SLN.L Regulatory News (SLN)

26 Sep 2006 10:00

SR Pharma plc to Receive Milestone Payments of up to US$95 Million (~‚£50 Million) from Pfizer as a Result of a Sublicensing Deal London, UK, 26 September 2006 ¢â‚¬¦.. SR Pharma plc (London LSE: SPA) announcesthat its operating subsidiary Atugen AG will receive milestone payments of upto US$95 million as well as royalties as a result of a sublicensing dealannounced today between its collaborator Quark Biotech Inc., Atugen AG andPfizer Inc. SR Pharma will receive an initial payment of $2 million and a firstmilestone payment of $1.5 million on the start of the Phase I trial. Allagreements are subject to certain conditions which include the clearance by theU.S. Federal Trade Commission. The payments relate to a RNAi therapeuticproduct (RTP-801i) developed under an agreement between Quark and Atugen forthe treatment of Age-related Macular Degeneration (AMD) and other diseases. Thefinancial terms of the sublicensing transaction between Quark Biotech andPfizer have not been disclosed.Quark Biotech and Atugen have collaborated on this AtuRNAi therapeutic siRNAproduct for AMD since 2004 and are currently collaborating on additionaltherapeutic AtuRNAi siRNA products in other indications.Iain Ross, Chairman of SR Pharma, said: "This deal, which will result inmilestone payments directly to Atugen of up to US$95 million and additionalpotential upside of royalties, is a significant validation of Atugen'sproprietary siRNA technology (AtuRNAi)."Thomas Christƒ©ly, Chief Executive Officer of Atugen stated: "This is abreak-through for SR Pharma's siRNA therapeutics programs as this representsour first siRNA molecule out-licensed to a large pharma company." * Ends - SR Pharma (www.srpharma.com)SR Pharma plc is a European biopharmaceutical company, listed on AIM. TheCompany has two operating subsidiaries Atugen AG (www.atugen.com) based inBerlin, Germany and Stanford Rook Ltd based in London, UK.Atugen is a leader in RNAi therapeutics. This Company has developed novel,chemically modified proprietary siRNA molecules ("AtuRNAi") and a proprietarydelivery system ("AtuPLEX") both of which have advantages over conventionalsiRNA molecules and their delivery systems. Currently Atugen and itscollaboration partners have lead molecules in pre-clinical development for avariety of therapeutic indications. Clinical development of AtuRNAi therapeuticmolecules for systemic applications in Atugen's oncology programs are targetedto start in 2007. Other clinical AtuRNAi therapeutic programs of Atugen'scollaborators are scheduled to commence in 2H 2006.Stanford Rook Ltd is an immunotherapy based company which owns a proprietaryMycobacterium vaccae-based technology and related products, which have beenevaluated in clinical trials for the treatment of asthma, cancer andtuberculosis. In addition this Company has a number of other proprietaryimmunotherapeutic compounds and related intellectual property. Currently theCompany is in discussions with third parties regarding the co-development andout-licensing of M. vaccae and related products.Forward-Looking StatementsThis press release includes forward-looking statements that are subject torisks, uncertainties and other factors. These risks and uncertainties couldcause actual results to differ materially from those referred to in theforward-looking statements. All forward--looking statements are based oninformation currently available to SR Pharma and SR Pharma assumes noobligation to update any such forward-looking statements.Enquiries:For further information, please contact the following:SR Pharma plc Atugen AG +44(0)20 7307 1620 +49(0)30 9489 2800 Iain Ross, Chairman Thomas Christƒ©ly, Chief Executive Officer Melvyn Davies, Finance Director Dr. Klaus Giese, Chief Scientific Officer Northbank communication +44(0)20 7886 8150 Sue Charles, Justine Lamond srpharma@northbankcommunications.com ENDSR PHARMA PLC