Brisbane-Based Alchemia Merge with Melbourne-Based Meditech
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www.asiabiotech.com Industry Watch Australia Brisbane-based Alchemia Merge with Melbourne-based Meditech Brisbane-based biotech firm, Alchemia, and Melbourne-based Meditech Research are to merge via an off-market takeover bid by Alchemia for Meditech that values the latter company at A$16.9 million (US$12.4 million). The companies said that by joining forces, they would create a substantial drug development company with an extensive pipeline of products, a strong financial position and an experienced management team. The companies also said that the merger would bring together two companies with technology platforms based on carbohydrates. Alchemia's chemistry expertise would complement Meditech's biology expertise. Meditech's strong preclinical and clinical expertise would accelerate the development of Alchemia's drug discovery opportunities. Alchemia chief executive officer, Tracie Ramsdale, said that the combined group would have exceptional people, a high-quality product pipeline and innovative technology. "The Alchemia board believes Meditech will be an excellent addition to Alchemia's growing drug development and discovery portfolio," Ramsdale said. Alchemia will offer Meditech shareholders one Alchemia share for every nine Meditech shares, valuing Meditech at A$16.9 million (US$12.4 million) based on Alchemia's 30-day volume- weighted average price of A$1.207 (US$0.885). The merger proposal has the unanimous support of Meditech directors, who intend to recommend the offer to Meditech shareholders in the absence of a superior proposal. All directors who hold Meditech shares or options will accept Alchemia's offer in respect of their shareholdings and option holdings in the absence of a superior proposal. Alchemia's offer is subject to standard conditions including Alchemia obtaining acceptances to provide it with relevant interests in more than 90% of the Meditech shares on issue. During the bid period, Alchemia will provide financial support for Meditech's ongoing operations in the form of a short-term secured loan of up to A$2 million (US$1.47 million). The two companies have also signed an agreement that provides for the payment of a A$160 000 (US$117 300) break fee by either company in certain circumstances, and a no-solicitation undertaking by Meditech. 302 APBN • Vol. 10 • No. 6 • 2006 www.asiabiotech.com Industry Watch Meditech's assets in clinical trials are at an earlier stage of development than Alchemia's synthetic heparin. But they are significantly more advanced than Alchemia's other drug discovery opportunities. The pipeline of the combined companies would comprise synthetic heparin, one drug candidate in Phase 2 clinical trials, two candidates that have completed Phase 1 trials and another that is planned to start Phase 1 trials at the end of 2006. Meditech has a product in Phase 2 clinical trials in metastatic colorectal cancer patients and two anti-cancer products that have satisfactorily completed Phase 1 trials. These products complement Alchemia's early and late-stage revenue-generating opportunities. Meditech's chief executive officer, Dr Ian Nisbet, said the merger with Alchemia was consistent with Meditech's strategic plan and was a critical step in building a strong, internationally competitive biotech company. "This offer substantiates the Meditech board's consistent view of the value of the company, its technology and its people. We will be working with Alchemia to ensure that this offer is put to shareholders as soon as possible," Nisbet said. About Alchemia Contact Details: Alchemia was established in Australia in 1995 by three scientists, Professor Peter Andrews, Dr Tracie Ramsdale and Professor Istvan Toth. It was formed Alchemia to unlock the therapeutics potential of one of the Address: 3 Hi-Tech Court, Brisbane Technology Park, last remaining biological macromolecules with a Eight Mile Plains, Brisbane, significant untapped potential—the carbohydrate QLD 4113, Australia and its sugar buidling blocks. The company’s first Tel: +61 7 3340 0200 product was the synthetic heprain. It will be lauched in the market in 2008. Fax: +61 7 3340 0222 Email: [email protected] URL: www.alchemia.com About Meditech Meditech Research Limited is an Australian, development stage, biotechnology company focused on developing and commercializing drugs that improve the health and quality of life of patients with Contact Details: cancer and other chronic diseases. The company has internationally recognized expertise in carbohydrate Meditech Research Ltd based therapies, particularly products based upon the glycosaminoglycan, hyaluronic acid. Building Address: Tok Corporate Centre, Level 1, on this expertise, Meditech has created its patented 459 Toorak Road, Toorak, Victoria 3142 HyACT™ (Hyaluronic Acid Chemotransport Tel: +61 3 9296 2026 Technology) platform which it is applying to the Fax: +61 3 9296 2192 development of improved formulations of cytotoxic Email: [email protected] drugs. URL: www.mrl.com.au APBN • Vol. 10 • No. 6 • 2006 303 www.asiabiotech.com Industry Watch Australia Imugene to Conduct Second Bird Flu Program ydney-based Imugene Ltd will undertake a second bird flu vaccine program as part of its research on viral vector programs at the company's newly leased laboratory facility Sat La Trobe University, Melbourne, Australia. The company said that the research conducted at this laboratory would supplement its work carried out as part of an arrangement with the CSIRO. The CSIRO has been working under contract on vaccine candidates for the H5N1 strain of the virus with a particular focus on creating a vaccine for the broiler (meat bird) market. Imugene has now started a second bird flu vaccine program aimed at creating a vaccine for the egg layer and breeding bird market. This new vaccine research will be conducted at Imugene's new laboratory under the direct supervision of Imugene's chief scientific officer, Dr Mike Sheppard. Layer birds and birds used for breeding stock for the broiler market require longer lasting immunity to diseases than broiler birds, which typically reach slaughter weight by 42–49 days of age. The vaccine designed for layers and breeders will use two antigens (rather than the single antigen used in the broiler vaccine) to elicit both antibody and cell mediated immunity. The necessary genes have been selected and they are being synthesized in Europe. Imugene said it expected to receive these genes within the next 4–6 weeks, and they would then be inserted into the fowl adenovirus vector to create vaccine candidates. About Immugene Ltd Contact Details: Imugene is an Australian company developing and commercializing a range of biological animal health products for the production and Imugene Ltd companion animal markets worldwide. The Address: Level 1, 14–20 Delhi Road, Imugene products improve the health and welfare North Ryde, NSW 2113, Australia of animals and reduce or eliminate the use of Tel: +61 2 9870 7330 chemicals and drugs, particularly antibiotics, in production animals. Fax: +61 2 9888 9338 Email: imngene.imugene.com URL: www.imugene.com.au APBN • Vol. 10 • No. 6 • 2006 305 www.asiabiotech.com Industry Watch Australia LCT and The Bionic Ear Institute Collaborate on Research to Improve Hearing Loss About Living Cell Technologies iving Cell Technologies Limited has entered into Living Cell Technologies Ltd develops live cell therapy a collaborative agreement with The Bionic Ear products to treat life threatening human diseases. Listed on Institute, an internationally recognized not-for- the Australian Stock Exchange, it is a vertically integrated L profit biomedical research organization, to improve company that operates globally through offices in Australia, New Zealand and the United States. LCT focuses on the hearing outcomes for cochlear implant patients developing treatments where healthy living cells are injected through rehabilitation of the auditory nerve. into patients to replace or repair damaged tissue, without requiring the use of toxic drugs to prevent rejection. The company’s product portfolio focuses on treatments for people The collaboration will combine the platform with Huntington’s disease, insulin-dependent diabetes and technologies of LCT with the expertise of The haemophilia. Bionic Ear Institute’s world-leading scientists and About Bionic Ear Institute their know-how with models of deafness, cochlear implant technology, and experience in cell delivery The Bionic Ear Institute is a not-for-profit biomedical research organization based in Australia. The institute was to the cochlear. Under the agreement, LCT has established to undertake vital research to assist in the ongoing the option to acquire an exclusive license to development of a device that would allow deaf people to hear. commercialize results of the collaboration. Grants The Australian Bionic Ear was pioneered by Professor Graeme Clark and his team at the University of Melbourne. Today, its are being targeted to assist in funding the program. researchers are world leaders in innovative biomedical research. The work of the Bionic Ear Institute contributes to improved “We’ve known that LCT’s technology will play a hearing for more than 70 000 severely and profoundly deaf significant role in enabling treatment of a variety of children and adults world wide. In addition to the research in hearing, research is being extended into areas such as spinal different conditions, but we are particularly excited cord repair, infection control for implantable devices and early about working with one of the world’s leading treatment of epileptic seizures. groups into hearing loss,” said LCT CEO, David Collinson. Contact Details: “Importantly, this strategic partnership will allow LCT LCT to develop a further portfolio opportunity, Address: Pacific Tower, Suite 2.11 / 737, without losing focus on moving our two lead Burwood Rd, Hawthorn VIC 3122, products to the clinic,” continued Mr Collinson. Australia Tel: +61 3 9813 5501 “Encapsulated cells may provide a long-term Fax: +61 3 9813 5502 neuroprotection therapy to neurons of the inner ear Email: [email protected] to treat cochlear deficits,” said Associate Professor URL: www.lct.com.au Rob Shepherd, acting director, the Bionic Ear Institute.