Taiwan MBC takes stakes in Progen to aid drug development

01 June 2000 09:57  [Source: ICIS news]

SINGAPORE (CNI)--Australian biotechnology company Progen Industries Ltd Thursday stated that Taiwan's Medigen Biotechnology Corp (MBC) will take an equity stake in the company. That, it added, would accelerate the development of its drug compound, PI-88, as a potential treatment for cancer and cardiovascular diseases.

Under a subscription agreement, MBC will purchase equity in Progen for A$11.0m ($6.9m/Euro7.4m), subject to Progen shareholders' approval. The equity comprises 2.75m shares at A$4.00/share, and a million free options (exercise price of A$8.00, expiry December 2002).

In addition, Progen will receive 19.9% equity in MBC, and certain anti-dilution rights.

The A$11.0m raised from the subscription agreement will allow Progen to accelerate and expand its own development programme of PI-88 in cardiovascular disease. Progen is planning Phase II clinical trials in this.

MBC shareholders comprise eight public-listed Taiwanese companies.

By: Wing Gar Cheng
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly