Progen's Lee denies partnering rumours

Progen's (ASX: PGL) CEO Lewis Lee confirmed today that its partnering strategy, as announced at last year's AGM, was proceeding on track, but that no agreements are pending.

The company hopes to have a partner for further development of its promising anti-angiogenesis drug PI-88 by the end of Phase II, Lee told Australian Biotechnology News today.

"We announced at last year's AGM, as our investors expected us to, what our game plan was," he said.

The company's strategy, Lee said, was to establish solid proof-of-principle data in Phase II clinical trials prior to partnering. He said the company recognised the need to partner with a large biotechnology or pharmaceutical company in order to accelerate the development of PI-88.

"We need to amass a sufficient amount of information so that we're attractive to partners," he said.

"Our preferred deal would be co-partnering or co-developing PI-88 -- this would be best for us as we could keep our finger on the pulse."

Lee said the company was in contact with a number of potential partners, and hoped that it would complete a deal toward the end of this year or next year.

"Big pharma companies work on a different timeline," he said. "We want to make sure we get the right deal -- we're looking at them all and we won't deny anyone the opportunity to talk to us."

The company's share price rose 20 per cent from AUD$3.52 to a high of $4.22 between July 29 and August 3, triggering a speeding ticket from the ASX and speculation from market watchers. The share price has since retreated, closing yesterday at $4.07.

But Lee said there was no reason for the share price to surge and that the company was in compliance with listing rules.