Avantogen, Innovate merge oncology program for RP101

By Lisa Kerner

Erie, Pa., Feb. 2 - Avantogen Ltd. said Innovate Oncology, Inc will merge with a wholly owned subsidiary of Avantogen, acquiring Avantogen's 50% interest in the pancreatic chemoresistance inhibitor, RP101.

As part of the definitive agreement executed by the companies, Avantogen will pay Innovate $1.1 million at the transaction's close, according to a company news release.

The transaction will be satisfied by the issue of 32 million shares of common stock in Innovate to Avantogen Ltd., giving the company approximately 54% of Innovate.

The merger will streamline the ownership and management of RP101 and related licensing and partnering opportunities, officials said. RP101 is intended as co-treatment with cytostatic drugs to prevent the development of resistance to chemotherapy.

Officials said the acquisition is expected to be completed by the end of March.

As part of the proposed transaction, Dr Richard Opara, Avantogen's chairman, will become chairman of Innovate. Lee Cole, chairman of Bioaccelerate Holdings Inc., will join the Innovate board.

Avantogen (formerly Australian Cancer Technology) is an international biotechnology company based in Sydney, Australia.

Innovate, founded by Bioaccelerate Holdings, is developing a range of oncology pharmaceuticals. The company is based in New York.

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