Chairman, board members resign from Peptech

The three newest members of the board of Sydney biotech Peptech have resigned, after shareholders threatened to call an extraordinary general meeting to have them removed.

In a statement to the Australian Stock Exchange, resigning chairman Dr Ed Tweddell said he, Catherine Walters and Graham Walters were walking after a group of the company's retail shareholders indicated that they were not happy with the new directors' approach, and was lobbying to have them removed.

The three joined the board in January this year.

Dr Tweddell, a former CEO of drug company FH Fauldings, said it was in the shareholders' best interests for the three directors to resign, avoiding a protracted period of uncertainty and internal wrangling.

"We joined the Peptech board in the hope that our combined experience and expertise in general management, drug development and financial affairs, public company board and corporate governance could add value to a company in transition and with great potential," Tweddell said in a statement.

Australian Shareholders Association spokesman Stephen Matthews said that the loss of all three directors was "very unfortunate".

Peptech MD Stephen Kwik said he was "surprised and disappointed" by the development.

Kwik reiterated that the direction and fundamentals of the company remained sound, as shown by yesterday's statement regarding Abbott Laboratories' announcement that it was seeking market approval for Peptech-designed antibody D2E7.

The company will convene a directors' meeting.