Immupharma Regulatory News (IMM)

Immupharma plc

INTERIM RESULTS ANNOUNCEMENT

For the six months ended 30 June 2010

ImmuPharma plc (LSE:IMM) ("Immupharma" or the "Company" or the "Group"), the specialist discovery and development pharmaceutical company is pleased to announce its interim results for the six months ended 30 June 2010.

INTERIM HIGHLIGHTS

·; First patients dosed with IPP-204106, ImmuPharma's anti-cancer compound with a novel and promising mechanism of action, in a Phase IIa cancer trial, after receipt of an Investigational New Drug (IND) approval from AFSSAPS, Agence Francaise de Securite Sanitaire des Produits de Sante.

·; Cephalon, Inc (Cephalon), ImmuPharma's partner for Rigerimod (LupuzorTM), commenced the recruitment of lupus patients for a Phase IIb trial being conducted largely in the US. This study has been designed to provide US-based investigators and the US FDA with clinical data obtained mainly in the USA. The data generated from this trial will be part of the package to be submitted to the FDA and other regulatory authorities for approval. Positive Phase IIb data from outside the USA has previously been announced.

·; Cephalon has also initiated development of LupuzorTM in Japan through its partner Symbio Pharmaceuticals.

·; ImmuPharma remains committed to its other compounds in R&D.

·; Strong cash position of £20m (as at 30 June 2010)

·; Received Best Drug Development Company in Europe 2010 Award from the New Economy

·; Basic and diluted loss per share were 0.10p and 0.10p respectively (31 December 2009: basic and diluted earnings per share 10.46p and 9.99p respectively)

Commenting on the progress to date and the outlook for ImmuPharma, Dimitri Dimitriou, Chief Executive Officer, said:

"The first half of 2010 has seen ImmuPharma build on the success of 2009 with Cephalon, our partner for LupuzorTM, moving ahead with a large trial in the US. At the same time, we are focusing our own efforts on our promising cancer drug and are proud to have initiated a clinical trial dosing cancer patients in France. We look forward to building on this success during the rest of 2010 and in the coming years."

Richard Warr, ImmuPharma's Chairman added:

"The entry of our cancer compound into clinical trials is a landmark event for ImmuPharma. The company now has two potential blockbuster drugs in the clinic and a strong corporate partnership with Cephalon. In addition ImmuPharma is pleased to report a strong balance sheet and an enviable cash position."

For further information, please contact:

ImmuPharma PLC:

Dimitri Dimitriou, Chief Executive Officer +44 20 7152 4080

Richard Warr, Chairman

Tracy Weimar, VP, Operations

Buchanan Communications

Lisa Baderoon, Mark Court, George Prassas +44 20 7466 5000

Panmure, Gordon & Co., NOMAD & Broker

Andrew Burnett +44 20 7459 3600

Execution Noble & Co, Joint Broker

James Bromhead +44 20 7456 9191

ImmuPharma plc

Statement from the Chairman and the Chief Executive Officer

INTERIM HIGHLIGHTS

Summary

The first half of 2010 has seen ImmuPharma progress after the successful licensing of LupuzorTM to Cephalon in 2009. The Group has made great strides in developing our partnership with Cephalon as well as advancing plans for our other promising programmes. While Cephalon moves forward with a large Phase IIb trial for LupuzorTM in the US and Europe, ImmuPharma received an Investigational New Drug (IND) approval from AFSSAPS, Agence Francaise de Securite Sanitaire des Produits de Sante, for a Phase IIa study in patients of IPP-204106, our anti-cancer compound with a novel and promising mechanism of action. The first patients have been dosed and the trial is progressing well. We were also delighted to receive the award for Best Drug Development Company in Europe 2010 from the New Economy.

Our pipeline now includes 5 drug candidates. The most advanced, LupuzorTM has been licensed to Cephalon, Inc. who has taken over responsibility for its development and all associated costs. Our next priority program is IPP-204106 for the treatment of cancer. It has been awarded grants totalling €1.15m by French government organisations. Three other earlier stage programmes are in preclinical development for - inflammatory disorders, moderate to severe pain and serious hospital infections. In addition to our lead compounds, our long-term pipeline includes a patented chemical library of over 300,000 small molecules and a technology for converting small peptides to drugs that can be applied to potentially generate further compounds for the Company.

Development Pipeline

·; LupuzorTM

Since licensing LupuzorTM to Cephalon in 2009, ImmuPharma has placed a priority on developing the working relationship with our partner. Cephalon has started the recruitment of lupus patients for a Phase IIb trial in the US and Europe. This study was designed to allow US-based investigators and the FDA to evaluate Rigerimod (LupuzorTM) as a treatment for lupus on the basis of data derived mainly from the USA. A large number of centres are involved and the data generated from this trial will be part of the package to be submitted to the FDA and other regulatory authorities for approval. In addition to the US trial and in order to prepare for the commercial development in Japan, Cephalon has also initiated development of LupuzorTM in Japan through its partner Symbio Pharmaceuticals. Under the agreement, Cephalon retains all commercialisation rights to Rigerimod (LupuzorTM) in Japan, and Symbio is granted an exclusive right to conduct a Japanese-based Phase I clinical study which is mandatory for a future filing of Rigerimod (LupuzorTM) with Japanese regulatory bodies. 

·; IPP-204106, treatment for cancer

IP-204106 is ImmuPharma's lead compound for cancer. The rights for this compound have been obtained through the Company's ongoing research collaboration with the Centre National de la Recherche Scientifique (CNRS), France's leading scientific research organisation. The molecule is a nucleolin antagonist and has a promising and novel mechanism of action, acting both in preventing angiogenesis as well as proliferation. Preclinical data has shown that nucleolin antagonists inhibit the growth of tumours and metastasis in many cancer types. In June, ImmuPharma received an Investigational New Drug (IND) approval from AFSSAPS, Agence Francaise de Securite Sanitaire des Produits de Sante, for a Phase IIa study. The first patients have been dosed and the trial is progressing.

ImmuPharma plc

Statement from the Chairman and Chief Executive Officer

Development Pipeline (continued)

·; Other Pipeline Compounds

More limited progress has been made on ImmuPharma's other pipeline compounds for inflammation, pain, MRSA and other hospital-acquired infections during the period. The Group remains committed to their development either alone or with a partner.

Financial Review

After the cash inflow attributable to the Cephalon license agreement in 2009, the first six months of 2010 demonstrate ImmuPharma's refocused priorities on the development of its other pipeline candidates. ImmuPharma's cash balance remains strong at £20 million (£22.5 million at 31 December 2009). Basic and diluted loss per share was 0.10p and 0.10p respectively (31 December 2009: earnings per share 10.46p and 9.99p). In line with the Company's current policy, no interim dividend is proposed.

The Group continues to use International Financial Reporting Standards as its accounting basis.

Operating loss for the period was £2,521,050. Research and development expense was £975,454 reflecting primarily the activities around the development of IPP-204106, our anti-cancer compound. Administrative expenses were £1,545,713.

On 2 March 2010 ImmuPharma (UK) Limited, a 100% owned subsidiary of ImmuPharma plc, was entered in to a Members Voluntary Liquidation.

Outlook

With a strong cash position, the focus of the Group is on continuing the development of our strong relationship with our license partner for LupuzorTM, Cephalon, and the development of our other pipeline candidates, in particular our promising cancer compound, IPP-204106, and discovery pipeline. We are looking forward to announcing the preliminary results of the Phase IIb trial for LupuzorTM and our Phase IIa trial for IPP-204106 in the coming months. Furthermore, in an effort to maximise the value of our development pipeline, ImmuPharma continues to be in discussions with a number of pharmaceutical and biotech companies for potential collaborations.

Richard Warr, MA, Chairman Dimitri Dimitriou, MSc, Chief Executive Officer

29 September 2010

ImmuPharma plc

CONSOLIDATED INCOME STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2010

ImmuPharma plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2010

ImmuPharma plc

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2010

ImmuPharma plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2010

ImmuPharma plc

CONSOLIDATED STATEMENT OF CASHFLOWS

FOR THE PERIOD ENDED 30 JUNE 2010

ImmuPharma plc

NOTES TO THE INTERIM ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2010

1 ACCOUNTING POLICIES

Basis of preparation

The interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable as at 31 December 2010.

For the period ended 30 June 2010 the Group is required to adopt IFRS 3 Business Combinations (revised) and IAS 27 Consolidated and Separate Financial Statements (revised). The adoption of these revised standards has had no impact on the financial information for the six months ended 30 June 2010, the year ended 31 December 2009 or the six months ended 30 June 2009.

The Directors have considered the accounting policy with respect to the treatment of foreign exchange gains and losses on foreign currency cash balances and consider it appropriate to change the policy to reflect such foreign exchange gains and losses within Finance Income and Finance Costs respectively rather than within Administrative Expenses. The Directors consider that this presentation provides more relevant information about the group's financial performance. This adjustment has decreased Administrative Expenses and increased Finance Costs for the periods ended 30 June 2009 or 31 December 2009 by £151,171 and £1,257,212 respectively. This has had no impact on the profit for the periods ended 30 June 2009 or 31 December 2009 or on the total equity of the group as at those dates.

Income tax

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

Non-Statutory accounts

The financial information for the year ended 31 December 2009 set out in this interim report does not constitute the Group's statutory accounts for that period. The statutory accounts for the year ended 31 December 2009 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis. The financial information for the 6 months ended 30 June 2010 and 30 June 2009 is unaudited.

Copies of this statement will be available on the Company's website - www.immupharma.com.

ImmuPharma plc

NOTES TO THE INTERIM ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2010

(continued)

2 EARNINGS PER SHARE

ImmuPharma plc

NOTES TO THE INTERIM ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2010

(continued)