NEW YORK (TheStreet) -- Celladon (CLDN) shares are dropping, down 41.23% to $1.29, in early market trading on Friday after the clinical stage biotech company said that it would suspend further research and development and would consider liquidation if it can not find a buyer or merger partner.

"Our board of directors has unanimously determined that seeking a merger or sale, in lieu of further development of our remaining programs and assets, gives us the best opportunity to maximize shareholder value. We are aggressively pursuing that course," said CEO Paul Cleveland. "If we are unable to identify a merger or sale that provides superior value to our shareholders, we will move forward with a liquidation and distribution of net cash to shareholders."

The company estimates that if the liquidation were to occur in the third quarter of 2015 that the net cash available for distribution to shareholders would be between $25 million and $30 million.

On a per share basis that reflects a cash disbursement of between $1.05 and $1.25 per share, according to Market Watch.

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