CATCo Regulatory News (CAT)

12 Sep 2005 07:01

Cambridge Antibody Tech Group PLC12 September 2005 05/CAT/13 FOR IMMEDIATE RELEASE 07.00 BST, 02.00 EST Monday 12 September 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 Corporate Rachel TaylorCommunications BMC Communications/The Trout Group (USA) Tel: 001 212 477 9007 Brad Miles, ext 17 (media) Brandon Lewis, ext 15 (investors) CAMBRIDGE ANTIBODY TECHNOLOGY ANNOUNCES FINANCIAL RESULTS FOR THE NINE MONTHSENDED 30 JUNE 2005 Cambridge, UK - Cambridge Antibody Technology (LSE: CAT; NASDAQ: CATG) todayannounces its financial results for the nine months ended 30 June 2005 and anupdate on business since the interim results in May 2005. Highlights Positive preliminary results from Phase I clinical trial of CAT-354 Centres initiated for Phase I clinical trials of GC-1008 in idiopathic pulmonaryfibrosis (IPF) (with Genzyme) Excellent progress in Alliance with AstraZeneca: six active Discovery programmes Positive results from Phase II clinical trial of HGS-ETR1 in advanced solidcancers (Human Genome Sciences, Inc (HGSI)) GlaxoSmithKline (GSK) exercised options to co-develop and co-promoteLymphoStat-B (TM) and HGS-ETR1, both with HGSI Appeal hearing in litigation with Abbott re HUMIRA(R) to take place weekcommencing 24 October 2005 John Brown, former CEO of Acambis, appointed as Non-Executive Director. Net cash and liquid resources of £172.1 million at 30 June 2005 (£93.7 millionat 30 September 2004) Introduction CAT has strong financial foundations which result from its balance sheetstrength and the revenue stream from HUMIRA royalties. The diversified pipelineof licensed antibody product candidates offers good prospects for growth in themedium term and CAT has significant longer term opportunities from proprietarydevelopment and alliances, especially with Genzyme and AstraZeneca. 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 to assess the safety, tolerabilityand pharmacokinetics of CAT-354. The trial was a double-blind,placebo-controlled, rising single dose intravenous study in 34 mild asthmaticpatients. In June 2005, CAT announced preliminary results which showed thatCAT-354 was well tolerated at all doses and there were no identified safetyconcerns; pharmacokinetics were as expected. The trial results will be submittedto an appropriate scientific meeting in due course. Based on these results, CAT is planning to start a further clinical trial in thefourth quarter of 2005. This is being planned as a repeat dose study in patientswith mild asthma. Genzyme Alliance GC-1008 is a pan-specific fully human anti-TGF beta monoclonal antibody beingdeveloped by CAT and Genzyme. Centres have been initiated for a Phase I clinicaltrial of GC-1008 in IPF. The objectives of the trial are to evaluate the safety,tolerability and pharmacokinetics of single intravenous infusions of GC-1008 inpatients with IPF. The trial, which is an open-label, single dose,dose-escalating study will be in 25 patients in three to five centres in theUnited States (US). 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. The Alliance is progressingwell, and work is ongoing on six Discovery projects: one pre-existing CATDiscovery programme adopted into the Alliance and five new programmes, all ofwhich had progressed to lead isolation stage by June 2005. Selection of the nexttargets for Alliance Discovery projects is already underway. The unique natureof this Alliance was recognised in August 2005 at the fourth annual IBCPharmaceutical Achievement Awards in Boston where the companies were honouredwith the Business Alliance of the Year award. Licensed Products and Product Candidates HUMIRA (adalimumab) is a fully human anti-TNF alpha monoclonal antibody,isolated and optimised by CAT in collaboration with Abbott and now approved formarketing as a treatment for rheumatoid arthritis (RA) in 57 countries. Abbott reported worldwide sales of HUMIRA of US$321 million for the secondquarter of 2005 (total for first six months of 2005 of US$603 million). Abbottcontinues to forecast revenues from HUMIRA of more than US$1.3 billion in 2005. In August 2005, Abbott announced that it had received approval from the EuropeanCommission to market HUMIRA as a treatment for psoriatic arthritis and early RAin Europe. Abbott stated that HUMIRA would be available immediately to patientswith psoriatic arthritis in Germany, UK, Spain, Finland and Denmark. Abbottexpects a decision regarding the US Food and Drug Administrations (FDAs)approval of HUMIRA for these expanded indications in the US by the end of 2005. LymphoStat-B (belimumab) is a fully human anti-BLyS monoclonal antibody licensedby CAT to HGSI. HGSI is developing LymphoStat-B as a potential treatment forSystemic Lupus Erythematosus (SLE) and RA. In July 2005, HGSI announced that GSKhad exercised its option to develop and commercialise LymphoStat-B jointly withHGSI. In April 2005, HGSI announced positive Phase II results of LymphoStat-B in a 283patient trial in RA. Results of the Phase II clinical trial of LymphoStat-B in449 patients with SLE are expected in Autumn 2005. HGS-ETR1 (mapatumumab) is a fully human anti-TRAIL Receptor-1 monoclonalantibody licensed by CAT to HGSI. HGSI is developing HGS-ETR1 as a potentialtreatment for multiple cancer indications, and a number of Phase Ib and Phase IIclinical trials are underway. In May 2005, HGSI announced that the results of ongoing Phase I clinical trialsdemonstrate that HGS-ETR1 is well tolerated in patients with advanced solidtumours and support further evaluation in Phase II trials. In June 2005, HGSI announced interim results from an ongoing Phase II trial ofHGSI-ETR1 in patients with advanced non-Hodgkins lymphoma, which demonstratedthat it is well tolerated and shows signs of clinical activity. Partialresponses were observed in some patients. HGSI expects that complete data fromthe study will be presented at an appropriate scientific meeting later thisyear. In July 2005, HGSI announced that the results of a Phase II clinical trial ofHGS-ETR1 demonstrated that HGS-ETR1 was well tolerated and could be administeredsafely and repetitively in patients with advanced non-small cell lung cancer(NSCLC). Stable disease was observed in a number of patients and the resultssupport continued evaluation of HGS-ETR1 in NSCLC patients in combination withchemotherapeutic agents. HGSI expects to announce the results of a further PhaseII clinical trial of HGS-ETR1, in patients with advanced colorectal cancer,later in 2005. In August 2005, HGSI announced that GSK had exercised its option to develop andcommercialise HGS-ETR1 jointly with HGSI. HGS-ETR2 is a fully human anti-TRAIL Receptor-2 monoclonal antibody licensed byCAT to HSGI and being developed by HGSI as a potential treatment for cancer. InMay 2005, HGSI announced that the results of ongoing Phase I clinical trialsdemonstrate that HGS-ETR2 is well tolerated in patients with advanced solidtumours and support further evaluation in Phase II trials. Patent Licensing Agreements In June 2005, CAT granted BioInvent and its partners a licence to use CATs PhageDisplay patents to develop products from BioInvents n-CoDeR antibody libraries.BioInvent agreed to withdraw its opposition to CATs patents filed at theEuropean Patent Office in Munich. CAT received an initial licence fee fromBioInvent and will receive future payments, depending on how many therapeuticantibodies BioInvent and its partners develop using CATs patented technology.CAT will receive milestone payments and royalties on sales of such products. In August 2005, CAT granted Symphogen a licence to use CATs Phage Displaypatents for research purposes and to develop and commercialise a number oftherapeutic and diagnostic antibody products. Upon signing the agreement,Symphogen made an upfront payment for the licence and exercised its firstproduct licence option. As a condition of exercising this option, Symphogenpaid a product licence fee, and may make future milestone and royalty paymentsto CAT. Board Changes CAT today announces the appointment of Dr John Brown as a Non-ExecutiveDirector, with immediate effect. John has widespread commercial, financial andscientific experience within the biopharmaceutical industry, having held anumber of positions within the sector and most recently as Chief Executive ofAcambis plc. CAT believes that he will make a significant contribution to theBoard. John will also join the Audit Committee and the Remuneration Committee. Litigation With Abbott In the legal proceedings against Abbott Biotechnology Limited and Abbott GmbHconcerning the level of HUMIRA royalties due to CAT, the appeal of the decisionof Mr Justice Laddie in CATs favour will be heard by the Court of Appeal inLondon in the week commencing 24 October 2005. The hearing is currentlyestimated to last five days. Financial Results A review of the financial results for the nine months ended 30 June 2005 is setout below. The comparative figures in brackets are for the corresponding periodin the prior financial year. CAT made a loss after taxation for the nine months ended 30 June 2005 of £21.6million (2004: £28.4 million). Net cash inflow before management of liquidresources and financing for the period was £2.7 million (2004: £20.7 millionoutflow). Net cash and liquid resources at 30 June 2005 were £172.1 million (30September 2004: £93.7 million). The payment by Abbott of royalty arrears and other related payments pursuant tothe High Court Judgment are not reflected in these results. Pending resolutionof the appeal, the royalty arrears payment and royalty receipts in excess of thetwo per cent rate argued by Abbott will not be recognised as revenue. Similarly,amounts received in respect of CATs costs will not be recognised until theresolution of Abbotts appeal. The table below details payments received fromAbbott in the current financial year and the accounting treatment adopted. Recognised asDate received Description Amount Revenue Creditors $ million $ million $ millionJanuary 2005 Back dated royalties 23.7 - 23.7January 2005 Costs and interest 6.7 - 6.7March 2005 Royalty to 31 Dec 04 25.0 9.7 15.3 Total 55.4 9.7 45.7 Total as recognised in £m £29.4 £5.2 £24.2 In the event that CAT prevails on appeal, up to approximately £10.0 million ofthe £29.4 million received from Abbott and referred to in the table above willbe payable to the Medical Research Council (MRC) and other licensors. Turnover in the period was £12.1 million (2004: £10.1 million). In the thirdquarter, a clinical milestone payment was received from Dyax and other revenuewas received from MorphoSys under the terms of the Agreement signed in December2002. Direct costs for the nine months ended 30 June 2005 were £2.2 million (2004:£1.5 million). Direct costs in the third quarter reflect amounts due to the MRCand other licensors on the monies received from MorphoSys. Research and development costs for the nine months ended 30 June 2005 were £27.4million (2004: £32.0 million). External development costs were £9.2 million inthe nine months ended 30 June 2005 (2004: £13.8 million), reflecting lower spendon the Trabio programme, which was terminated in March 2005, subject only tocontinuation of CATs minimum obligations. The spend on Trabio for the nine monthperiod was £3.7 million (2004: £8.5 million). Research and development staffcosts and consumables were £11.1 million in the period (2004: £10.3 million). General and administration expenses for the period were £10.6 million (2004:£8.0 million). Litigation expenses for the nine months ended 30 June 2005 were£3.3 million (2004: £1.5 million) due to the cost of the trial against Abbott inNovember 2004. General and administration staff costs were £3.4 million in theperiod (2004: £2.6 million). The non-cash foreign currency translation chargearising from the retranslation of CATs trading balances with its US subsidiary,Aptein Inc, and the retranslation of US dollar deposits held was £0.2 million(2004: £1.2 million). The fall in general and administration expenses in thethird quarter compared to the previous quarter was primarily due to a decreaseof £1.0 million in litigation expenses. During the third quarter, CAT sold just over a fifth of its shares held inMorphoSys. The net sale proceeds to CAT were £2.1 million, resulting in anaccounting profit on sale of £1.5 million. CATs remaining beneficial interest isin 376,776 MorphoSys shares. During the period, the Group accrued interest receivable on its cash deposits of£4.9 million (2004: £3.1 million) reflecting the increased level of cash andliquid resources held in interest-bearing securities. CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLCResults for the NINE MONTHS ended 30 JUNE 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT(unaudited) Nine months Nine months Nine months Year ended ended ended ended 30 June 30 June 30 June 30 September 2005 2005 2004 2004 Convenience translation US$000 £000 £000 £000 Turnover 21,760 12,136 10,118 15,925Direct costs (3,905) (2,178) (1,527) (3,023)Gross profit 17,855 9,958 8,591 12,902 Research and development expenses (49,137) (27,405) (32,029) (44,125)General and administration expenses (18,961) (10,575) (8,020) (10,969)Operating loss (50,243) (28,022) (31,458) (42,192) Profit on sale of fixed asset 2,620 1,461 - -investmentsInterest receivable (net) 8,859 4,941 3,077 4,130Loss on ordinary activities before taxation (38,764) (21,620) (28,381) (38,062)Tax on loss on ordinary activities - - - (64)Loss for the financial period (38,764) (21,620) (28,381) (38,126) Loss per share - basic and diluted (pence) 44.5p 69.6p 93.3p Consolidated Statement of Total Recognised Gains and Losses(unaudited) Nine months Nine months Nine months Year ended ended ended ended 30 June 30 June 30 June 30 September 2005 2005 2004 2004 Convenience translation US$000 £000 £000 £000 Loss for the financial period (38,764) (21,620) (28,381) (38,126)Gain on foreign exchange translation 113 63 1,164 1,099Total recognised losses relating to the period (38,651) (21,557) (27,217) (37,027) 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 NINE MONTHS ended 30 JUNE 2005 Consolidated Balance Sheet(unaudited) As at As at As at As at 30 June 30 June 30 June 30 September 2005 2005 2004 2004 Convenience translation US$000 £000 £000 £000Fixed assets Intangible assets 9,044 5,044 6,095 5,832Tangible assets 21,374 11,921 12,798 12,362Investments 4,122 2,299 2,942 2,942 34,540 19,264 21,835 21,136Current assetsDebtors 15,857 8,844 4,748 4,460Short term investments 305,111 170,168 100,302 93,061Cash at bank and in hand 4,798 2,676 2,874 2,678 325,766 181,688 107,924 100,199CreditorsAmounts falling due within one year (74,302) (41,440) (13,764) (15,603)Net current assets 251,464 140,248 94,160 84,596Total assets less current liabilities 286,004 159,512 115,995 105,732CreditorsAmounts falling due after more than one year (35,534) (19,818) (21,299) (20,650)Net assets 250,470 139,694 94,696 85,082 Capital and reservesCalled-up share capital 9,255 5,162 4,109 4,111Share premium account 541,036 301,749 226,779 226,829Other reserve 24,127 13,456 13,456 13,456Profit and loss account (323,948) (180,673) (149,648) (159,314)Shareholders funds - all equity 250,470 139,694 94,696 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 NINE MONTHS ENDED 30 JUNE 2005 Consolidated Cash Flow Statement(unaudited) Nine months Nine months Nine months Year ended ended ended ended 30 June 30 June 30 June 30 September 2005 2005 2004 2004 Convenience translation US$000 £000 £000 £000 Net cash outflow from operations (3,503) (1,954) (22,902) (31,067) Returns on investments and servicing offinance Interest received 7,418 4,137 3,035 4,295Interest element of finance leases (72) (40) (61) (78) 7,346 4,097 2,974 4,217 Taxation - - - (64) Capital expenditure and financialinvestment Purchase of tangible fixed assets (2,847) (1,588) (729) (1,032)Sale of tangible fixed assets - - 1 6Sale of fixed asset investments 3,772 2,104 - - 925 516 (728) (1,026) Net cash inflow/(outflow) beforemanagement of liquid resources andfinancing 4,768 2,659 (20,656) (27,940) Management of liquid resources (138,594) (77,297) 8,260 15,357 Financing Issue of ordinary share capital 136,216 75,971 14,171 14,223 Capital elements of finance lease rental payments (500) (279) (258) (348) 135,716 75,692 13,913 13,875 Increase in cash 1,890 1,054 1,517 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 30 June 2005are 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$1.793, the noon buying rate as of 30June 2005. No representation is made that the amounts could have been or couldbe converted into US Dollars at this or any other rates. Loss per share FRS 14 requires presentation of diluted EPS when a company could be called uponto issue shares that would decrease net profit or increase net loss per share.For a loss making company with outstanding share options, net loss per sharewould only be increased by the exercise of out-of-the-money options. Since itseems inappropriate to assume that option holders would act irrationally, noadjustment has been made to diluted EPS for out-of-the-money share options,diluted EPS equals basic EPS. The calculation is based on information in thetable below. Nine months Nine months Year ended ended ended 30 June 30 June 30 September 2005 2004 2004 Losses (£000) 21,620 28,381 38,126Weighted average number of shares 48,623,619 40,787,824 40,866,684 The Company had ordinary shares in issue of 51,619,762 and a total of 2,205,953ordinary shares under option as of 30 June 2005. Turnover Nine months Nine months Nine months Year ended ended ended ended 30 June 30 June 30 June 30 September 2005 2005 2004 2004 Convenience translation US$000 £000 £000 £000 Royalties 9,263 5,166 2,673 6,328Licence fees 6,835 3,812 3,378 4,601Technical milestones 1,971 1,099 1,601 1,610Clinical milestones 1,397 779 556 1,091Contract research fees 638 356 1,535 1,829Other 1,656 924 375 466Total 21,760 12,136 10,118 15,925 Deferred income £000 Balance brought forward at 1 October 2004 25,810Cash receipts 961Held in debtors 2,610Released to revenue (4,203)Other (251)Deferred income at 30 June 2005 24,927 Reconciliation of operating loss to operating cash outflow Nine months Nine months Nine months Year ended ended ended ended 30 June 30 June 30 June 30 September 2005 2005 2004 2004 Convenience translation US$000 £000 £000 £000 Operating loss (50,243) (28,022) (31,458) (42,192)Depreciation charge 3,625 2,022 2,142 2,826Amortisation of intangible fixed assets 1,413 788 788 1,051Profit on disposal of fixed assets - - - (3)Write down of fixed asset investment - - 215 215EIP charge 355 198 - 144Increase in debtors (6,353) (3,543) (121) (24)(Decrease)/increase in deferred income (1,583) (883) 4,515 4,086Increase in creditors (excluding deferred income) 49,283 27,486 1,017 2,830Operating cash outflow (3,503) (1,954) (22,902) (31,067) Analysis and reconciliation of net funds 1 October Cash flow Exchange 30 June 30 June 2004 movement 2005 2005 £000 £000 £000 £000 US$000 Cash at bank and in hand 2,678 - (2) 2,676 4,798Overdrafts (1,512) 1,054 - (458) (821) 1,054 (2)Liquid resources 92,559 77,297 - 169,856 304,552Net cash and liquid resources 93,725 78,351 (2) 172,074 308,529Finance leases (820) 279 - (541) (970)Net funds 92,905 78,630 (2) 171,533 307,559 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 Nine months Year ended ended 30 June 30 September 2005 2004 £000 £000 Loss for the financial period (21,620) (38,126)Other recognised gains and losses relating to the period 63 1,099 (21,557) (37,027)New shares issued (net of expenses) 75,971 14,223Executive Incentive Plan 198 144Net increase/(decrease) in shareholders funds 54,612 (22,660)Opening shareholders funds 85,082 107,742Closing shareholders funds 139,694 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 nine month periodsended 30 June 2005 and 30 June 2004 have not been audited. The results for theyear ended 30 September 2004 have been extracted from the statutory financialstatements which have been filed with the Registrar of Companies and upon whichthe auditors reported without qualification. The annual report and financial statements for the year ended 30 September 2004are available from our registered office: Cambridge Antibody Technology Group plcMilstein BuildingGranta ParkCambridgeCB1 6GH, UKTel: +44 (0) 1223 471471 Quarterly financial information Three Three Three months months months ended ended ended 30 June 31 March 31 December 2005 2005 2004 £000 £000 £000Consolidated profit and loss account(unaudited): Turnover 2,291 7,130 2,715 Direct costs (143) (2,035) -Gross profit 2,148 5,095 2,715 Research and development expenses (9,322) (8,907) (9,176)General and administration expenses (1,500) (2,650) (6,425)Operating loss (8,674) (6,462) (12,886) Profit on sale of fixed asset investments 1,461 - -Interest receivable (net) 1,934 1,835 1,172 Loss on ordinary activities before taxation (5,279) (4,627) (11,714) Taxation on loss on ordinary activities - - -Loss for the financial period (5,279) (4,627) (11,714) Consolidated cash flow statement(unaudited): Net cash (outflow)/inflow from operations (9,101) 17,374 (10,227) Returns on investments and servicing offinance Interest received 1,638 1,672 827Interest paid (11) (14) (15) 1,627 1,658 812 Taxation - - - Capital expenditure and financial investment Purchase of tangible fixed assets (725) (597) (266)Sale of fixed asset investment 2,104 - - 1,379 (597) (266) Net cash (outflow)/inflow before management (6,095) 18,435 (9,681)of liquid resources and financing Management of liquid resources (6,619) (8,372) (62,306) Financing Issue of ordinary share capital 34 555 75,382Capital elements of finance lease rental (95) (93) (91)payments (61) 462 75,291 (Decrease)/increase in cash (12,775) 10,525 3,304 - ENDS - Notes To Editors Cambridge Antibody Technology (CAT): Business: CAT is a biopharmaceutical company, aiming to bring improvements to seriouslyill patients lives and thereby create outstanding returns for shareholders. CATseeks to develop products independently and in collaboration with partners,using its capabilities and technologies in the discovery and development of newand innovative antibody medicines in selected therapeutic areas. CAT also seeksto licence its technologies to enable others to develop new medicines. CAT has strong financial foundations which arise from its balance sheet strengthand the revenue stream from HUMIRA royalties. The diversified pipeline oflicensed antibody product candidates offers good prospects for growth in themedium term and significant longer term opportunities arise from CATsproprietary development and alliances, especially with Genzyme and AstraZeneca. Products: HUMIRA, licensed to Abbott, is the first CAT-derived antibody to be approved formarketing. It was isolated and optimised in collaboration with Abbott and hasbeen approved for marketing as a treatment for rheumatoid arthritis (RA) in 57countries, and for psoriatic arthritis and early RA in some European countries. There are six further CAT-derived antibodies licensed to partners at variousstages of clinical development, including ABT-874 (Abbott), LymphoStat-B,HGS-ETR1, HGS-ETR2 (all Human Genome Sciences (HGSI)) and MYO-029 (Wyeth). CAThas also licensed its proprietary technologies and patents to several companies.CATs licensees include Abbott, Amgen, Chugai, Dyax, Genzyme, HGSI, Merck & Co,Micromet, Pfizer and Wyeth, and three antibody drug candidates are in clinicaldevelopment at patent licensees. There is one proprietary CAT human therapeutic antibody product candidates inclinical development, CAT-354, and one in pre-clinical development with Genzyme,GC-1008. Collaborations: CAT has a broad collaboration with Genzyme for the development andcommercialisation of antibodies directed against TGF beta, a family of proteinsassociated with fibrosis and scarring, and with potential application in thetreatment of some cancers. CAT has a major strategic alliance with AstraZeneca to discover and develophuman antibody therapeutics, principally in inflammatory disorders. Thisprovides CAT with the opportunity to build a substantial pipeline of antibodytherapeutics with a significant pharmaceutical partner. CAT has a co-development collaboration with Amrad against GM-CSF Receptor, apotential drug target in RA. Science: CAT 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, which form the basis for the Companys strategy todevelop a portfolio of antibody-based drugs. Business Background: Based near Cambridge, UK, CAT currently employs around 290 people. CAT is listed on the London Stock Exchange (CAT) and on NASDAQ (CATG). More information can be found at www.cambridgeantibody.com 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 and the environment in which the company will operate in the future. Certain factors that could cause the companys actual results, performance or achievements to differ materially from those in the forward looking statements include: market conditions, 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 forward looking statements contained in this press release. These statements speak onlyas of the date of this press release, and we undertake no obligation to update or revise the statements. This information is provided by RNS The company news service from the London Stock Exchange