Novogen reports red clover sales growth

Sales of Novogen's red clover supplements have been boosted by more targeted advertising and increased distribution in three key markets, said the firm yesterday.

The Nasdaq-listed company reported that revenue for the year reached US$13.3 million, up from US$12.3 million in the prior year, with consumer products (its red clover brands Promensil and Trinovin), accounting for $10.1 million of its sales.

The 5 per cent growth in red clover sales was driven by promotional campaigns "emphasizing Novogen's product range as the most clinically trialed natural alternatives, and an extension of distribution channels in Australasia, the European Union and the United States," said the company.

In June Novogen said it had gained three Australian patents covering supplements containing any two of the four main isoflavones - biochanin, formononetin, daidzein and genistein - all of which have been associated with a range of health benefits including management of menopause symptoms, improved cardiovascular and bone health and improved prostate function in men.

The Promensil and Trinovin brands will benefit directly from the patents, and the firm will now be seeking the protection in the marketplace that these patents allow, it said.

Similar patents have been issued to the company in Canada and the United States, where Novogen is engaged in patent enforcement and licensing negotiations.

The firm is also seeing good growth in Europe, and earlier this year discussed plans to expand out of its current markets in the Netherlands and the UK. European sales, growing faster than other regions, were forecast for growth of about 20 per cent this year.

Increased revenue from the consumer products business is however being invested in developing drugs for cancer and other chronic diseases, and Novogen reported a net loss of $11.13 million for 2004/05, compared to a loss of $10.9 million the previous year.