terms or the negative
of those terms. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors including the risk
that any one or more of CuraGen's drug development programs will
not proceed as planned for technical, scientific or commercial
reasons or due to patient enrollment issues or based on new
information from nonclinical or clinical studies or from other
sources, the success of competing products and technologies,
CuraGen's stage of development as a biopharmaceutical company,
government regulation and healthcare reform, technological
uncertainty and product development risks, product liability
exposure, uncertainty of additional funding, CuraGen's history of
incurring losses and the uncertainty of achieving profitability,
reliance on research collaborations and strategic alliances,
competition, patent infringement claims against CuraGen's products,
processes and technologies, CuraGen's ability to protect its
patents and proprietary rights and uncertainties relating to
commercialization rights, as well as those risks, uncertainties and
factors referred to in CuraGen's Quarterly Report on Form 10-Q for
the quarter ended September 30, 2008, filed with the Securities and
Exchange Commission under the section "Risk Factors," as well as
other documents that may be filed by CuraGen from time to time with
the Securities and Exchange Commission. As a result of such risks,
uncertainties and factors, CuraGen's actual results may differ
materially from any future results, performance or achievements
discussed in or implied by the forward-looking statements contained
herein. CuraGen is providing the information in this press release
as of this date and assumes no obligations to update the
information included in this press release or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. CRGN-F Contacts: Sean Cassidy Vice
President and Chief Financial Officer 203-871-4400 DATASOURCE:
CuraGen Corporation CONTACT: Sean Cassidy, Vice President and Chief
Financial Officer of CuraGen Corporation, +1-203-871-4400, Web
Site: http://www.curagen.com/
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