MELBOURNE, Australia, July 10 /PRNewswire-FirstCall/ -- Phosphagenics Limited ("Phosphagenics") (ASX: POH; AIM: PSG; OTCQX: PPGNY) today announced that it has, by mutual consent, extended the period in which a commercial agreement is to be concluded with Nestle Nutrition ("Nestle"). In January 2007, Nestle exercised its option to negotiate, on an exclusive basis, a commercial agreement with Phosphagenics for the use of its Phospha E(R) to treat and prevent metabolic syndrome. Nestle has received regulatory approval of its acquisition of Novartis Medical Nutrition ("Novartis"), substantially improving Nestle's position in the fast-growing and profitable healthcare nutrition segment. Gradual integration of Novartis activities is planned during the next months. As Phospha E would be marketed by the extended Nestle enterprise; the acquisition of Novartis has the potential to increase the value of the arrangement between Nestle and Phosphagenics. In these circumstances, it was considered by both parties to be premature to conclude their commercial arrangements before consolidation of Novartis activities. To avoid any delays in the development of Phospha E, Nestle and Phosphagenics are continuing their planned clinical program, with the first human trial intended to commence this quarter. This clinical trial follows the successful completion of a series of full dose-response pre-clinical studies of Phospha E. Nestle and Phosphagenics are continuing to work together to develop Phospha E for use as a nutritional product, targeting the prevention and treatment of metabolic syndrome. "We are delighted to be working closely with Nestle, the world's largest food company, with the aim of bringing Phospha E to market as quickly as possible," said Harry Rosen, President and CEO of Phosphagenics. About Phosphagenics Limited Phosphagenics is a Melbourne-based, globally driven biotechnology company focused on the discovery of new and cost effective ways to enhance the bioavailability, activity, safety and delivery of proven pharmaceutical and nutraceutical products. The Company's core technology is built around the science and application of phosphorylation, a process where the addition of a phosphate group has been found to enhance the bioavailability, activity and safety of existing pharmaceuticals and nutraceuticals, as well as to assist in the production of drug delivery platforms. Phosphagenics' shares are listed on the Australian Stock Exchange (POH) and the London Stock Exchange's Alternative Investment Market (PSG). In March 2006, an ADR - Level 1 program was established in the U.S. with The Bank of New York Mellon (PPGNY) for U.S. investors to trade in Phosphagenics' stock on the 'over-the-counter' market. This has now been upgraded to the International OTCQX, a new premium market tier in the US for international exchange-listed companies, operated by Pink Sheets, LLC. For more information, please visit Phosphagenics' web site at www.phosphagenics.com About Nestle Nutrition Nestle Nutrition is an autonomous business within the Nestle group managing and developing the group's speciality nutrition brands. Through science-based nutrition products and services, Nestle Nutrition helps enhance the quality of people's lives by supporting health and providing care for specific consumer groups with special nutrition needs at every stage of life. About 16,500 employees in more than 100 countries are part of Nestle Nutrition. Its product portfolio - covering infant nutrition, healthcare nutrition, performance nutrition and weight management - includes such trusted and well-recognised brands as: NAN, LACTOGEN, NESLAC, CERELAC, NUTREN, PEPTAMEN, POWERBAR, MUSASHI and JENNY CRAIG. More information at: www.nestlenutrition.com About Phospha E(R) Phospha E(R) is a patented derivative of vitamin E that has superior properties compared to its parent molecule. For example, Phospha E has been shown to be better absorbed than vitamin E, both orally and through the skin, to lower cholesterol and triglycerides, prevent the formation of plaque in heart arteries, as well as having unique anti-inflammatory properties. Phospha E has applications across all three nutraceutical market segments, and is currently sold internationally as a dietary supplement by NBTY Inc (under the name of Ester-E(TM)) and is marketed worldwide in the personal care market as Vital ET(TM) by ISP Corporation. Safe Harbor Statement This press release contains forward-looking statements based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialise, actual results could vary materially from the Phosphagenics' expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations.
SOURCE Phosphagenics Limited