BresaGen goes into voluntary administration

Australian biotechnology veteran BresaGen (ASX:BGN) has gone into voluntary administration.

The move follows the resignation of chairman Peter Hart, Chris Juttner and John Harkness from the board of the embattled company on Monday night.

Late last year, in a bid to determine its future, BresaGen -- which has headquarters in Adelaide and also in Athens, Georgia, in the US -- announced plans to merge its US-based cell therapy business with San Diego company CyThera. Plans to also spin out the protein pharmaceuticals division into a separate company emerged at November's AGM. At the time, two options for the spinout had been floated -- through US investment arranged by US-based merchant bank Caymus, or via a spinout led by Queensland investment group CM Capital Investment.

In the last 12 months, the company has been through some tough times. A deal with US cell therapy company Plurion fell through mid-year. And the company instituted legal proceedings against the Institute of Medical and Veterinary Science in Adelaide over the failure by BresaGen and its partner British Biotech to replicate the licensor's original laboratory results.

Ferrier Hodgson has been named as the company's administrator. In a statement, Ferrier Hodgson's Bruce Carter said the appointment of the administrator by the BresaGen board followed the termination of negotiations with CM Capital.

Carter said the company would continue to trade, and the voluntary administration would not affect BresaGen's US operations. He said "a number of options" were available to BresaGen, and they would be put to creditors in coming weeks.

Before a trading halt was called yesterday, the company's shares were trading at AUD$0.26.