Progen Expands Drug Development Pipeline Through Acquisition o...( - Transaction to Broaden Progen's ...)

- Transaction to Broaden Progen's Oncology Product Candidate Portfolio - Conference Call Scheduled for 5 February 2008, 09:00 Australian EST, 4

February 2008, 17:00 US EST

BRISBANE, Australia, Feb. 4 /PRNewswire-FirstCall/ -- Progen Pharmaceuticals Limited (ASX: PGL; Nasdaq: PGLA) announced today that the Company has executed a Definitive Agreement to acquire privately-held U.S. oncology company CellGate, Inc. The CellGate acquisition will expand Progen's product candidate portfolio through the addition of multiple pre-clinical and clinical oncology compounds focused on polyamine and epigenetic targets. CellGate's assets include a lead product candidate in Phase 1 and multiple pre-clinical compounds.
As a result of this acquisition, Progen will:

-- expand its cancer-focused clinical development portfolio by adding a

novel Phase 1 compound

-- leverage its core capabilities in late pre-clinical and early clinical

development of oncology compounds

-- add more than ten compounds in pre-clinical development

-- gain platform technologies in the areas of epigenetics and polyamines

that will form the foundation for new compound development.

Epigenetics, or the silencing of cancer related gene expression, is becoming a well-defined target in oncology and Progen is excited to be entering this new frontier of cancer treatment.

Progen's CEO, Justus Homburg, said, "We are especially pleased that we have acquired such a large number of product candidates in very exciting and novel technology platforms. This transaction represents a minimally dilutive up-front investment by Progen and allows us to continue expanding our product pipeline, with limited risk, while focusing on building long-term value for our shareholders. We are confident that we have the financial resources to drive this new portfolio of assets to the next decision points in the coming 18 mont
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