Monogram to pay any contingent value rights liability in cash

By Elaine Rigoli

Tampa, Fla., May 26 - Monogram Biosciences, Inc. said Friday that it intends to make any payment that becomes due with respect to its contingent value rights (CVRs) in cash.

"The recent investment by Pfizer of $25 million provided us with the flexibility to satisfy any CVR liability entirely in cash," Monogram chairman and chief executive officer William D. Young said in a news release.

"The conversion price of Pfizer's convertible note is $2.7048 per share and we are pleased to be in a position to avoid further dilution from any payment that may be due under the CVRs."

Pfizer recently invested $25 million in Monogram through a 3% senior secured convertible note, with a conversion price that has been initially set at $2.7048 per share.

At March 31, Monogram had $67 million in cash, cash equivalents and investments, the release said.

Reflecting the Pfizer investment of $25 million, and assuming a maximum potential payment of approximately $57 million under the CVRs, on a proforma basis, these cash resources at March 31 would have been about $35 million.

Located in South San Francisco, Calif., Monogram develops products to guide and improve treatment of infectious diseases and cancer.

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