Re Agreement

18 Apr 2006 07:02

ReNeuron Group plc18 April 2006 ReNeuron enters into cell supply agreement with StemCells, Inc. Guildford, UK, 18 April 2006: ReNeuron Group plc (LSE: RENE.L) today announcesthat it has entered into a further agreement with StemCells, Inc. ('StemCells'),a leading US, NASDAQ-quoted adult stem cell development company. The agreementprovides for ReNeuron to supply StemCells with cell lines generated usingReNeuron's proprietary c-mycERTAM human stem cell immortalisation technology,for use in StemCells' areas of therapeutic focus. These cell lines will beproduced to standards appropriate for clinical and commercial use, such as GMP(Good Manufacturing Practice) and US GTP (Good Tissue Practice). ReNeuron willderive a commercial return from the supply of these cell lines to StemCells. This agreement builds on the existing cross-licence between the two companiessigned in July 2005, whereby StemCells gave ReNeuron exclusive access toStemCells' adult neural stem cell patent estate for the development ofReNeuron's own c-mycER(TAM) neural stem cell therapies, and ReNeuron gaveStemCells exclusive access to that c-mycER(TAM) technology for use in thedevelopment of therapies for certain diseases targeted by StemCells. Michael Hunt, Chief Executive Officer of ReNeuron, said: "This agreement is a logical extension of the cross-license we signed withStemCells last year, and plays to ReNeuron's key strength - the ability of itsplatform c-mycER(TAM) technology to generate clinical-grade cell line candidatesthat meet all appropriate regulatory requirements regarding their production.We are delighted to be consolidating further our strong links with StemCells viathe provision of high quality cell lines to them, from which ReNeuron gains avaluable near-term revenue stream." Martin McGlynn, President and Chief Executive Officer of StemCells, said: "The assurance of a supply of c-mycER(TAM) cells reinforces the value of theunderlying license agreement between ReNeuron and StemCells. Our primary focuscontinues to be on the development of unmodified human neural stem cell productsfor conditions affecting the central nervous system. The ReNeuron technologymay prove to be an important alternative therapy for some of our diseasetargets, and we look forward to a very productive relationship with ReNeuron." Enquiries: ReNeuron Tel: 44 (0)1483 302 560John Sinden, Chief Scientific OfficerMichael Hunt, Chief Executive Officer Financial DynamicsDavid Yates Tel: 44 (0)20 7831 3113Anna Keeble Notes to Editors About ReNeuron Group plc ReNeuron is a leading, UK-based adult stem cell therapy business. The Companyis applying its novel stem cell platform technologies in the development ofground-breaking stem cell therapies to serve significant and unmet or poorly-metclinical needs. ReNeuron has used its c-mycER(TAM) technology to generate genetically stableneural stem cell lines. This technology platform has multi-national patentprotection and is fully regulated by means of a chemically-induced safetyswitch. Cell growth can therefore be completely arrested prior to in vivoimplantation. The Company's lead stem cell therapy, ReN001 for chronic stroke disability, isin late pre-clinical development. Subject to successful completion ofpre-clinical testing, the Company plans to file for approval to commence initialclinical trials in stroke later this year, with trials commencing as soon aspossible thereafter. The Company has also generated pre-clinical efficacy data with its ReN005 stemcell therapy for Huntington's disease, a rare, genetic and fatalneurodegenerative disorder which affects around 1 in 100,000 people. Thisprogramme is in pre-clinical development. In addition to its stroke and Huntington's disease programmes, ReNeuron isdeveloping stem cell therapies for Parkinson's disease, Type 1 diabetes anddiseases of the retina. ReNeuron has also leveraged its stem cell technologies into non-therapeuticareas - its ReNcell range of cell lines for use in drug discovery applicationsin the pharmaceutical industry. ReNeuron's shares are traded on the London AIM market under the symbol RENE.L,and its warrants are traded under the symbol RENW.L. Further information on ReNeuron and its products can be found atwww.reneuron.com. About Stemcells, Inc. StemCells, Inc. is a clinical stage biotechnology company focused on thediscovery, development and commercialization of stem cell-based therapeutics totreat diseases of the nervous system, liver and pancreas. The Company's stemcell programs seek to repair or repopulate neural or other tissue that has beendamaged or lost as a result of disease or injury. StemCells is the first companyto directly identify and isolate human neural stem cells from normal braintissue. These stem cells are expandable into cell banks for therapeutic use,which demonstrates the feasibility of using normal, non-genetically modifiedcells as cell-based therapies. StemCells is a publicly traded company solelyfocused on stem cell research and development and has approximately 40 U.S. and100 non-U.S. patents. Further information about the Company is available on itsweb site at: www.stemcellsinc.com. This announcement contains forward-looking statements with respect to thefinancial condition, results of operations and business achievements/performanceof ReNeuron and certain of the plans and objectives of management of ReNeuronwith respect thereto. These statements may generally, but not always, beidentified by the use of words such as "should", "expects", "estimates","believes" or similar expressions. This announcement also containsforward-looking statements attributed to certain third parties relating to theirestimates regarding the growth of markets and demand for products. By theirnature, forward-looking statements involve risk and uncertainty because theyreflect ReNeuron's current expectations and assumptions as to future events andcircumstances that may not prove accurate. A number of factors could causeReNeuron's actual financial condition, results of operations and businessachievements/performance to differ materially from the estimates made or impliedin such forward-looking statements and, accordingly, reliance should not beplaced on such statements. The terms "ReNeuron" or "the Company" refer to ReNeuron Group plc and itssubsidiary undertakings. This information is provided by RNS The company news service from the London Stock Exchange