Progen Sharpens Cancer Focus Through Divestment
November 10 2003 - 8:58PM
PR Newswire (US)
Progen Sharpens Cancer Focus Through Divestment BRISBANE,
Australia, Nov. 10 /PRNewswire-FirstCall/ -- Progen Industries
Limited today announced the divestiture of their non-core Life
Sciences business unit with the agreement signed with Global
Science and Technology Ltd (GST), a subsidiary of New Zealand based
EBOS Ltd (NZX: EBO.NZ). The transaction, valued at $1.2 M, along
with recent capital raising, leaves Progen with approximately $16
million in a solid cash position to focus on its anti-cancer drug
development. The Life Science Business Unit, which sells and
distributes laboratory research consumables, formed part of
Progen's Commercial Services division that includes the higher
margin Contract Manufacturing Business Unit, which continues to
provide valuable services to the Biotechnology industry. Progen is
committed to their focus on cancer drug development and this has
been reinforced by the clinical progress achieved with anti-cancer
compound PI-88. Progen has concluded the first PI-88 Phase II
trial, reaching clinical trial endpoints. It is also showing
promise as a single-agent in a Phase I trial in patients with solid
tumors. One third of cancer patients treated to date in this trial
have experienced stable disease over periods up to 27 months. These
encouraging data, combined with the company's demonstrated drug
discovery and development capabilities in the treatment of cancer,
have provided the strong commitment to R&D to realize the
greatest value proposition for shareholders. Progen historically
has been involved in the sale and distribution of life sciences
products after its incorporation in 1990. However, Progen's
business model and focus has evolved into that of a drug discovery
and drug development company. To enable the company to exploit the
substantial opportunities presented from its core R&D pursuits,
Progen has strategically converted the Life Sciences unit into a
self-sustaining profitable business unit whilst in parallel looking
at options for sustained growth both internally and externally.
Global Science and Technology Ltd. (GST) have demonstrated both
experience and success in the Life Sciences distribution sector and
were chosen as the best option to realize the growth strategy for
the division. Progen's Managing Director, Lewis Lee remarked. "The
Life Sciences business sale is part of a deliberate strategy that
will allow Progen to further sharpen its focus on their core
competencies in the area of cancer drug discovery and development.
The Life Sciences business unit has contributed to operational
profit. We have chosen to divest the business unit to allow a
reputable focused player in this market sector to undertake the
next growth phase and allow us to concentrate our efforts on the
greater value proposition for Progen in cancer drug development. On
behalf of the company I congratulate and thank the Life Sciences
business unit management and staff for an outstanding achievement
under the direction of Rodney Stewart." The formal transfer of
Progen Life Sciences to GST will occur in late November. Progen
Life Sciences staff will be offered new employment by GST under the
terms of the agreement and customers should notice little change as
our commitment to customer service can be expected to continue
through the transition period. DATASOURCE: Progen Industries
CONTACT: Sarah Meibusch of Progen Industries, +61-7-3273-9118,
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