3 Dec 2012 07:00
News Release
3 December 2012
Consort Medical plc
Major contract award - innovative nicotine inhalation device
Consort Medical plc (LSE: CSRT), today announces that its Bespak Division has been awarded a major new contract. Bespak has signed a multi-year exclusive contract with Nicoventures Ltd ("Nicoventures"), a stand-alone company within the British American Tobacco Group focusing on the development and commercialisation of licensed nicotine products. The contract is for the supply of an innovative nicotine inhalation product for use as a safer alternative to smoking.
The supply of the product by Bespak would commence following regulatory approval. Revenues from the contract will be dependent on product sales following consumer launch. The capital expenditure required will be funded from current lending facilities over a three year period. As previously announced, Bespak was awarded the manufacturing development contract for the device in November 2011.
Bespak will manufacture the inhalation system and have responsibility for the final assembly of the product, including a canister containing the active pharmaceutical ingredient. The complete and final assembly will be housed in a dedicated facility. The product will also incorporate Bespak's proprietary valve. This continues Bespak's strategic development in broadening its product and service offering.
Jon Glenn, Chief Executive Officer of Consort Medical, commented:
"This is an exciting contract award for Consort Medical, which further demonstrates the full spectrum of the Group's competencies, from product development, through to drug handling and full device assembly.
The full extent of the revenue opportunity will only become evident following regulatory approval and the product launch. Whilst we do not expect any near term revenue impact, we are optimistic about the prospects for the product in this very promising market."
Adrian Marshall, Nicoventures' Managing Director, commented:
"We are delighted to have agreed the contract with Bespak. This takes us closer to our ambition of introducing an innovative, licensed nicotine product as a safer alternative to smoking."
Consort Medical is currently in a close period, and will publish its Interim results on 5 December 2012.
-Ends-
For enquiries, please contact:
Consort Medical plc | |
Jonathan Glenn, Chief Executive | Tel: +44 (0) 1442 867920 |
Richard Cotton, Group Finance Director | Tel: +44 (0) 1442 867920 |
Brunswick | |
Jon Coles/Justine McIlroy/Amie Gramlick | Tel: +44 (0) 20 7404 5959 |
Consort Medical plc is an international medical devices company, focused on developing and manufacturing disposable medical devices for drug delivery and anaesthesia.
The Group is comprised of two businesses:
Bespak is a global market leader in the manufacture of drug delivery devices for pharmaceutical partner companies, including products across the respiratory, injectables and Point of Care diagnostics markets.
King Systems manufactures and markets airway management products, used primarily by anaesthetists and emergency room practitioners.
The Group has facilities in King's Lynn, Cambridge, Nelson and Hemel Hempstead in the UK, and Indianapolis, Indiana and Kent, Ohio in the US.
Consort Medical is a public company quoted on the full list of the London Stock Exchange (LSE: CSRT). The Group's website address is www.consortmedical.com.
Contact details for Nicoventures:
For enquiries on Nicoventures, please contact
Nicoventures
Liz Freeborn Tel +44 (0) 20 7921 2810
Good Relations
Phil Brady Tel +44 (0) 20 7861 3132