SYDNEY, Australia, Jan. 7 /PRNewswire-FirstCall/ -- Australian biotechnology company Peptech Limited today announces that the acquisition by GlaxoSmithKline plc (GSK) of Domantis, the UK drug 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 Domantis shareholders it had entered into an agreement to accept an offer made by GSK to acquire 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 the remaining 10 per cent of funds to be held in escrow for one year.
Peptech Chief Executive Officer Dr John Chiplin said the transaction would enable Peptech to build on its acquisitions of Promics Limited and the antibody business of Scancell Limited.
“The Domantis proceeds together with Peptech’s existing cash reserves and ongoing future licensing revenues (estimated to be A$100 - A$130 million over the next four years) provides the company with significant cash resources required to further advance and deepen its product pipeline and leverage a number of key value creation opportunities,” he said.
“This includes further developing our R&D capability by way of a key appointment to enhance our clinical expertise and to oversee the human clinical trials of our compounds, including lead anti-TNF compound PN0621, expected to commence Phase I clinical trials in the second quarter of 2007.
“We will also continue to focus on integrating the development programs acquired with our two key acquisitions in 2006 -- Promics and Scancell -- and the strengthening of our in-house platform capabilities to generate and develop novel high value compounds through our capabilities in antibody and protein engineering.”
“We are extremely confident in our ability to execute our previously announced aggressive growth strategy to strengthen our product pipeline through in-house drug development, prudent acquisitions and in-licensing of clinical stage biologics aimed at our two core franchises -- autoimmunity and oncology.”
“Getting high value potential products into and through clinical trials and successfully commercialising them is the best way that Peptech can enhance its value to its shareholders.”
Peptech’s net proceeds (after deducting existing liabilities in relation to partly paid shares) from the transaction (based on current exchange rates) are estimated to be A$170.3 million with A$152.5 million payable on completion and a further A$17.8 million payable after 12 months, assuming no warranty claims have been made.
Further information: Dr John Chiplin Chief Executive Officer Peptech Limited Tel: + 61 2 9870 8788 Released by: Ms Stephanie Paul Managing Director Phillips Group Mobile: +61 418 753 062 For UK enquiries, please contact: Buchanan Communications Lisa Baderoon/Mark Court/Rebecca Skye Dietrich +44 (0)20 7466 5000 Appendix - pro forma balance sheet
The pro forma balance sheet below has been produced for illustrative purposes only, and, because of its nature, may not give a true picture of the financial position of the group. The statement is intended to illustrate how the disposal of Peptech’s stake in Domantis might have affected the net assets of the group, had it occurred on 30 September 2006.
At 30 September Estimated Pro forma 2006 impact of balance sheet (Audited) Domantis sale (unaudited) A$m A$m A$m Cash 40.7 152.5 193.2 Domantis 40.2 (40.2) - Other assets 19.3 17.8 37.1 Total assets 100.2 130.1 230.3 Liabilities 14.3 (8.1) 6.2 Equity 85.9 138.2 224.1 Accounting standard AIFRS AIFRS AIFRS
The Domantis sale proceeds will vary based on the AUD/GBP exchange rate at date of 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 proteins in the areas of human pharmaceuticals and animal health. The company is positioned to become a globally recognised leader in biopharmaceutical development. For further information: www.peptech.com
Peptech
CONTACT: Dr John Chiplin, Chief Executive Officer of Peptech Limited,+61-2-9870-8788; Released by Ms Stephanie Paul, Managing Director, PhillipsGroup, Mobile: +61-418-753-062; For UK enquiries: Lisa Baderoon, or MarkCourt, or Rebecca Skye Dietrich, all of Buchanan Communications,+44-20-7466-5000
Web site: http://www.peptech.com/
