Australian oncology-focused biotechnology company Novogen has acquired Glioblast, a privately-held, neuro-oncology focused Australian biotechnology company.
The transaction includes an upfront payment of AUD2.1 million, comprising AUD600,000 in cash and ordinary fully-paid shares valued at AUD1.5 million.
The shareholders of Glioblast will be eligible for further payments in cash or equity on the achievement of performance-related milestones.
The first two of these milestones provide for the issue of ordinary fully-paid shares valued at AUD1.25 million respectively on commencement and successful completion of a phase II clinical trial of GDC-0084, with the actual number of shares determined on the basis of the volume-weighted average price of Novogen shares on the ASX in the seven days prior to satisfaction of the relevant milestone being announced.
A further two milestones may trigger payments in cash or equity at Novogen's sole discretion. Any issue of equity in Novogen will be subject to a minimum six-month escrow period.
The addition of Glioblast will add important capabilities and relationships to Novogen, allowing it to more effectively move forward with the GDC-0084 programme.
Paul Hopper, a life sciences executive, and Leslie Chong, who was formerly clinical programme lead for GDC-0084 at Genentech, both shareholders of Glioblast, will become consultants to Novogen and will advise on clinical development.
