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"This past fiscal year was the most significant and successful in Progen'shistory," said Justus Homburg, Chief Executive Officer of ProgenPharmaceuticals. "Our positive Phase 2 results for PI-88 in liver cancer,combined with our considerable fundraising efforts, have effectivelypositioned us to initiate our Phase 3 Trial during this calendar year andcontinue aggressively pursuing the development, registration andcommercialisation of PI-88. At the completion of the trial, we expect to havea registration package for PI-88 in over a dozen countries."
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Fiscal 2007 Financial Results:
Progen's operating loss for the year ended 30 June 2007 was $22.5 million,as compared to $7.6 million in 2006. The operating loss from continuingoperations, excluding the non-recurring compensation of $11.7 million paid toMedigen in 2007, amounted to $10.7 million, as compared to $7.0 million in2006, representing a 53.6 percent increase from last year. Of the $11.7million paid to Medigen, $11.4 million was non-cash and included equitypayments and the return of our investment in Medigen.
The operating loss includes expenses of $2.2 million, as compared to$369,000 in 2006 for costs associated with preparations for the Phase 3development of PI-88, including regulatory, additional animal studies andmanufacturing.
Fiscal 2007 revenue and other income totalled $3.8 million, as compared to$2.8 million in 2006, a 33.9 percent increase. This increase was due to a41.2 percent increase in revenue from a previously received Australiangovernment grant, and a 58.3 percent increase in interest income due toincreased funds on deposit following the Company's capital raisings.
* All figures quoted above are in Australian dollars.
About Progen: Progen Pharmaceuticals Limited is an Australian-basedglobally focused biotechnology company committed to the discovery, developmentand commercialisation of small molecule therapeutics primarily for thetreatment of cancer.Fiscal 2007 Corporate Highlights * Announced positive results from a Phase 2, 172 patient, post-resection liver cancer trial for P1-88 that support moving into a multi-national registration-directed Phase 3 trial; * Raised a net total of $92.4 million through various fundraising activities, which provides Progen with additional working capital to fund the Phase 3 clinical development of PI-88 in post-resection liver cancer, conduct additional clinical trials of PI-88 in other indications and further develop other product candidates; * Completed a royalty-buy-back negotiation with Medigen Biotechnology Corporation (Medigen) resulting in the conclusion of the Strategic Alliance between the two companies, which provides Progen with maximum flexibility and the opportunity to more rapidly develop and commercialise PI-88; * Continued efforts on the Company's Phase 2 PI-88 prostate and melanoma trials with results expected in the first half and second half of calendar 2008, respectively; * Completed Phase 2 Non-Small Cell Lung Cancer trial with results due by the end of the third quarter in calendar 2007; * Received a grant of up to $4.6 million through the Australian Government's Pharmaceuticals Partnerships Program that will be used towards PI-88's research and development costs; * Expanded senior management team and established leading international clinical advisory board of liver cancer specialists to support the clinical development and commercialisation of PI-88 in post-resection liver cancer; * Selected lead candidates for our drug discovery program focused on developing inhibitors of heparin binding proteins, and presented animal data at the
