A Medical Device Daily

Delcath Systems (Stamford, Connecticut) said that its board of directors and Laddcap Value Partners (New York), a hedge fund holding about 11% of Delcath’s outstanding common stock, have reached an amicable resolution to all issues between them, bringing a two-month-long consent battle to an end.

The agreement provides for the immediate appointment of Robert Ladd, principal of Laddcap, to the Delcath board, and one other independent director to be mutually agreed upon by the companies “in the next few weeks.” Delcath also will issue about 100,000 shares of common stock to Laddcap as partial reimbursement for its expenses associated with the consent solicitation.

Laddcap also is permitted to increase its ownership in Delcath up to 14.9% of Delcath’s common stock by purchasing additional shares for a price equal to the 10 trading day average of the closing price of Delcath stock prior to the time that an additional purchase is made.

Delcath has agreed to terminate its lawsuit against Laddcap in which it alleged that Laddcap had made material omissions and misstatements in a proxy statement for a consent solicitation.

Ladd said, “The agreement . . . meets many of the concerns I have raised, and the board has agreed to work with me on any remaining items I may like to address. I see a great deal of potential in the Delcath system to offer cancer patients a viable therapy to extend their lives. I am encouraged by the results of the Phase I and II clinical trials using the Delcath system as an advanced treatment for liver cancer patients and look forward to seeing the results of the Phase III trials.”

“While we have sometimes disagreed on the best approach to move the company forward, Ladd has made several suggestions in the past which the board has acted upon, including the hiring of an investment bank and the expansion of our corporate communications efforts,” said M.S. Koly, president/CEO of Delcath.

Delcath develops isolated perfusion technology for organ or region-specific delivery of therapeutic agents.