Angle Regulatory News (AGL)

26 Feb 2009 07:00



ANGLE plc

Novocellus contract completion

ANGLE plc ("ANGLE") is pleased to announce that, further to its announcement of 12 January 2009, its 82% owned portfolio company, Novocellus Limited, a leader in IVF (in vitro fertilisation) has signed an agreement with MediCult a/s (OSE: MEC), a leader in Assisted Reproductive Technologies (ART) for MediCult to acquire Novocellus'  patented, non-invasive embryo selection technology, EmbryoSure™. This method is used to choose the most competent embryo for implantation, which is believed to increase the chances of successful pregnancy by at least 25%. It also supports the growing medical and regulatory trend towards single embryo transfer (SET), thereby avoiding the multiple births and related negative health and cost implications often seen with IVF procedures. 

MediCult has agreed to fund and manage a 400 patient trial in a number of leading UK clinics to statistically validate the extent to which the use of EmbryoSure will increase the chances of successful pregnancy compared to current visual techniques used to select the most viable embryo. Building on the work already undertaken by Novocellus, this trial is expected to take around twelve months to complete with the product being commercially launched in 2010. 

On successful completion of the trial demonstrating an uplift in clinical pregnancy rates of 25% or greater, MediCult will make milestone payments to Novocellus, in cash or shares at its option, of £1.0 million within 30 days followed by a further £3.5 million when net sales of EmbryoSure products exceed £4.5 million in a calendar year. 

In addition to milestone payments, MediCult will make royalty payments to Novocellus of up to 25% of net sales of EmbryoSure products in countries in which patent protection exists, which as at the date of this agreement are Europe, USA, Japan, Canada, China, India and Australia. In 2009, it is estimated that there will be over 1,000,000 cycles of IVF carried out globally, a figure that is growing at more than 4% a year. A single cycle of IVF costs between £4,000 and £8,000 in a UK private clinic according to the Human Fertilisation and Embryology Authority. Assuming the trial substantiates the increased pregnancy rates offered by EmbryoSure, MediCult believes that EmbryoSure will be widely adopted and, by virtue of the increased success rates it offers, will justify a premium price.

Jesper Funding Andersen, CEO of MediCult commented:

"MediCult believes it has gained access to the leading patented technology within the exciting field of embryo selection. Our strategy of keeping ahead of emerging trends in ART positions us well to leverage advances such as the EmbryoSure technology through our existing, strong sales channels." 

Andrew Newland, Chief Executive of ANGLE plc said:

"MediCult are ideally placed to take on the final stages of development and market launch for EmbryoSure. MediCult's leading market position in global IVF gives Novocellus access to the largest IVF customer base in the world for sale of the EmbryoSure product. ANGLE has an 82% holding in Novocellus and we believe the success based milestone and royalty arrangements provide ANGLE with the potential for exceptional returns on our investment."

For further information:

Notes to Editors

ANGLE (www.angleplc.com)

Founded in 1994, ANGLE is an international venture management company focusing on the commercialisation of technology and the development of technology-based industry. ANGLE creates, develops and advises technology businesses on its own behalf and for its clients.

ANGLE's specialist Management services business provides support on a fee-for-service basis to major clients around the world involved in incubation, IP commercialisation, SME innovation and growth and the operation of science & technology parks.

ANGLE also owns a portfolio of companies with high growth potential in the medical and technology sectors in both the UK and the US. These have been developed whilst subsidiaries of ANGLE using its proprietary Progeny® process. ANGLE seeks to retain a substantial shareholding in these companies with a view to ongoing returns from dividend, milestone, royalty and capital returns.

ANGLE's venture management and technology commercialisation skills are of increasing relevance as global economies focus on regeneration, innovation and value added components to their industries. ANGLE's technology skills in IT and software, medical and life sciences, clean tech and renewable energies are directly relevant to major growth markets of the future and are marketed as specialised Management services.

ANGLE is quoted on AIM (AGL.L). 

MediCult a/s (www.medicult.com) 

MediCult a/s is a leader in delivering leading innovative ART solutions to the benefit of families. Through innovation and product advancements, MediCult aims to help the #1 dream of every infertile couple come true. In 2007, it was estimated that a child is born every 8 minutes with conception using a MediCult product. MediCult, which is located in Jyllinge, Denmark and has subsidiaries in 8 countries, is listed on the Oslo Stock Exchange (MEC). 

Novocellus (www.novocellus.com)

ANGLE founded Novocellus in 2004, under its Progeny® programme, to develop and commercialise patented technology based on the research of Professor Henry Leese at the University of York. The technology, Amino Acid Profiling (AAP), is a quantitative, non-invasive method for selecting those embryos that are most likely to lead to a successful pregnancy. 

Currently, the selection of embryos for transfer back to the uterus involves a subjective visual assessment of embryo quality and viability. This leads to a relatively low success rate (23.1% in 2006 according to HFEA). As a result many embryologists feel it necessary to transfer at least two embryos at a time, increasing the risk of multiple births with its related negative health and cost implications, both major drivers of the growing trend towards single embryo transfer (SET). Adoption of EmbryoSure will reduce the need for patients to have several cycles of IVF treatment (since each treatment is more likely to be successful) and enable single embryo transfer (SET) to be deployed, both of which will reduce the overall cost of medical treatment associated with IVF.

The Human Fertilisation and Embryology Authority (HFEA), believe women are damaging their health and exposing their babies to harm through multiple embryo transfer. The HFEA believes women are also burdening the NHS by becoming pregnant with more than one baby. 

In Britain, a maximum of two embryos can be transferred to a woman below the age of 40. Women aged above 40 are allowed three embryos. The HFEA has, however, introduced quotas on the percentage of multiple births permitted at each clinic to make single embryo transfer the norm.  From last month, only 24% of births at each clinic are permitted to be multiple births including twins, triplets and quadruplets. The percentage must drop to 10% in three years' time.