Cytopia To Merge With YM BioSciences

Cytopia and YM BioSciences (YM) have entered into an agreement in which YM will acquire all the issued shares and options in Cytopia. Shareholders are expected to vote on the scheme of arrangement in January 2010.

Cytopia shareholders and optionholders will be offered 1 YM share or option for every 11.737 Cytopia shares or options. The scheme represents a share price offer of $0.1659 per Cytopia share, a 58% premium to its trading price on the ASX before the agreement happened. The consideration payable will change according to significant movements in the trading price of YM shares.

Reportedly, the merged companies will also manage other collaborations in the Cytopia portfolio including the partnership with the Commonwealth Government supported Cancer Therapeutics CRC to develop FAK inhibitors for cancer.

The Australian operations will be operated under the YM name following completion of the transaction. Pursuant to the provisions of the Agreement, Bob Watson, chair of Cytopia will be appointed to the board of YM

Andrew Macdonald, CEO of Cytopia, said: “This merger provides the best opportunity available for the continued development and expansion of our lead programs and also provides our shareholders with exposure to a broader portfolio of potential cancer therapies and geographic diversification.”