The stock spinoff of Myriad Pharmaceutical (whose symbol will be MYRX when the shares are distributed) from Myriad Genetics, (MYGN), is official though it doesn’t really happen until June 30, 2009.
The Salt Lake Tribune explained it . . . mostly. Apparently the Securities and Exchange Commission approved the spinoff and the registration is in place, but shareholders will not receive shares of the new company until June 30th. In the meantime, very thin trading has been reported for the “when issued” version of the shares that are trading under the ticker symbol MYRXV with them closing their first day at $7. The “V” denotes when issued. After the June 30 distribution the symbol will simply be MYRX.
Given that the new pharmaceutical entity doesn’t have any FDA approved pharmaceuticals to sell right now, it will be interesting to see what Myriad Genetics shareholders do with the stock they receive in the spinoff.
The new company will be independent of Myriad Genetics with a CEO brought in from the outside who is also assembling his own management team with drug industry experience and a separate board.
With all the talk lately of who should spinoff what to get toxic business segments off of their balance sheets, it is encouraging to see a plan come along that may actually take advantage of the strengths potentially found in a spinoff.