After Partner Quits, What’s Left at ARYx? (ARYX, PG)
ARYx Therapeutics, Inc. (NASDAQ: ARYX) is a stock in trouble today. The company announced late Wednesday that its partner, Procter & Gamble (NYSE: PG) opted out of its drug collaboration pact with the company.
The collaboration was developing a gastrointestinal disorder drug to treat chronic constipation and functional dyspepsia, and ARYx had indicated that positive safety data was evident. The company believes there is merit and it will continue the study if it can find a new partner.
As this is often a cause for major concern about a small biotech’s future, we wanted to look under the hood and see what else ARYx has going for it.
The company does have about $60 million in liquidity as of March 31, but total liabilities were also $41.45 million. Its market cap based on today’s 22% drop is now $89.7 million.
The company currently has a Phase II/III clinical study going on for anticoagulation under enrollment. It also is in mid-stage trials for atrial fibrilation and an early stage study in psychotic disorders.
This company doesn’t look dead by any means. But it is definitely injured as a result of yesterday’s actions.
At 10:40 AM EST we have seen a 22% drop, but there has only been 12,000 shares trade hands.
Jon C. Ogg
July 3, 2008