UPDATE 1-Replidyne unable to secure partner for faropenem

Mon Jun 23, 2008 5:35pm EDT

(Adds details)

June 23 (Reuters) - Replidyne Inc RDYN.O said it was unable to secure a partner to develop its antibiotic faropenem and as a result decided to end related license and supply agreements to conserve cash, sending shares down 10 percent.

In April, the company discontinued clinical development of faropenem and said further development depends on securing a partner for the program.

Replidyne said it expects to incur charges of up to 440 million Japanese Yen, or about $4.1 million, related to the termination of the agreements.

The company said it had cash and short-term investments of $71.5 million as of May 31.

The company said it will end license and supply agreements with Asubio Pharma Co Ltd and the supply agreement with Nippon Soda Co Ltd (4041.T) for production of faropenem.

Replidyne shares, which closed at $1.37 Monday on Nasdaq, were trading down 14 cents at $1.23 after the bell. They have fallen 56 percent this year. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Varsha Tickoo)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.