Re Agreement

28 Feb 2005 07:03

Phytopharm PLC28 February 2005 Embargoed until 7.00 a.m. on 28 February Not for release, publication or distribution, directly or indirectly, in or intothe United States, Canada, Australia, Japan or the Republic of Ireland Phytopharm plc ("Phytopharm" or the "Company") On 2 February 2005, Phytopharm announced a proposed fund raising, which wassubsequently approved by shareholders on 25 February 2005 at an ExtraordinaryGeneral Meeting. The Company announces that following the Extraordinary General Meeting, it hasbeen informed by Yamanouchi Pharmaceutical Co. Ltd ("Yamanouchi") that as aresult of a portfolio review arising out of the merger of Yamanouchi withFujisawa Pharmaceutical Co, it is likely that Yamanouchi will terminate thelicensing agreement, covering Japan and some other Asian countries, inconnection with PYM50028 (CoganeTM), Phytopharm's candidate product for thetreatment of Alzheimer's disease. The decision has not yet been finally ratifiedand Phytopharm has not yet received formal notice of termination. Yamanouchi has acknowledged that safety data in relation to 60 patients treatedwith PYM50028 has fulfilled the criteria set out in the licensing agreementbetween Phytopharm and Yamanouchi. Furthermore, Yamanouchi has stated that itwill make a milestone payment of £4.0 million to Phytopharm. In the light of this change to the Company's position, the Board of Phytopharmand its Sponsors, Stock Brokers and Underwriter have mutually agreed toterminate the proposed fund raising. The Board notes that Yamanouchi has statedthat it will make a milestone payment of £4.0 million to Phytopharm and theBoard is considering its position with regard to any future fund raising. Enquiries: Phytopharm plcDr Richard Dixey, Chief Executive Officer Tel: +44 7867 782000Dr Wang Chong, Chief Financial Officer Tel: +44 1480 437697 Canaccord Capital (Europe) Ltd Tel: +44 20 7518 2777Mark Ashurst/Dr Stephen Rowntree Financial Dynamics Tel: +44 20 7831 3113David Yates/Ben Atwell These written materials are not for distribution in the United States. Thesewritten materials are not an offer of securities for sale in the United States.Securities may not be offered or sold in the United States absent registrationunder the US Securities Act or an exemption therefrom. This information is provided by RNS The company news service from the London Stock Exchange