ChemGenex Raises US$6.2 Million (A$8.2 Million) In International Placement
MELBOURNE, Australia, and MENLO PARK, California U.S.A
January 24, 2005
ChemGenex Pharmaceuticals Limited (ASX: CXS) announced today that it has raised US$6.2 million (A$8.2 million) through a 15% placement of ordinary shares to existing and new shareholders at A$0.55 per share.
The funds raised will be used to accelerate the clinical development programs for ChemGenex's two targeted anti-cancer compounds, currently in Phase II trials in the United States, and to advance the company's pre-clinical pipeline of therapeutics in the fields of oncology, diabetes, obesity and depression.
The company's major shareholder, Charter Pacific Corporation Limited continued its support by participating in the placement and maintains its holding at 20.1%. Two of the company's other major shareholders, the Queensland Investment Corporation (QIC) and the international pharmaceutical company Merck Santé (a subsidiary of Merck KGaA), have also made significant investments and continue to be strong supporters of the company. Two Australian institutional investors with expertise in the biotechnology sector, HSBC and Acorn Capital also made significant investments, and approximately 44% of the shares were placed with U.S. investors.
"We are very pleased to welcome new institutional investors to ChemGenex, and to acknowledge the ongoing support from our long term investors Merck, Charter Pacific and the QIC," said Greg Collier, Ph.D., chief executive officer and managing director of ChemGenex. "This placement has seen a significant expansion of investment into the company by U.S.-based investors, a trend that we expect to see increasing as the company moves toward a NASDAQ listing. We believe that the support shown by investors with a deep understanding of the biotechnology industry is recognition of the potential of sustained growth and commercial returns from ChemGenex."
Outlook for 2005
- Initiation of a Phase II study combining Ceflatonin® and Gleevec® in CML patients who are developing resistance to Gleevec®.
- Initiation of a Phase II study with Ceflatonin® in MDS patients who have failed chemotherapy.
- Submission of a 20-F filing in the first quarter of 2005 with the U.S. Securities and Exchange Commission to list shares on a U.S. securities market. Once approved, the company plans to list ADR's and begin trading on NASDAQ, which is anticipated to occur around mid 2005.
ChemGenex Pharmaceuticals is a gene-based pharmaceutical development company dedicated to improving the lives of patients by developing therapeutics in the areas of oncology, diabetes, obesity, and depression. ChemGenex currently has two compounds in Phase II clinical trials, Ceflatonin® for leukemia and Quinamed® for solid tumors and has a significant portfolio of anti-cancer compounds, diabetes and obesity targets and depression and anxiety targets. The company's diabetes and obesity program is partnered with Merck KGaA and the depression and anxiety program is partnered with Vernalis. ChemGenex currently trades on the Australian Stock Exchange under the symbol "CXS".
| Dr. Greg Collier (CEO and Managing Director) |
Australia +61 3 5227 2752
USA +1 650 474 9800 ext 103 |
| Dr. Dennis Brown (President and Director) |
USA +1 650 474 9800 ext 108
Australia +61 3 5227 2703 |
Certain statements made herein that use the words "estimate," 'project," "intend," "expect," "believe," and similar expressions are intended to identify forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the company to be materially different from those which may be expressed or implied by such statements, including, among others, risks or uncertainties associated with the development of the company's technology, the ability to successfully market products in the clinical pipeline, the ability to advance promising therapeutics through clinical trials, the ability to establish our fully integrated technologies, the ability to enter into additional collaborations and strategic alliances and expand current collaborations and obtain milestone payments, the suitability of internally discovered genes for drug development , the ability of the company to meet its financial requirements, the ability of the company to protect its proprietary technology, potential limitations on the company's technology, the market for the company's products, government regulation in Australia and the United States, changes in tax and other laws, changes in competition and the loss of key personnel. These statements are based on our management's current expectations and are subject to a number of uncertainties that could change the results described in the forward-looking statements. Investors should be aware that there are no assurances that results will not differ from those projected.
