In-transition Novogen names new directors

Novogen (ASX:NRT) has appointed two new directors and a strategic advisor to help guide the company’s transition to a clinical-stage cancer drug developer.

Professor Peter Gunning and Iain Ross have both joined the Novogen board as non-executive directors.

Gunning is a cytoskeleton expert and the chief inventor of the anti-tropomyosin (ATM) cancer drug platform which Novogen acquired from Melbourne’s Greenscreen in October 2013.

He previously served as chair of the Division of Research at The Children’s Hospital at Westmead, chair of the Westmead Research Hub executive and chair of the board of NSW consulting and biotech business development company Bio-Link.

Ross is currently non-executive director of both Benitec Biopharma (ASX:BLT) and Tissue Therapies (ASX:TIS). He has had a 20-year career serving on the boards of biotechnology companies on behalf of private equity groups and banks.

The new appointees replace Dr Andrew Heaton, who is stepping down from the board to focus on his role as CEO of Novogen North America, and Robert Birch, who said he is leaving because he is satisfied that the foundations for a successful company are in place.

Novogen also announced the appointment of US biotechnology industry expert David W Gryska as a strategic advisor to the board, to help the company manage its growing US presence. Gryska has more than 20 years’ experience in the healthcare sector with companies including Scios, Johnson & Johnson and Celgene.

Novogen last week announced its financial results for the first half of FY14, revealing it ended the calendar year with cash and cash equivalents of $6 million, up from $993,000 a year earlier.

But the company swung to a loss for the year of $3 million, from a $742,000 profit in 1H13. Revenue from ordinary activities fell 95.2% to $29,000.

During the period, Novogen entered a joint venture with Yale University focused on developing chemotherapeutic treatments for ovarian cancer. The company also conducted lab studies confirming that its Trilexium drug candidate is the lead choice for gioblastoma, while an analogue of Trilexium, Tr-1, is the lead candidate for an ovarian cancer indication.

Novogen (ASX:NRT) shares were trading 5.56% higher at $0.19 as of around 12.30 pm on Wednesday.