LONDON (Alliance News) - Mereo BioPharma Group PLC on Monday announced the immediate departure of founding board director Frank Armstrong prior to Mereo's combination with US firm OncoMed Pharmaceuticals Inc.
Non-Executive Director Armstrong was reported to be leaving Mereo, which develops and commercialises therapies to treat rare diseases, "in order to focus on his other board and portfolio positions".
As announced in the combination notice on December 5, OncoMed directors Michael Wyzga and Deepa Pakianathan will become independent non-executive directors at Mereo once the combination is concluded.
Wyzga is currently chief financial officer of Aura Biosciences Inc and Pakianathan is a board member at a number of companies, including Alder Biopharmaceuticals Inc.
Mereo will issue around 23.7 million new ordinary shares in the combination, which will be deposited in order to issue Mereo American Depositary Receipts to current OncoMed shareholders. OncoMed shareholders will also receive contingent value rights, which represent the right to receive future milestone payments.
When the combination is complete, Mereo shareholders are expected to own 75% of the enlarged group, while OncoMed shareholders will own 25% via these ADRs.
Shares in Mereo were untraded at 160.00 pence on Monday.
The combined business will have a portfolio of seven assets. As of September 30, the proforma cash resources of the combined businesses totalled USD115.5 million, including OncoMed's USD70.9 million cash resources.