Shareholder Letters
2010
1 January 2011
Dear AngioGenex Shareholder:
I wish to begin by reassuring our shareholders that AngioGenex remains viable and that the original team is intact and working diligently to advance the work of the Company. Progress during the year has been made in key areas of research that not only strengthens but advances our technology. Most notably, we have discovered and patented small, anti-Id molecules (AGX-51, AGX-8, etc.) that are highly potent in blocking blood vessel formation into animal tumors as well as decreasing tumor growth and metastasis in animal models accepted by the FDA as indicative of the potential for the same action in cancer patients. In addition, our scientific collaborator, Dr. Jaideep Chaudhary, has recently shown that these drugs cause the restoration of the body’s normal control system that blocks replication of cancer cells effectively leading to the death of cancer cells. While the latter finding requires further investigation, it suggests that our drugs have a dual mechanism of action. That is, they not only block the formation of those blood vessels required for the growth of tumor but also decrease the viability of the tumor cells themselves. This is particularly important in view of recent findings that have been widely reported in the media that the tumor itself is capable of causing the generation of new blood vessels and probably explains the reason why drugs such as Avastin™ provide only limited efficacy. That is, they are unable to prevent the tumor from forming blood vessels to provide the fuel it needs to grow and metastasize. This means that our drugs have a potentially distinct and important advantage over currently marketed drugs whose molecular target is the same as Avastin.
These findings place our technology in a much stronger position when speaking to potential investors and, recently, we have had increasing interest in AngioGenex. Currently, the priority of the Company is the development of our lead anti-cancer drug AGX-51. A quantity of drug is being manufactured and the appropriate steps will be taken to complete a clinical study to demonstrate both safety and efficacy in cancer patients. AGX-51 will be administered to patients in combination with Taxol®, a widely used anti-cancer drug. The goal is to demonstrate an improved clinical outcome with the addition of AGX-51 to a standard therapeutic regimen. This approach has the great advantage of allowing quick entry and testing of AGX-51 in the clinic and could lead to early FDA approval for use of the drug for this purpose. If successful in use with Taxol, AGX-51 would be tested as a single agent treatment for cancer at a later date.
Literature reports continue to add to our understanding of the importance of the Id genes and proteins in cancer, and it is now known that the quantity of Id1 present in tumors is an expression of their aggressiveness. The Id genes have been shown to be present in all major tumors, and there is a consensus by leading scientists that their inhibition could be a promising target for cancer therapy. In the past, there have been skeptics regarding the role of the Id genes in cancer but with the appearance of literally hundreds of reports few now dispute this concept. We are fortunate to be the only Company with patented rights to pursue this technology for the development of drugs to treat cancer.
While the first priority of the Company remains the development of the anti-cancer drug AGX-51, there is high interest in the development of our diagnostic that would serve as an important companion product. Based on preliminary results, this blood test would allow early detection of the presence of a tumor in the body and an opportunity for early therapeutic intervention that is so important to successful therapy. This test would also allow determining the effectiveness of therapy and for re-occurrence of disease if it were to occur. If successful, the commercial potential of this diagnostic is large.
We have continued to pursue possible sources of funding with limited success. Recently, the Company was awarded an NIH grant ($165,000) to support some of the work necessary to bring AGX-51 to the clinic. Successful completion of the goals included in this grant will allow the Company to apply for a much larger sum to continue this work. It is estimated that the Company requires $5.0MM to complete the development and clinical work with AGX-51. To obtain these funds, we are in negotiation with several groups who recently expressed strong interest in the Company. While we have had a very difficult year from a financial perspective, we are encouraged by the increasing interest in our patented technology by funding sources and are hopeful that ongoing negotiations will result in addressing this need.
The AngioGenex team wishes you a happy and successful New Year and we would like to reassure you that we remain committed to you. Thank you for your continuing support. We believe that 2011 will be a successful year for our Company.
Regards,
Richard Salvador
Chairman and President
973.615.3624 (Mobile)
salvadorr@angiogenex.com
12 April 2010
Dear AngioGenex Shareholder,
I wish to inform you that we are in the process of voluntarily delisting AngioGenex, AGGX.OB, from the NASDAQ bulletin board. You will, however, still be able to trade your shares on the electronic Pink OTC Market quotation system (“pink sheets”). We are taking this step to avoid the relentless loss of cash caused by audits and other compliance expenses associated with quarterly and annual filings with the SEC. This has been a great financial burden that has been aggravated by our inability, despite strenuous efforts, to raise additional capital in a very poor financial environment for small-cap biopharmaceutical companies. We are, however, continuing to pursue possible sources of revenue in financial institutions and from private investors who have expressed interest in our Company. In addition, we have made multiple applications for US government grants and expect that one or more will be funded.
I want to assure you that AngioGenex remains a viable company. For example, last quarter, we filed three additional patents on our technology including anti-cancer drugs discovered by Company scientists that we hope to bring to the clinic. The company’s scientific founder, Dr. Robert Benezra, has been invited to present a prestigious, plenary lecture on AngioGenex technology on April 16 at the annual meeting of the American Association of Cancer Researchers in Washington DC. Because this is an important forum for presenting the newest and most promising technology for the treatment of cancer, we expect that this information will be widely disseminated and assist us in our efforts to raise capital.
I will try to do a better job in the future of keeping you abreast of our efforts to obtain funding. We still believe that our technology offers the best hope for cancer patients compared to all the other anti-cancer approaches being developed. We are confident that this opinion will increasingly be the view of others including potential investors and Pharma Company partners.
Be advised that the original founders/investors remain committed to the success of our Company and our shareholders.
Thanks for your continuing support of AngioGenex!
Sincerely,
William A. Garland
CEO
408.348.5164 (cell)
