Why Did Invex Therapeutics Abandon a $1.4B Neurological Deal?
Invex Therapeutics has discontinued exclusive negotiations to acquire a rare neurological disease company due to board instability triggered by a shareholder requisition notice. Despite this setback, the company remains committed to diversifying its neurological treatment portfolio.
- Exclusive acquisition talks ended due to shareholder-driven board removal notice
- Target company focused on Fragile X Syndrome and rare neurodevelopmental disorders
- Board intends to continue strategy of portfolio diversification despite challenges
- General meeting scheduled for 10 November 2025 to address director removal resolutions
- Uncertainty around board composition raises transaction execution risks
Background on Invex's Strategic Shift
Invex Therapeutics, a Perth-based biopharmaceutical company known for repurposing Exenatide to treat neurological conditions linked to raised intracranial pressure, has been actively seeking to broaden its portfolio. Following the completion of its global Phase 3 IIH EVOLVE clinical trial, the company aimed to invest in complementary neurological treatment assets, particularly in rare diseases.
The Promising Acquisition Opportunity
After extensive due diligence on multiple prospects, Invex identified a compelling target in mid-2025, a therapeutics development company specializing in Fragile X Syndrome (FXS) and other rare genetic neurodevelopmental disorders. FXS, a leading inherited cause of intellectual disability, currently lacks approved therapies, making this a potentially lucrative and impactful market. The target had even been nominated for a prestigious start-up award, underscoring its innovation and promise.
Boardroom Instability Derails Negotiations
However, the acquisition talks hit a major roadblock following a shareholder requisition notice to remove two key directors, Executive Director Dr Thomas Duthy and Chairman David McAuliffe. This notice, lodged by Celtic Capital Pte Ltd and signed by substantial shareholder Jason Peterson, introduced significant uncertainty about Invex’s leadership and strategic direction. The target company expressed serious concerns about the potential changes in control and the absence of proposed replacement directors, ultimately leading them to discontinue negotiations on 29 September 2025.
Implications and Next Steps
Invex’s board expressed disappointment over the lost opportunity, emphasizing that the proposed transaction was the most attractive among those reviewed. Despite the setback, the board remains committed to its strategy of identifying neurological treatment assets to diversify its portfolio. The company will hold a general meeting on 10 November 2025 to address the requisitioned resolutions for director removal, a pivotal event that could reshape Invex’s governance and future strategic initiatives.
Looking Ahead
While the board navigates this period of volatility, investors and stakeholders will be watching closely to see how the leadership dispute resolves and what new opportunities Invex pursues. The outcome of the upcoming general meeting will be critical in determining the company’s ability to execute its diversification strategy amid ongoing market and governance challenges.
Bottom Line?
Invex’s path forward hinges on the upcoming boardroom vote, with strategic diversification efforts facing a critical test.
Questions in the middle?
- Will the general meeting result in the removal of the current directors?
- How will changes in board composition affect Invex’s strategic partnerships and acquisitions?
- What new neurological treatment assets might Invex pursue following this setback?
