RBS Australia rates Chemgenex (CXS.AX , 0.540, +0, +0%) as...

RBS Australia rates Chemgenex (CXS.AX , 0.540, +0, +0%) as Upgrade to Buy from Hold (1) -ChemGenex has been carrying a short-term funding risk, the broker notes, ahead of product approval. But that problem has now been solved. US-based Cephalon Inc has taken $15m in convertibles worth a 9.6% stake on conversion, and separately agreed to buy a further 19.9% of stock from two major shareholders. Funding issue solved and a takeover on the cards. Upgrade to Buy. Target rises from 45c to 70c.

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