SLOUGH, UK, Jan. 15 /PRNewswire-FirstCall/ -- Xenova Group plc (Nasdaq: XNVA - News; London Stock Exchange: XEN - News) today announces that it has reached an agreement with ImmuLogic Pharmaceutical Corporation Liquidating Trust ("ImmuLogic") under which Xenova will buy out all remaining ImmuLogic rights to future milestone and royalty payments relating to two of Xenova's development stage vaccine programmes, TA-CD and TA-NIC.
Under the terms of the agreement announced today, ImmuLogic will receive US$1m from Xenova in return for ImmuLogic's rights to all future payments relating to the two vaccine programmes. Mutual releases from claims, proceedings and any other liabilities were also exchanged.
Under a 1998 Purchase Agreement, Cantab Pharmaceuticals plc (which merged with Xenova in 2001) undertook to pay ImmuLogic certain milestone payments relating to the TA-CD and TA-NIC programmes, payable at the end of each clinical development phase and valued at up to $11m, plus royalties.
ImmuLogic began voluntary liquidation proceedings in August 1999 and is now expected to complete its liquidation following a final cash distribution to its former shareholders.
In order to fund the buyout of ImmuLogic's interests, Xenova has raised 680,000 pounds Sterling before expenses through the placing for cash of 1,766,235 new ordinary shares of 10 pence each. The new shares, which represent approximately 1.02 per cent of the Company's issued share capital prior to the placing, have been placed by Nomura International plc at a price of 38.5 pence per share. The placing represents a discount of approximately 9.9 per cent to the closing middle market price on the London Stock Exchange on 14 January 2003.
Application will be made today for the 1,766,235 new shares to be admitted to the Official List and to trading on the London Stock Exchange, with admission expected to become effective on 20 January 2003. When issued, the new shares will rank pari passu in all respects with the Company's existing ordinary shares.
Commenting on today's news, David Oxlade, Chief Executive of Xenova, said:
"We are delighted with this agreement, which releases Xenova from large
potential payment obligations and consequently increases our commercial
flexibility in relation to both TA-CD and TA-NIC. Both programmes have
a large commercial potential and are designed to assist the significant
number of people worldwide who find it difficult to overcome their
addiction."
Notes to Editors
Xenova Group plc's product pipeline focuses principally on the therapeutic areas of cancer and immune system disorders. Xenova has a broad pipeline of programmes in clinical development. The Group has a well-established track record in the identification, development and partnering of innovative products and technologies and has partnerships with significant pharmaceutical companies including Lilly, Pfizer, Celltech, Genentech, QLT and Millennium Pharmaceuticals.
TA-NIC, an anti-nicotine vaccine designed to assist in giving up smoking, successfully completed a Phase I trial in mid-2002. This was the first evaluation of an anti-nicotine vaccine in man. It is anticipated that TA-NIC will enter a further Phase I trial in mid 2003.
A Phase IIa dose escalation study is currently underway for TA-CD, an anti-cocaine vaccine. This study is designed to evaluate the safety and immunogenicity of a four or five dose vaccination schedule and the results are expected in the second half of 2003. A further Phase II 'cocaine administration' study is expected to begin in early 2003.
For further information about Xenova and its products please visit the Xenova website at xenova.co.uk |
