Progen flush as PI-88 trials continue

Brisbane cancer drug developer Progen Industries (ASX:PGL) has reported a strong cash position of AUD$23.43 million, up 64 per cent on last year for the year ended 30 June 2005, as it continues to trial its lead anti-cancer compound.

The company's cash reserves were boosted by a $12.04 million capital raising, through the exercise of the listed shareholder and employee options. A further $3.05 million was raised through a private placement of the company's shares, accounting for the shortfall in listed options that remained unexercised at the 31 May 2005 expiry date.

Progen's losses increased to $5.94 million, up from $4.78 million in 2003-04, primarily due to the sale of its Life Sciences business during the previous year. Excluding the results of the Life Sciences division, the loss was up marginally at 4.2 per cent due to a drop in contract manufacturing revenues.

Progen has also appointed Dr Anand Gautam as vice-president of R&D to aid in the expansion of the company's drug development portfolio.

Progen's most advanced compound within its oncology pipeline, PI-88, is currently being evaluated in phase II clinical trials. Progen aims to have secured a strategic partner to accelerate and fund the ongoing development of PI-88 through to registration and market before the completion of these trials.