No surprises here as three more companies announce they will soon spare us from further atrocious news about their failed and/or disastrous drugs. Here we go…

• Avigen had planned on doing a merger, but have now decided they’re finished. Kaput. Done. It’s Over. Dead. The End. No mas. Fin. Owari. The company’s lead gene therapy compound AV650 failed in October 2008. Avigen’s been floating (<— no pun here) around in the news recently with talks about merging with BVF Acquisition, but now that’s scrapped. Here’s what board chairman Zola Horovitz said:

“Based on the actions taken by BVF, Avigen’s Board believes its ability to pursue the strategic alternatives that the Board believes will increase stockholder value is all but foreclosed. Our Board has established a responsible pattern for dealing decisively with strategic issues, as demonstrated following the negative data from the company’s AV650 clinical trial in October 2008. While our Board considers the inability to continue its strategic process unfortunate, it has abandoned discussions for a strategic transaction and intends to develop a plan that will maximize liquidation value. As such, the Board determined that the company no longer needs to retain the services of the majority of its employees that were supporting strategic discussions and has reduced its headcount accordingly.”

Yikes.

• Neurobiological Technologies (NTI) wants to sell itself. The developer of Viprinex (ancrod) for stroke said they’ve hired RBC Capital Markets as its exclusive financial advisor to assist in the evaluation of various options to enhance shareholder value, including a potential sale of the Company or its major assets. Good luck.

Acting CEO Bill Fletcher said this:

“We have a duty to our shareholders to maximize the value of NTI. We intend to proceed expeditiously in this process while continuing to wind-down operations, cut expenses and preserve cash. If our evaluation of strategic options does not result in a transaction that meets our objectives, NTI will act expeditiously to return as much cash as possible to our shareholders through a liquidation or other means.”

• Last, but not least is EPIX Pharmaceuticals. The company is loaded in debt and owes more money than the US owes China. Two weeks ago EPIX axed a bunch of workers in order to save cash, but that will not be enough.

Today, EPIX auditors Ernst & Young expressed doubt about the company’s ability to stay in business and gave the company a “going concern.”

It’s just a matter of time for all these guys.

Avigen, NTI, EPIX: Welcome to The Graveyard, baby, err babies!

Image from ihategreenbeans

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