Wednesday, February 13, 2008

Point Therapeutics is now Dara BioSciences following merger completion

Struggling biotech Point Therapeutics Inc. and Dara BioSciences Inc. completed a reverse merger yesterday, eliminating Point Therapeutics as a company and making the integrated Dara publicly traded, officials say.

Once the respective stockholders of Dara and Wellesley Hills-based Point approved the deal, and immediately prior to the consummation of the merger, Point effected a 40-to-1 reverse stock split of its common stock. Once the merger was completed, Raleigh, N.C.-based pharmaceutical company Dara became a wholly-owned subsidiary of Point, and Point changed its name to Dara BioSciences Inc.

Dara's stockholders are expected to own 96.4 percent of Point Therapeutics' common stock. The merged firm will be based in Raleigh. The company's common stock will continue to trade on the Nasdaq Capital Market under the symbol "DARA." Additionally, the board of directors and executive officers of Dara will lead the combined company.

In July 2007, Point Therapeutics reported it had laid off chairman and CEO Donald Kiepert; CFO Richard Small; general counsel Michael Duffy; and chief scientific officer Barry Jones. At the time, a company spokeswoman said the firm was down to two full-time employees. The layoffs came after an independent panel advised to firm to stop its Phase 3 trials of drug talabostat as a treatment for advanced non-small cell lung cancer.

Point Therapeutics reported a net loss for 2006 of $29.3 million on revenue of $440,000.