Final Results, Notice of AGM & Appointment of CEO

Oxford Pharmascience Group Plc

("Oxford Pharmascience" or the "Company")

 Results for the Year Ended 31 December 2013 and Notice of AGM

 Appointment of new CEO

Oxford Pharmascience (AIM: OXP), the specialty pharmaceutical company that redevelops medicines to make them better, safer and easier to take, today announces its results for the year ended 31 December 2013 and gives notice of its AGM be held on 18 June 2014 at 2.00pm at the offices of Fasken Martineau LLP, Third Floor, 17 Hanover Square, London, W1S 1HU. The Report and Accounts and Notice of AGM will today be posted to shareholders.

OPERATIONAL HIGHLIGHTS

· Continued strong sales growth of soft chew calcium product with Aché Laboratorios in Brazil and launch of Inellare Sugarfree line extension

· Commencement and significant progress in Safer NSAIDs (Non-Steroidal Anti-Inflammatory Drugs) programme, with the successful completion of preclinical work and appointment of Italian Dipharma Francis SRL to supply commercial scale 'gastric safe' Ibuprofen 

· Development of "gastric safe" 400mg ibuprofen tablet following successful consultation with MHRA and appointment of Quotient Clinical to conduct clinical pilot study

· Strengthening of organisational capability, with appointment of Head of Clinical Management and Head of Supply Development as well as establishment of Scientific Advisory Board

· Further advancement of "colon delivery" platform with formulation of statin products and signing of option with original licensor to explore 53 further compounds

FINANCIAL HIGHLIGHTS

· Revenue in the year ended 31 December 2013 of £1.03m, a 121% increase on the prior year

· Operating loss of £1.56m (2012: £0.82m) reflecting a planned increase in R&D spend, primarily on the NSAIDs programme

· Balance sheet strengthened by two successful fund raisings for £9m during the year, with cash resources of £9.9m as at 31 December 2013

POST PERIOD EVENTS

· As part of the evolution of the Company's strategy, Marcelo Bravo, founder and previously Chief Technology Officer of the Company, has replaced Nigel Theobald as CEO whose resignation is effective immediately

In 2013 the company made significant progress in the transformation into a drug re-development company initiating development of a pipeline of innovative medicines and building its organisational capability. 2014 is set to be a pivotal year for the company with a focus on advancement of its lead NSAID programmes and initialising international commercialisation of these. To strengthen its organisational capability and position the company for the next phase, the company is evolving its leadership and making further executive and non-executive appointments.

Effective immediately Marcelo Bravo, founder and currently Chief Technology Officer of Oxford Pharmascience assumes the role of CEO replacing Nigel Theobald. Marcelo has a deep knowledge of the Company and extensive experience in growing businesses internationally, and with his background at Oxford Pharmascience makes him ideally poised to lead the Company as it enters the commercial phase. Effective today, Nigel Theobald has resigned as CEO and Board director of the company to pursue new business interests but will assist us going forward with business development support for the over the counter ("OTC") business.

The Company is also in the process of appointing a further non-executive Board Director with a significant track record in business development in the pharmaceutical industry and a (non-board) Director of Research & Development to manage all of the Company's development activities. Further announcements will be made in due course.

The Company now has the resources and the capability to move forward with its lead programmes and is proceeding with a clinical pilot study to establish proof of concept of the gastric risk reduction benefit of its novel form of ibuprofen. In parallel, the Company is taking initial preparatory steps for the commercialisation of taste masked OTC products utilising this same novel ibuprofen material.

David Norwood, Chairman, commented on behalf of the board:

"We would like to thank Nigel Theobald for his contribution to the Board, taking Oxford Pharmascience through the initial development of the business including its admission to AIM and evolution into a specialty pharmaceutical company. We wish him all the best with his new ventures."

Marcelo Bravo, Chief Executive, Oxford Pharmascience Group Plc, commented:

"We have come a long way with Oxford Pharmascience yet this is only the beginning. I look forward to significant growth in the years ahead as our pipeline goes commercial.

We have completed our transformation into a specialty pharmaceutical company and through our lead safer NSAIDs programme we are poised to revolutionise this vast drug class. 2014 is a pivotal year in which we will be advancing our development programme as well as initiating commercial efforts behind the ibuprofen products as well as other NSAIDs that will soon follow."

Contacts:

Oxford Pharmascience +44 20 7554 5875

Marcelo Bravo, Chief Executive

N+1 Singer +44 20 7496 3000

Aubrey Powell / Jen Boorer

About Oxford Pharmascience Group Plc

Oxford Pharmascience Group Plc uses a range of proprietary technology platforms to re-develop existing medicines to make them better, safer or easier to take. The Company does not manufacture or sell its own pharmaceutical products direct to consumers but instead seeks to license its technologies and dossiers to a network of partners, mainly leading pharmaceutical companies with Rx (prescription) and OTC (Over the Counter) branded portfolios.

Oxford Pharmascience Group Plc focuses on existing medicines that are proven to be safe and effective but nevertheless still have associated issues and side effects often affecting compliance. By working with such medicines the Company is able to develop new innovative products for a fraction of the cost, in much quicker timescales and without the high risk of failure associated with developing new drugs.

Chairman's Statement

2013 was a year of significant progress in which the Group completed its transformation into a specialty pharmaceutical company re-developing medicines to make them better, safer and easier to take.

While the Group continued delivering strong revenue growth of its easier-to-take soft chew calcium product primarily through its partnership with Ache Laboratorios in Brazil, the Group also invested in establishing its pharmaceutical pipeline and building its capability. Two successful fund raisings in March and October for £5m and £4m respectively allowed the Group to expand its pipeline and advance its programmes with the confidence of having the resources to take the lead programmes to commercial readiness.

Products and pipeline

During 2013 the Group advanced two programmes in parallel, the development of improved statins via its OXPtarget™ technology platform and the development of improved non-steroidal anti-inflammatory drugs (NSAIDs) via its OXPzero™ technology platform. As we finish 2013, we have seen the NSAIDs programme progress significantly and leap ahead towards pilot clinical testing of its lead ibuprofen product in early 2014. The Group has appointed a commercial manufacturer for the ibuprofen material and is proceeding to commercial scale-up, Rx clinical materials were developed, excellent taste masked 'over the counter' (OTC) products are in development across several forms, and the Group is proceeding to a pilot clinical trial following consultation with the MHRA and appointment of a clinical research organisation (CRO) partner. Importantly, the Group conducted extensive research amongst clinicians and payors that has validated the commercial opportunity for safer NSAIDs and has early traction for its OTC taste masked products from a significant Global player in the industry.

The OXPtarget™ "colon delivery" programme also advanced with formulation of statin products and formulation of plans for first in-human trials as well as starting the exploration of further compounds that could be reformulated via colonic delivery.

To support these efforts, the Group built up its organisational capability with the recruitment of a Clinical Manager and a Supply Chain Development Manager to the team as well as the establishment of a Scientific Advisory Board and engagement of a broad range of external contractors including regulatory consultancies, key opinion leaders (KOL's), CRO's and contract manufacturing organisations (CMO's) and finished the year with robust internal and external capability.

Outlook

2014 is set to be a pivotal year for the Group with focus on further advancement of its lead programmes and commencement of international commercialisation of these. The Group is proceeding to clinical pilot testing of its Rx "Safer Ibuprofen" tablet as well as completion of development of two or three non-tablet Ibuprofen OTC forms. The Group is also proceeding to first in-human proof-of-concept (POC) tests of colon delivery of statins which is planned for late Q2. In addition, given the significant commercial opportunity for safer NSAIDs, the Group is looking to accelerate the development of further compounds in this category. We are currently evaluating several NSAIDs including Naproxen, Aspirin and Diclofenac and expect that some of these will be fast tracked into the pipeline.

In 2014 we will see the Group scaling business development activities to engage with potential partners both for its Rx and OTC offerings. As the year progresses we expect to demonstrate commercial traction via significant partnering deals and also further inform and guide our development efforts. Unfortunately, we will not be able to proceed immediately with all programmes in our pipeline. However, as we learn from our business development efforts and progress our clinical work we will further focus on the opportunities that offer the best commercial potential.

Board composition and recruitment

To further strengthen its organisational capability and position the Group for the next phase, the Group is evolving its leadership and making further executive and non-executive appointments. Marcelo Bravo, founder and currently Chief Technology Officer of Oxford Pharmascience will assume the role of Chief Executive Officer (CEO) replacing Nigel Theobald. Marcelo understands the Group and its pipeline deeply and has extensive experience in growing businesses internationally which makes him an obvious choice to lead the Group as it enters the commercial phase. Nigel Theobald will step down as CEO and Board director of the Group but will assist us going forward in a business development support role for the OTC side of the business. The Group is also appointing a new non-executive Board Director with a significant track record in business development in the pharmaceutical industry and a Director of Research & Development to manage all the Group's development activities. The Board believes that the new structure and appointments will best enable the Group to achieve the development and growth which I believe will deliver significant shareholder value going forward.

Financial results

Our revenue for the year to 31 December 2013 was £1,029k (2012: £466k). Our loss before tax was £1,536k (2012: loss of £818k), this increase is primarily as a result of the scale up of development programmes for OXPzero™ and OXPtarget™. Cash and cash equivalents balance at the year-end were £9,941k (2012: £2,218k).

Oxford Pharmascience has come a long way from its inception yet this is only the beginning. The Group is now at an inflection point and I look forward to significant growth in the years ahead as our pipeline goes commercial.

David Norwood

Chairman

4 March 2014

OXFORD PHARMASCIENCE GROUP PLC

The loss for the year arises from the Group's continuing operations.

OXFORD PHARMASCIENCE GROUP PLC

OXFORD PHARMASCIENCE GROUP PLC

Approved by the Board of Directors and authorised for issue on 4 March 2014.

Nigel Theobald Christopher Hill

Chief Executive Officer Chief Financial Officer

Company number : 07036758

OXFORD PHARMASCIENCE GROUP PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following notes have been extracted from the full notes to the audited report and accounts available on the Company's website www.oxfordpharmascience.com.

1. Summary of significant accounting policies

Basis of preparation

The Company's financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") and IFRS interpretations as they apply to the financial statements of the Group for the period ended 31 December 2013 and applied in accordance with the Companies Act 2006.

Revenue recognition

Revenue is recognised to the extent that it is probable that economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable for the sale of goods or services, excluding discounts, rebates, VAT and other sales taxes or duties.

The Group's income consists of sales of goods, licence fees, milestone and option payments, grant income and fees from research and development collaborations

Sale of goods is recognised when the Group has transferred to the buyer the significant risks and rewards of ownership.

Licence fees, option and milestone payments are recognised in full on the date that they are contractually receivable in those circumstances where:

· The amounts are not time related

· The amounts are not refundable

· The licensee has unrestricted rights to exploit the technology within the terms set by the licence

· The group has no further contractual duty to perform any future services

Where such fees or receipts are dependent upon future performance or financial commitments on behalf of the group, the revenue is recognised pro rata to the services or commitments being performed. Funds received which have not been recognised as revenue are treated as deferred revenue and recognised in trade and other payables.

Revenues from work or other research and testing carried out for third parties are recognised when the work to which they relate has been performed

Grant Income

Grant income is recognised as earned based on contractual conditions, generally as expenses are incurred.

Research and development

Research costs are charged to profit and loss as they are incurred. Certain development costs are capitalised as intangible assets when it is probable that the future economic benefits will flow to the Group. Such intangible assets are amortised on a straight-line basis from the point at which the assets are ready for use over the period of the expected benefit, and are reviewed for impairment at each year end date. Other development costs are charged against profit or loss as incurred since the criteria for their recognition as an asset are not met.

The criteria for recognising expenditure as an asset are:

· it is technically feasible to complete the product;

· management intends to complete the product and use or sell it;

· there is an ability to use or sell the product;

· it can be demonstrated how the product will generate probable future economic benefits;

· adequate technical, financial and other resources are available to complete the development, use and sale of the product; and

· expenditure attributable to the product can be reliably measured.

The costs of an internally generated intangible asset comprise all directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management. Directly attributable costs include employee costs incurred on technical development, testing and certification, materials consumed and any relevant third party cost. The costs of internally generated developments are recognised as intangible assets and are subsequently measured in the same way as externally acquired intangible assets. However, until completion of the development project, the assets are subject to impairment testing only.

2. Segmental information

At 31 December 2013 the Group operated as one segment, being the development and commercialisation of drug products from proprietary technology platforms. This is the level at which operating results are reviewed by the chief operating decision maker (the CEO) to make decisions about resources, and for which financial information is available. All revenues have been generated from continuing operations and are from external customers.

The Group operates in four main geographic areas, although all are managed in the UK. The Group's revenue per geographical area is as follows:

* 2013: 100% (2012: 100%) of Brazil revenue is generated from one customer

All the Group's assets are held in the UK and all of its capital expenditure arises in the UK.

3. Loss per share

Basic loss per share is calculated by dividing the loss attributable to equity holders of the parent by the weighted average number of ordinary shares in issue during the period. Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue during the period to assume conversion of all dilutive potential ordinary shares.

The Company has issued employee options over 14,500,000 (2012: 9,500,000) ordinary shares which are potentially dilutive. There is, however, no dilutive effect of these issued options as there is a loss for each of the periods concerned.

4. Annual Report and Accounts

A copy of the Annual Report and Notice of AGM is being posted to shareholders today and will be made available on the Company's website:www.oxfordpharmascience.com.