Novogen to sell isoflavone portfolio to Marshall Edwards

Australian drug development company Novogen announced today that it has agreed to sell the rights to its entire isoflavone portfolio to US subsidiary Marshall Edwards in return for stock.

The precise details of the transaction announced today were not provided. Novogen already owns 71 percent of Marshall Edwards.

Isoflavones are a class of organic compounds similar in chemical structure to oestrogen, and which have been shown to have wide range of health applications including protection against breast cancer, prostate cancer, menopausal symptoms, heart disease and osteoporosis.

Novogen extracts its isoflavones from red clover, thought to be the richest source of isoflavones in Nature. Over the past 10 years, the company has conducted what it says is the world’s largest and most comprehensive isoflavone clinical testing program. From it the company has made important discoveries which form the basis of its unique isoflavone formulations.

All products under its two leading brands of Promensil and Trinovin have been produced to contain particular isoflavones in particular ratios which Novogen markets as delivering specific health benefits.

Novogen said that the structure of the deal with Marshall Edwards would ensure that it continued to gain value from its isoflavone portfolio.

“Success for Marshall Edwards will flow back to Novogen through its substantial shareholding in that company,” said Novogen chairman Philip Johnston.

Marshall Edwards president and CEO Daniel P Gold remarked that the agreement was an important milestone for the company.

“The proposed transaction would enable us to maximise the value of assets we already have under development as well as explore other potential product candidates within the portfolio,” he said.

Marshall Edwards already licenses from Novogen rights to its drug candidates triphendiol, NV-143, NV-128 and phenoxodiol. Back in June Novogen was hammered by investors following disappointing Phase II trial results for phenoxodiol on late-stage ovarian cancer patients.

Its shares closed down half a cent today to finish at $0.135.