SLN.L Regulatory News (SLN)

28 Jul 2005 06:30

SR Pharma announces ‚£10m of new funding following a successful fundraising with institutional investors and strategic investor, Introgen Therapeutics Inc., Austin Texas, USA London, UK and Berlin, Germany, Austin, Texas USA, 28 July 2005 SR Pharma plc(SR Pharma or the Company, AIM:SPA), the European biotechnology company whichis developing an oncology and inflammation business both internally and viaacquisition, announces that following its recent acquisition of Atugen AG, ithas raised ‚£8.3m via a placing with institutional investors. The proceeds ofthe fundraising will be used to develop the products and technologies of theCompany, as well as to exploit any acquisition opportunities that may arise inits target areas. Mulier Capital Limited acted as the financial adviser on theplacing.In addition SR Pharma and Introgen Therapeutics, Inc. (NASDAQ:INGN) haveannounced that Introgen will make an immediate $3m (‚£1.7m) equity investment inSR Pharma which will give Introgen 8.3% of the Company's enlarged issued sharecapital after giving effect to the ‚£8.3m placing described above. Theinvestment by Introgen will be used to develop the products and technologies ofstrategic interest to both SR Pharma and Introgen.As a result of these transactions SR Pharma will issue 43,513,044 new OrdinaryShares at 23p per share, resulting in an enlarged share capital comprising90,219,494 Ordinary Shares of 1p. Further information about the placing and theCompany's substantial shareholders will be announced separately.Iain Ross, Chairman of SR Pharma, said: "We are absolutely delighted at thesupport that SR Pharma has received in the fundraising from both existingshareholders including Apax Partners and new shareholders, including some ofthe best performing UK small cap funds.The strategic investment by Introgen Therapeutics Inc underlines the importanceof working with quality partners. We have identified a number of initiativesupon which the two companies plan to collaborate and will be making furtherannouncements about collaborative activities as events warrant.The new proceeds will be used to develop SR Pharma's leading siRNA technologyin the oncology area, including atuPLEX its proprietary delivery system, whichit has accessed through the acquisition of Atugen. In addition, we willconsider the acquisition of other undervalued assets in the Europeanbiotechnology sector, if they fit our business model and oncology andinflammatory diseases focus."David Nance, President and CEO of Introgen Therapeutics Inc said "I amenthusiastic about the opportunity to work with the team at SR Pharma. Throughthe recent acquisition of Atugen, SR Pharma has gained access to innovativetechnologies within the field of RNAi. Through a combination of our respectivecompetences Introgen and SR Pharma have the opportunity to develop someexciting oncology product candidates." --ENDS-- For further information, please contactSR Pharma plc + 44 207 307 1620Iain Ross, Executive Chairman (mobile: 07768 156382)Melvyn Davies, Finance DirectorIntrogen Therapeutics, Inc. +1 512 708 9310Channing Burke, CommunicationsMulier Capital Limited + 44 207 821 6111Pieter MulierZoe Appleyard LeyNorthbank Communications + 44 207 886 8150Emma PalmerRowan MinnonNotes to editorsAbout SR PharmaSR Pharma (AIM SPA.L) is a European biotechnology company, based in the UK andGermany, which is focused on the development of proprietary products for thetreatment of unmet medical needs in the oncology and inflammatory diseases.Located in London, the company, founded in 1992, has been developing innovativeimmunomodulating vaccines and adjuvants for therapeutic use in atopy, cancerand tuberculosis. The company's proprietary Mycobacterium vaccae-basedtechnology is the source of a number of product developments. SR Pharma iscurrently evaluating SRP299(TM) for the treatment of asthma and SRL172(TM) as atherapeutic in cancer and tuberculosis. SR Pharma has also isolated a novelmolecule from M. vaccae that is potently active in a pre-clinical model ofasthma. A synthetic version is active and code named SRP312(TM).In addition, SRPharma holds a portfolio of intellectual property on inositol phosphoglycans(IPGs).The Company plans to build its portfolio both organically and via acquisitionin order to develop a revenue-generating business in the near term. Followingthe recent acquisition of Atugen AG its key products and technologies nowinclude atuRNAi (chemically stabilised siRNA molecules) and atuPLEX, aliposomal system for the in vivo delivery of these molecules. The first RNAiproduct expected to enter the clinic in 2006. These technologies, which arecovered by a strong intellectual property portfolio, are expected to allowsystemic siRNA delivery and have been validated through partnerships withSanofi-Aventis and Quark Biotech. In addition, they generate contract researchrevenues of around EUR3m per annum. For more information, please go towww.srpharma.comRNA-mediated interference, or RNAi, is a powerful new approach for achievingtargeted gene silencing of pathological genes using complementary doublestranded RNA such as short interfering (si)RNA. siRNA has advantages, such asincreased potency, over other methods like antisense. It harnesses a naturallyoccurring cellular mechanism, in order to prevent the expression of targetgenes by inducing degradation of the target messenger RNA.About Introgen Therapeutics, Inc.Introgen Therapeutics (NASDAQ: INGN) is a biopharmaceutical company focused onthe discovery, development and commercialization of targeted moleculartherapies for the treatment of cancer and other diseases. We are developingproduct candidates to treat a wide range of cancers using non-integrating tumorsuppressors, cytokines and genes. These agents are designed to increaseproduction of normal cancer-fighting proteins that act to overpower cancerouscells, stimulate immune activity. Product candidates can be used alone and alsoto enhance conventional cancer therapies such as surgery, chemotherapy,radiation and monoclonal antibodies. The Company has treated hundreds ofpatients with thousands of doses of its tumor suppressor lead product candidateADVEXIN‚® in approximately 30 completed and ongoing Phase 1, Phase 2, and Phase3 clinical trials worldwide. INGN 241 is in Phase 2 clinical development, INGN225, a therapeutic vaccine, is in Phase 1-2 clinical development. Also in Phase1-2 clinical development are INGN 234, a topical formulation for oral cancerprevention and treatment of oral pre-malignancies and INGN 401, a systemicnanoparticle tumor suppressor. Introgen's drug discovery and developmentprograms have resulted in innovative approaches by which physicians may usetargeted molecular agents to more precisely treat cancer. With the limitedefficacy and debilitating toxic effects of conventional cancer treatments,Introgen's low-toxicity approach to cancer treatment has drawn global interestfrom oncologists.Introgen also controls a broad intellectual property portfolio that includesmore than 250 pending and issued patents for a variety of molecular therapytechnologies and adenovirus production, purification and formulation. TheCompany has active collaborations with numerous academic centers of excellenceand biotechnology industry partnersENDSR PHARMA PLC