Carbylan Therapeutics Inc., of Palo Alto, Calif., said it suspended clinical development of Hydros-TA, its formulation of hyaluronic acid to treat pain associated with osteoarthritis of the knee, and is pursuing a strategic transaction, including a merger or acquisition of the company. The company reduced its work force from 17 employees to three and said it expects to have about $25 million to $30 million of net cash available for a potential strategic transaction.