Biotech Firm to Liquidate Under Investor’s Pressure

Avigen, a biotechnology company, is preparing to liquidate itself and return its remaining cash to shareholders. The company was pressed to do so by its largest holder, the Biotechnology Value Fund.

The company, whose most promising drug candidate failed in a clinical trial in October, is one of several biotech businesses thathave been under pressure from investors recently to liquidate after a setback.

In the past, when one of its drugs failed, a biotechnology company typically moved to a new drug. But with capital markets tight, investors are becoming less patient with that tradition and are trying to pull the plug on unsuccessful companies.

Avigen, based in Alameda, Calif., had been resisting the efforts of the Biotechnology Value Fund, which started a proxy fight to replace the company’s board. Read More

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