OncoGenex Technologies, Sonus deal

OncoGenex and Sonus will merge to form OncoGenex Pharmaceuticals Inc. Sonus and OncoGenex shareholders each will own 50% of the combined company. OncoGenex shareholders will receive about 37 million shares of Sonus, valued at $12.2 million based on Sonus’ close of $0.33 on May 27, before the deal was announced. OncoGenex shareholders also are eligible to receive 25 million shares in milestones.

The combined company will have three clinical candidates. Custirsen ( OGX-011) is a second-generation antisense inhibitor of clusterin mRNA that is in Phase II testing to treat hormone refractory prostate cancer, breast cancer and non-small cell lung cancer (NSCLC) and is expected to enter a Phase III trial for prostate cancer in early 2009. OGX-427 is a second-generation antisense inhibitor of Hsp27 expression that is in Phase I testing to treat solid tumors and is expected to enter Phase II testing in 2009. SN2310 is a tocopheral conjugate of SN38 (an active metabolite of irinotecan) that is in Phase I testing to treat cancer and is expected to enter Phase II trials by year end. The company’s OGX-225 is a second-generation antisense inhibitor of insulin-like growth factor binding protein 2 ( IGFBP2) and IGFBP5 that is in preclinical testing and is expected to start Phase I testing by 4Q09. OncoGenex’s three antisense compounds are being co-developed with Isis Pharmaceuticals Inc. (NASDAQ:ISIS, Carlsbad, Calif.) ...