Dara BioSciences to acquire Point Therapeutics

After the merger, Dara stockholders will hold 96.4% of Point’s outstanding shares of common stock on a fully-diluted basis, and Point will change its name to Dara BioSciences, and be based in Raleigh, Massachusetts. The acquisition is intended to be a tax-free reorganization under the internal revenue code and is expected to close in the first quarter of 2008.

Biopharmaceutical company Point Therapeutics has recently seen its stock value fall below $1 – the minimum share price for listing on Nasdaq – after the clinical development program for its lead product was put on hold by the FDA. Point is no longer funding any research due to cash limitations, and the company is hoping that the merger will enable continued listing on the Nasdaq stock exchange.

Don Kiepert, Point’s chairman and president, said: “We are excited about the opportunity to merge with Dara. The combination of Point and Dara will give our stockholders an opportunity to retain an equity interest in a stronger company with a broad and attractive portfolio of potential products.”