Avexa and Progen Merger Update
February 10 2009 - 5:00PM
Business Wire
Avexa Limited (�Avexa�) (ASX:AVX) today responds to an
announcement by Cytopia Limited (�Cytopia�) (ASX:CYT) on 9 February
2009 which contains misleading statements about the funding
requirements of a merged Avexa and Progen Pharmaceuticals Limited
(�Progen�) (ASX:PGL) (NASDAQ:PGLA) (�the merged entity�).
The Cytopia announcement refers to a �$95 million shortfall.�
This statement is not consistent with any of the documents or
commentary released by Avexa and Progen. Therefore, any reference
to a funding �shortfall� is inaccurate and misleading.
Avexa has consistently stated in all releases to date that the
Merged Entity will have $60 million in cash resources, which should
be sufficient to fund the estimated $45 million Phase III trial
cost of ATC up to the week 24 data milestone. This milestone, which
is expected to be reached in the second half of 2010, is a major
value inflection point in the development of ATC. Associated key
points to consider:
- This milestone could provide the
opportunity for a New Drug Application filing in early 2011,
enabling a commercial launch of ATC; and
- It could also increase the
prospect of finalizing a partnership agreement, if a partnership
agreement has not already been secured. Under such a partnership,
Avexa expects to receive upfront and milestone payments to fund any
remaining costs associated with the Phase III trial of ATC
�There is no shortfall. We are steadfast in the belief that the
24 week data milestone is the key value driver for both Avexa and
Progen shareholders,� said Julian Chick, PhD, Chief Executive
Officer of Avexa. �We hope that shareholders will take into account
the significant potential within the proposal to enhance
shareholder value, and acknowledge the fact that the merger
provides the runway needed to achieve this goal,� he continued.
�Independent valuer BDO believes the Merged Entity share price will
trade between $2 and $3 per share, a considerable increase from
current levels.�
About Avexa
Avexa Limited is a Melbourne-based biotechnology company with a
focus on discovery, development and commercialization of small
molecules for the treatment of infectious diseases. Avexa has
dedicated resources and funding for key projects including ATC, its
HIV integrase program and an antibiotic program for
antibiotic-resistant bacterial infections. The Company�s lead
program is apricitabine (ATC), an anti-HIV drug that has
successfully completed the 48 week dosing of its Phase IIb trial
and is currently in Phase III trials worldwide.
www.avexa.com.au
About Progen
Progen Pharmaceuticals Limited is a globally focused
biotechnology company committed to the discovery, development and
commercialization of small molecule pharmaceuticals primarily for
the treatment of cancer. Progen has built a focus and strength in
anti-cancer drug discovery and development. Progen targets the
multiple mechanisms of cancer across its three technology
platforms, angiogenesis, epigenetics and cell proliferation. Progen
has operations in Australia and the United States of America.
www.progen-pharma.com
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