Tranzyme exploring options, including sale of the firm; is Ache up for sale?

Following two recent R&D pipeline disappointments, the board of directors of US biotech firm Tranzyme (Nasdaq: TZYM) has made a determination to explore and evaluate strategic alternatives, including the possibility of a merger, sale, other form of business combination, or other transaction to maximize value to its stockholders.

A couple of months ago, Tranzyme said that it was discontinuing and immediately ending patient enrollment in DIGEST, a Phase IIb trial in diabetic patients receiving TZP-102 for the management of symptoms of gastroparesis, due to insufficient efficacy (The Pharma Letter December 12, 2012). This was the second major disappointment for the company, which earlier in 2012 reported negative results from two Phase III studies evaluating ulimorelin in post-operative ileus (TPLs May 27 and March 12 2012).

The company has not made a decision to pursue any specific transaction or other strategic alternative, and there is no set timetable for the strategic review process. There can be no assurance that the exploration of strategic alternatives will result in the identification or consummation of any transaction.