MELBOURNE, Australia--(BUSINESS WIRE)--Avexa Limited (‘Avexa’) (ASX:AVX - News) today announced that following discussions with Progen Pharmaceuticals Limited (‘Progen’) (ASX:PGL - News) (NASDAQ:PGLA - News) regarding the status of Progen shareholder proxies for Progen’s upcoming shareholder meeting to approve the proposed merger of Avexa and Progen on 11 March 2009, it has become apparent that the proposed merger would not be approved by Progen shareholders.Accordingly, Avexa and Progen have agreed not to proceed with the proposed merger. The Merger Implementation Agreement (‘MIA’) between the parties has been terminated on and from 9 March 2009. Further, the shareholders meetings scheduled for 11 March 2009 for Progen shareholders and 20 March 2009 for Avexa shareholders to approve the merger will be cancelled. Consistent with the terms of the MIA, Progen will pay Avexa a break fee of AUD $500,000.
"While we are disappointed that the merger with Progen will not proceed, our overall strategy of developing high value drugs remains unchanged, and Avexa's clinical programs have never been stronger,” said Dr Julian Chick, Chief Executive Officer of Avexa. “Particularly encouraging is the progress of apricitabine (ATC), our lead compound for the treatment of drug resistant HIV infections. Not only are we confident of the value and prospects for ATC, we remain excited about the balance of Avexa’s anti-infective drug portfolio, which is focused on the treatment of Hepatitis C virus, multi drug-resistant bacterial infections and HIV. Moving forward, we have several near-term clinical milestones that will greatly impact the company’s corporate development.”
Avexa’s key activities and future value drivers include the following:
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