Warring with ex-CEO, options shrinking, Aeterna Zentaris turns to a strategic review
After jettisoning its failed lead therapy and confronting its ex-CEO and general counsel with allegations that they were trying to slip themselves the old, lead failed therapy, Aeterna Zentaris $AEZS says it’s time to engage in a strategic review.
Among the options on the table are reviewing the biotech’s business strategy as well as management and the board.
Perhaps disheartening to investors who have stuck with the Charleston, SC –based company through thick and thin, the release out Tuesday afternoon misspelled Macrilen, their only asset of any value.
Events turned to melodrama late last week, when the board claimed that in or before June then CEO David Dodd plotted to transfer control of Macrilen to RiversEdge BioVentures, LLC, or another entity he owned, after the Zoptrex failure had eviscerated the company’s stock. Later Dodd and counsel Philip Theodore allegedly went to an activist investor Graeme Roustan in pursuit of a plan to take control of the board.
Macrilen had been rejected by the FDA three years ago, but was refiled with the FDA after some prolonged discussions. New CEO Michael Ward has also been pursuing a reorganization with an eye to reducing costs.