SUMM.L Regulatory News (SUMM)

30 Jan 2007 07:01

VASTox plc30 January 2007 VASTox plc ("VASTox" or "the Company") Pre-Close Trading Statement Oxford, UK, 30 January 2007 - VASTox (AIM: VOX), a leading drug discovery andchemical genomics services company today releases a pre-close trading updateahead of the release of its preliminary results on 22 May 2007. Chemical Genomics Services VASTox generates revenues primarily from its chemical genomics service businessand for the year ended 31 January 2007, these revenues are expected to havenearly doubled to £1.0 million (2005/06: £0.53m), reflecting the continuedgrowth and development of the services business. During the year, VASTox workedwith 27 pharmaceutical and life sciences companies. This illustrates theindustry's increasing recognition of the benefits and value the Company's uniquechemical genomics technology platform brings to drug discovery programmes. Early indications for the next financial year are that the chemical genomicsservices business will continue to see similar rates of growth. Drug Discovery & Development In December 2006, VASTox strengthened both its drug discovery and servicecapabilities, specifically in the specialist area of carbohydrate chemistry,through the acquisition of key assets of the private UK drug discovery companyMNL Pharma Ltd. A collection of novel drug candidates, including the cancerdrug candidate VOX14400 (previously known as MNLP462a), plus a library of rareor novel drug-like compounds were purchased and have enhanced the Company's drugdiscovery pipeline. VOX 14400 now represents VASTox's most advanced programmewith pre-clinical development to be completed during 2007 and Phase I clinicaltrials to commence in the first half of 2008. VASTox also acquired a modernresearch facility located in Aberystwyth, which will provide additionalchemistry capabilities for both external clients and internal researchprogrammes. The Company's drug discovery programme in Duchenne Muscular Dystrophy (DMD) hasmade good progress on all fronts. It was awarded orphan drug status by theEuropean Medicines Agency and partnering discussions are advancing withtechnical progress. An exciting breakthrough was made in the Spinal MuscularAtrophy (SMA) programme through the identification of a number of compounds thatimprove the symptoms of SMA when tested in VASTox's in-vivo- fruitfly screendesigned to model the disease. The NAT Tuberculosis programme also made solidprogress and both this and the SMA programme will advance into the LeadOptimisation phase of development by the end of 2007. In addition, new R&D opportunities were taken during the year as the Companysought to develop a broader and deeper drug discovery pipeline in line with itsgrowth strategy. In April, the Company initiated its fifth research programme,which is focused on the Wnt signalling pathway for cancer; and in September,following the award of a grant for £910,000 from the UK Department of Trade andIndustry, a sixth research programme was initiated to investigate the use ofstem cells in the development of regenerative therapies for diseases includingcancer and Parkinson's disease. To support its drug discovery programmes, VASTox developed strong links withselected patient groups and charities, most notably with the muscular dystrophyorganisations Parent Project UK (PPUK) and Association Francaise contre lesMyopathies (AFM). As a result of working with these groups, VASTox has receivedadditional funding to support internal discovery research whilst also developingthe necessary contacts required to undertake aspects of clinical development fordrug candidates that progress through the preclinical phase. Operations VASTox's staff complement has expanded in line with the needs of the businessincreasing from 32 people at the end of the last financial year to 70 peoplesplit between its two sites in Oxfordshire and Aberystwyth. The Company alsostrengthened both the Board of Directors through the appointment of Dr BarryPrice as Non-executive Chairman and its executive management team through theappointments of Dr Richard Storer as Chief Scientific Officer, DarrenMillington, ACMA as Chief Financial Officer and Jim Taylor as Chief CommercialOfficer. Based on current trading, the Board of Directors believes that the Company willreport full-year service revenues that are ahead of market expectations, andexpects cash and R&D spend to be in line with the commitments made at the startof 2006. Steven Lee, PhD, CEO of VASTox commented: "2006 was a very good year for VASTox,and we have seen both the chemical genomics services and the drug discoverysides of the business making great progress. The company has very ambitiousgoals combined with a strong focus and financial discipline and expects tocontinue its rapid growth and development in all areas during 2007." - ends - For more information, please contact: VASTox Steven Lee, PhD, Chief Executive Officer Tel: +44 (0)1235 443910Darren Millington, Chief Financial Officer Citigate Dewe RogersonMark Swallow / David Dible / Valerie Auffray Tel: +44 (0)207 638 9571 About VASTox plc VASTox is a chemical genomics biotechnology company that discovers and developsproprietary novel drugs and provides services to the pharmaceutical industry.The company's most advanced drug development programme is focused on developinga new treatment for Duchenne muscular dystrophy based on the up-regulation ofutrophin. A second drug development programme for spinal muscular atrophy isalso progressing rapidly. VASTox has additional programmes focused onosteoarthritis, cancer, tuberculosis and stem cells that are expected to beout-licensed prior to entering the clinic. The company's technology platform, which uses zebrafish and fruitflies, has thepotential to dramatically decrease the time and cost of drug discovery anddevelopment. This is because using whole organisms allows it to carry out highvolume, high content screening that delivers data which is highly predictive ofthe efficacy and toxicity of potential drug compounds in humans. VASTox isgrowing revenues based on marketing its unique technology platform and itschemistry expertise. The company listed on the AIM market of the London StockExchange in October 2004. 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 include (factorsincluded in this presentation) and regional, national, global political,economic, business, competitive, market and regulatory conditions. This information is provided by RNS The company news service from the London Stock Exchange