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From the Press following the takeover offer.
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ChemGenex soars 50pc on Cephalon takeover

The Australian,
March 30, 2011 12:00AM
Michael Bennet

SHARES in ChemGenex Pharmaceuticals soared more than 50 per cent after it agreed to a takeover offer from serial suitor Cephalon that values the target at $225 million.
Melbourne-based ChemGenex recently completed Phase III clinical trials for the chronic myeloid leukemia drug Omapro and hopes to get approval from the US Food and Drug Administration later this year after failing in its attempt last year.

Cephalon, which has taken a blocking stake in ChemGenex, yesterday said it would offer 70c cash - a 59 per cent premium - and 2c per listed option for what it doesn't own, valuing ChemGenex at $225m.

ChemGenex's board has backed the offer in the absence of a superior bid and plans to accept for their personal shareholdings.

A rival offer looks unlikely, with Cephalon amassing a stake of 27.57 per cent after converting $15m of convertible notes subscribed to in October at 50c a share and exercising call options.

Cephalon, which sells more than 150 products in nearly 100 countries, exercised the options at a price of 70c with ChemGenex shareholders Stragen International and Merck Sante.

"The ChemGenex board welcomes Cephalon's bid, which represents an attractive premium to the current and recent trading prices," said chairman Brett Heading. Shares in ChemGenex closed 53.41 per cent higher at 67.5c.

The deal is the latest for Cephalon in Australia, after last year buying a 19.9 per cent stake in stem-cell developer Mesoblast and in 2009 acquiring Arana Therapeutics for $318m.

Cephalon chief executive Kevin Buchi said ChemGenex added an interesting late-stage opportunity to its portfolio. Cephalon last week bought US oncology firm Gemin X for $225m.

http://www.theaustralian.com.au/business/chemgenex-soars-50pc-on-cephalon-takeover/story-e6frg8zx-1226030257713?from=public_rss