BOTHELL — Shareholders of Sonus Pharmaceuticals voted Tuesday to merge with another biotechnology firm and reverse-split Sonus’ shares in order to improve the newly combined company’s stock price.
During a quick meeting in Seattle, Sonus’ shareholders took just 11 minutes to finalize the merger deal with Vancouver, B.C.-based OncoGenex Technologies. They passed a total of five motions to approve the merger, change the company’s name, elect a new board of directors and authorize the reverse stock split.
The merger is expected to officially close today. The newly combined OncoGenex Pharmaceuticals plans to begin trading on the Nasdaq market Thursday under the symbol OGXI, said Scott Cormack, who will be president and chief executive.
The new company will keep its headquarters in Vancouver, but research and development operations will be in Bothell.
“This is really an exciting day for Sonus and Oncogenix and a day to look forward,” Michael Martino, Sonus’ chief executive officer, said after the vote. He thanked his company’s managers, employees and directors for their work since last fall in determining the Sonus’ future.
“I have to say that the level of voter turnout, as well as the overwhelming support for all five of the resolutions this morning, is an indication that the shareholders get the message. And the message is that the key to creating value in this business is really breadth and depth of the clinical development pipeline,” said Martino, who is leaving the company after the merger.
Founded in 1991, Sonus seemed to finally be on the verge of moving a promising chemotherapy treatment toward final regulatory approval. But when Tocosol paclitaxel failed in a late-stage clinical trial last fall, the company’s stock value fell more than 80 percent in one day, and a lucrative partnership with drug giant Bayer Schering abruptly ended.
Cormack said OncoGenex brings a roster of several cancer drugs under development, including one that is in several phase 2 trials.
“With this merger, we are well positioned to continue on the path towards future commercialization of what I believe is a deep and promising pipeline of cancer therapeutics,” he said.
Shares of Sonus fell one penny Tuesday to close at 27 cents per share.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
