Acquisition of MNL PHARMA

14 Dec 2006 07:01

VASTox plc14 December 2006 VASTox plc ("VASTox" or "the Company") VASTOX ACQUIRES KEY ASSETS FROM MNL PHARMA AND STRENGTHENS DRUG DISCOVERY AND CHEMISTRY SERVICES CAPABILITIES Oxford, UK, 14 December 2006 - VASTox (AIM: VOX), a leading UK biotechnologycompany, announces today that it has acquired the key assets of MNL PharmaLimited ("MNL"), the private UK drug discovery company, which went intoadministration in October 2006. This acquisition will both secure a pipeline ofearly stage drug candidates focused, in particular, on oncology and strengthenthe Company's services offering by bringing in experienced researchers withskills that are highly complementary to its current capability. Assets acquired include: • A pipeline of drug candidate molecules including: • MNLP462a, MNL's lead oral cancer drug candidate, an immuno-modulator with a novel mechanism of action that stimulates the immune system without activating toxic inflammatory responses. MNLP462a is currently in late-stage preclinical development. • All intellectual property relating to these drug candidates. • A modern carbohydrate chemistry laboratory in Aberystwyth staffed by12 researchers and managed by MNL's former Research Director, Professor RobertNash, a world-leading phytochemist. • A chemical library of more than 1,300 rare or novel drug-like compounds These assets have been acquired by VASTox for an initial cash consideration of£240,000 payable to the administrators of MNL. The Board is confident that withservice income and grants the Aberystwyth site will be cash-neutral within ayear. Dick Storer, DPhil, Chief Scientific Officer of VASTox, said: "The opportunityto acquire compounds of this quality is rare. I am delighted to be able to addthese to our existing assets and believe they will contribute significantly toour efforts to identify potential drug candidates for commercialisation." Steven Lee, PhD, Chief Executive Officer of VASTox said: "The assets that we areacquiring today represent an excellent strategic fit and enhance both VASTox'sdrug discovery and service capabilities. "The addition of an exciting, novel and highly diverse new library of drug-likecompounds that we can screen through our existing zebrafish and fruitfly modelsis anticipated to yield new drug candidates to progress into developmentprogrammes. Furthermore, we gain access to a promising anti-cancer candidate,which provides a near-term out-licensing opportunity. "The research facility in Aberystwyth has a first-class reputation andsignificantly strengthens our chemistry capabilities both for our externalpartners and for our own internal drug development programmes. Carbohydratechemistry is a complex but highly valuable competence that is in increasingdemand from pharmaceutical development companies. With Professor Nash and histeam joining the Company, VASTox has become a world-leading provider of high value chemistry services inthis area. "The deal we have done today fits well with our growth plans and highlights theambitions of VASTox for the future." About MNLP462a MNLP462a, MNL Pharma's lead oral cancer drug candidate, is an immuno-modulatorwith a novel mechanism of action that stimulates the immune system withoutactivating toxic inflammatory responses. Preclinical studies completed to datehave shown that MNLP462a reduces tumour numbers and size, has low toxicity andgood pharmacokinetic properties. A clinical trial programme has been designedfor MNLP462a to treat several solid tumour types and was expected to begin in2007. MNLP462a, which was identified from MNL Pharma's chemical library, is alsothought to have potential in treating infectious diseases owing to its mechanismof action. - ends - For more information please contact: VASToxSteven Lee, PhD, Chief Executive Officer Tel: +44 (0)7766 913 898Darren Millington, Chief Financial Officer Tel: +44 (0)7787 825 354 Tel: +44 (0)1235 443 910 Citigate Dewe RogersonMark Swallow, PhD / Valerie Auffray / David Dible Tel: +44 (0)207 638 9571 About VASTox plcVASTox is a biotechnology technology 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 cell therapies, which are expectedto be out-licensed prior to entering the clinic. The company's chemical genomics technology platform, which uses zebrafish andfruitflies, has the potential to dramatically reduce the time and cost of drugdiscovery and development. This is because using whole organisms allows VASToxto carry out high volume, high content screening that delivers data which ishighly predictive of the efficacy and toxicity of potential drug compounds inhumans. VASTox is growing revenues based on marketing its unique technologyplatform and its chemistry expertise. The company listed on the AIM market ofthe London Stock Exchange 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