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.

A new company in the sense that it will be completely separate from the parent, Myriad Genetics, for the first time,  Myriad Pharmaceuticals will have the advantage of continuation of leadership. 

This is always an important issue in assessing a spinoff.  To put it bluntly, “Do these guys know what they are getting into?  Do they know what they are doing?” 

In the case of Myriad Pharmaceuticals, the decision of  Adrian Hobdon, PhD,** to head the newly independent company seems to be a very positive sign.    Dr. Hobdon has been with Myriad Pharmaceuticals, Inc. , and hence Myriad Genetics, since October 1998.   Before that he was at Glaxo Wellcome where, over a period of 17 years, he ran a number of departments within the drug discovery area.  Dr. Hobden obtained a BA in 1975 from Cambridge University and a Ph.D. from Leicester University in 1978. 

While no one can forsee the future, that this experienced, successful man has decided to stake his personal future on this new stand-alone entity  is a very positive sign.  He must believe that the chances of the new drugs that are in the pipeline turning out to be successful ones are very good.

That aside however,  since the new pharmaceutical company 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.  It could be a classic spinoff price situation setting up.

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.

**Note that in the original version of this post Dr. Hobdon’s biography was incorrect and is corrected here.

Tags: MYGN, Myriad Genetics, Myriad Pharmaceuticals, MYRX, MYRXV, spin-off stock, spin-off stocks, stock spin-off investing