Celladon Corp. announced that it will suspend all research and development activities.
This includes the suspension of the Mydicar program, along with is pre-clinical Stem Cell Factor gene therapy and Serca2b small molecule programs.
The news comes after the company announced the major clinical trial failure of its lead product candidate, resulting in layoffs and the exit of then-CEO Krisztina Zsebo.
Earlier in the month Celladon announced that it had hired financial advisor Wedbush PacGrow, along with a plan to seek a merger or sale.
The company expects to provide further updates in the coming quarter, which could include the sale of the company or some or all of its assets, and/or a liquidation and distribution of the remaining cash to its shareholders, according to a recent news release.
"Our board of directors has unanimously determined that seeking a merger or sale, in lieu of further development of our remaining programs and assets, gives us the best opportunity to maximize shareholder value,” said the company’s new CEO and president Paul Cleveland. “We are aggressively pursuing that course. If we are unable to identify a merger or sale that provides superior value to our shareholders, we will move forward with a liquidation and distribution of net cash to shareholders."
The company currently estimates that if it were to liquidate during the third quarter of 2015, the net cash available for distribution to shareholders would be approximately $25 to $30 million.