Lidak Pharmaceuticals Inc. will create a subsidiary to focussolely on its patented Lidakol, an anti-viral and anti-inflammatory product, while the parent company pursues othertechnology.
Forming the subsidiary will give potential licensees theability to concentrate equity in Lidakol exclusively, and keepsopen financing avenues for each compound in the La Jolla,Calif., company's pipeline, Lidak Chief Executive Officer DavidKatz told BioWorld. He declined to discuss financing plans forthe Lidakol unit.
Katz will continue as CEO of Lidak until the parent companyrecruits a new officer, but said he will remain with thesubsidiary as its CEO "because Lidakol is my baby; my lab isworking on it."
The parent company (NASDAQ:LDAKA) will concentrate ondeveloping its technologies for cancer, AIDS and autoimmunediseases. All technologies have been acquired through Lidak'sexclusive licensing agreement with Medical Biology Institutein La Jolla.
Naming of the new subsidiary has not yet been finalized, "butit makes sense to keep the Lidak name," Katz said, in keepingwith the subsidiary's focus on Lidakol.
Lidak stock closed unchanged Wednesday at $1.19.
-- Roberta Friedman, Ph.D. Special to BioWorld
(c) 1997 American Health Consultants. All rights reserved.