Shares in Australian biotech Novogen are getting sold down after the sudden resignation of CEO Graham Kelly.
The company lost 8.5% in value and is trading at $0.215.
The company says Kelly decided to leave to resume his work in non-oncology based early stage research.
“I am satisfied that I am leaving the company in a very sound position,” Dr Kelly said in a statement. “The company is well placed now to proceed into the clinic with its three oncology drug candidates.”
Iain Ross, a former Novogen director and a pharmaceutical and biotechnology executive, has been appointed acting CEO until a permanent appointment is made.
Earlier this month, Novogen announced the details of a study which showed its drug Anisina had the potential to improve the effectiveness of chemotherapy in children and reduce life-long side effects.
The animal tests demonstrate that Anisina can significantly improve treatment against Neuroblastoma, a cancer most commonly found in children under 5 years of age.