Novogen to focus on oncology program
Sydney, Australia, 13 February, 2009 – Australian pharmaceutical R&D company, Novogen Limited (ASX:NRT NASDAQ:NVGV) 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 per cent for the board and executive management.
Novogen advises that its Group cash balance at 31 December, 2008 is approximately A$44 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 organisation which would undertake commercialisation.
The Novogen Group’s most advanced anti-cancer compound phenoxodiol is in advanced clinical trials, and is licensed to Novogen’s 71 per cent 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 trialling 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 (ASX: NRT; NASDAQ: NVGN) 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.
