Novogen to Focus on Oncology Program
February 13 2009 - 9:27AM
Marketwired
Australian pharmaceutical R&D company, Novogen Limited (ASX:
NRT) (NASDAQ: NVGN) today advised it would focus its activities on
its oncology program.
With the current economic climate making capital raising for
extended programs difficult, Novogen is relying on its internal
resources to concentrate on the expanding oncology portfolio.
Along with this decision, Novogen has taken several steps to
reduce costs so that existing cash reserves are devoted to
maintaining the significant potential of the oncology program.
Among cost reduction measures are:
-- outsourcing of the scale-up manufacturing of clinical stage compounds;
-- putting on hold the cardiovascular and anti-inflammatory programs;
-- reducing world wide staff numbers from 62 to 51;
-- implementing fee and income reductions of 20 percent for the board and
executive management.
Novogen advises that its Group cash balance at 31 December, 2008
is approximately A$44 million (US$29 million) which it considers
appropriate to ensure the viability of the Company.
As it proceeds closer to commercialisation of its oncology
R&D and when financial market conditions become more
favourable, Novogen will be in a better position to fund work on
the remainder of its intellectual property which is derived from
its isoflavonoid technology platform.
Novogen's business strategy is to take its R&D to a clinical
stage where it has a definable value and is saleable to an
organization which would undertake commercialization.
The Novogen Group's most advanced anti-cancer compound
phenoxodiol is in advanced clinical trials, and is licensed to
Novogen's 71 percent owned subsidiary, Marshall Edwards, Inc.
Elements of the Novogen Group's oncology program which are
conducted by Marshall Edwards include:
-- phase III global trial of phenoxodiol to treat advanced ovarian
cancer;
-- phase II trial in the US of phenoxodiol to treat prostate cancer;
-- phase I trial of phenoxodiol to treat cervical cancer;
-- phase I trial of triphendiol, a derivative of phenoxodiol, to treat
bile duct and pancreatic cancers and advanced melanoma, for which the FDA
has granted orphan drug status, and which is approved for entry into
clinical trials in the US.
Separately, Novogen has developed NV-128, the promising mTOR
inhibitor, which has a different pathway from phenoxodiol and
triphendiol to achieving cancer cell death. This opens up new
opportunities in anti-cancer therapies and the possibility of these
compounds working synergistically.
Novogen is maintaining its commitments to Glycotex, Inc., its
US-based wound management subsidiary, and also continues to earn
revenue from sales of consumer healthcare products in Australia,
Canada and the UK and from thirteen licensees worldwide.
Novogen has 95 granted patents surrounding its intellectual
property which establishes significant value within the group and a
pipeline for future R&D activity.
About Novogen Limited
Novogen Limited is an Australian biotechnology company that has
patented isoflavone technology for the treatment and prevention of
degenerative diseases and disorders. The Company coordinates an
international clinical research and development program with
external collaborators, hospitals and universities. For more
information, visit www.novogen.com.
Under U.S. law, a new drug cannot be marketed until it has been
investigated in clinical trials and approved by the FDA as being
safe and effective for the intended use. Statements included in
this press release that are not historical in nature are
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. You should be aware that our actual results could differ
materially from those contained in the forward-looking statements,
which are based on management's current expectations and are
subject to a number of risks and uncertainties, including, but not
limited to, our failure to successfully commercialize our product
candidates; costs and delays in the development and/or FDA
approval, or the failure to obtain such approval, of our product
candidates; uncertainties in clinical trial results; our inability
to maintain or enter into, and the risks resulting from our
dependence upon, collaboration or contractual arrangements
necessary for the development, manufacture, commercialization,
marketing, sales and distribution of any products; competitive
factors; our inability to protect our patents or proprietary rights
and obtain necessary rights to third arty patents and intellectual
property to operate our business; our inability to operate our
business without infringing the patents and proprietary rights of
others; general economic conditions; the failure of any products to
gain market acceptance; our inability to obtain any additional
required financing; technological changes; government regulation;
changes in industry practice; and one-time events. We do not intend
to update any of these factors or to publicly announce the results
of any revisions to these forward-looking statements.
FOR FURTHER INFORMATION: MR CHRISTOPHER NAUGHTON MANAGING
DIRECTOR NOVOGEN LIMITED TEL 011 61 2 9878 0088 (Australia) ISSUED
BY: WHITECOAT Strategies CONTACT: David Sheon 202 470-2880
(USA)
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