SOMERSET, N.J., April 28 /PRNewswire-FirstCall/ -- Alfacell Corporation (Nasdaq: ACEL) today announced that Kuslima Shogen, the company's chief executive officer and scientific founder, will retire from the company on or before March 31, 2009. The company also announced that the royalty agreement between Ms. Shogen and Alfacell has been terminated.
The termination of the royalty agreement between Alfacell and Ms. Shogen could reduce payments from the Company to Ms. Shogen by an estimated $20 million over the next 10 years, if the company's lead compound, ONCONASE(R), is granted marketing approval by the U.S. Food and Drug Administration (FDA).
Under the terms of the retirement agreement between the company and Ms. Shogen, Ms. Shogen will continue to receive her current salary for a period of two years after she steps down as chief executive officer. In exchange for the termination of the royalty agreement, Ms. Shogen will receive a cash bonus, an additional cash bonus upon receiving marketing approval by the FDA of ONCONASE for the treatment of malignant mesothelioma, a significant stock option grant that vests upon such FDA approval of ONCONASE, cash payments for the first two years following approval of ONCONASE, and cash payments from Alfacell in the event aggregate annual net sales of ONCONASE exceed $100 million.
"Tina's contributions to Alfacell and the science behind ONCONASE have been immeasurable," said David Sidransky, M.D., Alfacell's chairman. "Her dedication and commitment are unmatched and I know that I speak for everyone at Alfacell in offering congratulations as she moves on to a well-earned retirement."
In addition to the retirement of Ms. Shogen, the company announced that
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|SOURCE Alfacell Corporation|
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