The share price for biotechnology company Novogen looks a little healthier after it finalised a licence agreement for Marshall Edwards to develop and commercialise its NV-128 anti-cancer compound. Terms of the agreement will see Marshall Edwards, which also licenses other cancer drugs from Novogen, make an upfront payment of $US1.5 million. The outlook for biotechnology firms remains tough, however, with funding an issue in the current economic climate. Accelerated merger and acquisition activity among large pharmaceutical companies has also had a knock-on effect. Novogen has slowed work on its anti-inflammatory and cardiovascular programs to concentrate on cancer research in an attempt to reduce expenditure and stretch its financial capacity. Board members and senior executives have also taken a pay cut.