Autogen stocks soar as Gutnick sells out

Mining magnate Joseph Gutnick has relinquished his stake in Autogen in a move that allows the gene discovery company a more complete biotech focus.

Gutnick sold his entire 19.9 per cent stake to Brisbane venture capital group Charter Pacific, who will have two representatives on the company's board.

Chief operating officer Prof Greg Collier will also step up to the position of CEO and managing director of Autogen.

Speaking from Brisbane, Collier said the changes were very positive for the company. "It has brought two very experienced people into a more dedicated board with lots of good ideas for the future," he said.

Investors embraced the news of Gutnick's departure, clambering aboard the stock and lifting it 40 per cent to close of trade on Monday.

At the time of writing, Autogen's shares were almost 30 per cent higher at 61 cents.

Collier would not be drawn on whether Gutnick had been encouraged to sell his stake, saying only that the former executive chairman was very supportive of the changes.

"He obviously wants to concentrate more on the resources industry and his mining ventures in Canada," Collier said.

"I think maybe there was a perception [among investors] that Joseph's experience was in the resource sector."

He said that while Gutnick had brought to Autogen a lot of business experience, Collier's elevation to the top job would give the company a greater pure biotech focus.

Leaving the board along with Gutnick was non-executive director Dr David Tyrwhitt. Replacing them will be Charter Pacific CEO Kevin Dart, who will join as a director, and corporate lawyer Brett Heading, who will be acting chairman.

Charter Pacific has been listed on the Australian Stock Exchange for 14 years and is a 28 per cent shareholder in ballistics company Metal Storm.

Collier said the new directors were also on the boards of other biotech companies.

"These are people who have time to put into the company and are excited by the company and want to grow it," he said. "You will see a number of changes happening in the near future."

Autogen will move out of the Gutnick offices into its own existing facilities and with the experience of its new directors will begin driving towards raising new finances.

Collier said his trip to New York last week had also cemented the company's drive towards a Nasdaq listing, with plenty of interest expressed in the company among US investors.