CATCo Regulatory News (CAT)

7 Feb 2005 07:00

Cambridge Antibody Tech Group PLC07 February 2005 05/CAT/06 FOR IMMEDIATE RELEASE 07:00 GMT, 02:00 EST, Monday 7 February 2005 For further information contact: Cambridge Antibody Technology Weber Shandwick Square Mile (Europe)Tel: +44 (0) 1223 471 471 Tel: +44 (0) 20 7067 0700Peter Chambre, Chief Executive Officer Kevin SmithJohn Aston, Chief Financial Officer Yvonne AlexanderRowena Gardner, Director of CorporateCommunications Communications/The Trout Group (USA) Tel: +1 212 477 9007 Brad Miles, ext 17 (media) Brandon Lewis, ext 15 (investors) CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLCANNOUNCES FIRST QUARTER RESULTS Cambridge, UK Cambridge Antibody Technology (LSE: CAT; NASDAQ: CATG) todayannounces financial results for the first quarter of its 2005 financial year,from 1 October 2004 to 31 December 2004, and an update on business since thePreliminary Results Announcement on 22 November 2004. Summary Major strategic alliance with AstraZeneca in the field of inflammatory diseases: £75 million subscription in new CAT shares Alliance operations being established in line with plan Successful outcome to legal action against Abbott Laboratories in relation toHUMIRA(R) royalties: US$23.73 million back royalties received from Abbott (not reflected in Q1 results) Abbott reports worldwide sales of HUMIRA at $852 million for 2004 and raisesguidance for 2005 to more than $1.3 billion IP licensing: product candidates from Dyax and Micromet enter clinical trials Net cash outflow before management of liquid resources and financing: £9.7million for the three months ended 31 December 2004 (£6.6 million for threemonths ended 31 December 2003) Net cash and liquid resources of £159.3 million at 31 December 2004 (£93.7million at 30 September 2004) AstraZeneca Strategic Alliance In November 2004, CAT announced a major strategic alliance with AstraZeneca forthe joint discovery and development of human monoclonal antibody therapeutics,principally in the field of inflammatory disorders. Since that time, the jointinfrastructure to manage the alliance has been put in place, joint teams arebeing established and work is underway to commence the 2005 research programme. The alliance will become the principal focus of CATs research activity over thenext five years and will include a five-year discovery initiation phase duringwhich the partners will jointly initiate a minimum of 25 discovery programmes.The principal focus of the discovery programmes will be in inflammatorydisorders, however the research may extend to other therapeutic areas. Thecommitted joint research investment will be a minimum of $175 million duringthis phase, which the companies will fund 50:50. CATs financial participation reflects its level of investment in the programme.CAT has the option of co-investing and co-managing all programmes through toClinical Proof of Concept, and of continuing to fund jointly the development ofone in every five product candidates that reach Clinical Proof of Concept up toproduct launch. If CAT opts out after the discovery phase it receives milestonesand royalties. If it opts out at Clinical Proof of Concept it receivesmilestones and royalties at a higher level. For those programmes which it fundsto product launch it receives higher royalties, sales milestones and an optionto co-promote these products in the US. CAT will be principally responsible for antibody discovery, manufacturingprocess development and the supply of material for exploratory clinical trials.AstraZeneca will be principally responsible for translational biology, clinicaldevelopment programmes, regulatory filings and commercialisation. The alliance was conditional on the completion of the subscription of 10,217,983new CAT shares by AstraZeneca for £75 million which duly completed in December2004. Abbott Litigation Update In November 2003, CAT commenced legal proceedings against Abbott BiotechnologyLimited and Abbott GmbH in the High Court in London concerning the level ofHUMIRA royalties due to CAT. On 20 December 2004, the judge, Mr Justice Laddie,ruled in CATs favour stating that Abbott was in error when it made its firstroyalty payment to CAT calculated on the basis that only two per cent of NetSales was due. It should have calculated on the basis of the full royalty ofjust over five per cent and should have paid and continue to pay CATaccordingly. In January 2005, Mr Justice Laddie announced his decision on various proceduralmatters arising from this judgment and ruled in CATs favour on all counts. Inparticular, he denied Abbotts request for permission to appeal his judgement of20 December 2004, though Abbott can now apply to the Court of Appeal directlyfor permission to appeal. The judge also ordered that Abbott pay CATs costs ofthe case (to be assessed in due course). Part of these costs will be assessed,as sought by CAT, on a higher basis than the norm to reflect the judges view ofthe merits on that part of the case. In January 2005, Abbott paid to CAT US$23.73 million, representing royaltyarrears due to CAT arising from the original judgment, and an additional sum ofUS$1.29 million, representing interest and compensation for currency loss onthis amount. Abbott also paid CAT £2.85 million representing an interim paymentof legal costs due. These amounts are not reflected in these first quarterresults. Were Abbott to receive permission to appeal and be successful on suchappeal these amounts would be repayable. Product Development CAT Product Candidates CAT-354 is a fully human anti-IL13 monoclonal antibody being developed by CAT,initially as a potential treatment for severe asthma. In September 2004, CATcommenced a Phase I clinical trial in the UK. Preliminary results are expectedto be available at the end of the second quarter of 2005. If this initial trialmeets its primary objectives, CAT intends to progress CAT-354 in furtherclinical trials later in 2005. Genzyme Alliance CAT and Genzyme believe that the neutralisation of TGFbeta offers a number ofimportant and valuable opportunities for addressing unmet medical needs in anumber of disease conditions. GC-1008 is a pan-specific fully human anti-TGFbeta monoclonal antibody beingdeveloped by CAT and Genzyme. The companies have received approval from the USFood and Drug Administration (FDA) to begin a Phase I clinical trial of GC-1008in Idiopathic Pulmonary Fibrosis (IPF). Preparations for this trial are nowunderway. During 2005 it is also intended to commence a clinical trial ofGC-1008 in various cancers. Pre-clinical studies in support of this oncologystudy and further IPF studies are ongoing. CAT-192 (metelimumab), a fully human anti-TGFbeta1 monoclonal antibody, is beingjointly developed by CAT and Genzyme as a potential treatment for scarring andfibrotic conditions, including scleroderma. Following a study in 45 sclerodermapatients that demonstrated that CAT-192 was safe and well-tolerated, an analysisof all existing scleroderma study results is being undertaken to facilitateunderstanding of the disease and its progression. Once fully evaluated, theresults will be discussed with a panel of experts in an effort to identify theappropriate route for clinical trials in diffuse systemic sclerosis. CAT and Genzyme believe that there are further therapeutic opportunities for thecollaboration and pre-clinical work is continuing to evaluate these. Trabio(R) (lerdelimumab) is a fully human anti-TGFbeta2 monoclonal antibodydeveloped by CAT as a potential treatment for improving the outcome of glaucomasurgery. In November 2004, CAT announced the failure of Trabio to meet theprimary endpoint of improving the outcome of surgery for glaucoma compared toplacebo in its first pivotal (European Phase III) clinical trial. Preliminaryresults of a second pivotal (International Phase III) clinical trial in 393patients in six European countries and South Africa are expected in April 2005.In the US clinical trial comparing Trabio with 5-Flurouracil (5-FU) in 236patients, enrolment is complete and preliminary results are expected at the endof 2005. Following the preliminary results of the first pivotal trial, CAT hasminimised future development costs of Trabio, consistent with its obligations inthe two continuing trials. CAT-213 (bertilimumab) is a fully human anti-eotaxin1 monoclonal antibody whichCAT has been evaluating as a treatment for severe allergic disorders.Discussions continue with potential partners to commercialise CAT-213. Licensed Products and Product Candidates HUMIRA(R) (adalimumab) is a fully human anti-TNFalpha monoclonal antibody,isolated and optimised by CAT in collaboration with Abbott and approved formarketing as a treatment for rheumatoid arthritis (RA) in over 50 countries. InJanuary, Abbott reported worldwide sales of $852 million for 2004 and raisedits 2005 worldwide sales expectations for HUMIRA to more than $1.3 billion. Abbott continues to develop HUMIRA as a potential treatment for a number ofadditional indications and reported in January that supplemental biologicslicense applications (sBLAs) had been made for two HUMIRA indications, early RAand psoriatic arthritis. Abbott also indicated that it expects to fileapplications in 2005 for ankylosing spondylitis, for RA in Japan and, possibly,for Juvenile RA. It has further indicated that a regulatory submission forCrohns disease is expected in 2006. In psoriasis, Phase III clinical trialsbegan at the end of 2004 and Phase II clinical trial data will be availablelater this month. Abbott expects to submit a regulatory application forpsoriasis in 2006 or early 2007. ABT-874 is a fully human anti-IL12 monoclonal antibody, isolated and optimisedby CAT in collaboration with Abbott, and licensed to Abbott. Abbott continuesto evaluate ABT-874 as a potential treatment for a number of autoimmune diseasesincluding Crohns disease, psoriasis and multiple sclerosis, in which Abbottannounced the start of a Phase II clinical trial in June 2004. Abbott has alsoindicated that it expects to begin Phase II studies of ABT-874 in psoriasis bythe end of 2005. LymphoStat-B(TM) (belimumab) is a fully human anti-BLyS monoclonal antibody andthe first of four antibody drug candidates to be licensed by CAT to Human GenomeSciences, Inc (HGSI). HGSI is developing LymphoStat-B as a potential treatmentfor systemic lupus erythematosus (SLE) and RA. Phase II trials in eachindication continue, with the RA results expected in Spring 2005 and the SLEresults expected in Autumn 2005. HGS-ETR1 is a fully human anti-TRAIL Receptor-1 monoclonal antibody licensed byCAT to HSGI and being developed by HGSI as a potential treatment for a number ofcancers. In November 2004, HGSI announced that it had completed the enrolmentand initial dosing of patients in a US Phase II clinical trial of HSG-ETR1 inpatients with advanced non-small cell lung cancer. The primary objective of thestudy is to evaluate tumour response. The secondary objectives are to evaluatethe safety and tolerability of HGS-ETR1, and to determine plasma concentrationsof HGS-ETR1 for use in a population pharmacokinetic analysis. Phase II clinicaltrials of HGS-ETR1 in patients with advanced colorectal cancer and in patientswith relapsed or refractory non-Hodgkin's lymphoma continue. Two Phase Ib clinical trials of HGS-ETR1 to evaluate safety and tolerability incombination with chemotherapy also continue in patients with advanced solidmalignancies. In January 2005, HGSI reported plans to complete all three of the ongoing PhaseII trials and both of the Phase Ib clinical trials of HGS-ETR1 in 2005. HGS-ETR2 is a fully human anti-TRAIL Receptor-2 monoclonal antibody licensed byCAT to HGSI, and being developed by HGSI as a potential treatment for cancer. APhase I clinical trial of HGS-ETR2 in patients with advanced solid tumourscontinues. In January 2005, HGSI reported plans to initiate Phase II clinicaltrials of HGS-ETR2 as a single agent, and to initiate Phase Ib clinical trialsof HGS-ETR2 in combination with chemotherapeutic agents in 2005. ABthrax(TM) is a fully human anti-protective antigen monoclonal antibodyisolated and developed by HGSI from antibody libraries licensed by CAT to HGSI.It has been developed as a potential treatment for anthrax. HGSI has stated thatfurther development of ABthrax will depend on the US governments willingness tocommit to the purchase of ABthrax. MYO-029 is a fully human monoclonal antibody which neutralises the effects ofGDF-8 (a protein which is associated with reduced skeletal muscle mass). Theantibody was discovered by CAT in collaboration with Wyeth and is licensed toWyeth, which is studying it as a potential therapy for muscle-wasting diseases,including muscular dystrophy and age-related sarcopenia. Wyeth announced in June2004 that it had filed an Investigational New Drug (IND) application for MYO-029and a Phase I clinical trial is now underway. Licensed Pre-clinical Product Candidates There are six antibody drug candidates licensed to partners which are at thepre-clinical stage of development. IP Licensing Agreements In January 2003, CAT and Dyax Corp. announced the expansion of their 1997licensing agreement. Under the terms of this expanded agreement, CAT receivesmilestone and royalty payments on antibody products developed by Dyax and Dyaxslicensees. In January 2005, Dyax announced that two fully human monoclonalantibodies from Dyaxs proprietary phage display libraries, IMC-11F8 andIMC-1121B, entered Phase I clinical development at ImClone Systems. Accordingly,CAT received a milestone payment from Dyax in January 2005. In September 2003, CAT granted Micromet a patent licence for the development andcommercialisation of Micromets human therapeutic antibody candidate MT201(adecatumumab), specific for the epithelial tumour target Ep-CAM. In December2004, Micromet and Serono signed an exclusive collaboration and licenceagreement for the development and commercialisation of MT201 which is currentlybeing tested in two multi-centre Phase II clinical trials. CAT receivesmilestone and royalty payments on human antibody-based products developedagainst the Ep-CAM target by Micromet and its partners. The first milestonepayment would be due on filing for product approval. Senior Management Changes In January, CAT announced that Dr David Glover, Chief Medical Officer at CAT,would take early retirement from the Company and the Board after the CompanysAnnual General Meeting (AGM) on 4 February 2005. Dr Patrick Round, VPDevelopment at CAT, has assumed responsibility for all of CATs developmentactivities and has joined the Executive Group, responsible for the operationalmanagement of the Company. In addition, Diane Mellett, General Counsel at CATand Company Secretary, joined the Board of Directors following the Companys AGM. Financial Results A review of the financial results for the three months ended 31 December 2004 isset out below. The comparative figures in brackets are for the correspondingperiod in the prior financial year. CAT made a loss after taxation for the three months ended 31 December 2004 of£11.7 million (2003: £9.1 million). Net cash outflow before management of liquidresources and financing for the period was £9.7 million (2003: £6.6 millionoutflow). Net cash inflow after financing for the period was £65.6 million(2003: £7.2 million inflow). Net cash and liquid resources at 31 December 2004amounted to £159.3 million (30 September 2004: £93.7 million). Revenue in the period was £2.7 million (2003: £3.8 million). Licence fees of£1.2 million were recognised as revenue in the period having been released fromdeferred income brought forward at 30 September 2004. Milestone payments of £1.1million were received during the quarter. Other revenues of £0.4 million, werereceived during the quarter. In October 2003 Abbott paid to CAT the firstroyalties on HUMIRA resulting in revenues of £1.0 million being recognised inthe quarter ended 31 December 2003. As a result of an agreement reached inOctober 2003 on the timing of royalty payments, royalty payments by Abbott arenow due in September and March of each year. There was, therefore, no royaltypayment and no royalty revenue recognised in the first quarter of the currentfinancial year, accounting for the decrease in revenue. The payment by Abbott of royalty arrears and other related payments pursuant tothe High Court judgment, received in January 2005, are not reflected in theseresults. Pending resolution of Abbotts request for permission to appeal and anyresultant appeal, the royalty arrears payment will not be recognised as revenue,the payment on account of costs will not be recognised in the profit and lossaccount and revenue in respect of subsequent royalty receipts will only berecognised at the two per cent rate argued by Abbott. A proportion of CATsroyalty receipts, and of the royalty arrears payment, are payable to the MedicalResearch Council and other licensors. Operating costs for the period amounted to £15.6 million (2003: £13.6 million).Research and development expenses decreased to £9.2 million for the three monthsended 31 December 2004 (2003: £10.4 million). External development costs for thethree month period were £3.5 million (2003: £4.7 million). This decrease was dueto cost savings made on the Trabio programme following the announcement of theEuropean Phase II/III trial result. General and administration expenses increased to £6.4 million for the threemonths ended 31 December 2004 (2003: £3.2 million). Litigation expenses rose by£1.5 million from the three months ended 31 December 2003 to £1.9 million in thethree months ended 31 December 2004, due to the cost of the trial against Abbottin November 2004. There was an increase of £0.8 million to £1.9 million inforeign currency translation charge due to the significant depreciation of theUS Dollar compared to the British Pound over the period. This change arisesprimarily from the retranslation of CATs trading balances with its USsubsidiary, Aptein Inc., and is non-cash. AstraZeneca transaction costs andstaff reallocations (from research and development to general andadministration), account for a further part of the increase. On 21 November 2004, CAT and AstraZeneca signed a major strategic alliance and,under the terms of a separate Subscription Agreement, AstraZeneca subscribed, inDecember 2004, £75.0 million for 10.2 million shares in CAT. CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLCRESULTS FOR THE THREE MONTHS ENDED 31 DECEMBER 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT(unaudited) Three months Three months Three months Year ended ended ended ended 31 December 31 December 31 December 30 September 2004 2004 2003 2004 Convenience translation US$000 £000 £000 £000 Turnover 5,202 2,715 3,818 15,925Direct costs - - (248) (3,023)Gross profit 5,202 2,715 3,570 12,902 Research and development expenses (17,581) (9,176) (10,420) (44,125)General and administration (12,310) (6,425) (3,197) (10,969)expensesOperating loss (24,689) (12,886) (10,047) (42,192) Interest receivable (net) 2,246 1,172 983 4,130Loss on ordinary activities before (22,443) (11,714) (9,064) (38,062)taxationTax on loss on ordinary activities - - - (64)Loss for the financial period (22,443) (11,714) (9,064) (38,126) Loss per share - basic and diluted 27.4p 22.5p 93.3p(pence) Consolidated Statement of Total Recognised Gains and Losses Three months Three months Three months Year ended ended ended ended 31 December 31 December 31 December 30 September 2004 2004 2003 2004 Convenience translation US$000 £000 £000 £000 Loss for the financial period (22,443) (11,714) (9,064) (38,126)Gain on foreign exchange translation 2,485 1,297 939 1,099Total recognised losses relating to the (19,958) (10,417) (8,125) (37,027)period The losses for all periods arise from continuing operations. This financial information has been prepared in accordance with UK GAAP. Thedollar translations are solely for the convenience of the reader. CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLCRESULTS FOR THE THREE MONTHS ENDED 31 DECEMBER 2004 CONSOLIDATED BALANCE SHEET (unaudited) As at As at As at As at 31 December 31 December 31 December 30 September 2004 2004 2003 2004 Convenience translation US$000 £000 £000 £000 Fixed assetsIntangible assets 10,672 5,570 6,620 5,832Tangible assets 22,576 11,783 13,798 12,362Investments 5,637 2,942 3,373 2,942 38,885 20,295 23,791 21,136Current assetsDebtors 9,760 5,094 6,514 4,460Short term investments 297,683 155,367 113,033 93,061Cash at bank and in hand 8,817 4,602 3,628 2,678 316,260 165,063 123,175 100,199CreditorsAmounts falling due within one year (29,064) (15,169) (13,199) (15,603)Net current assets 287,196 149,894 109,976 84,596Total assets less current liabilities 326,081 170,189 133,767 105,732CreditorsAmounts falling due after more than one (38,458) (20,072) (20,270) (20,650)yearNet assets 287,623 150,117 113,497 85,082 Capital and reservesCalled-up share capital 9,858 5,145 4,099 4,111Share premium account 577,055 301,177 226,498 226,829Other reserve 25,782 13,456 13,456 13,456Profit and loss account (325,072) (169,661) (130,556) (159,314)Shareholders funds - all equity 287,623 150,117 113,497 85,082 This financial information has been prepared in accordance with UK GAAP. Thedollar translations are solely for the convenience of the reader. CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLCRESULTS FOR THE THREE MONTHS ENDED 31 DECEMBER 2004 CONSOLIDATED CASH FLOW STATEMENT(unaudited) Three months Three months Three months Year ended ended ended ended 31 December 31 December 31 December 30 September 2004 2004 2003 2004 Convenience translation US$000 £000 £000 £000 Net cash outflow from operations (19,594) (10,227) (7,409) (31,067) Returns on investments and servicing offinanceInterest received 1,585 827 1,205 4,295Interest element of finance leases (29) (15) (22) (78) 1,556 812 1,183 4,217 Taxation - - - (64) Capital expenditure and financialinvestmentPurchase of tangible fixed assets (510) (266) (373) (1,032)Sale of tangible fixed assets - - - 6 (510) (266) (373) (1,026) Net cash outflow before management ofliquid resources and financing (18,548) (9,681) (6,599) (27,940) Management of liquid resources (119,378) (62,306) (4,686) 15,357 FinancingIssue of ordinary share capital 144,432 75,382 13,880 14,223Capital elements of finance lease rental (174) (91) (84) (348)payments 144,258 75,291 13,796 13,875 Increase in cash 6,332 3,304 2,511 1,292 This financial information has been prepared in accordance with UK GAAP. Thedollar translations are solely for the convenience of the reader. Notes to the financial information Accounting policies This financial information has been prepared in accordance with the policies setout in the statutory financial statements for the year ended 30 September 2004. Convenience translation The consolidated financial statements are presented in Sterling. Theconsolidated financial statements as of and for the period ended 31 December2004 are also presented in US Dollars as a convenience translation. The Dollaramounts are presented solely for the convenience of the reader and have beencalculated using an exchange rate of £1:US$1.916, the noon buying rate as of 31December 2004. No representation is made that the amounts could have been orcould be converted into US Dollars at this or any other rates. Loss per share The loss per ordinary share and diluted loss per share are equal because shareoptions are only included in the calculation of diluted earnings per share iftheir issue would decrease the net profit per share or increase the net loss pershare. The calculation is based on information in the table shown below. Three months Three months Year ended ended ended 31 December 31 December 30 September 2004 2003 2004 Losses (£000) 11,714 9,064 38,126Weighted average number of shares 42,811,237 40,270,246 40,866,684 The Company had ordinary shares in issue of 51,455,213 and a total of 2,247,914ordinary shares under option as of 31 December 2004. Reconciliation of operating loss to operating cash outflow Three months Three months Three months Year ended ended ended ended 31 December 31 December 31 December 30 September 2004 2004 2003 2004 Convenience translation US$000 £000 £000 £000 Operating loss (24,689) (12,886) (10,047) (42,192)Depreciation charge 1,289 673 754 2,826Amortisation of intangible fixed assets 502 262 263 1,051Profit on disposal of fixed assets - - - (3)Amounts written off fixed asset - - - 215investmentsExecutive Incentive Plan charge 134 70 - 144Increase in debtors (527) (275) (2,191) (24)(Decrease)/increase in deferred income (1,309) (683) 2,522 4,086Increase in creditors (excluding 5,006 2,612 1,290 2,830deferred income) (19,594) (10,227) (7,409) (31,067) Analysis and reconciliation of net funds 1 October Cash flow Exchange 31 December 31 December 2004 movement 2004 2004 £000 £000 £000 £000 $000 Cash at bank and in hand 2,678 1,956 (32) 4,602 8,817Overdrafts (1,512) 1,348 - (164) (314) 3,304 (32)Liquid resources 92,559 62,306 - 154,865 296,721Net cash and liquid resources 93,725 65,610 (32) 159,303 305,224Finance leases (820) 91 - (729) (1,397)Net funds 92,905 65,701 (32) 158,574 303,827 Liquid resources shown above is included within short term investments on theBalance Sheet, which also includes a part of the investment in MorphoSys shares. Reconciliation of movements in group shareholders funds Three months Year ended ended 31 December 30 September 2004 2004 £000 £000 Loss for the financial period (11,714) (38,126)Other recognised gains and losses relating to the period 1,297 1,099 (10,417) (37,027)New shares issued (net of expenses) 75,382 14,223Executive Incentive Plan 70 144Net increase/(decrease) in shareholders funds 65,035 (22,660)Opening shareholders funds 85,082 107,742Closing shareholders funds 150,117 85,082 Financial Statements The preceding information, comprising the Consolidated Profit and Loss Account,Consolidated Statement of Total Recognised Gains and Losses, ConsolidatedBalance Sheet, Consolidated Cash Flow Statement and associated notes, does notconstitute the Companys statutory financial statements for the year ended 30September 2004 within the meaning of section 240 of the Companies Act 1985, butis derived from those financial statements. Results for the three month periodsended 31 December 2004 and 31 December 2003 have not been audited. The resultsfor the year ended 30 September 2004 have been extracted from the statutoryfinancial statements which will be filed with the Registrar of Companies afterthe Companys Annual General Meeting and upon which the auditors reported withoutqualification. The annual report and financial statements for the year ended 30 September 2004are available from our registered office: The Company SecretaryCambridge Antibody Technology Group plcMilstein BuildingGranta ParkCambridgeCB1 6GH, UKTel: +44 (0) 1223 471471 -ENDS- Notes to Editors Cambridge Antibody Technology (CAT): CAT is a biopharmaceutical company using its proprietary technologies andcapabilities in human monoclonal antibodies for drug discovery and drugdevelopment. Based near Cambridge, England, CAT currently employs around 280people CAT is a leader in the discovery and development of human therapeutic antibodiesand has an advanced proprietary technology for rapidly isolating humanmonoclonal antibodies using phage display and ribosome display systems. CAT hasextensive phage antibody libraries, currently incorporating more than 100billion distinct antibodies. These libraries form the basis for the Companysstrategy to develop a portfolio of antibody-based drugs. Four CAT human therapeutic antibody products are now at various stages ofclinical development, with one further product candidate in pre-clinicaldevelopment. HUMIRA, the leading CAT-derived antibody, isolated and optimised incollaboration with Abbott, has been approved for marketing as a treatment forrheumatoid arthritis in 51 countries. Six further licensed CAT-derived human therapeutic antibodies are in clinicaldevelopment by licensees, with six further licensed product candidates inpre-clinical development. CAT has alliances with a number of pharmaceutical and biotechnology companies todiscover, develop and commercialise human monoclonal antibody-based products. On 22 November 2004, CAT announced a major strategic alliance with AstraZenecato discover and develop human antibody therapeutics in inflammatory disorders. CAT has a broad collaboration with Genzyme for the development andcommercialisation of antibodies directed against TGFbeta, a family of proteinsassociated with fibrosis and scarring. CAT has also licensed its proprietary technologies to several companies. CATslicensees include: Abbott, Amgen, Chugai, Genzyme, Human Genome Sciences, Merck& Co, Pfizer and Wyeth Research. CAT is listed on the London Stock Exchange and on NASDAQ. CAT raised £41m in itsIPO in March 1997 and £93m in a secondary offering in March 2000. Application of the Safe Harbor of the Private Securities Litigation Reform Actof 1995: This press release contains statements about Cambridge AntibodyTechnology Group plc (CAT) that are forward looking statements. All statementsother than statements of historical facts included in this press release may beforward looking statements within the meaning of Section 21E of the SecuritiesExchange Act of 1934. These forward looking statements are based on numerousassumptions regarding the companys present and future business strategies andthe environment in which the company will operate in the future. Certain factorsthat could cause the companys actual results, performance or achievements todiffer materially from those in the forward looking statements include: marketconditions, CATs ability to enter into and maintain collaborative arrangements,success of product candidates in clinical trials, regulatory developments andcompetition. We caution investors not to place undue reliance on the forwardlooking statements contained in this press release. These statements speak onlyas of the date of this press release, and we undertake no obligation to updateor revise the statements. This information is provided by RNS The company news service from the London Stock Exchange