Provexis Regulatory News (PXS)

29 Sep 2006 07:03

Provexis PLC29 September 2006 Provexis plc ("The Company") Annual General Meeting Statement At Provexis plc's Annual General Meeting to be held this morning, thenon-executive Chairman of Provexis plc, Dawson Buck, will give the followingstatement and update on current trading. "At the time of the announcement on 15 June 2006 of our results for the yearended 31 March 2006 I was pleased to report considerable progress made by thebusiness. Since the year end the Company has continued to achieve majormilestones in its development which unlock significant global commercialopportunities. Sirco Update "Sales of Sirco for the first-half of the year are on track, and we are pleasedwith the current distribution level of 1200 outlets, and will continue todevelop this customer base. The one-litre chilled pack is on sale in over 800outlets of major multiple grocers including Tesco, the market leader. I ampleased with the progress made in this highly competitive channel, and indeed weare producing weekly sales comparable with some more established brands. Weexpect to extend distribution in the multiple grocer channel in the Autumn. "The 250ml single-serve pack is now available in Holland & Barrett and a rangeof independent health-food stores, and this format will play a strategic role aswe seek distribution in the pharmacy channel over the medium-term. "National advertising and retailer promotions are playing a significant role inthe development of the brand and we estimate that 10 million of our targetconsumers have seen our advertising more than 8 times in the year to date. Wewill continue to invest consistently in Sirco in order to maintain and builddistribution, while being conscious of our target to move into a positivecontribution on a monthly basis during the next year. Licensing Update "I was pleased to announce the signing of a twelve-month Exclusivity Agreementwith a major international brand owner in August. This agreement is proceedingwell, and we have made good progress in the joint-development of a new format ofour Fruitflow technology, with our partner funding the bulk of the developmentcosts and providing a great deal of resource to us. "We are now also in licence negotiations with our partner, and subject tocertain economic, regulatory and technical hurdles being cleared, we expect toconclude these negotiations in the coming weeks. "We continue to seek further licence partners in the areas of juice drinks,products for Deep Vein Thrombosis, and dietary supplements and over-the-counterformats. As a longer-term project, we also anticipate exploring medicalapplications for our products. Fruitflow Technology "We are intensifying our focus on the development of Fruitflow. The managementteam believes that this patented, scientifically-proven technology can extendits applicability over a broader range of formats and claim areas, and as suchthis will be the focus of our efforts and investment over coming months. "We have early proof of concept work in the area of Deep Vein Thrombosis, andconsumer research work carried out by Provexis indicates this is an area of highconcern for airline passengers. A patent has been filed for this claim area, andin the coming months we will develop further the scientific proof for thisopportunity. "The original format of Fruitflow is now established commercially, and we willbe targeting cost optimisation over the short to medium term. Furthermore,development of the powder version of Fruitflow, in conjunction with ourstrategic partner, is progressing well and will provide us with a technologyapplicable to a wide range of food, beverage and medical products. Pipeline "In the forthcoming year we will concentrate our resources on maximising thevalue from Fruitflow. However, in addition we will continue to develop theplantain-based extract for the treatment of Crohn's Disease. Human trials andclinical trials are to commence late in 2006 and we expect a first indication ofthe results of those trials in the second half of 2007. Financial "As stated, Sirco sales are on track for the first half of the year, and cash isin line with forecast. The management team is focussed on careful management ofworking capital, and within this a tight control on costs. Summary "The functional and medical food sector is a strong growth market globally andwe are uniquely positioned to capitalise on that opportunity. We therefore lookforward to making further progress as we develop Fruitflow and expand ourlicensing opportunities." For further information please contact: Stephen Moon, Commercial Director Tel: 020 8392 6634Provexis plc Emma Kent/ Victoria Geoghegan Tel: 020 7861 3232Bell Pottinger Corporate & Financial This information is provided by RNS The company news service from the London Stock Exchange