Monogram settles CVR liability

By Elaine Rigoli

Tampa, Fla., June 12 - Monogram Biosciences, Inc. said the amount payable in relation to its outstanding Contingent Value Rights (CVRs) has been determined at about $57 million, or $0.88 per CVR, and that, as previously announced, the payment will be made in cash.

"By resolving the CVRs, we bring closure to a period of uncertainty regarding our financial situation. The company's financial strength is evident from our recent agreement with Pfizer, which contributed to our ability to satisfy these CVRs with a cash payout. Resolving the CVRs, without further dilution to stockholders, was an important priority for Monogram," chairman and chief executive officer William D. Young said in a news release.

Pfizer recently invested $25 million in Monogram through a 3% senior secured convertible note, with a conversion price that has been initially set at $2.7048 per share.

At March 31, Monogram had $67 million in cash, cash equivalents and investments.

Reflecting the Pfizer investment of $25 million, and the payment of $57 million under the CVRs, on a pro forma basis, these cash resources at March 31 would have been about $35 million, the release said.

Monogram, located in South San Francisco, Calif., develops products to treat serious infectious diseases and cancer.

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