Difficulty in the capital raising market prompted the biotech group to announce a spate of cost reduction measures last Friday in an attempt to expand its oncology portfolio in 2009. The group, whose shares plunged more than 20 per cent on Monday, said the unavailability of credit had forced it to use its own resources for the commercialisation of its oncology research and development program. The cost reduction measures include the outsourcing of clinical stage compound manufacturing, reducing staff worldwide and cutting board and executive management fees and incomes by up to 20 per cent. Novogen said its cash balance at December 31 was $44 million and that the group's most advanced anti-cancer compound, phenoxodial, was in advanced clinical trials.