Progen-Avexa deal goes bung

Progen has ended its bid for a merger with Avexa after shareholders overwhelmingly rejected the deal.

It is understood that the vast majority of proxy votes opposed the deal, which would have seen the Brisbane oncology company, which has rich cash reserves but a dry pipeline after the cancellation of its Phase III liver cancer trial in July last year, join with Avexa.

Avexa is in Phase III trials of a nucleoside reverse transcriptase inhibitor for drug-resistant HIV.

Melbourne’s Cytopia, also an oncology company and a shareholder in the company, has made a counter-bid and urged shareholders to reject the deal.

A Progen general meeting was to be held tomorrow but has now been cancelled. Shareholders will vote on the Cytopia offer on March 27.

A statement from Cytopia is expected shortly.