SUMM.L Regulatory News (SUMM)

16 May 2007 07:01

VASTox plc16 May 2007 VASTox plc ("VASTox" or "the Company") VASTOX SIGNS CARBOHYDRATE DRUG DEVELOPMENT DEAL WITH US PHARMACEUTICAL COMPANY $450,000 Development Payment and 5% Royalty on Annual Sales Oxford, UK, 16 May 2007 - VASTox plc (AIM: VOX), a leading UK biotechnologycompany, announces that it has signed a long-term commercial collaboration withan undisclosed US pharmaceutical company that has total annual sales in excessof $100 million. The deal involves VASTox's wholly owned subsidiary, Dextra Laboratories ("Dextra"), the carbohydrate drug discovery, process and development specialist, and is focused on the late-stage development of a healthcare product owned by the undisclosed company, that is due to launch in 2010. Using its carbohydrate chemistry expertise and experience, Dextra will improvethe cost-efficiency of the manufacturing route for this product, which hasalready been shown to be safe and efficacious during current clinical trials. Under the terms of the agreement, VASTox will receive development payments of$450,000, the majority of which will appear in the current financial year and a5% annual royalty fee starting in 2009 as stocks of the product are built upahead of market launch. Annual sales of the product are predicted to peak in2013 with royalty income for VASTox of around US$1 million at that time. Steven Lee, PhD, CEO of VASTox commented "This is a sizeable long-termcollaboration deal in one of our key areas of focus, carbohydrate chemistry, andarises following the acquisition of Dextra earlier this year. With theadditional expertise that Dextra provides in this specialist area of chemistry,VASTox can now successfully compete for these higher-value and longer-termdeals. Overall in 2007, this is VASTox's third long-term deal signed coveringthe entire service business and as a Company, we are confident our world-leadingtechnologies and expertise will generate additional high-value deals in thecoming months." - ends - For more information please contact: VASToxSteven Lee, PhD, Chief Executive Officer Tel: +44 (0)1235 443951Darren Millington, ACMA, Chief Financial Officer Citigate Dewe RogersonMark Swallow / David Dible / Valerie Auffray Tel: +44 (0)207 638 9571 About VASTox plc VASTox is a leading UK biotechnology company that discovers and developsproprietary new drugs. The Company's internal drug development programmes areunderpinned by its advanced chemistry and drug screening (chemical genomics)technology platforms, which it also provides on a collaborative orfee-for-service basis to the pharmaceutical industry. VASTox has a broad range of drug discovery programmes in the clinical,pre-clinical and discovery stages of development, which target serious diseaseswith a high unmet medical need. These therapeutic areas include neuro-disorders(neurodegenerative and neuromuscular), anti-infectives, ophthalmic diseases,oncology and regenerative medicines. VASTox's in-house drug development capabilities combine world-class expertise inboth medicinal and carbohydrate chemistry with high-volume, high-contentscreening using its proprietary zebrafish and fruitfly technologies (chemicalgenomics). These whole organism screens have the potential to dramaticallydecrease the time and cost of drug discovery and development by delivering datathat are highly predictive of the efficacy and toxicity of potential drugcompounds in humans. The company listed on the AIM market of the London Stock Exchange in October2004 - symbol: VOX About Dextra Laboratories Ltd Dextra Laboratories has an established world-class reputation in the areacarbohydrate chemistry and the Company operates a profitable custom synthesisbusiness with a turnover in excess of £700,000 in 2006. Dextra has an unrivalledand innovative scientific expertise in the synthesis and manufacture of compoundtargets across a range of therapeutic areas. These novel synthetic techniquesand strategies have generated a valuable library of complex and rarecarbohydrate compounds, which are available to clients through an on-linecatalogue business. Dextra was acquired by VASTox plc in March 2007 and operates as a wholly ownedsubsidiary. Further information about the company is available at www.vastox.com This document contains "forward-looking statements" within the meaning of theU.S. Private Securities Litigation Reform Act of 1995. Forward-lookingstatements can be identified by words such as "anticipates", "intends", "plans","seeks", "believes", "estimates", "expects" and similar references to futureperiods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company's current expectations andassumptions regarding our business, the economy and other future conditions.Because forward-looking statements relate to the future, by their nature, theyare subject to inherent uncertainties, risks and changes in circumstances thatare difficult to predict. The Company's actual results may differ materiallyfrom those contemplated by the forward-looking statements. The Company cautionsyou therefore that you should not rely on any of these forward-lookingstatements as statements of historical fact or as guarantees or assurances offuture performance. Important factors that could cause actual results to differmaterially from those in the forward-looking statements and regional, national,global political, economic, business, competitive, market and regulatoryconditions. This information is provided by RNS The company news service from the London Stock Exchange