Novogen year-end cash reserves down, R&D spending increases for anti-cancer drug phenoxodiol

By Lisa Kerner

Charlotte, N.C., Aug. 25 - Novogen Ltd. said it ended the 2005/2006 financial year with solid cash reserves of $33.5 million, a decrease of $13.8 million from the previous year.

Revenue for the year ended June 30 was up 3.2% at $18.3 million, from $17.7 million for the previous year.

The company said it increased its research and development spending by $1.8 million to $12.0 million, from $10.2 million in the previous corresponding period.

Novogen said the increased R&D spending was associated with the testing and manufacturing of the anti-cancer drug phenoxodiol in conjunction with its majority-owned subsidiary, Marshall Edwards, Inc.

Marshall Edwards was awarded Food and Drug Administration approval for phase 3 human clinical trial of phenoxodiol as a chemo-sensitizing agent in women with drug-resistant ovarian cancer.

"The key elements of Novogen's R&D strategy have been to progress the drug pipeline as far as possible and to surround it with strong patent protection before taking on a commercialization partner," managing director Christopher Naughton said in a company news release.

"While this entails considerable upfront expenditure, the result is the continued creation and preservation of substantial long-term value for Novogen shareholders."

Naughton pointed to the company's global patent portfolio, which grew from 45 to 61 during the year, as a measure of accruing value in the company.

Novogen is a biotechnology company based in Sydney, Australia.

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