PVG.L Regulatory News (PVG)

19 May 2005 07:00

Ark Therapeutics Group PLC19 May 2005 Ark signs marketing deal for Kerraboot(R) in Ireland 19 May 2005, London UK: Ark Therapeutics Group plc today announces that it hassigned an exclusive marketing agreement granting BellPharma Limited, the Irishdistributor of healthcare products, the sales and marketing rights to Kerraboot(R) for the Irish market. Kerraboot(R) is Ark's novel wound care device for themanagement of leg and foot ulcers. Under the terms of the agreement, Ark will receive an undisclosed upfrontpayment and an ongoing royalty of 19% on sales in return for the marketingrights to Kerraboot(R). BellPharma will also purchase the manufactured productfrom Ark and be responsible for marketing to all sectors of the healthcarecommunity in Ireland, as well as achieving product reimbursement from theGeneral Medical Scheme. Lower leg and foot ulceration affects around 1% of the adult population in thedeveloped world1 and is particularly prevalent amongst the diabetic populationwhere the ulcers can develop rapidly and are particularly difficult to heal.Kerraboot(R) provides a new approach to their management in the form of a novel,non pressurized, boot-like dressing device, which is simple, quick and pain freeto change. Kerraboot(R) facilitates the draining and isolation of exudates suchas matrix metalloproteases, which inhibit angiogenesis, from the ulcer. Thisallows natural growth factors, such as Vascular Endothelial Growth Factors(VEGF), to stimulate healing. In clinical studies of ulcers managed with Kerraboot(R), reductions in ulcersizes of up to 60% have been observed over the four week study period, with bothhealthcare professionals and patients expressing a strong preference forKerraboot(R) over existing treatments. UK based studies have also shown thatmanagement of ulcers with Kerraboot(R), which does not involve any additionaldressings, can be extremely cost effective. Mr Paul Higham, Commercial Director of Ark, commented: "We are pleased toannounce this second licensing deal for Kerraboot(R). With its extensive salesand marketing experience and an in depth understanding of what is required tomake products a success in the Irish market, BellPharma is the ideal partner forKerraboot(R) in Ireland. We expect to further progress our internationalcommercialisation strategy for Kerraboot(R) during 2005." For further information please contact: Ark Therapeutics +44 (0)20 7388 7722 Dr Nigel Parker, Chief Executive Paul Higham, Director of Commercial Development Financial Dynamics +44 (0)20 7831 3113 David Yates Lucy Briggs Sources: 1 Briggs M, Nelson EA: Topical agents or dressings for pain in venous leg ulcers; The Cochrane Library, Issue 1, 2002 Notes to Editors Ark Therapeutics Group plc Ark is an emerging healthcare group (the "Group") with one marketed product andthree further lead products in late stage clinical development. Capitalising onover ten years of research in vascular biology and gene-based medicine, Ark hasa balanced product portfolio targeted at specific unmet clinical needs withinvascular disease and cancer. These are large and growing markets, whereopportunities exist for effective new products to generate significant revenues. Ark's products are sourced from related but largely non-dependent technologieswithin the Group and have been selected to enable them to be taken throughdevelopment within the Company'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 SeppoYl(TM)-Herttuala of the AI Virtanen Institute at the University of Kuopio,Finland, all of whom continue to play leading roles in the Company's researchand development programmes. BellPharma Limited BellPharma is a privately owned Irish pharmaceutical company, established inJune 2003, with the aim of providing the Irish market with quality & affordablemedicines and healthcare products. BellPharma's product focus is in three main areas; niche patent controlledmedicines, affordable medicines (generics), and specialist hospital products(wound care). The company is currently focussing its efforts on sales andmarketing rather than development, and in-licenses products exclusively for theIrish market. BellPharma's management team has extensive experience in the pharmaceutical/healthcare business both within Ireland and abroad, and a thorough understandingof the dynamics of the Irish pharmaceutical market, which differs considerablyfrom other European countries. BellPharma plans to capitalise on the opportunity for significant growth in thegeneric market in Ireland, which is still relatively underdeveloped, as well asproviding the Irish consumer with innovative & niche healthcare products. 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, prospective investors arecautioned not to rely on any forward-looking statement. This information is provided by RNS The company news service from the London Stock Exchange