Mi­cro­cap biotech seeks a merg­er or new in­vest­ment af­ter PhI­II flop — shares soar

Rough­ly a month af­ter its lead AD­HD drug went up in flames, a mi­cro­cap biotech is fac­ing the mu­sic.

Tiny Val­lon Phar­ma­ceu­ti­cals put out a short an­nounce­ment Fri­day morn­ing say­ing it would be look­ing for “strate­gic al­ter­na­tives,” such as a merg­er, busi­ness com­bi­na­tion or new in­vest­ment. The com­pa­ny has re­tained a new in­vest­ment bank­ing firm to help nav­i­gate the ter­rain.

In ad­di­tion to the press re­lease, Val­lon al­so not­ed in an SEC fil­ing Fri­day morn­ing that it would be lay­ing off its head of reg­u­la­to­ry af­fairs, Pen­ny Toren. The move was made, Val­lon said, to stream­line op­er­a­tions and pre­serve cash and did not re­sult from any dis­agree­ment or falling out with the com­pa­ny.

Unlock this article instantly by becoming a free subscriber.

You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.

SIGN UP LOG IN BECOME A PREMIUM SUBSCRIBER