Cash-Low Nexell May Seek Buyer

Nexell Therapeutics Inc., an Irvine biotechnology company involved in cancer research, said it’s considering finding a buyer for the company, or other alternatives, and that it will run out of cash by July.

Its shares Thursday fell 55 cents to close at 53 cents on Nasdaq.

Auditors found there was “substantial doubt” about Nexell’s ability to continue its operations, the company said in a statement. Company officials didn’t return phone calls seeking comment.

Nexell had cash and equivalents of $5.1 million at the end of 2001, compared with $12.1 million at the previous year’s end.

Nexell ended an effort to raise money through private placement of equity securities in the first quarter so it could focus on “potential business combinations,” the company said.

Any such transaction may reduce the value of Nexell shares, the company said. The stock has fallen 60% in the last year.

Nexell may convert its two series of preferred stock to common stock to complete a transaction with another company. Conversion of Series B preferred stock would result in Baxter International Inc. owning more than a majority of Nexell shares.

Nexell gave Baxter, one of the largest sellers of medical supplies, the rights last year to distribute its line of lab products, such as reagents. As a result of that agreement, Nexell’s revenue fell to $150,000 in 2001 from $4.3 million in 2000.