Phosphagenics Ltd. reported return on equity results for the first half year ended June 30, 2009. For the first half year, the company reported negative return on equity of 7.4% compared to 8.0% for the same period previous year.

Phosphagenics Ltd. reported consolidated earnings results for the half year ended June 30, 2009. For the period, the company has reported pre tax loss and loss after tax of AUD 3,584,000 or AUD 0.54 loss per share on total revenue of AUD 1,389,000 compared to pre tax loss and loss after tax of AUD 4,121,000 or AUD 0.70 loss per share on total revenue of AUD 1,848,000 reported last year. Net cash flows used in operating activities was AUD 3,801,000 against AUD 4,014,000 for the last year. Purchase of property, plant and equipments was AUD 48,000 against AUD 130,000 for the last year.

Phosphagenics Ltd. has signed a collaborative research and option agreement with Metabolic Pharmaceuticals Ltd. Under the agreement, Phosphagenics may elect to license Metabolic's patented compound, AOD9604, for use as a cosmeceutical product aimed at reducing cellulite and subcutaneous fat. If Phosphagenics exercises its option to license the compound, it will pay Metabolic an undisclosed royalty on future sales of the product. Metabolic developed AOD9604, a fragment of growth hormone, for the treatment of obesity. Its approach was based upon the normalisation of well-known hormonal and metabolic defects associated with both ageing and obesity. The collaborative research will focus on using Phosphagenics' proprietary TPM delivery technology to deliver AOD9604 ransdermally. Phosphagenics TPM technology has proven effective in delivering a range of both small and large molecules into and through the skin to target the local tissue around the site of application. The size of the AOD9604 molecule is well within the range of molecules already delivered by the TPM technology. Phosphagenics' novel approach is to use its patented TPM technology to topically deliver the compound to the subcutaneous fat directly, without having to travel through the systemic circulation to reach the targeted tissues. Phosphagenics and Metabolic believe the biological properties of AOD9604 combined with the transdermal properties of TPM make for an ideal cosmetic product for the reduction of fat stores beneath the skin. Should the research prove to be successful, it is expected that a product should be ready for a launch in the second half of 2010.