Cell Technology Inc. announced Monday that it has canceled itsagreement to purchase Pioneer Pharmaceuticals Inc. fromEssex Chemical Corp. Cell Technology said it terminated theagreement after evaluating confidential information itreceived in its due diligence review of Pioneer.
William H. Critchfield, Cell Technology's vice president offinance and chief financial officer, said the company intendsto "pursue legal remedies available to it under its agreementwith Essex and otherwise." Critchfield declined to elaborate.Essex is a subsidiary of Dow Chemical Co.
Cell Technology, based in Boulder, Colo., said it would continueto look for acquisitions. The company began its hunt forspecialty and over-the-counter pharmaceuticals after its leadanti-cancer drug, ImuVert, produced disappointing results inclinical trials after promising initial findings. The company iscontinuing discussions with other companies to licenseImuVert, Critchfield said.
The company had agreed to pay $5.5 million in cash for Pioneer,which reported unaudited revenues of more than $6.5 millionfor the year ended Dec. 31. It sells 22 generic prescription andOTC products. -- RF
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