National Cancer Institute Contract Extension Option Not Exercised, Says Asterand plc
Published: Sep 23, 2011
In the announcement issued on 1 October 2010, the Company had stated that the TCGA project was worth up to $5.4m over 17 months, with an option to extend for up to $24.3m, over a five year term. As was mentioned in the Interim Results, Asterand has experienced inefficiencies in supplying against an increasing demand for highly annotated tissues. This situation is being addressed but may affect the Company’s ability to realise the full $5.4 million by February 2012. Therefore, the Company has applied for an extension of the current contract to allow expenditures beyond February 2012. Although the Company remains optimistic that an extension will be granted, this is not guaranteed.
Expected revenue for the TCGA through 2011 remains consistent with the guidance provided in the Company’s Interim Results issued 31 August 2011. As such, the Company does not expect any impact on the projections for the current financial year as a consequence of this notification.
Following on from the statements made in Asterand’s Interims Results announcement on 31 August, the Company confirms that there has been no further deterioration in trading and that it will provide shareholders with an update in the next few weeks. As also stated in the recent interims, Asterand is in discussions with a number of parties with a view to raising additional capital and expects to make a further announcement in due course.