Shareholders of Sonus Pharmaceuticals voted this morning to merge with OncoGenex Technologies and reverse-split Sonus’ stock in order to improve the share price of the newly combined company.
Meeting in Seattle officially for 11 minutes this morning, Sonus’ shareholders without comment passed a series of motions to finalize the merger deal first announced in May. Shareholders also elected a new board of directors for OncoGenex Pharmaceuticals, as the new company will be known.
The merger is expected to close on Wednesday, and the new company will begin trading on Nasdaq under the symbol OGXI on Thursday, said Scott Cormack, who will be president and chief executive of the merged firms.
Because OncoGenex is based in Vancouver, B.C., that is where the new company will have its headquarters. It will continue research and development work in Bothell, however.
“This is really an exciting day for Sonus and Oncogenix and a day to look forward,” said Michael Martino, Sonus’ chief executive officer, after this morning’s vote. He thanked the 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,” Martino said. “That’s what we set out to focus on in October of last year … that’s what we focused on throughout the process.”
Founded in 1991, Sonus seemed to finally be on the verge of moving a promising chemotherapy treatment toward final regulatory approval. When Tocosol paclitaxel failed in a late-stage clinical trial last fall, however, the company’s stock value fell more than 80 percent in one day and a lucrative partnership with drug giant Bayer Schering came to an abrupt end.
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 remained flat at 28 cents per share in trading late this morning.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
