Proteome Regulatory News (PRM)

1 Apr 2005 06:00

For immediaterelease 31March 2005 PROTEOME SCIENCES TMT REAGENTS DEAL, TRADING UPDATE AND PLACING Proteome Sciences plc ("Proteome Sciences" or the "Company") is pleased toannounce that it has signed Heads of Agreement for an exclusive global licensein the field of proteomics with a major global healthcare player for its TandemMass Tags, part of the Sensitizer family of chemical reagents and expects tocomplete the definitive licence agreement shortly, at which time full detailsof the licensee will be disclosed.Proteome Sciences has developed TMT chemical mass tags at its Frankfurtfacility. Tandem Mass Tags increase the output of proteomics experiments byreducing sample complexity in a way that allows accurate and sensitivequantification and identification of protein biomarkers in complex biologicalmaterials such as tissue and body fluids for applications in mass spectrometry,bioinformatics, statistics and pattern recognition.The Board believes that the market potential for isobaric mass tag reagents inproteomics is likely to grow extremely rapidly and is projected to generatesales into many hundreds of million dollars over the TMT patent life on whichProteome Sciences will receive royalties.It is proposed that Proteome Sciences may initially receive US $2.3m to includemilestone patent payments and a signing fee together with a double-digitroyalty on sales. Proteome Sciences will retain all rights to the otherchemical reagents in the Sensitizer family, including PST, qPST and Sensitizerand the use of TMT for diagnostic and therapeutic applications.Trading UpdateWe are pleased to confirm that, as previously stated in the Interim Report,that we are continuing to make good progress with the other legs of ourbusiness - the biomarker portfolio and ProteoSHOP, and would like to provide anupdate:In the case of our stroke biomarkers, we have moved the existing licensearrangements for Point of Care applications to a non-exclusive basis. Thiswill considerably simplify and increase the commercial freedom to operate inthe field of high throughput stroke (HTS) applications and should expedite theprocess to effect a number of HTS non-exclusive licenses at more favourableterms with the major players with whom negotiations are well advanced.The first ProteoSHOP deal has been concluded with Regen Therapeutics plc,details of which are contained in a separate press release. A healthy pipelineof prospective strategic alliances is building up for the remainder of the yearand beyond.IntronnThe main objective for Intronn's SMART technology, following the successfuldevelopment of the high capacity screen, was to apply SMART in RNA therapeuticsfor the liver. The goal was to try and demonstrate in-vivo proof of principlefor one of its three primary programmes in haemophilia, dyslipidemia(hypercholesterolemia) or AAT deficiency.We are delighted to report that Intronn has demonstrated in-vivo proof ofprinciple for the dyslipidemia programme in the early part of 2005, with goodprogress being made in the other applications.2004 Financial Update As anticipated, the unaudited headline loss for the period to 31 December 2004is expected to be broadly similar to the ‚£4.26m in the previous year and cashat the 31 December 2004 was ‚£2.43m (2003: ‚£6.16m). The commercial transactions currently envisaged should generate significantsignature payments, milestones and royalties. With a similar pattern of cashburn expected by the Board for 2005 to previous years, this will make aconsiderable impact on the cashflow and future financial requirements of theCompany.Details of the PlacingTo provide the Company with the flexibility to undertake its business plan forthe foreseeable future, Proteome Sciences announces that it has raisedapproximately ‚£4.7 million (net of expenses) by way of a cash placing (the"Placing") of 8,087,658 new ordinary shares (the "Placing Shares"), with aninstitutional investor, representing 6.6 per cent. of the Company's existingordinary share capital at a price of 59.5 pence per share. In addition, the Company is raising approximately a further ‚£255,000 throughthe exercise of warrants by Christopher Pearce, Chief Executive. ChristopherPearce intends to hold the shares resulting from this transaction.The Placing Shares will rank pari passu with the Company's existing issuedordinary shares. Application will be made for the Placing Shares to beadmitted to the Alternative Investment Market ("AIM") of the London StockExchange plc. Dealings in the Placing Shares are expected to commence on 6April 2005.Commenting, Christopher Pearce, CEO of Proteome Sciences, said: "We are delighted to have signed Heads of Agreement with a major globalplayer in healthcare as the licensing partner to our TMT reagents which has thestructure and resources to maximise the TMT products and revenue streams. Having completed the process of commercialising TMT, we will continue todevelop and expand the range of Sensitizer reagents and concentrate on usingPST and qPST in strategic alliances with our ProteoSHOP toolbox. The recent major clinical problems experienced by major pharmaceuticalgroups, which we had predicted for some time across a broad range of existingdrugs and drugs in development at the end of 2004, require a different approachto clinical risk management in response to new regulatory requirements. Webelieve that proteomics technology will be one of the major contributors andbeneficiaries of this scenario and that Proteome Sciences has the righttechnology at the right time. Against this background, and with thecommercialisation of our research programmes now visible, the prospects lookmost promising."Enquiries:Proteome Sciences plc Christopher Pearce, Chief Executive 01932 865065 James Malthouse, Finance Director Dresdner Kleinwort Wasserstein Michael Covington 020 7623 8000 IKON Associates Adrian Shaw 01483 535102adrian@ikonassociates.com 07979 900733 Notes to Editors:Proteome Sciences plc applies high sensitivity proteomics to identify andcharacterise differential protein expression in diseases for diagnostic,prognostic and therapeutic applications. It has to date developed sensitiveblood assays for stroke, vCJD, BSE, solid organ transplant rejection andAlzheimer's disease. The main focus of its research currently addressesneurological, neurodegenerative, diabetes/obesity, oncology and cardiovascularconditions.In addition to its own proprietary biomarkers, Proteome Sciences has developedProteoSHOP (Proteome Sciences High Output Proteomics), a toolbox that offershigh sensitivity and high throughput gel and gel-free proprietary technologiesfor the identification of potential biomarkers and drug targets. Theseinclude specialisation in membrane proteins and protein phosphorylation. The Company has also developed a range of specialist reagents to improve theperformance and quantitation of protein separation and characterisation withmass spectrometry, bioinformatics, statistics and pattern recognition. Theseinclude Sensitizer, PST, qPST and TMT.The process of commercialisation is being actively pursued across the portfolioof the Company's programmes and technologies and to date licensing deals havebeen signed for the commercialisation of tests for Stroke and TSEs.Proteome Sciences is headquartered in Cobham, Surrey in the UK and haslaboratories at Kings College Hospital, London and in Frankfurt. It employs 40full time scientists in addition to its corporate and business developmentstaff. The Company is listed on the Alternative Investment Market.This announcement has been issued by Proteome Sciences and is the soleresponsibility of Proteome Sciences. This announcement is for informationpurposes only and does not constitute an offer to sell or issue any securitiesor a solicitation of an offer to buy or acquire any securities or investmentadvice in any jurisdiction including, without limitation, the United Kingdom,the United States, Canada, Australia or Japan.This announcement includes 'forward-looking statements'. All statementsrelating to Proteome Sciences other than statements of historical factsincluded in this announcement, including, without limitation, those statementsregarding the financial position, results of operations, business and outlookof Proteome Sciences are forward-looking statements. Such forward-lookingstatements involve known and unknown risks, uncertainties and other importantfactors that could cause the actual results, performance or achievements ofProteome Sciences or the markets and economies in which it operates to bematerially different from future results, performance or achievements expressedor implied by such forward-looking statements. Such forward-looking statementsare based on numerous assumptions regarding Proteome Sciences' present andfuture business strategies and the environment in which Proteome Sciences willoperate in the future. These forward-looking statements speak only as at thedate of this announcement. Proteome Sciences expressly disclaims anyobligation or undertaking to disseminate any updates or revisions to anyforward-looking statements contained herein to reflect any change in ProteomeSciences' expectations with regard thereto or any change in events, conditions,circumstances or assumptions on which any such statement is based.The Placing Shares have not been and will not be registered under the USSecurities Act of 1933 (the "Securities Act") and may not be offered or soldwithin the United States absent registration or an exemption from registration.No public offering of securities will be made in the United States.Dresdner Kleinwort Wasserstein Limited ("DrKW") and Dresdner KleinwortWasserstein Securities Limited ("DrKWS"), which are each authorised andregulated by the Financial Services Authority under the Financial Services andMarkets Act 2000 ("FSMA"), are acting for Proteome Sciences and for no one elsein connection with the Placing and will not be responsible to anyone other thanProteome Sciences for providing the protections afforded to customers of DrKWand DrKWS, nor for providing advice in relation to the Placing or any othermatter referred to in this announcement.Neither this document nor any copy of it may be taken, transmitted ordistributed, directly or indirectly, in or into the United States, Canada,Australia or Japan or in any jurisdiction in which such transmission ordistribution is unlawful. Any failure to comply with this restriction mayconstitute a violation of US, Canadian, Australian or Japanese securities lawsor the securities laws of other states as the case may be.ENDSPROTEOME SCIENCES PLC