MedChem Products Inc. announced that it has decided to spinoff all of the shares of its wholly owned subsidiary, AnikaResearch Inc., to MedChem shareholders.
The Woburn, Mass., company (NYSE:MCH) expects to completethe transaction within 60 days, at which point Anika will belisted on the NASDAQ system as ANIK.
MedChem established Anika as a separate subsidiary inFebruary 1992 to focus on the existing hyaluronic acid (HA)business and to accelerate MedChem's HA-based research andproduct development efforts, particularly on its Orthoviscproduct for treating certain forms of temporomandibular joint(TMJ) dysfunction.
Anika will focus its HA research and product development onOrthovisc for TMJ dysfunction and other orthopedicapplications, for using chemically modified HA for preventingtissue adhesions after surgery, and the use of discrete pieces ofthe HA molecule to control proliferative diseases such asrheumatoid arthritis and certain cancers.
MedChem has contributed approximately $5.9 million in cash toAnika to fund its working capital and R&D for about two years.Subsequent to the distribution of Anika shares to MedChemshareholders, Anika intends to sell additional common sharesto raise at least $15 million to accelerate R&D and fund clinicalstudies for future products.
-- Jennifer Van Brunt Senior Editor
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