Cygnus mulling GlucoWatch sale
This article was originally published in The Gray Sheet
Executive Summary
Non-invasive glucose monitor maker is considering the sale of "some or all" of its assets, among other options, to meet debt obligations and continue operations. The move would follow distributor Sankyo's decision not to honor previous purchase commitments through March 2004, Cygnus says (1"The Gray Sheet" Oct. 13, 2003, p. 17). On Nov. 6, Sankyo countered Cygnus' Oct. 6 breach-of-contract suit, citing defamation and breach of contract and seeking declaratory relief. As of Sept. 30, Cygnus had $9.1 mil. in cash and total liabilities of $81.5 mil. On Nov. 13, the firm reported a Q3 loss of $9.1 mil. on sales of $1.1 mil. (down 31%). Sankyo already has about two years' inventory, "so we anticipate they will continue to [make] the product available for an extended period," Cygnus says...