TED.L Regulatory News (TED)

14 Jul 2005 07:00

Tepnel Life Sciences PLC14 July 2005 Tepnel Life Sciences PLC ('Tepnel' or 'the Company') Trading Update Tepnel Life Sciences PLC (AIM: TED), the UK-based international ResearchProducts & Services and Molecular Diagnostics group, is pleased to announce thefollowing trading update for the first half of 2005, in advance of its interimresults announcement in September 2005. Group sales are approximately 35% ahead of the same period last year at £6.85m(unaudited) (2004: £5.07m). Sales for second quarter of the year were £3.66m(unaudited). The Group expects to maintain significant sales growth for theremainder of the year. Cash at the end of the period was £1.81m (unaudited); (31 December 2004:£2.54m). With cash balances at 31 March 2005 of £1.80m (unaudited), the secondquarter of the year was marginally cash positive. Molecular Diagnostics Overall sales for the Molecular Diagnostics Division were approximately 34%ahead of the prior year. This sales growth is attributed to the strongperformance of the Tepnel Lifecodes (TLC) LifeMatch(R) product line with itsrapidly increasing market share in the HLA marketplace. Tepnel Diagnostics (TD) sales of genetic pre-disposition kits and services haveincreased by approximately 29% and should continue to expand as key new productsare launched. These new products include a high throughput cystic fibrosis kittargeted to the U.S. market which was launched in March 2005. The new kits forgenetic birth defects based on chromosomal analysis will launch during Q3 2005.A new product line of genetic assays for cardiovascular disease should beginrollout before the end of the year. Research Products and Services Sales from Tepnel's Research Products and Services Division increased 36%compared to the prior year period. Once again sales growth is expected to remainsignificant for the remainder of the year. The sales growth has come in part from the division's service offerings to thebiotechnology and pharmaceutical community which includes mass spectrometryanalysis of therapeutic proteins and the development of highly specialisedmonoclonal antibodies against certain cells believed to be responsible fordiseases such as rheumatoid arthritis. Other areas that are performing ahead ofplan include analytical chemistry and microbiology services. The Company remains optimistic for continued strong sales growth from thisdivision. Ben Matzilevich, CEO stated "the recent acquisition of Diaclone inDecember 2004 significantly increases our capabilities for antibody and assaydevelopment. The integration of Diaclone allows us to offer an increased menu ofanalytical services to our pharmaceutical customers, a broadly expanded researchreagents catalogue and will enable us to develop new tests for MolecularDiagnostics." Ben Matzilevich, CEO commented further "We are pleased and gratified with ourhalf year performance. These results are indicative of our focus and commitmentto our long-term strategy of penetrating the HLA and Organ Transplantationmarket with innovative and user friendly assays. We will continue to develop andexpand our position in these markets with integrated diagnostic products on ourhighly multiplexed Luminex platform." "We are attaining critical mass and are competing effectively in global markets.Our goals remain to increase the value of our Company for our shareholders whilecreating a challenging and rewarding workplace environment for our employees". "Our progress has also not gone unnoticed within our industry. It was announcedon 11 July 2005 that Bio-Rad Laboratories, a $1.5 billion biotech company basedin California, had acquired a 3.87% shareholding in Tepnel." "The Company has also noted the recent movement in its share price andspeculation in the market place. I can confirm that we have had some preliminarydiscussions with one or more parties which may or may not lead to an offer beingmade for the Company. The Company stresses that these are at an early stage andthere can be no guarantee that these discussions will lead to an offer beingmade." About Tepnel Tepnel Life Sciences (TLS) is a UK based international biotechnology company.The Company has laboratories, manufacturing and operations in the USA, UK andFrance with 175 employees. TLS provides test kits, reagents and services to twohighly synergistic markets, these being Molecular Diagnostics and BiomedicalResearch. The company's strategy has been to identify high growth nicheopportunities within these multi-billion pound markets. TLS focuses on theseniche opportunities with internally developed products, patents, expertise andknow-how as well as strategic acquisitions, to develop a leadership positionwithin these defined market segments. Enquiries: Ben Matzilevich, Chief Executive Officer, Tepnel Life Sciencesplc 0161 946 2200Gron Ffoulkes-Davies, Finance Director, Tepnel Life Sciencesplc 0161 946 2200Mark Percy, Seymour Pierce Limited 0207 107 8000Richard Anderson, De Facto Communications Ltd 0207 940 1000 Seymour Pierce Limited ("Seymour Pierce"), which is regulated in the UnitedKingdom by the Financial Services Authority, is acting for Tepnel in relation tothe matters described in this announcement and is not advising any other person,and accordingly will not be responsible to anyone other than Tepnel forproviding the protections afforded to customers of Seymour Pierce or forproviding advice in relation to the matters described in this announcement. Rule 8 Under the provisions of Rule 8.3 of the City Code on Takeovers and Mergers ("theCity Code"), any person who, alone or acting together with any other person(s)pursuant to an agreement or understanding (whether formal or informal) toacquire or control relevant securities of Tepnel, owns or controls, or becomesthe owner or controller, directly or indirectly, of 1 per cent. or more of anyclass of securities of Tepnel is required to disclose, by not later than 12.00noon (London time) on the London business day following the date of the relevanttransaction, dealings in such securities of that company (or in any option inrespect of, or derivative referenced to, any such securities) during the periodto the date on which the offer, if made, becomes or is declared unconditional asto acceptances or lapses or is otherwise withdrawn. Under the provisions of Rule 8.1 of the City Code, all dealings in relevantsecurities of Tepnel by any potential offeror or the Company or by any of theirrespective "associates" (within the meaning of the City Code) must also bedisclosed. If you are in any doubt as to the application of Rule 8 to you, please contactan independent financial adviser authorized under the Financial Services andMarkets Act 2000, consult website of The Panel of Takeovers and Mergers ("thePanel") at www.thetakeoverpanel.org.uk or contact the Panel on the telephonenumber +44 20 7638 0129; fax +44 20 7236 7013. This information is provided by RNS The company news service from the London Stock Exchange