PVG.L Regulatory News (PVG)

14 Jun 2005 07:00

Ark Therapeutics Group PLC14 June 2005 Ark signs marketing deal for Kerraboot(R) in South Korea 14th June 2005, London UK: Ark Therapeutics Group plc today announces that ithas signed an exclusive marketing agreement granting BL&H Co Ltd, a South Koreandistributor of healthcare products, sales and marketing rights to Kerraboot(R)for the South Korean market. Kerraboot(R) is Ark's novel wound care device forthe management of leg and foot ulcers. Under the terms of the agreement, Ark will receive a double digit royalty on netsales in return for the marketing rights to Kerraboot(R). BL&H will purchase themanufactured product from Ark and be responsible for marketing to all sectors ofthe healthcare community in South Korea, as well as achieving productreimbursement from the Korean regulatory authority. Lower leg and foot ulceration affects around 1% of the adult population in thedeveloped world(1) and is particularly prevalent amongst the diabetic populationwhere the ulcers can develop rapidly and are particularly difficult to heal.There are an estimated two million diabetics in South Korea, 15% of whom wouldbe expected to have a leg/foot ulcer at any one time. Kerraboot(R) provides a new approach to the management of these ulcers, in theform of a novel, non pressurized, boot-like dressing device, which is simple,quick and pain free to change. Kerraboot(R) facilitates the draining andisolation of exudates such as matrix metalloproteases, which inhibitangiogenesis, from the ulcer. This allows natural growth factors, such asVascular Endothelial Growth Factors (VEGF), to stimulate healing. In clinicalstudies of ulcers managed with Kerraboot(R), reductions in ulcer sizes of up to60% have been observed over the four-week study period, with both healthcareprofessionals and patients expressing a strong preference for Kerraboot(R) overexisting treatments. UK based studies have also shown that management of ulcerswith Kerraboot(R), which does not involve any additional dressings, can beextremely cost effective. M Paul Higham, Commercial Director of Ark, commented: "This is our thirdlicensing deal for Kerraboot(R), and our first in the Asian market. BL&H has astrong healthcare product distribution capability in South Korea and we lookforward to working with them under the terms of this agreement. As we roll outour international commercialisation strategy for Kerraboot(R), we expect toannounce further licensing deals in 2005." For further information please contact: Ark Therapeutics +44 (0)20 7388 7722Dr Nigel Parker, Chief ExecutivePaul Higham, Director of Commercial Development Financial Dynamics +44 (0)20 7831 3113David Yates / Lucy Briggs Notes to Editors Sources: 1 Briggs M, Nelson EA: Topical agents or dressings for pain in venous leg ulcers; The Cochrane Library, Issue 1, 2002 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 byProfessor John Martin and Mr Stephen Barker of University College London andProfessor Seppo Yl(TM)-Herttuala of the AI Virtanen Institute at the Universityof Kuopio, Finland, all of whom continue to play leading roles in the Company'sresearch and development programmes. BL&H Co Ltd BL&H is a privately owned Korean pharmaceutical company, established in 1999with the aim of becoming a leading company in the delivery of pharmaceuticalsand services that fulfill unmet medical needs of the Korean market. BL&H'sproduct focus is in three main areas; haematology, oncology, and specialistmedical devices (wound care). The company is currently focused in thedevelopment, marketing, in licensing and distribution of healthcare and orphandrug status products for the Korean market. BL&H's management team hasextensive experience in the pharmaceutical/healthcare business within Korea anda thorough understanding of the dynamics of the Korean pharmaceutical market. 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. Theseforwardlooking 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