Proservice Bldg Regulatory News (PRO)

23 Jun 2006 07:00

Provalis PLC23 June 2006 PROVALIS PLC VACCINE ASSIGNMENT WITH SANOFI PASTEUR LIMITED Provalis plc (LSE: PRO), the Medical Diagnostics Group, has signed a PatentAssignment Agreement with Sanofi Pasteur Limited for Provalis' vaccinecandidates to prevent streptococcus pneumoniae infection. Sanofi PasteurLimited has purchased all rights to these vaccine candidates for a one-offpayment of US $1.25 million. There have been no profits attributable to these vaccine candidates and theirgross asset value is less than £100,000. The proceeds will be used to fundProvalis whilst the Board completes its evaluation of the options available forProvalis' medical diagnostics business. "The Group stopped investing in the vaccine Research & Development division inautumn 2002. Since then we have been pursuing a strategy of seeking partnersfor those early stage vaccine candidates that were developed, in order tomaximise their value for shareholders," said Peter Woodford, Provalis InterimChief Executive. 23 June 2006 For further information: Provalis plc 01244 288888Peter Woodford, Chief ExecutiveLee Greenbury, Company Secretary College Hill 020 7457 2020Adrian Duffield/Corinna Dorward Notes to Editors Background - As announced on December 13, 2004, Provalis granted Sanofi PasteurLimited an exclusive, two year option to evaluate Provalis' vaccine candidatesto prevent streptococcus pneumoniae infection, with the right for Sanofi PasteurLimited to enter into an exclusive, worldwide licence to the patents relating tosuch vaccine candidates on pre-determined terms. During the term of this OptionAgreement, Provalis and Sanofi Pasteur Limited agreed that Sanofi PasteurLimited would acquire the patents for a one-off payment rather than take alicence. Provalis' vaccine research and development from 1998 - 2002 identified a numberof vaccine candidates for common infections. However, given the significantcosts required to fund the evaluation of lead candidates into clinical trials,the Group concluded that this was beyond the resources of Provalis and a numberof programmes, together with all associated rights, were offered for sale orlicence. Streptococcus pneumoniae (Spn) is a species of bacteria associated withrespiratory and ear infections. It accounts for all cases of pneumonia and30-40% of acute otitis media (middle ear) infections. Provalis' proprietaryrecombinant protein based antigens allow the development of a vaccine to preventor treat cases of Spn infection. This information is provided by RNS The company news service from the London Stock Exchange