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14 March 06
Progen Half Yearly Financial Results
Brisbane, Australia 14 March 2006. Cancer drug development
company Progen Industries (ASX: PGL, NASDAQ: PGLAF), today announced the
release of its interim results for the half year ending 31 December 2005.
Key financial points
• Solid cash position with cash assets of $20.5M.
• A loss for the half-year of $2.9M which was consistent with the
2004 half-year loss of $2.5M with the following significant variances:
• 12.5% reduction in net R&D spend to $1.4M as a result of the
completion of the single agent PI-88 melanoma trial, and co-funding
arrangement with Medigen Biotechnology Corporation for the first line
combination therapy Melanoma trial.
• Revenue from contract manufacturing decreased by 64.2% to $393,000
in line with the Company’s strategy to focus on the supply of PI-88
for clinical trials along with optimizing manufacturing processes.
Half year priorities
PI-88 clinical program
The advancement of Progen’s lead anti-cancer drug PI-88 continued
to be a major component in R&D spending and focus for the company.
• Stage one recruitment (172 patients) was completed for the primary
liver cancer study. This trial is being executed by Medigen Biotechnology
Corporation, Progen’s clinical development partner.
• The Company commenced a new trial in metastatic melanoma in combination
with the chemotherapy drug decarbazine™ (DTIC). The trial is being
co-funded by Medigen Biotechnology Corporation and 17 patients have been
recruited to date.
• A new phase II clinical trial of PI-88 in combination with the
chemotherapy agent Taxotere™ was commenced in patients with metastatic
prostate cancer. Twelve patients have been recruited to this trial in
centres across Australia. The trial was initiated by investigators in
collaboration with Sanofi-Aventis
Progress was also made in the ongoing Phase II clinical trial of PI-88
and Taxotere in advanced lung cancer with 95 patients recruited to date.
Recruitment is expected to conclude before the end of the current financial
year. To date over 17,000 doses of PI-88 have been administered to 351
patients in our clinical trial program of PI-88 across 5 different cancer
types.
Partnering
The partnering program remained a key priority for the company over the
last six months. Progen continues to work with US-based Burrill and Co.
to progress discussions with pharmaceutical and biotechnology companies.
Confidential discussions continue with a number of potential partners
and various options are under consideration by management and the Board.
AusIndustry Commercial ReadyGrant
In August 2005 Progen secured ongoing funding for its drug discovery programs
with an AusIndustry Commercial Ready Grant of up to $3.4M. It will provide
50% funding support for advancing the drug discovery program over the
next 3 years.
Cash Position
“We have a strong cash position allowing us to continue to expedite
the PI-88 clinical program and other activities and we anticipate the
current cash reserves will fund the current operational activities for
the next 18 months,” commented Progen Chief Financial Officer, Linton
Burns.
About Progen:
Progen Industries Limited is an Australian based globally focused biotechnology
company committed to the discovery, development and commercialisation
of small molecule pharmaceuticals for the treatment of cancer and other
serious diseases.
Progen's three key areas of focus are:
- Clinical Development - via a focused clinical
trial programme involving its two compounds PI-88 and PI-166.
- Drug Discovery - projects focusing on the development
of potent, selective inhibitors of carbohydrate-protein interactions,
which are implicated in many disease processes.
- Manufacturing Services – PI-88 manufacturing
development and supply for the clinical program.
Keywords -
Progen, cancer, PI-88
Web links to selected recent
news and other information about Progen:
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