Shareholders in troubled biotech Metabolic have voted down a proposal to acquire the CSIRO spin-out PolyNovo Biomaterials.

Despite the recommendation of the board and chair, shareholders voted against the move by a substantial margin, also voting down a proposition that the company change its name.

A resolution to increase remuneration of non-executive directors was withdrawn prior to the annual general meeting, held last week.

Metabolic has had a disastrous two years, starting with the failure of its anti-obesity drug AOD9604 in February 2007. It has also put on hold its oral peptide delivery platform and closed its laboratory and reduced staff.

With reasonable cash in hand but no pipeline, the company’s management decided on a merger and acquisition strategy, the first product of which has now been rejected.

The board said in a statement it would now look at a number of alternatives.