Board Appoints Paul Berns as New Independent Director and Reduces Board From Nine to Five Directors; Company to Relocate Executive Offices, Close Newton Office and Centralize Operations in Madison, Wisconsin; Company Initiates Key Management Changes to Support New Strategic Initiatives and Transition of Operations to Madison
MADISON, WI--(Marketwired - Nov 13, 2013) - Novelos Therapeutics, Inc. (OTCQX: NVLT) announced that its Board of Directors implemented several key initiatives intended to support the strategic realignment of the company, including changes to its board, executive leadership and relocation of its executive offices to its corporate headquarters in Madison, WI.
Following the appointment of Dr. Simon Pedder as Acting Chief Executive Officer last month, the Board of Directors has restructured the board both by appointing a new independent member, Paul L. Berns, and by reducing the overall size of the board from nine to five members. These changes are intended to align the board's size and composition with Novelos' current business and to support the transitions underway.
"We are excited and fortunate to add a seasoned executive with Paul's impressive industry experience to our board," said Dr. Stephen Hill, Chairman of Novelos' Board of Directors. "We believe Paul will be instrumental in assisting the company during the completion of its turnaround and positioning it for future growth."
Dr. Hill added, "I would like to offer my sincere gratitude to outgoing directors Thomas Rockwell Mackie, James S. Manuso, John E. Niederhuber, Howard M. Schneider and Michael F. Tweedle not only for their respective contributions during their tenure but also for their swift action and support of this significant restructuring of the board and executive leadership. We believe these changes will enable the board to act effectively and efficiently to enhance the company's ability to execute its development plans, aggressively pursue growth and value creation for shareholders. As the business evolves, we will continue to evaluate the size and composition of the board against strategic objectives."
The board also approved the relocation of Novelos' principal executive offices, previously in Newton, Massachusetts, to its existing Madison, Wisconsin corporate office and manufacturing facility. In connection with this relocation, the responsibilities of Dr. Chris Pazoles, vice president of research and development, and Joanne Protano, vice president of finance, chief financial officer and treasurer, will be transitioned to Madison, Wisconsin. Dr. Pazoles' current research and development responsibilities are expected to be transitioned to existing Madison-based employees by the end of November while Ms. Protano has agreed to serve through the reporting of full year 2013 financial results and oversee the transition of her responsibilities by the end of April 2014.
To further Novelos' efforts to increase support and awareness of the company in the capital markets and promote visibility of the Company's novel technologies within the industry, Novelos has named Kathryn McNeil vice president of investor relations, public relations and corporate communication and appointed former vice president of investor relations, J. Patrick Genn, to the newly created position of vice president of business development.
Summary of Board Changes and New Director Background
Paul Berns, a self-employed consultant to the pharmaceutical industry, is the former president, chief executive officer and director of Allos Therapeutics, a pharmaceutical company acquired by Spectrum Pharmaceuticals, Inc. in 2012. Prior to joining Allos, Mr. Berns was president, chief executive officer and a director of Bone Care International, Inc., a specialty pharmaceutical company that was acquired by Genzyme Corporation. Mr. Berns previously served as vice president and general manager of the Immunology, Oncology and Pain Therapeutics business unit of Abbott Laboratories. He currently serves as a member of the board of directors of Jazz Pharmaceuticals, Inc., Anacor Pharmaceuticals, Inc. and of XenoPort, Inc.
Following the restructuring of the board, Novelos' five directors include: Dr. Stephen Hill, chairman; Dr. Simon Pedder, acting chief executive officer; Dr. Jamey Weichert, founder and chief scientific officer; John Neis; and Paul Berns.
About Novelos Therapeutics, Inc.
We are a pharmaceutical company developing novel drugs for the treatment and diagnosis of cancer. Our cancer-targeted compounds are selectively taken up and retained in cancer cells, including cancer stem cells, versus normal cells. I-124-CLR1404 (LIGHT) is a small-molecule, broad-spectrum, cancer-targeted PET imaging agent. LIGHT Phase 1-2 clinical trials are ongoing across 11 solid tumor indications. I-131-CLR1404 (HOT) is a small-molecule, broad-spectrum, cancer-targeted molecular radiotherapeutic that delivers cytotoxic radiation directly and selectively to cancer cells and cancer stem cells. HOT Phase 1b dose-escalation trial is ongoing in patients with advanced solid tumors. CLR1502 (GLOW2) is a preclinical, cancer-targeted, non-radioactive optical imaging agent for intraoperative tumor margin illumination and non-invasive tumor imaging. Together, we believe our compounds are able to "find, treat and follow" cancer anywhere in the body in a novel, effective and highly selective way. For additional information please visit www.novelos.com
This news release contains forward-looking statements. You can identify these statements by our use of words such as "may," "expect," "believe," "anticipate," "intend," "could," "estimate," "continue," "plans," or their negatives or cognates. These statements are only estimates and predictions and 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 raise additional capital, 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. A complete description of risks and uncertainties related to our business is contained in our periodic reports filed with the Securities and Exchange Commission including our Form 10-K for the year ended December 31, 2012 and in our quarterly reports on Form 10-Q. These forward-looking statements are made only as of the date hereof, and we disclaim any obligation to update any such forward-looking statements.