Novogen Accepts $4M in Stock from Marshall Edwards Subsidiary for Isoflavone IP

Deal includes Phase III-stage phenoxodiol and earlier clinical compounds.

Australian firm Novogen has transferred its entire isoflavone-based IP portfolio to U.S.-based oncology subsidiary of Marshall Edwards, in exchange for $4 million worth of the latter’s convertible preferred stock. The new asset purchase deal will effectively cancel the existing licensing agreements between the firms, including potential future milestone and royalty payments.

Marshall Edwards had previously licensed rights to a number of Novogen’s oncology candidates. These include the Phase III clinical-stage multiple signal transduction regulator (MSTR) phenoxodiol (NV-06) and early clinical-stage follow-on molecule triphendiol, along with the triphendiol derivative NV-143, and triphendiol/phenoxodiol analogue NV-128. Both NV-143 and NV-128 are projected to start in Phase I development during 2011.

The isoflavone assets include over 400 new chemical structures generated by Novogen. “Over the past 15 years Novogen has conducted the largest and most comprehensive isoflavone-based research program in the world,” comments William D. Rueckert, chairman of Novogen’s board of directors. “We believe these assets are now better served in the hands of a company equipped with the drug development expertise and access to capital required to execute a clinical strategy and fully realize their value. Meanwhile, this transaction serves to bolster our ownership stake in Marshall Edwards, a significant value driver for our company going forward.”

Novogen is exploiting its isoflavonoid platform for the development of both consumer health products and prescription drugs. In November the firm’s majority owned subsidiary Glycotex was awarded $244,479 under the U,S. Government’s Qualifying Therapeutic Discovery Project program to develop the topical gel product GLYC-101 for the treatment of acute and chronic wounds.

Glycotex has licensed specific IP from Novogen for use in the development of products for wound-healing applications. GLYC-101 is undergoing late Phase II development in the U.S. for the treatment of burns and is in late Phase II development in Australia for the treatment of chronic venous ulcers.