ENZO DEFAULTS ON DEBENTUREEnzo Biochem Inc. said Friday that it has failed to deposit withthe First National Bank of Boston cash and notes required byprovisions of its 9 percent Convertible SubordinatedDebentures due March 15, 2001.
The failure constitutes a default of the debenture and relatedagreements, the company said.
Earlier, Enzo failed to make its March 15 interest payment of$1.4 million on the debentures, saying it needed to preserveworking capital.
Enzo common stock (AMEX:ENZ) closed at $1.75 on Friday, down13 cents. The stock has been one of the poorest performers inthe biotech sector, losing 18 percent of its value since Dec. 31.The Farmingdale, N.Y., company reported a net loss of $1.9million for the quarter ended Jan. 31, compared with a $1.5million loss in the 1990 quarter.
COLLABORATIVE AGREES TO SELL BIOMED DIVISION
Collaborative Research Inc. has signed a letter of intent to sellits Biomedical Products Division to Becton Dickinson and Co. for$9 million in cash. An additional $1.6 million may be paid,depending on sales levels during the next five years.
The deal is subject to approval by the boards of directors of thetwo companies and a two-thirds approval vote fromCollaborative's shareholders.
Collaborative (NASDAQ:CRIC) of Bedford., Mass., intends to usethe money to expand its DNA-based diagnostic referencelaboratory "to take advantage of the potentially very largecancer and genetic testing opportunities," said Orrie Friedman,Collaborative's chairman of the board.
Collaborative said it hopes for a definitive agreement within 30days and to present the transaction for shareholder approval inlate spring or early summer. -- Rachel Nowak
SQUIBB FUNDS INFECTIOUS DISEASE RESEARCH
Five U.S. institutions have been granted a total of $2.5 millionby Bristol-Myers Squibb Co. to support research into infectiousdiseases. Each unrestricted grant will be for $500,000 over afive-year period. The researchers are investigating vaccinesand treatments for AIDS, herpes, influenza, salmonella andwhooping cough. Recipients included principal investigators atWashington University in St. Louis, the Stanford UniversitySchool of Medicine, the Harvard Medical School and School ofPublic Health, the Mount Sinai School of Medicine and theUniversity of Chicago.
NOVA GETS TWO SBIR GRANTS
Nova Pharmaceutical Corp. (NASDAQ:NOVX) of Baltimoreannounced Friday that it has received two Phase I SmallBusiness Innovation Research (SBIR) grants, totaling about$100,000. One SBIR grant is from the National Institutes ofMental Health, and will be used to identify selective sigmareceptor antagonists for use as anti-psychotics to treatschizophrenia. The other SBIR grant is from the National Heart,Lung and Blood Institute, and will be used to identifysystemically active non-peptide antagonists of endothelin-1receptors to treat cardiovascular disorders, as well asinflammation and central nervous system disorders.
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