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Print Edition StoriesFriday, May 29, 2009
Clinical Data closes buyout of Avalon Pharmaceuticals
By Mass High Tech staff
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Newton-based biotechnology firm Clinical Data Inc. has completed its buyout of Maryland-based Avalon Pharmaceuticals Inc. for about $10 million in stock, the company announced.
The acquisition deal pricing stems from the 15-day $12.49 weighted average price of Clinical Data common stock at the time of the deal agreement last October. Shareholders of Avalon (Nasdaq: AVRX) stock will receive 0.05 share of Clinical Data (Nasdaq: CLDA) common stock per share they hold, the equivalent of just under one million shares total, with the ability to add more, dependent on contractual payments from Avalon.
In the October announcement of the acquisition, Avalon was said to have received a $3 million term loan from Clinical Data, which was secured by a first priority lien on all of Avalon’s intellectual property. And Clinical Data paid $1 million to Avalon in exchange for a royalty-free, exclusive worldwide license to Avalon’s proprietary drug and biomarker discovery platform, AvalonRx, with carve-outs for existing Avalon compounds and programs.
Last September, Clinical Data raised $25 million in a financing through a private placement through affiliates of Randal Kirk, chairman of Clinical Data’s board of directors. They stated the proceeds were for “general working capital purposes.”
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