From A to Z: Amrad wants Zenyth as new name

Melbourne's Amrad Corporation (ASX:AML) has proposed that its name be changed to Zenyth Therapeutics.

The proposal will be put to shareholders at Amrad's annual general meeting on October 27.

"We like the name. It reflects what we're trying to achieve," said Amrad CEO Andrew Nash. "It's been very well received by all the people we've spoken to and it has some connotations which fit well with where the company wants to go moving forward."

Nash said that following the Avexa (ASX:AVX) demerger and the recent licensing deal which gave CNSBio access to a portfolio of Amrad's compounds in the neurological area, Amrad is now focused on inflammation, cancer and therapeutic antibodies.

"We just think it's time for the company to move on from some of its past. One symbolic way to do that is to change the name," said Nash.

Amrad suggested that another reason for the name change was to end any confusion with Amrad Pharmaceuticals, the business divested by Amrad in November 2000. Some Amrad Pharmaceuticals products are still marketed in Australia. "In terms of recognition of the Amrad brand name as a biotech company, there was certainly a little bit of confusion within the Australian sector," said Nash.

However, Nash said, the Amrad name is accepted and appreciated overseas, due to "some very good deals" the company has made with international partners.

"Internationally the name is much more well-known and more respected, and we'll deal with that change. But I still think that most of our investment base is here in Australia and that's the part of the market we're trying to influence most," he said.

Nash said Amrad did not conduct any specific surveys to determine if a name change for the company was necessary. But, he said, a wide range of people in the sector and the company's major shareholders were "canvassed" for their views and the name change has met with support.

Nash said he realised that simply changing Amrad's name would not improve the company's standing. "The company really has to move forward with its projects, get its projects into the clinic and have success in the clinic," said Nash. "That's ultimately the thing that's going to change some of the negative perception around Amrad."

ABN Amro Morgans senior analyst Scott Power said that changing Amrad's name was "something they probably had to do, to try and reposition the company in investors' minds."

Nash said that if Amrad's new name is accepted by shareholders at the AGM on October 27 then the change would be implemented around December 1. "There will be a big exercise between the October date and the December date to get the brand name out there and to get all of our partners and all of the people we work with aware of the change," said Nash.

If the new name is approved, the company will apply to the Australian Stock Exchange to change its ASX listing symbol to ZTL.

Nash said that implementing the changes would not be expensive for the company.