Warnex closes bioanalytics sale, exits CRO biz
Canada's Warnex has sold off its final business unit, closing a deal that ships its bioanalytical services division to Biotrial Research for about $6.1 million, and now it has to decide whether to liquidate or regroup.
The Biotrial deal comes after Warnex sold its analytical unit to NeoPharma earlier this year and unloaded its medical labs business to Gamma-Dynacare last year. That leaves Warnex with no extant businesses and just the proceeds from the latest deal--predicted to be between $1 million and $2 million--on hand.
But the ex-CRO isn't wasting any time, Chairman Michael Singer said, and it will soon decide how to move forward. "We expect to quickly identify opportunities, if any, which may range from a possible wind-up of Warnex and cash distribution to shareholders to a variety of possible mergers and acquisitions alternatives," Singer said in a statement.
This is the conclusion of a long struggle to relieve outstanding debt for the CRO, which has been auctioning off its units one by one for years in an effort to get back to solvency. It turns out there was no way to do so while remaining in business, however, and where Warnex goes now remains a mystery.