November 24, 2008
Dear Shareholders, Colleagues and Friends:
As we come to the end of 2008, CytoGenix is poised to leave behind a very difficult period in its history and embark on a new stage of corporate development. I would like to take a few moments to describe several new developments that will facilitate this change as well as share with you my vision for the next stage of development for CytoGenix. First, I would like to introduce myself. I am Lex Cowsert, who as of November 14, 2008, have been appointed President, Chief Executive Officer and a Director to the Board of CytoGenix. I have over 19 years of experience in the biotech industry directing technology development, drug discovery and drug development programs in both public and private corporate settings. A more detailed description of my experience is posted on the CytoGenix web site.
CytoGenix is a company with many assets that will be the foundation upon which we can build value. However, CytoGenix is also a company facing many challenges. I believe that with new leadership and a new focus on product development, the CytoGenix management, staff, and scientific collaborators can work together to lead CytoGenix in a transition from a technology development and discovery company into a product development company. As a product development company, CytoGenix will deliver therapeutics, vaccines and services to the market and to strategic partners that will address unmet medical needs, generate revenue and build shareholder value.
The first step in this process will be to identify a product development candidate. CytoGenix has three promising candidates. Over the next few weeks we will be reviewing the preclinical data and market opportunities with the goal of designating one of these opportunities as a clinical development candidate. We plan to seek strong development and commercialization partners to generate revenue and accelerate the development of our product candidates and technology. Once we achieve certain financial milestones we will build drug development expertise in CytoGenix by recruiting additional new management with proven experience in drug development. As necessary we will recruit additional personnel, Board Members and Scientific advisors. However, it is also our goal to operate as a lean product development organization. We will achieve this by executing much of our work through contract research organizations thus giving CytoGenix maximum flexibility in the way we utilize our resources. In addition, we will develop plans to push our technologies and product candidates into additional markets. As we make progress towards these goals, I will update shareholders through public announcements that will also be posted on our Web site.
CytoGenix has been through some difficult times with financing being the primary obstacle. These difficulties resulted in several significant changes in management which have been described in various SEC filings and in the recent update from the Interim CEO posted on the CytoGenix web site. I would like to acknowledge my predecessors for their hard work and dedication to the development of the CytoGenix technologies and wish them well in their future endeavors. On the positive side, CytoGenix is now a company with a lean operating budget and multiple product candidates well positioned for internal development, partnering and out licensing with a focused management team to capitalize on these opportunities.
I would specifically like to thank Randy Moseley for stepping into the role of interim CEO and Chairman of the Board of Directors during a particularly difficult period. I am pleased to announce that Randy will remain in his roles as Principal Financial Officer and Chairman of the Board of Directors. I look forward to working closely with Randy as we build a strong financial foundation from which CytoGenix can execute it plans for generating revenue though product development and strategic partnerships. I would also like to thank board members, Cy Stein and John Rossi, for their fortitude, guidance and continued support through this recent transition period. Their understanding of the technology and our potential business opportunities has facilitated my recruitment and appointment to the CytoGenix team.
Finally, I would like to say I am very pleased to be joining the CytoGenix team at this pivotal stage of its corporate development. I am looking forward to working with the Company’s current management, its dedicated staff, and our team of world-renowned collaborators all in a focused effort to advance and commercialize our platform technologies and product candidates to build shareholder value.
Best Regards,
Lex M. Cowsert, President and Chief Executive Officer