Lidak Pharmaceuticals Inc. has abandoned its plan to create asubsidiary to develop Lidakol, the company's anti-viral andanti-inflammatory product. Instead, the parent company willcontinue development and commercialization of products basedon Lidakol.
Since the announcement of the spinoff plan last October, FredEspinosa was relieved of his duties as Lidak's president andchief operating officer and Donald Mosier resigned as chiefscientific officer and corporate director, citing disagreementsover Lidak's restructuring plans and certain scientific claimsmade by the company (NASDAQ:LDAKA).
Their responsibilities have been assumed by Dr. David Katz,who remains as chief executive officer, and Michael Lorber,vice president and chief finance officer, according to Lorber.
Katz was to have stepped down as CEO to take charge of thenew subsidiary.
The La Jolla, Calif., company has completed Phase I trials ofLidakol, and Phase II will be initiated shortly in the UnitedStates after the company concludes a U.S. licensing agreement,Lorber said. Phase II will begin in Europe as soon as Lidakcompletes an agreement with its European licensing partner,Brocades-Pharma bv of the Netherlands, on the design andimplementation of the trials, he said.
"We do not feel that abandoning the plan will inhibit our abilityto successfully complete licensing agreements," Lorber toldBioWorld. He declined to discuss further the reasons forchanging course.
The stock shed 6 cents to $1.63 on Wednesday.
-- Kris Herbst BioWorld Washington Bureau
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