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news.Clinical Data plans to spin off part of its business creating a new company, to be called Precigen Therapeutics, which will concentrate on the development and commercialization of vilazodone, a phase III candidate for the treatment of depression.
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Vilazodone is being developed along with a potential companion biomarker test that will be developed by the PGxHealth division of Clinical Data.
Clinical Data plans to issue the new company's shares to Clinical Data shareholders in the form of a tax-free stock dividend. The spin-off is not expected to impact the progress or timing of vilazodone's clinical program.
“Our hope is that the spin-off will create value for both companies' shareholders,” said Randal Kirk, chairman of Clinical Data's board of directors. “It will allow Precigen to concentrate its financial and operating resources on the vilazodone program, a very promising developmental compound currently in phase III clinical trials. At the same time, it will allow Clinical Data to focus its assets and resources on the operation of its three divisions, which shall remain intact.”