PVG.L Regulatory News (PVG)

ARK THERAPEUTICS GROUP PLC

COMPANY UPDATE

London, UK, 21 January 2013 Ark Therapeutics Group plc has over the last year reduced its cost base, terminated all costly investment in early stage product development and re-structured its business to focus solely upon the generation of revenue from its viral development and manufacturing services based in Kuopio, Finland. The Company has seven active clients, and a number of further contracts in late stage negotiations as well as a growing order book based on a significant number of further client discussions. Unaudited revenue for 2012 was up 300% to c£1.8 million compared to 2011.

In order to fund the Company's new business model through to profitability, it has over the last few weeks been in discussions with a number of shareholders in order to gauge support for a substantial equity fund-raising. The level of support obtained to date has been insufficient to justify continuing with the proposal, and as such those discussions have been discontinued. However, the Company has obtained expressions of support for the business model from some existing shareholders, and is actively pursuing a number of options as regards a possible financing of the Company and its business, including through an issue of equity on a non pre-emptive basis. While there can be no guarantee that those discussions will be successful, the Company believes it will be in a position to update the market shortly. Shareholders should note that in all likelihood, given the current share price and the expected level of investment being discussed, any equity financing proposal will be materially dilutive and subject to shareholder approval.

The Directors remain confident that Ark has the potential to become a profitable, viral focused, contract development and manufacturing organisation. In the meantime, as previously announced the Company continues to explore opportunities to monetise its non-core assets, and is in discussions with a number of interested parties.

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Notes to Editors

About Ark Therapeutics Group plc

Ark Therapeutics Group plc is a leading viral product focused contract development and manufacturing services company with world-class viral research, development and GMP manufacturing operations in Finland and the UK. Ark's business model is to offer product development and GMP manufacturing contract services for viral products, including the areas of viral mediated gene therapy, oncolytic viral vaccines, live and attenuated viral vaccines, viral vectored vaccines and virus like particles. Ark's capabilities span from translational research through preclinical and clinical product development, in addition to process and analytical development, GMP manufacture and sterile filling from pre-clinical through to commercial product supply. These capabilities have been established through the development of Ark's own products through to Marketing Authorisation Application registered with the European Medicines Agency. Following a change in business strategy in 2011, Ark is now building its business through contract development and manufacturing services and is seeking external partners to advance those products it previously had under development. 

Ark's shares were first listed on the London Stock Exchange in March 2004 (AKT.L).

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding the Group's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Group's products and services), and any statements preceded by, followed by or that include forward-looking terminology such as the words "targets", "believes", "estimates", "expects", "aims", "intends", "will", "can", "may", "anticipates", "would", "should", "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Group's control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. Among the important factors that could cause the Group's actual results, performance or achievements to differ materially from those in forward-looking statements include those relating to Ark's funding requirements, regulatory approvals, clinical trials, reliance on third parties, intellectual property, key personnel and other factors. These forward-looking statements speak only as at the date of this announcement. The Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors, readers are cautioned not to rely on any forward-looking statement.