Proprietary Intelligence
CytoCore, the listed Illinois-based life sciences company, is an obvious target for diagnostics firms and will consider offers, according to CEO Floyd Taub.
Taub, who was named CEO of CytoCore 12 July as part of a transition to a business development focus, is the founder and former CEO of Digene. He said one of his priorities as CEO is to build relationships with other companies and bankers as the company grows, particularly with the imminent launch of CytoCore's lead product, the soft-pap cervical cell collection device, in the very near future. The company has not retained a bank, he added.
The CEO said he expects to speak to all the players in the space about potential co-marketing or partnership deals, which often result in acquisitions. Taub named Tripath Imaging, which was acquired by Becton Dickinson in December 2006, as a company that he expects to speak with, as well as Cytyc, acquired by Hologic in May, and Digene, acquired by Qiagen NV. These companies, among others, could be potential suitors.
Taub predicted CytoCore will be acquired eventually, but cautioned that his focus is not to attain a certain level and sell. Rather, he plans to build a great company, and said the offers will come when other players appreciate its value.
CytoCore plans to offer a package of products for cervical cancer detection and treatment beginning with the soft-pap collector (formerly called the e2), which is a balloon used to collect cervical cells that has a better capture rate than other methods available. The company is also developing its P2X7 biomarker to differentiate regular cells from cancerous cells, an automated system to aid in the analysis of the cells collected, and immune modulators that will be designed to locally treat cancer after it is detected, without over treating. Taub said the company is also working to develop a similar offering for uterine cancer and other opportunities in women's health.
CytoCore has a USD 121m market cap.
by Steve Schaefer
July 24, 2007