Celladon's stock plunges after saying it might be forced to liquidate
Celladon Corp.'s stock plunged 37% in premarket trade Friday, after the biotechnology company said it will suspend further research or development, and could liquidate the company if it can find a buyer or merger partner. Celladon said the net cash available for distribution to shareholders would be $25 million to $30 million. With 23.91 million shares outstanding, according to FactSet, that implies cash disbursements of $1.05 to $1.25 a share, below the current share price of $1.38. The company also said about half the jobs that weren't previously cut will be eliminated. "Our employees have been performing with exceptional professionalism under difficult circumstances, and on behalf of the Board I would like to thank them for their efforts," said Chief Executive Paul Cleveland. The stock had tumbled 89% year to date through Thursday's close.
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