Progen shareholders have turned a cold shoulder to management's proposal to merge the cash-rich, product-poor company with Avexa. Most of the proxy votes went against the merger.
The Brisbane-based cancer drug developer has a hefty bank balance but an anemic pipeline after the failure of its late-stage liver cancer trial last summer. Investors at Progen now will focus on a counterbid made by Cytopia, a shareholder that had urged investors to vote against the merger with Avexa. Progen's board, meanwhile, is facing a shareholder revolt.
One of Progen's biggest investors, Bob Moses, has called for Progen's entire board to resign. "They should all step down immediately and save themselves the embarrassment of being removed from office on March 27... now that their strategy for survival has failed."
Progen has $70 million in cash reserves and recently offered investors $40 million in cash back while reserving the remaining funds to attempt to revive the liver cancer drug PI-88. Cytopia has offered to let shareholders cash in, provided they leave enough money to keep Avexa running as a going concern. Funds from Progen would be used to advance Cytopia's cancer program. Avexa, meanwhile, says it is in talks with potential partners that may deliver new funds to the developer.
- check out the Avexa release
- read the report from the Melbourne Herald Sun
- read the story from The Age