As reported in Xconomy and Fierce Biotech this morning, RXi Pharmaceuticals plans to split in two parts -- Galena BioPharma that will focus on creating cancer vaccines and RXi Pharmaceuticals that will continue to try to develop RNAi based drugs. The move was spurred by investors who wanted to see the combined RXi offer its shareholders a quicker return.
Galena will focus on the continued development and commercialization of its lead product NeuVax (E75) for breast cancer, and its newly acquired Folate Binding Protein-E39 for ovarian and endometrial tumors. The latter is headed toward Phase I trials by the end of 2011.
RXi for its part will continue its focus on RNAi drugs -- its lead candidate being RXi-109 for the treatment of scarring and fibrosis. It will also work on the therapeutic value of gene silencing more broadly -- and is still seeking partners. Investors were thrilled and showed it by driving RXi stock down 25%.
Posted by Bruce Lehr Sep 26th 2011.