Re Agreement

29 Mar 2005 09:30

Phytopharm PLC29 March 2005 Company Contact: U.K. Investor Relations ContactPhytopharm, plc Financial DynamicsRichard Dixey David Yates/Ben Atwell+44 7867 782000 +44 207 831 3113Wang Chong+44 1480 437 697www.phytopharm.com Phytopharm plc Confirmation by Yamanouchi of termination of licence for CoganeTM GODMANCHESTER, Cambridgeshire, U.K. (March 29th, 2005) - Phytopharm plc (LSE:PYM; NASDAQBB: PHYOF; PHYOY) ("Phytopharm") announces today that further to theannouncement of 28 February 2005, it has received confirmation from YamanouchiPharmaceutical Co. Ltd ("Yamanouchi") that as a result of a portfolio reviewarising out of the merger of Yamanouchi with Fujisawa Pharmaceutical Co,Yamanouchi is to terminate the licensing agreement, covering Japan and someother Asian countries, in connection with CoganeTM (PYM50028), Phytopharm'scandidate product for the treatment of Alzheimer's disease. In the announcementof 28 February, Phytopharm stated that it had been informed by Yamanouchi thatit was likely to terminate this agreement. Phytopharm has accepted this decisionand the termination will take place with immediate effect. Yamanouchi has also paid a milestone of £4.0 million (£3.6 million net, lessJapanese withholding tax) to Phytopharm following the receipt of the safety datain relation to the first 60 patients treated with CoganeTM in the ongoing phaseII proof of principle study in patients with Alzheimer's disease and confirmedthat the data met the criteria set out in the licensing agreement. Phytopharmhas now commenced dosing on 209 patients out of the projected total of 238patients required to complete this study, which is on target to reportpreliminary results in the fourth quarter of 2005. Dr Richard Dixey, Chief Executive of Phytopharm commented: 'Yamanouchi has paidmilestones and access fees totalling £7 million (£6.3 million net, less Japanesewithholding tax) during the course of our relationship, funds which have helpedreimburse the costs of the ongoing phase II proof of principle study for CoganeTM. Subject to the results of this study, we will seek global multinationalpartners in H1 2006.' -ENDS- NOTES TO EDITORS Alzheimer's disease Alzheimer's disease is a neurodegenerative disorder that mainly affects theelderly and is characterised by a progressive loss of learning ability andmemory. Alzheimer's disease is thought to affect 4.5 million of the USpopulation, and it is believed that this number will continue to grow toapproximately 16 million by 2050 (Source: Alzheimer's Association). Severalfactors have been proposed to play a role in the underlying neurodegeneration,including the excessive formation of beta-amyloid, glutamate and a decrease inneurotrophic factors in the brain. In pre-clinical studies, the synthetic chemical PYM50028 has been shown to beneuroprotective against beta-amyloid and glutamate damage, to reverse thedecrease of neuronal growth factors and to reverse neuronal degenerationobserved in the ageing brain. Importantly, this product restores levels ofproteins that are altered in the ageing brain, returning them to levels observedin the young and causing beneficial neurite outgrowth and branching. Inaddition, PYM50028 restores the learning and memory ability in Alzheimer'sdisease models and thereby offers the potential to reverse the symptoms ofAlzheimer's disease. The global annual market for Alzheimer's disease is estimated to be worth inexcess of $2.5 billion (source: Datamonitor); it is also estimated that in theUS, the total annual cost burden for Alzheimer's disease exceeds $100 billion(source: US Alzheimer's Association). Phytopharm plc Phytopharm is focused on the research and development of novel pharmaceuticaland functional food products based on clinical and pre-clinical data generatedfrom medicinal plant extracts. The Company has seven development programmes infour disease areas: neurodegeneration, obesity and metabolic disease,dermatology and inflammation and has a portfolio of two marketed veterinaryproducts. More information concerning Phytopharm's activities can be found on its web siteat http://www.phytopharm.com This press release may contain forward-looking statements within the meaning ofSection 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S.Securities Exchange Act of 1934 with respect to the financial condition, resultsand business achievements/performance of Phytopharm and certain of the plans andobjectives of its management. These statements are statements that are nothistorical facts. Words such as "should", "expects", "anticipates", "estimates", "believes" or similar expressions, as they relate to Phytopharm, are intendedto identify forward-looking statements. By their nature, forward-lookingstatements involve risk and uncertainty because they reflect Phytopharm'scurrent expectations and assumptions as to future events and circumstances thatmay not prove accurate. There is no guarantee that the expected events, trendsor results will actually occur. Any changes in such assumptions or expectationscould cause actual results to differ materially from current expectations. This information is provided by RNS The company news service from the London Stock Exchange