SOURCE: Novelos Therapeutics Inc.

July 07, 2005 14:47 ET

Novelos Therapeutics Expands Financial Team

NEWTON, MA -- (MARKET WIRE) -- July 7, 2005 -- Novelos Therapeutics, Inc. (OTC BB: NVLT), a newly public biotech company focusing on oxidized glutathione for use in fighting cancer and hepatitis, today announced that it has expanded its financial team to oversee public-company reporting requirements.

George R. Vaughn, CPA, has joined the Company as a consultant, serving in the capacity of part-time chief financial officer. Mr. Vaughn has more than twenty-five years of senior financial management expertise at Ernst & Young, and public and private companies. For the past ten years, Mr. Vaughn's firm, Vaughn & Associates, P.C., has been providing life sciences and technology companies with part-time and interim CFO services, outsourced financial management, and tax advisory services. Mr. Vaughn is a certified public accountant and is a member of the American Institute of Certified Public Accountants and the Massachusetts Society of Certified Public Accountants.

Eleanor E. Scherig, CPA, has joined the Company as Director of Finance & Administration and Controller. Ms. Scherig has twenty years of accounting expertise. Since 1990, she has been providing accounting and financial advisory services to emerging businesses. She is a certified public accountant and is a member of the Massachusetts Society of Certified Public Accountants. Ms. Scherig has served as an accounting and financial consultant to the Company since January 1999.

At the Board level, Howard M. Schneider, an outside Director, will take on added responsibilities as the Chairman of the Audit Committee. Mr. Schneider has over 35 years' experience as a senior financial industry executive and more recently as president of two technology start-ups. He was an executive with Bankers Trust Company from 1965-1999, where he was President of BT Securities Corporation for ten years, taking this corporate vehicle from 2 employees to 900, with annual revenues in excess of $1 billion.

About Novelos Therapeutics, Inc.

Novelos Therapeutics, Inc. (OTCBB: NVLT) was established in 1996 to commercialize two promising oxidized glutathione based compounds, NOV-002 and NOV-205, for the treatment of cancer and hepatitis. Both compounds have completed clinical trials in humans and have been approved for use in the Russian Federation, where they were developed. NOV-002, marketed in Russia by an unrelated entity under the trade name GLUTOXIM®, has been administered to over 5,000 patients, yielding excellent safety and promising efficacy data. A U.S. Phase I/II clinical trial of NOV-002 for lung cancer has been completed. The Company plans to file an IND for NOV-205 as a mono-therapy for hepatitis C and to initiate U.S. clinical trials.

About the Products

NOV-002, the lead compound, is being developed to treat non-small cell lung cancer ("NSCLC"). NOV-002 is a cytoprotectant and an immunomodulator. When used in combination with chemotherapy, NOV-002 increased the one-year survival rate from 17% to 63% in a Russian study, a result that also represents an 80% improvement above the U.S. 35% standard of care. A U.S. Phase I/II clinical study has been completed.

NOV-002 is also being developed to treat refractory (that is, not responsive to chemotherapy) ovarian cancer. Two additional opportunities for NOV-002 are under development, including radiation protection and psoriasis.

NOV-205 is being developed to treat chronic hepatitis C in the U.S. In Russian clinical studies, when used as mono-therapy for one month in hepatitis B and for two months in hepatitis C, NOV-205 has been shown to greatly reduce or eliminate viral loads and to vastly improve liver function relative to existing drugs on the market.

This news release contains forward-looking statements. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. Drug discovery and development involve a high degree of risk. Factors that might cause such a material difference include, among others, uncertainties related to the ability to attract and retain partners for our technologies, the identification of lead compounds, the successful preclinical development thereof, the completion of clinical trials, the FDA review process and other government regulation, our pharmaceutical collaborators' ability to successfully develop and commercialize drug candidates, competition from other pharmaceutical companies, product pricing and third-party reimbursement.

Consulting For Strategic Growth I, Ltd. ("CFSG") has a June 1, 2005, contract to provide Novelos with consulting, business advisory, investor relations, public relations and corporate development services for a three-month period. In connection with these services, CFSG prepares press releases, corporate profiles, and other publications on behalf of the Company. Independent of CFSG's receipt of cash compensation from the Company, CFSG may choose to purchase the common stock of the Company and thereafter liquidate those securities at any time it deems appropriate to do so.

Contact Information

    Harry S. Palmin, President and Acting CEO
    Novelos Therapeutics, Inc.
    One Gateway Center, Ste. 504
    Newton, MA 02458
    Ph: 617-244-1616 ext.11
    Fax: 631-574-3130
    Email: Email Contact

    Stanley Wunderlich, CEO
    Consulting for Strategic Growth
    800 Second Avenue
    New York, NY 10017
    Ph: 800-625-2236
    Fax: 212-337-8089
    Email: Email Contact