Progen to acquire CellGate

This acquisition is expected to expand Progen’s product candidate portfolio through the addition of multiple preclinical and clinical oncology compounds focused on polyamine and epigenetic targets.

Under the terms of the agreement, the up-front purchase price will comprise the issue of 756,199 Progen shares having a value of approximately $1.5 million and the assumption by Progen of CellGate net liabilities up to $1 million.

Justus Homburg, Progen’s CEO, said: “We are especially pleased that we have acquired such a large number of product candidates in very exciting and novel technology platforms. This transaction represents a minimally dilutive up-front investment by Progen and allows us to continue expanding our product pipeline, with limited risk, while focusing on building long-term value for our shareholders. We are confident that we have the financial resources to drive this new portfolio of assets to the next decision points in the coming 18 months while continuing our development programs for PI-88, PG500 and heparanase inhibitors.”