Novogen renegotiates phenoxodiol license payment

Australia-based Novogen has renegotiated with Marshall Edwards (its majority-owned USA-based clinical oncology firm) the timing of a $8.0 million milestone license payment for phenoxodiol payable to the former in December 2006, under the terms of their license agreement for the investigational anticancer drug phenoxodiol.

The terms of the Amendment Deed signed this month, postpones the license fee payment until phenoxodiol receives first clearance for marketing in the USA or any other country. The approval may be by the receipt of a New Drug Application under the accelerated-approval process or otherwise.

Marshall Edwards chief executive Christopher Naughton, said the postponing of the license fee payment would enable his firm to focus its cash resources on completing the Phase III clinical trial, for which it had recently received approval of its Special Protocol Assessment from the US Food and Drug Administration. "The milestone license payment is now due when phenoxodiol is approved for market by the FDA," Mr Naughton said.