PVG.L Regulatory News (PVG)

8 Jan 2008 07:00

Ark Therapeutics Group PLC08 January 2008 Acquisition of Lymphatix brings VEGF gene rights and technology to catalyse Ark's gene-based medicine programmes London, UK, 8 January 2008 - Ark Therapeutics Group plc ("Ark" or "the Company")announces that it has agreed to acquire Helsinki-based company Lymphatix Oy inan all share transaction equivalent to a purchase price of Euros 2.25 million.The acquisition gives Ark royalty-free exploitation rights to the vascularendothelial growth factor genes known as VEGF-D and VEGF-C for developinggene-based medicines in the angiogenesis and lymphangiogenesis areas. Arkalready has VEGF-based programmes in pre-clinical development in these areas,notably refractory angina, wound healing, prevention of restenosis and foetalgrowth restriction. Results to date have shown that VEGF plays a key role inthese diseases. Ark will incorporate the VEGF portfolio secured with this acquisition alongsideother genes including its own VEGF mutants, to optimise therapies prior tocommencing clinical testing. The gene medicines will be developed and tested byArk in the already-established adenoviral vector platforms successfully utilisedby Trinam(R), which contains the VEGF-D long form and is now in Phase IIIclinical studies, and by Cerepro(R), also in Phase III, in disease models at itsfacilities in Kuopio, Finland. Lymphatix was founded in 2003 by the Ludwig Institute for Cancer Research,Licentia Ltd/Helsinki University and a number of Finnish and Australianacademics, including Associate Professor Marc Achen, Professor Kari Alitalo, DrMarika Karkkainen, Associate Professor Steven Stacker and Professor SeppoYla-Herttuala, who are together the selling shareholders. The consideration is in the form of 1,733,657 new ordinary shares of 1 penceeach in the capital of Ark (the "Consideration Shares"). Application is beingmade to the UK Listing Authority for admission of the Consideration Shares tothe Official List and to trading on the London Stock Exchange. It is expectedthat admission will become effective and dealings in such shares will commenceon or after 11 January 2008. Following admission of the Consideration Shares, the total number of ordinaryshares in the capital of the Company with voting rights will be 203,672,626. Dr Nigel Parker, Chief Executive Officer of Ark, commented: "This is a highlytargeted acquisition of specific technology which is well known to us. As wellas securing our position in this key field, the rights to exploit these geneswill give us the ability to optimise the constructs we take forward for the nextgeneration of gene-based medicines. In the case of our refractory anginaprogramme, it could well be a catalyst to move us into the first clinical studyfaster than we had previously anticipated." For further information please contact: Ark Therapeutics Group plc +44 (0)20 7388 7722Dr Nigel Parker, Chief Executive OfficerMartyn Williams, Chief Financial Officer Financial Dynamics +44 (0)20 7831 3113David Yates/Lara Mott Notes to Editors Ark Therapeutics Group plc Ark Therapeutics Group plc is a specialist healthcare group (the "Group")addressing high value areas of unmet medical need within vascular disease, woundcare and cancer. These are large and growing markets, where opportunities existfor effective new products to generate significant revenues. With three marketeddevices, Kerraboot(R), Flaminal(R) and Kerraped(R) and three further leadpharmaceutical products in late stage clinical development: Cerepro(R), VitorTM,and Trinam(R), the Group is transitioning from an R&D company to a commercial,revenue generating business. Ark's own products are sourced from related but largely non-dependenttechnologies within the Group and have been selected to enable them to be takenthrough development within the Group's own means and to benefit from Orphan DrugStatus and/or Fast Track Designation, as appropriate. This strategy has allowedthe Group to retain greater value and greater control of clinical developmenttimelines, and to mitigate the risks of dependency on any one particularprogramme or development partner. Ark has secured patents or has patentapplications pending for all its lead products in principal pharmaceuticalmarkets. Ark has its origins in businesses established in the mid-1990s by Professor JohnMartin and Mr Stephen Barker of University College London and Professor SeppoYla-Herttuala of the AI Virtanen Institute at the University of Kuopio,Finland, all of whom play leading roles in the Company's research anddevelopment programmes. Ark's shares were first listed on the London Stock Exchange in March 2004(AKT.L). This announcement includes "forward-looking statements" which include allstatements other than statements of historical facts, including, withoutlimitation, those regarding the Group's financial position, business strategy,plans and objectives of management for future operations (including developmentplans and objectives relating to the Group's products and services), and anystatements preceded by, followed by or that include forward-looking terminologysuch as the words "targets", "believes", "estimates", "expects", "aims","intends", "will", "can", "may", "anticipates", "would", "should", "could" orsimilar expressions or the negative thereof. Such forward-looking statementsinvolve known and unknown risks, uncertainties and other important factorsbeyond the Group's control that could cause the actual results, performance orachievements of the Group to be materially different from future results,performance or achievements expressed or implied by such forward-lookingstatements. Such forward-looking statements are based on numerous assumptionsregarding the Group's present and future business strategies and the environmentin which the Group will operate in the future. Among the important factors thatcould cause the Group's actual results, performance or achievements to differmaterially from those in forward-looking statements include those relating toArk's funding requirements, regulatory approvals, clinical trials, reliance onthird parties, intellectual property, key personnel and other factors. Theseforward-looking statements speak only as at the date of this announcement. TheGroup expressly disclaims any obligation or undertaking to disseminate anyupdates or revisions to any forward-looking statements contained in thisannouncement to reflect any change in the Group's expectations with regardthereto or any change in events, conditions or circumstances on which any suchstatements are based. As a result of these factors, readers are cautioned not torely on any forward-looking statement. This information is provided by RNS The company news service from the London Stock Exchange