Ixico Regulatory News (IXI)

12 Dec 2008 12:00



12 December 2008

Phytopharm plc

Unilever returns rights to Hoodia extract

GODMANCHESTER, Cambridgeshire, U.K. - Phytopharm plc (PYM: London Stock Exchange) ("Phytopharm" or the "Company") announces today that it has agreed by mutual consent to terminate its agreement with Unilever for the development of Hoodia extract as a functional food targeting weight management. All the original Phytopharm patents and rights will revert to Phytopharm. In addition, Unilever has granted Phytopharm a non-exclusive, perpetual, irrevocable, worldwide, royalty-free licence, with the right to sub-license, to any Unilever patents, intellectual property rights and know-how connected with the Hoodia programme. 

Phytopharm and Unilever will work together to facilitate an orderly handover, under which Unilever will meet all costs of the Hoodia programme through to 31 December 2008. Unilever will continue to support the handover process during the first half of 2009 and facilitate Phytopharm taking forward a proportion of the area under cultivation. In addition, Unilever will make available existing stocks of dried Hoodia and extract for Phytopharm to take over at its option.

Alistair Taylor, Chairman of Phytopharm, commented: "Although it is disappointing that the collaboration with Unilever on Hoodia did not reach a successful conclusion, we are pleased to have agreed termination terms with Unilever which enable us to take the product forward with another partner. Phytopharm continues to believe strongly that there are alternative product formats and applications for the commercialisation of Hoodia. We will seek to identify potential partners in the areas of veterinary and orphan pharmaceutical products, as well as functional foods."

The business review being conducted by Phytopharm is ongoing and the Company intends to update the market on the outcome of the review and Phytopharm's future strategy in January 2009.

-Ends-

Notes to Editors

Phytopharm plc

Phytopharm is a pharmaceutical development and functional food company. Our products are developed from medicinal plants, thereby reducing the development risk, cost and time to market. As a virtual company, Phytopharm's model is centred on a lean cash burn with all laboratory, manufacturing and clinical work out-sourced to specialists, while core competencies such as strategy and management are maintained in-house. Close collaboration with charitable organisations enhances our interaction with worldwide specialists and accelerates our development programmes increasing their value. 

Forward-looking statements 

Certain information included in these statements is forward-looking and involves risk and uncertainties that could cause results to differ materially from those expressed or implied by the forward looking statements. Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions, market estimates, the Company's plans and objectives for future operations, including future revenues, financial plans and expected expenditures and divestments. All forward-looking statements in this report are based upon information known to the Company on the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events of otherwise. It is not reasonably possible to itemise all of the many factors and specific events that could cause the Company's forward looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of the Company.

For further information about Phytopharm please see our website at http://www.phytopharm.com