ARYx Therapeutics (ARYX) Announces Interest in Exploring Options

February 19, 2010 7:11 AM EST
ARYx Therapeutics Inc. (NASDAQ: ARYX) today announced that it has retained Cowen and Company to explore strategic options for ARYx. While discussions continue with pharmaceutical companies regarding the licensing of its oral antiarrythmic agent, budiodarone, the companies with whom ARYx was engaged in advanced discussions have recently indicated that they do not intend to proceed to an agreement. As a result, it has become clear that ARYx will not complete a partnership on the product in the near term. By retaining Cowen, ARYx will explore the possibility of capturing full near-term value for its three lead programs rather than pursuing licensing deals that provide value over an extended period of time.

In conjunction with this action, ARYx has also completed a substantial reorganization of the Company, reducing the number of employees to fewer than 20. The focus of this retained group is to work with Cowen to optimize the value of the late-stage assets of the Company in the most efficient manner.

"When we reached the point that it became clear we will not be completing a partnership in the near term, we reviewed many strategic alternatives before deciding to retain the services of an investment bank," said Dr. Paul Goddard, chairman and chief executive officer of ARYx. "We have three products at proof of concept stage and amongst these three programs we have treated more than two thousand people with our drugs. For each of these products, we have made substantial progress in characterizing both their safety and efficacy, and we remain convinced that they have substantial value. It is for this reason that we have retained the services of Cowen with the objective of realizing optimal value on behalf of our stockholders."

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