SUDA Pharmaceuticals Ltd (ASX:SUD) is developing a radically new, first-in-class approach to the treatment of cancer using the drug anagrelide.
The company is also continuing to progress its short-term insomnia treatment, ZolpiMist, for which it is expecting to hear an outcome from its TGA submission in the fourth quarter of 2020.
As well, SUDA is developing products in conjunction with its partners, Sanofi (EPA:SAN), Strides Pharma Global, Laboratorios Ordesa, Zelira Therapeutics (ASX:ZLD) and Cann Pharmaceutical Australia.
Cancer therapy licensing
SUDA had been progressing towards a proposed material licensing transaction in relation to a promising cancer therapy technology from a leading US cancer research institute and, on June 1, 2020, entered into a trading halt, to finalise these arrangements and the arrangements for a proposed capital raising.
The company engaged with ASX in relation to the application of ASX Listing Rules to the proposed transaction and had commissioned an independent expert to opine on the fairness and reasonableness of the proposed transaction.
On this basis, the board was confident that SUDA was in a position to be able to announce the proposed transaction and capital raising when the company was expected to come out of the trading halt on June 3, 2020.
Following SUDA’s entry into a trading halt, ASX made a determination that the transaction is of the nature which would, in ASX’s view, require the company to re-comply with Chapters 1 and 2 of the ASX Listing Rules for the purposes of Listing Rule 11.1.3.
In response, SUDA lodged an application for in-principle advice in relation to its suitability for readmission.
ASX has now formally advised the company that there is a significant likelihood the ASX will exercise its discretion to decline SUDA’s application for readmission if it chooses to proceed with the proposed transaction.
After careful consideration, SUDA has determined that with the ASX’s current determination it is not possible for the company to proceed with the proposed transaction.
The accompanying capital raising will, accordingly, also not proceed at this time.