Graham Kelly back in charge of revamped Novogen

Founder Dr Graham Kelly is back at the helm of Novogen (ASX:NRT) after a seven-year absence following the company’s acquisition of Triaxial Pharmaceuticals for $1.9 million.

Novogen is returning to focus on anti-cancer drugs with the acquisition, which it is billing as the culmination of a restructuring that began three years ago.

This restructuring involved the sale of multiple assets and the separation of US subsidiary MEI Pharma through a placement and share distribution.

The acquisition of Triaxial gives Novogen a portfolio of technologies based on small molecule drugs. Triaxial had been engaged in applying these technologies to benzopyran compounds to create “super benzopyrans” with anti-cancer activity.

Kelly said Novogen will be taking up the mantle from Triaxial for super benzopyran development.

“[The new Novagen's] first drug, CS-6, has been designed specifically to cross the blood-brain barrier and to attack primary brain cancer cells,” he said.

Kelly founded Novogen in 1992 and helped bring it public on the ASX in 1994 and to the Nasdaq in 1999. But he left the company in 2005, due largely to a difference of opinion over the strategic direction of the company.

Kelly co-founded Triaxial with two other former Novogen scientists in 2009. The three founders were largely responsible for developing Novogen's original isoflavonoid anti-cancer IP.

Kelly has joined the Novogen board as well as being appointed CEO.

In an open letter to shareholders, Kelly expressed a “great sense of satisfaction” to again be heading up the company. He also stated that he had “unfinished business…a technology to put back on track and the faith of some long-suffering shareholders to restore.”

The Novogen-Triaxial merger involves the allocation of 15.4 million Novogen shares, and a $1.5 million loan to Triaxial shareholders.

Novogen (ASX:NRT) shares grew 5.26% in Friday's trading to 10c as of around 4pm.