- Pharmaceutical company Open Orphan said it was planning to spin off certain non-core development intellectual property assets.

The assets included HVO-001, which had potential application in the treatment of respiratory disease.

'The board believes that to maximise shareholder value that the development IP assets are best developed separately from the core services business,' Open Orphan said.

'Furthermore, such a spin-out transaction could provide the opportunity to secure separate financial resources for these assets, to enable accelerated development of these assets and achievement of commercial milestones.'

A circular was being sent to shareholders on Tuesday providing details of a proposed reduction of capital and distribution in specie, to facilitate a possible spin-out and admission to AIM of the assets.

'The reduction in capital will also allow for the company to pay dividends and distributions to shareholders should the soard deem it appropriate in the future,' the company said.

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