8th Jan 2007 08:23
Peptech Limited08 January 2007 For Immediate Release 8 January 2007 PEPTECH LTD Peptech realises A$178m with Domantis sale completion Key Points • GSK's acquisition of Domantis completed • Peptech share of gross proceeds is GBP 71.3 million (approximately A$178 million or $1.08 per share) • Peptech realises a A$138.2 million gain from an investment of A$40.2 million • Peptech to advance and deepen product pipeline and strengthen in-house platform Australian biotechnology company Peptech Limited (ASX: PTD; AIM: PTDx) todayannounces that the acquisition by GlaxoSmithKline plc (GSK) of Domantis, the UKdrug development company in which Peptech held a 31.02% fully diluted interest,has been completed. On 8 December 2006, Peptech announced that along with other Domantisshareholders it had entered into an agreement to accept an offer made by GSK toacquire its share of Domantis for GBP 71.3 million (A$178 million). Peptech will receive 90 per cent of the funds in the next few days, with theremaining 10 per cent of funds to be held in escrow for one year. Peptech Chief Executive Officer Dr John Chiplin said the transaction wouldenable Peptech to build on its acquisitions of Promics Limited and the antibodybusiness of Scancell Limited. "The Domantis proceeds together with Peptech's existing cash reserves andongoing future licensing revenues (estimated to be A$100 - A$130 million overthe next four years) provides the company with significant cash resourcesrequired to further advance and deepen its product pipeline and leverage anumber of key value creation opportunities," he said. "This includes further developing our R&D capability by way of a key appointmentto enhance our clinical expertise and to oversee the human clinical trials ofour compounds, including lead anti-TNF compound PN0621, expected to commencePhase I clinical trials in the second quarter of 2007. "We will also continue to focus on integrating the development programs acquiredwith our two key acquisitions in 2006 - Promics and Scancell - and thestrengthening of our in-house platform capabilities to generate and developnovel high value compounds through our capabilities in antibody and proteinengineering." "We are extremely confident in our ability to execute our previously announcedaggressive growth strategy to strengthen our product pipeline through in-housedrug development, prudent acquisitions and in-licensing of clinical stagebiologics aimed at our two core franchises - autoimmunity and oncology." "Getting high value potential products into and through clinical trials andsuccessfully commercialising them is the best way that Peptech can enhance itsvalue to its shareholders." Peptech's net proceeds (after deducting existing liabilities in relation topartly paid shares) from the transaction (based on current exchange rates) areestimated to be A$170.3 million with A$152.5 million payable on completion and afurther A$17.8 million payable after 12 months, assuming no warranty claims havebeen made. ENDS Further information: Released by:Dr John Chiplin Ms Stephanie PaulChief Executive Officer Managing DirectorPeptech Limited Phillips GroupTel: + 61 2 9870 8788 Mobile: 0418 753 062 For UK enquiries, please contact: Buchanan CommunicationsLisa Baderoon/Mark Court/Rebecca Skye Dietrich +44 (0)20 7466 5000 Appendix - pro forma balance sheet The pro forma balance sheet below has been produced for illustrative purposesonly, and, because of its nature, may not give a true picture of the financialposition of the group. The statement is intended to illustrate how the disposalof Peptech's stake in Domantis might have affected the net assets of the group,had it occurred on 30 September 2006. At 30 September Estimated impact of Pro forma balance 2006 (Audited) Domantis sale (unaudited) sheet (unaudited) A$m A$m A$mCash 40.7 152.5 193.2Domantis 40.2 (40.2) -Other 19.3 17.8 37.1assetsTotal 100.2 130.1 230.3assetsLiabilities 14.3 (8.1) 6.2Equity 85.9 138.2 224.1Accounting AIFRS AIFRS AIFRSstandard The Domantis sale proceeds will vary based on the AUD/GBP exchange rate at dateof completion. In the above table an exchange rate of 0.4000 has been used. About Peptech: Peptech Limited focuses on the research and development of peptides and proteinsin the areas of human pharmaceuticals and animal health. The company ispositioned to become a globally recognised leader in biopharmaceuticaldevelopment. For further information: www.peptech.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Glaxosmithkline