Ixico Regulatory News (IXI)

24 Sep 2007 07:02

Phytopharm PLC24 September 2007 Company Contact: U.K. Investor Relations Contact:Phytopharm plc FDDr Daryl Rees CEO David YatesPiers Morgan CFO Ben Atwell+44 1480 437 697 +44 207 831 3113 Phytopharm initiates Stage 3 activities of Joint Development Agreement for Hoodia extract with Unilever Third stage extends to consumer studies GODMANCHESTER, Cambridgeshire, U.K. (24 September 2007) - Phytopharm plc (LSE:PYM) ("Phytopharm") announces today that it continues to make good progress onits weight management product, Hoodia extract in collaboration with Unilever.Phytopharm and Unilever have now initiated certain Stage 3 activities includingsupply chain expansion and further safety studies which will lead to consumerstudies that will evaluate reductions in calorie intake as part of a weightmanagement programme in the general population. Under the terms of the agreement, Phytopharm and Unilever are collaborating on aresearch and development programme of safety and efficacy studies with a view tobringing new weight management products to market. Stage 2 activities haveincluded successful progression of clinical safety trials, manufacturing andplant cultivation. Phytopharm will continue to receive reimbursement of itsfurther development costs together with an undisclosed royalty on sales of allproducts containing the extract. Unilever is managing the agronomy programme,undertaking manufacturing and market research activities, and supporting theinternational patent programme for the products. Phytopharm licensed the global patent rights for the extract of Hoodia, a plantindigenous to South Africa, for incorporation into weight loss products from theSouth African Council for Scientific and Industrial Research (CSIR) in 1997. Commenting on today's announcement, Kevin Povey, R & D Programme Director,Unilever, said: "We are satisfied with the good progress to date. The timing is now right tofurther develop our supply chain and we look forward to advancing this productthrough additional clinical and consumer studies." Commenting on today's announcement, Daryl Rees, Chief Executive Officer ofPhytopharm, said: "We are delighted with the continuing progress of our collaboration with one ofthe world's leading food companies. Our partnership with Unilever provides afully funded programme and we look forward to generating royalty income from ourpartner's globally recognised brands in the near future on product launch." -Ends- Notes to Editors Phytopharm plc Phytopharm is a pharmaceutical development and functional food company whoseproduct leads are generated from medicinal plants. The Company's strategy is todevelop these products through 'proof of principle' clinical testing, and thensecure partners for late stage development, sales and marketing. Laboratory,manufacturing and clinical work is outsourced to selected specialists, operatingunder expert in-house management. This operational structure allows access tothe best external research facilities whilst maintaining low fixed overheads anda lower development cost structure. Dietary weight management Obesity has reached epidemic proportions globally, with more than 1 billionadults overweight - at least 300 million of them clinically obese - and is amajor contributor to the global burden of chronic disease and disability(Source: World Health Organisation). Phytopharm's weight management functional food product is based on an extract ofthe succulent plant, Hoodia, which is cultivated and harvested under asophisticated and extensive agronomy programme. Hoodia extract contains a novelsatiety stimulator that reduces calorie intake in overweight subjects, asdemonstrated by Phytopharm in our double-blind, placebo-controlled clinicalstudy, and has so far demonstrated an excellent safety and tolerability profilein clinical and toxicity studies. Extracts of Hoodia and the active moleculestherein are the subject of a global patenting programme, with major patentsgranted in the US, UK, Europe and Japan and pending in all other majorterritories. Phytopharm and Unilever have become aware of many companies that are sellingproducts over the Internet and in some stores claiming to contain Hoodia andcausing weight loss. Analysis of these products has demonstrated that the greatmajority of them contain little or no Hoodia. Phytopharm and Unilever have madecontact with the relevant authorities concerning this development and aresatisfied with the progress being made in these key discussions. Functional Foods Functional foods are foodstuffs that provide health or physiological benefitsabove their nutritional value and have a health claim on the packaging.Currently gut and heart health products dominate with new interest in areas ofweight control, memory and concentration, immune system function and skinhealth. The global value of functional foods is estimated to be up to $65bn.The growth potential is predicted to be 50% from 2005-2010 with an acceleratingtrend for new products. More information concerning Phytopharm's activities can be found on its web siteat http://www.phytopharm.com This information is provided by RNS The company news service from the London Stock Exchange