Plethora Solutions Holdings Plc Share News (PLE)

Drug developer Plethora has sold the rights of its key PSD502 premature ejaculation product to Sciele Pharma to cut its debts and pay back venture capital financing.Under the terms of the agreement, Sciele will make additional upfront payments of $8.4m and also share development costs for PSD502 for non-US territories with Plethora getting a royalty on future revenues.US firm Paul Capital Healthcare (PCH), which was entitled on transfer of the PSD502 asset to receive a minimum return of 2.5 times its original loan value, giving rise to an effective liability of $39.4m, has also agreed to the restructuring.In return for releasing Plethora from all indebtedness PCH will receive a share of the upfront payments received from Sciele; royalties from Sciele; the acquisition of Plehtora's US subsidiary Timm and rights to payments from the development and commercialisation of PSD510, a treatment for erectile disfunction.Plethora has also agreed to repay ETV Capital its remaining venture debt by June 2010. Chairman, Stuart Wallis will retire at the end of the forthcoming AGM to be replaced by current non-executive Bill Robinson. Three other non-execs are also leaving.Plethora also posted a net loss for 2008 of £16.4m, against £10.5m in 2007. As a result the restructuring, group debt falls by over 90% and cash and short term investments increased to £2.9m by 30 April 2009."Looking forward, in addition to supporting Sciele's product development and PSD502 related business activities, the Group will seek to realise additional value from PSD510 and the women's health portfolio." Plethora said.