Clinical Data also said President and CEO Israel Stein has stepped down to become executive vice chairman. He will also serve as interim CFO, replacing Mark Shooman. Drew Fromkin, previously executive vice president of Clinical Data and president of the company's PGxHealth division, will now serve as president and CEO.
Clinical Data said it will spin out the vilazodone business to shareholders as a new company called Precigen Therapeutics. The new firm will develop the drug, as well as a potential companion biomarker test that will be developed by Clinical Data's PGxHealth division.
Clinical Data said it plans to issue the new company's shares to Clinical Data shareholders in the form of a tax-free stock dividend.
News of the spin out comes about two months after Clinical Data reorganized itself into three units: PGxHealth, Cogenics, and Vital Diagnostics.