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news.ChemGenex Pharmaceuticals has announced a strategic restructuring of its business that will allow the company to focus its resources on the advancement of its clinical-stage cancer portfolio. As part of the restructuring, the company will demerge its diabetes and obesity assets by early December, pending shareholder approval.
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ChemGenex’s metabolic disease assets currently reside within the company’s wholly-owned subsidiary Autogen Research, which is to be renamed Verva Pharmaceuticals. Pending shareholder approval at the annual general meeting, scheduled to take place in Melbourne on November 28, Verva Pharmaceuticals will be demerged from ChemGenex. Verva Pharmaceuticals then intends to merge with Adipogen Pharmaceuticals, pursuant to a merger implementation agreement signed today.
Upon shareholder approval, ChemGenex shareholders will receive one share in Verva Pharmaceuticals for every five ChemGenex Pharmaceuticals shares held at the record date. In accordance with ASX listing rules and the option agreements, existing ChemGenex option holders will not be allocated shares in Verva Pharmaceuticals unless options are exercised prior to the record date. After the record date the exercise price for each remaining ChemGenex option will be reduced by approximately 7 cents.