Progen Sharpens Cancer Focus Through Divestment

Progen Sharpens Cancer Focus Through Divestment 


BRISBANE, Australia, Nov. 10  /PRNewswire-FirstCall/ -- Progen Industries
Limited  today announced the divestiture of their non-core Life Sciences
business unit with the agreement signed with Global Science and Technology Ltd
(GST), a subsidiary of New Zealand based EBOS Ltd (NZX: EBO.NZ). The
transaction, valued at $1.2 M, along with recent capital raising, leaves Progen
with approximately $16 million in a solid cash position to focus on its
anti-cancer drug development.

The Life Science Business Unit, which sells and distributes laboratory research
consumables, formed part of Progen's Commercial Services division that includes
the higher margin Contract Manufacturing Business Unit, which continues to
provide valuable services to the Biotechnology industry.

Progen is committed to their focus on cancer drug development and this has been
reinforced by the clinical progress achieved with anti-cancer compound PI-88.
Progen has concluded the first PI-88 Phase II trial, reaching clinical trial
endpoints. It is also showing promise as a single-agent in a Phase I trial in
patients with solid tumors. One third of cancer patients treated to date in this
trial have experienced stable disease over periods up to 27 months. These
encouraging data, combined with the company's demonstrated drug discovery and
development capabilities in the treatment of cancer, have provided the strong
commitment to R&D to realize the greatest value proposition for shareholders.

Progen historically has been involved in the sale and distribution of life
sciences products after its incorporation in 1990. However, Progen's business
model and focus has evolved into that of a drug discovery and drug development
company. To enable the company to exploit the substantial opportunities
presented from its core R&D pursuits, Progen has strategically converted the
Life Sciences unit into a self-sustaining profitable business unit whilst in
parallel looking at options for sustained growth both internally and externally.
Global Science and Technology Ltd. (GST) have demonstrated both experience and
success in the Life Sciences distribution sector and were chosen as the best
option to realize the growth strategy for the division.

Progen's Managing Director, Lewis Lee remarked. "The Life Sciences business sale
is part of a deliberate strategy that will allow Progen to further sharpen its
focus on their core competencies in the area of cancer drug discovery and
development. The Life Sciences business unit has contributed to operational
profit. We have chosen to divest the business unit to allow a reputable focused
player in this market sector to undertake the next growth phase and allow us to
concentrate our efforts on the greater value proposition for Progen in cancer
drug development. On behalf of the company I congratulate and thank the Life
Sciences business unit management and staff for an outstanding achievement under
the direction of Rodney Stewart."

The formal transfer of Progen Life Sciences to GST will occur in late November.
Progen Life Sciences staff will be offered new employment by GST under the terms
of the agreement and customers should notice little change as our commitment to
customer service can be expected to continue through the transition period. 

DATASOURCE: Progen Industries



CONTACT:  Sarah Meibusch of Progen Industries, [phone],

Copyright