As a result of the current Progen board being unwilling to fully cooperate with the shareholder resolutions, the notice of meeting issued by Progen does not include any statement from shareholders. Instead, appropriate documentation addressing matters being put to shareholders at both meetings will be distributed shortly to Progen shareholders. It is important that all shareholders vote and fully understand all the choices being presented at each meeting.
Proposed Progen and Avexa merger
The material submitted by the Progen board on February 5, 2009 (Progen-Avexa Merger Notice of Meeting) details the high risk, high funding strategy that is being proposed under the merger with Avexa. This strategy is in stark contrast to the strategic recommendations arising from the company-commissioned Beerworth report and presented to Progen shareholders on November 13, 2008?
-- Progen shareholders were advised of partnering interest in PI88
over a number of years, yet the company elected to take the
compound into Phase III trials and no partnering deal
eventuated. The Avexa merger proposes to focus investment in
the Phase III trials of Apricitabine (ATC).
-- ATC has also not been partnered and the total estimated cost of
completion of Phase III trials is $155 million. In the absence
of either substantial new capital or partnering and assuming
trial success, a further $95 million is likely to be needed to
achieve product registration.
|SOURCE Cytopia Ltd|
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