By increasing his stake now, Arkin is signaling that he intends to play an important role in the company.
Moshe (Mori) Arkin has bought 8.5% of US biotechnology company NeurogesX Inc. (Nasdaq: NGSX) for $12 million, a month after becoming a party at interest in the company when he bought 7.5% of it for $9.5 million.
Arkin made both purchases through Arkin Holdings Ltd., and through life science hedge fund Sphera Fund GP Ltd., in which he is a partner. At the time of the first purchase, Arkin Holdings said that he had no plans to takeover NeurogesX or make changes in its management. However, this is the usual boilerplate statement, which does not rule out future strategic moves in NeurogesX. By increasing his stake now, Arkin is signaling that he intends to play an important role in the company.
NeurogesX is developing novel pain management therapies for neuropathic pain. Its leading product candidate, NGX-4010, is a synthetic capsaicin-based dermal patch, which selectively targets the pain nevers. Capsaicin is the spice in chili peppers. The company says that brief use of the patch relieves pain in the site for longer periods than do current pain relievers on the market, and with few side effects.
Published by Globes [online], Israel business news - www.globes-online.com - on October 1, 2009
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