Biotechnology company Arana Therapeutics Limited today announced that it had sold its animal health subsidiary – Peptech Animal Health Pty Limited.
The sale has been completed after a substantial worldwide sale process over a period of 18 months.
CEO Dr John Chiplin commented, “This has been a long and very difficult process. While the business has potential it is currently losing money and this has turned many potential buyers away from the business.”
“In the short term, Arana will be $2 million - $3 million per annum better off by not incurring the ongoing losses from operating the animal health business in its development phase. In the longer term, if the new owners can build a successful company, Arana will receive a useful royalty stream.”
The animal health division has been acquired by a private investment company, Parma Corporation Pty Ltd, controlled by Mr Mel Bridges, a former chairman of Peptech. Following legal advice, the Arana board concluded that the arms length offer from Parma Corporation was demonstrably superior to the only other competing offer or future alternatives for the business.
Details of the transaction, which represent only a minor part of Arana’s $309.2 million net equity, are to remain confidential.
Mr Robin Beaumont, Chairman of Arana Therapeutics said “We have now divested all our non-core assets – the shareholding in Domantis (for a profit of $136 million), the joint venture with Biosceptre and the animal health business. We are now a company ready to move forward solely focussed on developing next generation human therapeutics.”
About Arana Therapeutics:
Arana Therapeutics (ASX: AAH; AIM: AAHx) is an international biopharmaceutical company formed through the merger of Peptech and EvoGenix in August 2007. The company uses superior technology to develop next generation drugs that will improve the lives of patients with inflammatory diseases and cancer.
Arana Therapeutics’ innovative engineering technologies provide the basis for clinical development in the antibody space, a market which draws on high demand. With a market capitalisation of around A$250 million and solid cash resources, Arana Therapeutics has the financial stability and management expertise to accelerate its clinical programs, and is on track to have at least 3 clinical stage assets within three years.
Arana is listed on the Australian Securities Exchange (ASX) and the London Stock Exchange (AIM).
The pipeline consists of four lead drug programs: ART621 to treat severe rheumatoid arthritis and other inflammatory diseases; ART010 to treat osteoporosis and bone cancer; ART104 to treat solid tumours in colorectal cancer; and ART150 for lung cancer and melanoma. Additionally, the company has earlier stage products in development for the treatment of a range of conditions including age related macular degeneration, psoriasis, colorectal cancer, and leukaemia.
Arana has recurring revenues from commercial and development partnerships with six international companies including GSK, CSL, Centocor (J&J) and Abbott Laboratories.
For further information: www.arana.com
Contact information: Company: Dr John Chiplin Chief Executive Officer Arana Therapeutics Limited T: + 61 2 8061 9900 E: jchiplin@arana.com
Investor & Media Relations: Rebecca Wilson Paul Dekkers Buchan Consulting T: + 61 2 9237 2800 E: rwilson@bcg.com.au E; pdekkers@bcg.com.au
