Takeover bid for Arana

By Kate McDonald
Friday, 27 February, 2009

Arana Therapeutics is in discussions with an unnamed party about a possible takeover bid for the cash-rich company.

Arana, itself the result of a merger between Evogenix and Peptech, has a full and promising pipeline and a very strong cash position of $175 million.

It discontinued its age-related macular degeneration project PMX53 recently, but has strong candidates in inflammatory diseases. Lead candidate ART621, an anti-TNF antibody, is nearing the end of a Phase II trial for psoriasis and is beginning Phase II for rheumatoid arthritis.

The company’s market capitalisation is a very healthy $190 million and its finances strong enough to have carried out a share buy-back.

The company said it would make an announcement on both the bid and the search for a new CEO in due course.

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