Melbourne, VIC, Australia, 24 January 2006, Phosphagenics Limited (“Phosphagenics”), the Australian Stock Exchange (ASX:POH) and AIM (AIM:PSG) listed pharmaceutical and nutraceutical company, today announces that it will commence animal studies later this month on its patented anti-cancer compound. The drug candidate, GTP-0805, is a phosphorylated variant of gamma-tocopherol.  The announcement comes after positive findings from laboratory studies on GTP-0805 conducted in prostate and breast cancer cells on behalf of Phosphagenics by the Malaysian Palm Oil Board, which has significant experience in cancer research.

These laboratory studies on GTP-0805 found that the compound induced a greater than 90% reduction in breast and prostate cancer cells. In addition, GTP-0805 demonstrated a synergistic anti-cancer affect on prostate cancer cells when combined with the antioxidant carotenoid lycopene.  The studies also suggest that GTP-0805 can significantly inhibit the proliferation of breast cancer cells in a dose-dependent manner which, when compared to the established anti-breast cancer drug Tamoxifen, was more effective. 

The proposed animal studies to be carried out by Phosphagenics will assess the anti-cancer properties of GTP-0805 both alone and in combination with lycopene or with an anti-cancer drug, it being common practice to use combination therapy in the treatment of cancer. Phosphagenics' data also suggest that GTP-0805 will enhance the absorption and intracellular uptake of cancer drugs, thereby potentially minimising both the doses required and the adverse effects of cytotoxic drug therapies.  

Phosphagenics’ opinion is that GTP-0805 also has potential in the functional food market.  Lycopene, a carotenoid present as a red pigment in a number of fruit and vegetables, has been linked to cancer prevention. The synergistic activity observed between GTP-0805 and lycopene in laboratory tests suggests that adding GTP-0805 to high lycopene-content foods, such as tomato pastes and sauces, may boost this natural carotenoid’s activity. Commercially, GTP-0805 may offer a number of product differentiation opportunities for multinational and functional food producers.  

Dr Esra Ogru, Executive Director of Research and Development at Phosphagenics said: “The early-stage in vitro investigations of GTP-0805 demonstrate the potential of the compound in the treatment of cancer. We are particularly delighted with our initial test results because they suggest GTP-0805 has a unique action that selectively inhibits and destroys cancer cells while leaving healthy cells undamaged. We look forward to developing it further and hope to begin clinical trials by the end of the year.”

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About GTP-0805

GTP-0805 is a phosphorylated variant of gamma-tocopherol.  The compound has been developed using Phosphagenics’ phosphorylation technology base, which is used to enhance the bioavailability of drugs and improve absorption through the gastrointestinal tract or skin.  GTP-0805 stimulates programmed cell death ("apoptosis), leading to the destruction of diseased cells while not affecting normal ones and is thought to act as a signalling molecule and modulator of cancer pathways. Its mechanism of action is being further investigated by researchers at the University of California Medical Centre in Davis, California.

The potential market for GTP-0805 as a cancer therapy product is believed to be significant with global sales of current breast cancer treatments estimated to be greater than $US 2bn per annum.  For example, Tamoxifen, currently considered to be the gold-standard hormonal treatment for breast cancer, achieved global sales of over $US 1bn in 2001, and Arimidex (anastrozole) sales of $US0.8 billion in 2004. Paclitaxel, for the treatment of ovarian, breast and non-small cell lung cancer, achieved sales of over $US 1.5bn in 2000 prior to the introduction of generics, of which $US 988m was from the US market.

About Phosphagenics Limited

Phosphagenics is a pharmaceutical and nutraceutical company with a diversified portfolio of technologies encompassing drug delivery, drug enhancement, and active ingredients for dietary supplements, functional foods and personal care products. It is based in Melbourne, Australia. Its shares are listed on the Australian Stock Exchange (POH) and the London Stock Exchange's Alternative Investment Market (PSG). Further information regarding Phosphagenics can be found at www.phosphagenics.com.

For further information please contact:

Northbank Communications:

Emma Palmer, Rowan Minnion

Telephone: 44 (0) 20 7886 8150 

Phosphagenics Limited

Harry Rosen, Managing Director

Telephone: +61 3 9605 5900