PVG.L Regulatory News (PVG)

Ark Therapeutics Group plc

Interim Management Statement

11 November 2010 - Ark Therapeutics Group plc ('Ark' or the 'Company') today publishes its interim management statement for the period from 1 July 2010 to date.

Highlights

·; Major business restructuring and strategic repositioning announced 9 September

·; Interest in Ark's novel Neuropilin-1 programme from a number of pharma companies confirmed; discussions ongoing

·; Late-stage discussions continue for sale of Woundcare business, completion anticipated early 2011

·; Significant interest in Ark's manufacturing capabilities, detailed discussions with a number of parties have commenced

·; Cost reduction initiatives implemented; cash expected to last into 2013

Major Business restructuring

In September the Company announced a strategic restructuring of the business in which it would seek to generate value through capitalising on its core strengths in exploiting its approvable adenovirus platform and progressing its late-stage preclinical/early clinical product pipeline as well as realising the important commercial potential of its biologics manufacturing capabilities. In so doing Ark also announced it would seek partners to fund the further development of its later stage programmes, Cerepro® and Trinam®. As a result, the Company has now taken the steps to suspend the Trinam® Phase IIb study. In addition, Ark has this week amicably settled the Finnish arbitration proceedings initiated by Australian company Vegenics Ltd in relation to the use of the VEGF-D gene in Trinam®. Also in September, Mr Iain Ross was appointed as Chairman to work with Martyn Williams, CEO, on implementing the new strategy. Mr Ross brings a wealth of experience to Ark, having held a number of senior positions in the biotechnology sector, including the manufacturing of biologics. An update on the status of the early stage product pipeline and of the exploitation of the manufacturing capability is provided below.

Key Programmes

·; Neuropilin-1 - as announced in H1 this year, in-vivo results have shown Ark's small molecule antagonists to the Neuropilin-1 receptor significantly reduce tumour growth in a cancer model. Efforts are currently concentrated on optimising the molecule prior to beginning a formal partnering process. Early interest from big pharma companies has resulted in discussions beginning with potential partners interested in increasing the investment in this promising programme.

·; Foetal Growth Restriction (FGR) - further proof of principle pre-clinical studies in preparation for definitive toxicology have progressed well in the period and the Company expects to issue an update on this programme later this month.

·; VEGF-D programmes in refractory angina and peripheral vascular disease - the early clinical studies in collaboration with the AI Virtanen Institute are ongoing in Finland with interim results in both studies expected in mid-2011.

Manufacturing

The Group's world leading cGMP Biosafety level 2 certified manufacturing facility in Finland continues to generate interest from potential partners and discussions with a number of parties are underway. Continuing success in developing commercial-scale processes has prompted interest in Ark's capabilities from other companies.

Woundcare

Late stage discussions are taking place with a number of parties over the sale of the woundcare business and the Company expects to have completed the disposal by early 2011. Despite the uncertainty over the future ownership of this business, sales have continued to grow strongly and the woundcare business has been cash generative in the period since July.

Cash

We reported in our interim results announcement on 25 August 2010 that the Company had £14.1m in cash and money market investments at 30 June 2010. As a result of the cost saving initiatives implemented following the restructuring and taking into account the income generating plans already underway, including the sale of the Company's woundcare business, the directors believe the Company will have sufficient funds to support the business into 2013.

Board

As disclosed on 9 September 2010 Iain Ross was appointed Executive Chairman replacing Andrew Christie. Andrew has agreed to remain as a non-executive director for a limited time to ensure an orderly transition until a new independent non-executive director with product development experience is appointed.

For further information:

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 and cancer. These are large and growing markets, where opportunities exist for effective new products to generate significant revenues.

Ark has an early stage pipeline emanating from collaborations with University College, London and the AI Virtanen Institute in Kuopio, Finland, the development of which it intends to progress in collaboration with pharmaceutical and biotech partners.

In addition Ark has the ability to off-set a proportion of its R&D costs and to generate sustainable revenues through the exploitation of its proprietary technology platform, process development, scale-up and manufacturing capabilities on behalf of third parties.

Ark has its origins in businesses established in the mid-1990s by Professor John Martin and Mr Stephen Barker of University College London and Professor Seppo Ylä-Herttuala of the AI Virtanen Institute at the University of Kuopio, Finland, all of whom remain consultants on the Company's research and development 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 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.