Merger
Early stage clinical trials for alfimeprase with NU206 (R-respondin protein) and NU172 (short acting thrombin inhibitor) were promising and were approved by the FDA. Bayer was collaborating with Nuvelo on late stage studies on alfimeprase. After Nuvelo’s failure in these studies, Bayer closed the deal in June 2007. However, Nuvelo was optimistic and continued the trial with alfimeprase. However, in March 2008, Nuvelo’s phase II trial failed to meet endpoints, thereby forcing Nuvelo to discontinue the trial. The company laid off forty employees and restructured the organization. Also, Dr. Michael Levy, Executive Vice President, Research and Development left the company
Nuvelo’s market cap reached a peak of approximately $US 1 billion in the lead up to alfimeprase Phase 3 studies completion, but share price plummeted eventually to less than $1 and received notification from NASDAQ]]. Despite this, Nuvelo was able to show positive proof of concept for NU172 in August 2008. Following this, Nuvelo was merged with ARCA Biopharma Inc. on September 26, 2008 forming a late stage cardiovascular biotechnology company. ARCA biopharma focuses on developing genetically targeted cardiovascular therapies, with lead candidate drug Gencaro, a beta blocker and vaso-dilator. It was Nuvelo’s genetically targeted technology and cardiovascular drug development that interested ARCA Biopharma in acquiring the company.
According to the merger agreement, Nuvelo issued new shares of its common stock to ARCA stockholders and assumed the outstanding options and warrants involved. Novelo CEO Ted Love took a seat on the board of the combined business and Arca CEO Richard Brewer became CEO of the new business. The option and warrant holders were expected to own 67% of the combined company’s common stock and Nuvelo stockholders 33% of the new company.
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