Shares of Celladon (CLDN) are down 40% in pre-market trading after the company announced that it has suspended all activity in its Mydicar program and other pre-clinical programs. Celladon at one point had a promising gene therapy treatment, for patients with heart-failure, using Mydicar. In April the company announced that the phase 2a trial, known as CUPID2, failed to meet on all the primary endpoint and secondary endpoints. The stock fell more than 80% after announcing that the trial failed to improve the condition on patients with heart-failure. 

Last month the company announced interest in putting itself up for a sale or merger using Wedbush PacGrow Healthcare as its exclusive financial advisor. Now the company is hoping to sell off its individual assets, or the company itself. In the worst case scenario Celladon will possibly liquidate itself and then distribute the money to shareholders. Investors won't get much, because if the company does choose to liquidate itself then the maximum money available will be $25 to $30 million. 

In addition Celladon announced further reduction in its workforce to preserve cash on hand. We are inclined to say that investors shouldn't bother to attempt to invest in this company. Management has really dropped the ball on the Mydicar trial itself and has now dropped the ball for investors as well. The management of the company is taking the easy way out. We believe that it would have been better to furteher advance the pre-clinical programs (stem cell/small molecule) then selling the company when  the share price recover. Now Celladon investors are left stuck holding the bag.