Progen acquires CellGate for $1.5M in shares

Australian drugmaker Progen Pharmaceuticals has executed a definitive agreement to acquire US oncology company CellGate. The firm said that the purchase would expand its product portfolio, particularly in terms of CellGate's range of Phase I polyamine and epigenetic drug candidates. Under the terms of the buyout, Progen will issue 756,199 new shares worth approximately $1.5 million and will assume CellGate's net liabilities of $1.0 million. Further payments totalling up to $19.5 million are due to CellGate shareholders on the achievement of certain pre-determined clinical and regulatory milestones.