16th Nov 2005 07:00
Provalis PLC16 November 2005 Provalis plc Update on strategic review Provalis plc (LSE: PRO), the international medical diagnostics andpharmaceuticals group, is today providing an update on its previously announcedstrategic review. This review was initiated by the interim Chief Executive,Peter Woodford, following his appointment on 10 August 2005. As part of this review, the Board decided to examine the possibility of sellingthe pharmaceutical business and to that end advisers have been appointed. Todate the Board has received several indicative offers which are currently beingprogressed. In the Group's preliminary results released on 19 October, the Board statedthat, with regard to the medical diagnostic business, it was still too early topredict future sales of in2itTM, and that more permanent funding would berequired in due course to develop the Group. Sales of in2itTM into the US market continue to be disappointing and significantsales are unlikely to be achieved until certain technical issues, theconsequences of which have only recently come to light, are addressed. TheBoard is focussed on resolving these issues, as well as determining how togenerate the best value from the in2itTM technology and the diagnostics businessas a whole. As part of the strategic review, external consultants have been appointed tovalidate and review in2itTM, as well as its capability to be used as a morebroadly based diagnostic testing platform. The Board is also implementing the results of a cost review, which willsignificantly reduce the cash outflow of the Group in the short and medium term. The overall strategic review is therefore being widened to consider allstrategic and funding options available to the Group and how best the Board canmaximise value for shareholders. Rothschild is assisting Peter Woodford withthis review. 16 November 2005 Enquiries: Provalis plc www.provalis.com 01244 288888Peter Woodford, Chief ExecutivePeter Bream, Finance Director NM Rothschild & Sons LimitedDavid Forbes 0113 2001900Lynn Drummond 020 72805000 College Hill 020 7457 2020Adrian Duffield/Corinna Dorward "Safe Harbor" Statement under the US Private Securities Litigation Reform Act of1995: Statements in this announcement that relate to future plans, expectations,events, performances and the like are forward-looking statements as defined inthe US Private Securities Litigation Reform Act of 1995. Actual results ofevents could differ materially from those described in the forward-lookingstatements due to a variety of factors. Such factors include, among others: theviability of the Group's products, which are at various stages of development;the generation of sufficient operating cash flow by the Group's pharmaceuticaland medical diagnostic businesses to finance the ongoing development of thesebusinesses as well as the Group's research and development activities; thesuccess of the Group's research and development strategy and activities;uncertainties related to future clinical trial results and the associatedregulatory process; the execution and success of collaborative agreements withthird parties; availability and level of reimbursement for the Group's productsfrom government health administration authorities or other third-party payors;the rate of net cash utilisation within the Group and, hence, the Group'spossible need for additional capital in the short, medium and/or long term; theGroup's intellectual property position and the success of patent applicationsfor its products and technologies; the Group's dependence on key personnel;general business and economic conditions; the impact of future laws, regulationsand policies; stock market trends in the Group's sector; and other factorsbeyond the Group's control that may cause the Group's available capitalresources to be used more quickly than expected. These and other factors thatcould affect the Company's future results are more fully described in itsfilings with the US Securities and Exchange Commission, in particular the latest20-F filing, copies of which are available from the Company Secretary at theCompany's registered address. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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