ARTICLE | Company News

Pharmagene exits drug development

September 19, 2005 11:53 PM UTC

Pharmagene (LSE:PGN) announced a 50-50 stock merger with Asterand (Detroit, Mich.) and said it will discontinue its therapeutics operations. The combined company, to be called Asterand plc, will trade on the London Stock Exchange and will focus on PGN's drug discovery services and Asterand's tissue supply and tissue-based research services. PGN will issue 54.2 million shares to Asterand shareholders, which valued Asterand at L13 million ($23.4 million) based on PGN's Friday close of 24p. Asterand shareholders are eligible for additional cash and stock payments.

Asterand CEO Randal Charlton will be CEO of the combined company, and Asterand COO Martin Stefanelli will be COO. Ronald Openshaw, PGN's acting CEO and CFO, will be CFO. The merger is expected to close in November. ...