EXHIBIT 99.1
AVANTOGEN LOGO INNOVATE ONCOLOGY LOGO
AVANTOGEN AND INNOVATE COMPLETE MERGER OF KEY ONCOLOGY PROGRAM
MAY 26, 2006 - Avantogen Limited ("Avantogen", ASX:ACU), Sydney, Australia and
San Diego, CA, and Innovate Oncology, Inc ("Innovate"; IOVO:OTCBB), New York,
closed today on the Definitive Agreement combining their oncology businesses,
that was executed and announced by the companies on February 1, 2006. Pursuant
to that agreement, Avantogen transferred to Innovate the 50% of Resistys, Inc.,
not already owned by Innovate, and as a result, Innovate will control 100% of
the North American marketing rights for product sales of RP101, a promising
chemoresistance inhibitor. The transaction had previously been approved by a
majority of both Innovate and Avantogen shareholders.
As part of the transaction, Xx Xxxxxxx Xxxxx, Xxxxxxxxx's Chairman, became
Chairman of the Board of Innovate, and two new Directors were also seated: Xx.
Xxxxx Xxxxxx and Xx. Xxxxxx Xxxxxxx. Xx. Xxxxxx, who will be the new Chief
Executive Officer of Innovate , has nearly 20 years of biopharmaceutical
experience. He has held a variety of senior management positions at Amgen,
Zeneca and Wellcome, successfully leading the commercialization of products in
oncology and other therapy areas. Xx. Xxxxxxx was Managing Director, Life
Sciences, for Xxxxxxxxx & Co and is now Chief Executive Officer of Chopin
Capital Partners, LLC, a private equity partnership in Los Angeles. Xxx Xxxx,
Chairman of Gardant Pharmaceuticals, Inc. (GRDP:OTC), will also join Innovate's
Board, and Dr Xxxxx Xxxxxxxx, a former CEO of Innovate, will continue as a
Director.
The transaction involved issuance of 32 million shares of common stock in
Innovate to Avantogen Limited, which now owns 54% of the US listed company. On
May 25, Xxxxxxxx's shares closed at US$1.01. In addition, Avantogen contributed
approximately US$1.1 million in cash to Innovate.
Patients undergoing repeated chemotherapy often develop resistance, and cancer
cells continue to grow and spread during treatment. RP101 is being investigated
as a treatment co-administered with cytotoxic drugs with the aim of preventing
the development of resistance to chemotherapy. In early 2005 Avantogen announced
dramatic results observed in the clinical pilot study of RESprotect in which
thirteen pancreatic cancer patients in stage III and IV of disease were treated
with RP101, and gemcitabine plus cisplatin. Those results indicated that the 50%
probability of survival was increased to an average of 15 months, from a
historic average of 7.5 months (p = 0.008) obtained at the same institution
under otherwise similar conditions during the prior year.
Later in 2005 it was further announced that ten of the thirteen original
patients survived at least one year following treatment; median survival was 447
days, which is statistically higher than a historic control from the same
institution (p = 0.007). Time to Progression was 280 days, also statistically
higher than historic control (P = 0.004). It was also noted that three of the
original thirteen treated patients remained alive at more than two years.
The new Chairman of Innovate, Xx. Xxxxxxx Xxxxx, said that "streamlining the
ownership and management of RP101 development will ensure that we hasten this
exciting program and it also makes sense strategically, enabling us to consider
licensing and partnering opportunities. In our trials, RP101 is showing every
potential to become an exceptional therapeutic that could bring tremendous hope
to patients whose lives are drastically shortened by grievous illness, and as
such, has the potential to become a significant product."
ABOUT AVANTOGEN
Avantogen (formerly Australian Cancer Technology) is an international
biotechnology company developing a broad oncology-related product portfolio.
Aside from RP101, Xxxxxxxxx's Pentrys(R) anti-cancer vaccine is being evaluated
in prostate cancer patients in Phase IIb clinical studies. Recently, Avantogen
merged its vaccine business, consisting of the Pentrys anti-cancer vaccine, and
the GPI-0100 vaccine adjuvants, into Hawaii Biotech, Inc., a privately-held
vaccine developer in Honolulu, Hawaii. Hawaii Biotech develops state-of-the-art
recombinant vaccines for common, deadly and incurable infectious diseases such
as Influenza, West Nile encephalitis, and Dengue Fever. Avantogen is traded on
the Australian Stock Exchange (ASX) under the symbol ACU. The company has
established a Level 1 ADR stock program in the U.S. trading under the symbol
AUCJY and also is listed on the Xetra exchange, the electronic trading system of
the Frankfurt Stock Exchange, trading under the symbol CBS. For further
information, visit xxx.Xxxxxxxxx.xxx
XX. XXXXXXX XXXXXXXXX, CEO
Avantogen
San Diego, CA, USA
Tel: x000-000-0000
Email: xxxx@Xxxxxxxxx.xxx
XXXXX XXXXXX, CEO
Innovate Oncology, Inc.
San Diego, CA USA
Tel: x000-000-0000
Email: xxxx@Xxxxxxxxx.xxx
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FORWARD-LOOKING STATEMENTS
Statements contained in this press release that are not historical information
are forward-looking statements as defined within the Private Securities
Litigation Reform Act of 1995. Such forward looking statements are subject to
risks and uncertainties that could cause Avantogen's ("company") actual results
to differ materially from those projected or implied. Such potential risks and
uncertainties relate, but are not limited, to the results of clinical trials,
product demand and market acceptance, the impact of competitive products and
pricing, effectiveness and pace of current and future product development, and
regulatory approval. More detailed information on these and additional factors
that could affect the company's operating and financial results are described in
the company's annual reports filed or to be filed with the Australian Stock
Exchange. The company urges all interested parties to read these reports to gain
a better understanding of the many business and other risks that the company
faces. The historical results achieved by the company are not necessarily
indicative of its future prospects. The company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
