CDO Ventures now into cloning?
<<UK's PPL to build AAT plan in Scotland
LONDON, Feb 21 (Reuters) - Britain's PPL Therapeutics, the company that created the world's first cloned mammal Dolly the sheep, said on Monday it would build a manufacturing plant in Scotland at a cost of 42 million pounds ($67.38 million).
The plant would make its lead product AAT (alpha-1-antitrypsin), a treatment for cystic fibrosis.
The plans come after almost year-long speculation as to where the company would build its plant.
While it always wanted to set it up in Scotland it was not able to work out the funding arrangement. At one stage PPL was expected to build it in the United States, where attractive financial deals were on offer.
Under the deal, government-funded body Scottish Enterprise will provide guarantees to underwrite PPL's repayment of 13.8 million pounds of the package, subject to approval by Scottish Executive ministers.
Comdisco Inc., a U.S. technology services provider, will provide a 15 million pound venture leasing arrangement to buy laboratory and bioprocessing equipment for the new plant.
Both Scottish Enterprise and Comdisco will receive warrants to buy up to 5.6 million PPL shares at 119 pence and will use any gains they make on the warrants to offset payments due to them, PPL said.
PPL managing director Ron James said that PPL would make money from manufacturing its own products and had found a way to finance its new factory without calling on existing shareholders.
``Despite the limited dilution that exercise of the warrants will cause, successful purification of our own product is expected to result in a better earnings profile for the group than just taking a royalty on sales,' he said.
Royal Bank of Scotland will provide a term loan of 13.5 million pounds on normal commercial terms, partly underwritten by the Scottish Enterprise guarantee.
The company which has been chosen to design, manage and build the production facility will provide up to 7 million pounds on terms yet to be agreed.
Capital allowances of of 4.5 million pounds are expected, plus another 2.5 million in state aid.
PPL's shares closed at 116-1/2 pence on Friday. >> |
