Australia's Novogen announced today that it will suspend its cardiovascular and anti-inflammatory programs to focus its resources on advancing its oncology business. "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," the company said in a statement. Predictably, the move be accompanied by job cuts.
The company said it would take several steps to reduce costs, including:
- outsourcing of the scale-up manufacturing of clinical stage compounds;
- putting on hold the cardiovascular and anti-inflammatory programs;
- reducing worldwide staff numbers from 62 to 51; and
- implementing fee and income reductions of 20 percent for the board and executive management.
Novogen's most advanced anti-cancer compound phenoxodiol, which is in Phase III trials for ovarian cancer, Phase II trials for prostate cancer and Phase I trials for cervical cancer. The company also has another compound--triphendol, in Phase I trial for bile duct, pancreatic cancers and advanced melanoma.
- see Novogen's release