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ChemGenex Announces the Completion of A$21 Million Financing
03 / 04 / 2007
ChemGenex Pharmaceuticals (ASX: CXS, NASDAQ: CXSP) announced today the completion of an A$10.5 million capital raising achieved by a non-renounceable rights issue for 16,891,916 new ChemGenex shares and associated options. The successful rights issue follows the raising of A$10.5 million by placement to institutional investors in February 2007. The combined capital raising of A$21 million puts ChemGenex in a strong position to fund the completion of the development program for its lead agent, Ceflatoninr, which is currently in phase 2/3 clinical trials for chronic myeloid leukemia (CML) patients with the T315I mutation who have failed Gleevecr. The T315I Bcr-Abl mutation renders treatment with tyrosine kinase inhibitors (TKIs) ineffective, and is associated with resistance to Gleevecr and Sprycelr.
Completion of the rights issue has increased the shareholdings of the two recent significant shareholders in the company. Alta Partners, based in San Francisco and GBS Venture Partners, based in Melbourne. Participation in the rights issue has raised Alta Partners' shareholding in ChemGenex to 19.9%, and has raised GBS Venture Partners' shareholding to 8.9% of the total 185,811,079 shares in the company.
Managing Director of Alta Partners, and recently appointed Director of ChemGenex, Mr Dan Janney said that the investment in ChemGenex was an excellent fit for Alta's portfolio. "We are excited to be involved with ChemGenex and consider Ceflatonin a potentially important advance in the treatment of an emerging significant issue in the battle against TKI-resistant CML. We are hopeful that our approach, which acts through different pathways than the TKIs will provide better outcomes for the increasing number of these patients."
"The successful closing of this rights issue puts ChemGenex in a strong financial position as we focus on the completion of the registration directed phase 2/3 clinical trials for Ceflatonin in CML patients who have failed Gleevec and have the T315I point mutation." said Greg Collier, Ph.D., ChemGenex's Managing Director and Chief Executive Officer. "We are delighted that we have been able to attract well credentialed biotechnology investors such as Alta and GBS to invest in the company, and that so many of our existing shareholders have participated in the rights issue. With the ongoing T315I mutation study and an upcoming complementary companion study in CML patients who have failed therapy with two or more TKIs, we believe that we will have a strong clinical position upon which to base our initial new drug application (NDA)."
Completion of the rights issue has increased the shareholdings of the two recent significant shareholders in the company. Alta Partners, based in San Francisco and GBS Venture Partners, based in Melbourne. Participation in the rights issue has raised Alta Partners' shareholding in ChemGenex to 19.9%, and has raised GBS Venture Partners' shareholding to 8.9% of the total 185,811,079 shares in the company.
Managing Director of Alta Partners, and recently appointed Director of ChemGenex, Mr Dan Janney said that the investment in ChemGenex was an excellent fit for Alta's portfolio. "We are excited to be involved with ChemGenex and consider Ceflatonin a potentially important advance in the treatment of an emerging significant issue in the battle against TKI-resistant CML. We are hopeful that our approach, which acts through different pathways than the TKIs will provide better outcomes for the increasing number of these patients."
"The successful closing of this rights issue puts ChemGenex in a strong financial position as we focus on the completion of the registration directed phase 2/3 clinical trials for Ceflatonin in CML patients who have failed Gleevec and have the T315I point mutation." said Greg Collier, Ph.D., ChemGenex's Managing Director and Chief Executive Officer. "We are delighted that we have been able to attract well credentialed biotechnology investors such as Alta and GBS to invest in the company, and that so many of our existing shareholders have participated in the rights issue. With the ongoing T315I mutation study and an upcoming complementary companion study in CML patients who have failed therapy with two or more TKIs, we believe that we will have a strong clinical position upon which to base our initial new drug application (NDA)."