AusIndustry Grant Funding Boosts Cancer Program Development
Brisbane, Australia, Monday July 25, 2005 Australian cancer-drug development company, Progen Industries Limited (NASDAQ:PGLAF; ASX: PGL) has been offered and intends to accept a $3.39 Million AusIndustry Commercial Ready grant to support the further development of the Company's drug discovery program over the next 3 years.
Key Points:
This $3.39 Million grant is a follow-on from the Company's AusIndustry Start grant that concluded in June 2005. It will provide 50% funding support for the maturing drug discovery program over the next 3 years.
In the last three years, the drug discovery program has achieved all milestones including the synthesis of a series of new molecules with promising activity against key protein targets that mediate angiogenesis.
The discovery program has generated three new patent applications that strengthen the Company's intellectual property portfolio that now includes 15 patent families and 24 issued patents.
Lewis Lee, Progen's Managing Director said that Progen has long recognized the importance of building a 'drug pipeline' to increase the Company's value proposition into the future and provide growth opportunities. This grant, the second of two AusIndustry grants, ensures that the necessary research continues.
"The AusIndustry grant system is without doubt extremely valuable to the Australian biotech industry. We are very grateful for the support provided by this, our second AusIndustry grant awarded to us. It is also a highly competitive peer reviewed grant system and we appreciate the confidence that the Australian Government has in our drug discovery efforts. The grant will play a significant role in transforming our current early stage compounds into 'products' that are ready to enter human clinical trials. Creating products from within the company's own internal research is another indication of the Company's growing depth and skill set. Products emanating from this research in future will complement the development of our two current product candidates PI-88 and PI-166."
Progen's Head of Drug Discovery, Dr Vito Ferro, Ph.D., added. "We are certainly excited to have created a series of compounds with very encouraging activity against some of the disease-promoting proteins of interest to us. Now it is time to focus on lead optimization to ensure that the compound chosen for human clinical trials has the best chance of success."
The Company's in-house drug discovery research is founded upon over 10 years of extensive collaborative academic research with the Australian National University (John Curtin School of Medical Research (Prof. Chris Parish), Research School of Chemistry (Prof. Martin Banwell) and others) on the role of heparan sulfate, a complex sugar implicated in several disease processes. The $3.39 Million grant will make up 50% of the 3yr budget for the project. Progen's commitment will be funded from working capital which was bolstered by the Company's recent capital raising.
The offer is subject to the execution of a formal agreement between the Commonwealth Government and Progen which is standard practice.
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About Progen's Drug Discovery
Progen's Drug Design Group is a multidisciplinary team with expertise in medicinal chemistry, molecular and cell biology, analytical biochemistry and molecular modelling. The group's research is focused on the design of novel small molecules for Progen's future drug pipeline based on the inhibition of carbohydrate-protein interactions involved in disease processes. Visit our website for more detail at www.progen.com.au/?page=refocus.html
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.
* Commercial Services - manufacturing biopharmaceutical products to global standards.
Keywords - Progen, cancer, drug discovery, angiogenesis, heparanase
Web links to selected recent news and other information about Progen:
PI-88 Licensing - US Burrill & Co. engaged www.progen.com.au/?page=nepress2005.html
Phase II melanoma combination trial launched www.progen.com.au/?page=nepress2005.html
Phase II melanoma results at ASCO www.progen.com.au/?page=nepress2005.html
Underwriting Agreement Signed www.progen.com.au/?page=nepress2005.html
Open Briefing: MD on strategy www.progen.com.au/?page=nepress2005.html
Half Year Financial Release www.progen.com.au/?page=nepress2005.html
AGM Managing Director's Address www.progen.com.au/?page=nepress2004.html
PI-88 mode of action www.progen.com.au/?page=repi-88.html
Progen's drug development pipeline www.progen.com.au/?page=pihome.html
Progen Industries Ltd www.progen.com.au
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