Novogen's CEO suddenly resigns and the shares are getting smashed

Sean Gallup/Getty Images

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.

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