PixarBio Corp. dropped its bid for InVivo Therapeutics Holdings Corp., citing "reasons related to management credibility and competence, corporate governance and [intellectual property] control."

In a statement to shareholders, PixarBio said it sees InVivo Therapeutics as "a confused organization" and not worth pursuing at this time.

Earlier in January, InVivo said the nature of PixarBio's offer was "not credible."

Separately, the SEC said it temporarily suspended trading in securities of PixarBio on Jan. 23 due to concerns about possible "manipulative or deceptive activities." The trading suspension will last through Feb. 3.

The SEC also expressed concerns about the accuracy of several PixarBio statements regarding the company's business combinations and current shareholders; the identity and qualifications of key shareholders and employees; and the company's current and prospective development efforts.