Vernalis PLC Regulatory News (VER)

20 Nov 2006 07:00

Vernalis PLC20 November 2006 20 November 2006 Vernalis Plc Announces Progress on its Oncology Hsp90 Programme WINNERSH, U.K., November 20, 2006 -- Vernalis plc (LSE: VER, Nasdaq: VNLS), aspecialty bio-pharmaceutical and drug development company, today announced thatNovartis has selected a second compound as a preclinical development candidateunder the joint research and development collaboration on the oncology targetHeat shock protein 90 (Hsp90). This second candidate, an oral follow on to anintra-venous (IV) compound, was discovered using Vernalis' fragment based drugdiscovery platform. Under the terms of the collaboration, Novartis will make amilestone payment of $1.5 million to Vernalis. "Inhibition of Hsp90 is receiving increasing attention as a novel anticancertreatment with broad therapeutic potential for the treatment of patients withboth solid tumors and haematologic cancers," said Simon Sturge, CEO of Vernalis."Our collaboration with Novartis, a world leader in oncology, continues todeliver exciting new cancer treatment opportunities." -- ends -- Enquiries: Vernalis plc +44 (0) 118 977 3133Simon Sturge, Chief Executive OfficerTony Weir, Chief Financial OfficerJulia Wilson, Head of Corporate Communications Brunswick Group +44 (0) 20 7404 5959Jon ColesJustine McIlroy Lazar Partners LtdGregory Gin 212-867-1762 Notes to Editors Background to Vernalis' Hsp90 ProgrammeThe Vernalis Hsp90 programme is the result of a collaboration established inMarch 2002 with Cancer Research Technology Ltd (CRT) - formerly Cancer ResearchVentures Ltd - and The Institute of Cancer Research (The Institute), building onstudies funded by The Institute, Cancer Research UK and Wellcome Trust. Underthe agreement Vernalis will pay CRT and The Institute a proportion of itsrevenues from the agreement with Novartis. About Hsp90Inhibition of Hsp90 is believed to have significant potential in the treatmentof a broad range of cancers. The scientific rationale for Hsp90 as a therapeuticcancer target is based on the hypothesis that many of the signalling proteinsthat behave aberrantly in cancer cells require Hsp90 as a chaperone molecule toensure that they are maintained in an active form. In addition, many of theproteins stabilised by Hsp90 are oncoproteins and cell-signalling proteinsimportant in cancer cell proliferation and cancer cell survival. Thus Hsp90, asingle molecular target that is a central integrator of multiple pathwaysimportant to cancer, is an ideal novel target for oncologic therapy. About VernalisVernalis is a speciality bio-pharmaceutical company focused on products marketedto specialist neurologists. The company has two marketed products, Frova(R) andApokyn(R), and a development pipeline focused on neurology and central nervoussystem disorders. The company has seven products in clinical development andcollaborations with leading, global pharmaceutical companies including Novartis,Biogen Idec and Serono. Vernalis has established a US commercial operation topromote Apokyn(R) and co-promote Frova(R) alongside its North American licensingpartner, Endo Pharmaceuticals, progressing the company towards its goal ofbecoming a sustainable, self-funding, R&D-driven, speciality bio-pharmaceuticalcompany. For further information about Vernalis, please visit: www.vernalis.com Vernalis Forward-Looking StatementThis news release may contain forward-looking statements that reflect theCompany's current expectations regarding future events including the clinicaldevelopment and regulatory clearance of the Company's products and includingthat of Frova(R) for menstrual migraine, the Company's ability to find partnersfor the development and commercialisation of its products, the benefits ofre-acquiring Frova(R) in North America and the partnership with Endo on theCompany's liquidity and results of operations, as well as the Company's futurecapital raising activities. Forward-looking statements involve risks anduncertainties. Actual events could differ materially from those projected hereinand depend on a number of factors including the success of the Company'sresearch strategies, the applicability of the discoveries made therein, thesuccessful and timely completion of clinical studies, including with respect toFrova(R) and the Company's other products, the uncertainties related to theregulatory process, the ability of the Company to identify and agree beneficialterms with suitable partners for the commercialisation and/or development ofFrova(R) and other products, as well as the achievement of expected synergiesfrom such transactions, the acceptance of Frova(R) and other products byconsumers and medical professionals, the successful integration of completedmergers and acquisitions and achievement of expected synergies from suchtransactions, and the ability of the Company to identify and consummate suitablestrategic and business combination transactions. This information is provided by RNS The company news service from the London Stock Exchange