Avalon Pharmaceuticals Gets 'Going Concern' Notice
Avalon Pharmaceuticals of Germantown said its auditor has expressed concern about the biotech's ability to continue as a going concern. The company, which develops cancer treatments, said that without expense cuts or new revenue or financing, the company will not be able to fund its operations "significantly beyond May."
Clinical Data of Massachusetts agreed in October to buy Avalon for $10 million in stock and last month amended the deal to move the outside closing date for the deal to May 31 from April 30. In addition, Avalon must use the proceeds of any milestone payments it gets to repay loans made by Clinical.
April 8, 2009; 4:24 PM ET
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