News & Events

ChemGenex Pharmaceuticals Limited (ASX:CXS) advises that a decision has been taken by the Board to seek a voluntary de-listing from the NASDAQ Capital Market ("NASDAQ") and to fully deregister from the U.S. Securities and Exchange Commission's ("SEC") ongoing reporting obligations.

The voluntary decision to de-list from NASDAQ and to deregister was taken following a detailed review of the limited benefits generated by the listing as compared to the significant, and growing, compliance costs of maintaining it. In order to maintain the current NASDAQ listing, the Company is required to devote disproportionately large amounts of management time to meet numerous reporting and compliance obligations, such as the preparation and filing of periodic reports, Annual Reports on Form 20-F and compliance with burdensome control issues at great expense. Based on this, ChemGenex no longer sees sufficient value in maintaining its secondary Level 2 listing on NASDAQ.

The de-listing from NASDAQ also means the company's regulatory compliance requirements relating to Board structure are less onerous and the Board is able to be reduced in size. Accordingly, Dr. Dennis Brown, Mr. Donald Santel and Dr. Julie Cherrington will resign as Directors effective July 20, 2009, but will continue their involvement with the company as active members of Advisory Boards.

Dr. Greg Collier, Chief Executive Officer and Managing Director thanked the outgoing Directors for their service to the company. "We have been fortunate to have had Dennis, Don and Julie on the Board over the past several years, and have benefitted from their significant experience. We look forward to their continued support as Advisory Board members as the Company moves to complete the regulatory filing for omacetaxine to the FDA in Q3, and plans for commercial launch in the USA in Q1 next year."

The Company intends to file a Form 25 with the SEC on July 9, 2009 to commence the NASDAQ delisting process. It is expected that the de-listing will take effect as of the close of trading in New York on July 20, 2009. The Company also expects thereafter to file a Form 15F with the SEC to terminate its registration and to suspend its reporting obligations under the Securities Exchange Act of 1934. The Company confirms that it will maintain its primary listing on the Australian Securities Exchange ("ASX").

Following deregistration, the Company's securities will not be listed on any exchange in the United States. The Company intends, however, that its American Depositary Shares ("ADSs") continue to trade as a Level 1 program in the "over the counter" market. As such, there will be no changes to the
current status of the ADSs.

All ADS holders will shortly receive a formal notice advising them of the downgrade of the program and providing instructions on how to proceed.

The anticipated timetable for the de-listing from NASDAQ and downgrade of the ADS program is set out below:

July 20, 2009 - Termination of NASDAQ listing and downgrade of ADS program

July 21, 2009 - Registration with the SEC suspended

October 19, 2009 - Deregistration with the SEC effective

It is recommended that ADS holders who have further questions should wait until they receive the documentation from the Bank of New York Mellon (BoNYM). However, in the interim, if any ADS holder has ANY questions in relation to the proposed changes, they may contact ChemGenex
Company Secretary, Dr. James Campbell, via telephone on +61 3 52239900 or via email at jcampbell@chemgenex.com.