OncoGenex to Merge With Achieve Life Science

The oncology focused biopharma firm OncoGenex Pharmaceuticals and Achieve Life Science have entered into a definitive merger agreement under which OncoGenex will acquire Achieve in an all-stock transaction.

Achieve's equity holders are expected to own 75% of the combined company's outstanding shares and current stockholders of OncoGenex are expected to own the remaining 25% of the combined company's outstanding shares. Following completion of the merger, OncoGenex Pharmaceuticals will be renamed Achieve Life Sciences.

The combined company's executive management team will be led by Rick Stewart, chairman, Achieve; Anthony Clarke, chief scientific officer, Achieve; John Bencich, chief financial officer, OncoGenex; and Cindy Jacobs, chief medical officer, OncoGenex. The combined company plans to utilize select clinical and corporate resources from OncoGenex's existing operations to accelerate the clinical development program of cytisine for smoking cessation.

The proposed merger will create a clinical-stage company focused on clinical and commercial development of cytisine, a selective nicotine receptor partial agonist currently in late-stage development for smoking cessation.

In addition to cytisine, the combined company's pipeline will also include apatorsen (OGX-427), a once-weekly intravenous drug designed to inhibit production of heat shock protein 27 (Hsp27) to disable cancer cells' defenses and overcome treatment resistance. "

After extensive and thorough review of strategic alternatives, we are very pleased to announce this proposed merger with Achieve as it adds both immediate and long-term product opportunities in indications with significant patient need and commercial opportunity," said Scott Cormack, president and chief executive officer, OncoGenex. "With cytisine in late-stage development for smoking cessation and having a defined regulatory path with FDA, we believe the proposed merger provides our stockholders with an opportunity to realize value from their investment in OncoGenex."

Rick Stewart, chairman, Achieve, said, "Achieve is expecting to meet a number of significant clinical and regulatory milestones within the next 12-18 months culminating in a final, large-scale Phase 3 clinical trial. The merger of OncoGenex and Achieve provides additional clinical and corporate resources to meet those milestones."