Proceeds to be used for trials, securing FDA approval of leukemia drug
By Susanna Moon
Chicago, Oct. 22 - ChemGenex Pharmaceuticals Ltd. signed a A$15 million convertible note subscription agreement with Cephalon, Inc., according to a Cephalon news release.
Under the terms of the agreement, Cephalon will provide up to A$15 million to ChemGenex in return for a note that is convertible at A$0.50 per share. The conversion price is 13.64% premium to the Oct. 21 closing price.
Proceeds will support ChemGenex operations, including clinical activities to complete a planned new drug application to the U.S. Food and Drug Administration for omacetaxine for the treatment of chronic myelogenous leukemia patients who have failed two or more tyrosine kinase inhibitor.
In other news, Cephalon entered into option agreements with two of ChemGenex's major shareholders, Stragen International NV and Merck Sante SAS, to acquire up to 19.9% of ChemGenex's outstanding shares at A$0.70 per share.
Cephalon may exercise the options before the later of March 31, 2011 and 10 business days after receiving clinical trial data and related analyses from ChemGenex.
ChemGenex is a biopharmaceutical development company based in Geelong, Australia.
| Issuer: | ChemGenex Pharmaceuticals Ltd.
|
| Issue: | Convertible note
|
| Amount: | A$15 million
|
| Conversion price: | A$0.50
|
| Pricing date: | Oct. 22
|
| Stock symbol: | Australia: CXS
|
| Stock price: | A$0.44 at close Oct. 21
|
| Market capitalization: | A$143.09 million
|
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