ABH Angel Biotech

TIDMABH

RNS Number : 2525M

Angel Biotechnology Holdings Plc

14 September 2012

14 September 2012

Angel Biotechnology Holdings plc

("Angel" or "the Group")

Operational Review and Market Update

Angel, (AIM:ABH), the biopharmaceutical group, is pleased to provide an update prior to the end of the first half of the current financial year on 30 September 2012.

Materia Medica

We are continuing to progress negotiations on the details of the joint venture with OOO "NPF "Materia Medica Holding" (MMH) first announced on 17 October 2011 and anticipate that the joint venture agreement shall be completed before the end of 2012. In the meantime, Angel has reached agreement with MMH concerning the execution of existing projects entered into in the period before the joint venture is due to commence. Due to changes in MMH's project priorities, it has been agreed that existing projects shall be serviced using the Group's facilities at Pentlands Science Park, Edinburgh (Pentlands) and that Pentlands will be the centre of operations for the proposed joint venture.

Cramlington

On 25 June 2012, Angel announced the successful completion of the inspection by the Medicines and Healthcare products Regulatory Agency (MHRA) of the Cramlington facility, a key step in the licensing of the Cramlington facility to cGMP. The Company is now pleased to announce that the formal MHRA license has been received. As we stated on 1 June 2012, whilst we have generated interest from new clients, most were waiting for confirmation that a licence had been granted before finalising discussions with Angel. With the license now formally in place we hope that we will now be able to convert some of that interest into production contracts.

Angel Biomedical Limited (ABL)

The dynamics of our new business, ABL, are very different than those of our core Angel business. Unit purchase costs are lower and supply of product is forecast, delivered and paid for on a monthly basis and over a period of many months. The financial commitment is lower and the decision to proceed with a contract is less challenging. ABL has to date attracted interest from a range of potential client companies seeking high grade collagen and collagen based products. Several may bring cell culture work into ABH.

As a result of the change in the proposed location of the joint venture operations and the integration of Angel Biomedical Ltd (ABL), the Group is undertaking a review of its operational resources with a view to allocating them to the activities which offer the best prospects for sales growth and earnings, whilst retaining flexibility to respond to new opportunities arising in the market. The most immediate effect has been a rationalisation of staff resources between the sites to reflect these changes. Since Cramlington will ultimately become the Group's primary operating site a number of functions are migrating progressively onto this site.

Market Update

The Group is seeing that market conditions remain very difficult with a number of high value projects expected to be signed in this the period, being delayed by many months as client companies seek to manage their own cash resources. The potential for revenues from ABL was not built into our forecast for the year and will offset some of the revenue expected to be deferred to future years from delayed contracts. Nevertheless, there is likely to be an adverse financial impact in the current year. The Group is confident that the outcome of its review combined with unforecast revenues from ABL will mitigate the effect of the delayed contracts and is likely to shorten the time involved in the progression to profitability.

Dr Paul Harper, ABH Chairman said: "The planned rationalisation of our business resources is underway and will control spend on support activities. Whilst the strategy of our business model remains sound, the market place is difficult to predict. The changes we are making will ensure that we are as responsive as possible to these swings, moving the business more rapidly to profitability without limiting our ability to respond to the market place. "

For further information:

Angel Biotechnology Holdings plc

Lorna Peers, Finance Director +44 (0) 131 445 6077

Stewart White, Acting CEO/Commercial Director www.angelbio.com

Grant Thornton, Corporate Finance

Colin Aaronson / Melanie Frean +44 (0) 20 7383 5100

Hybridan LLP (Broker)

Claire Noyce, Deepak Reddy +44 (0) 20 7947 4350

Media enquiries:

The Communications Portfolio Ltd

Ariane Comstive / Caolan Mahon +44 (0) 20 7536 2028 / 2029

ariane.comstive@communications-portfolio.co.uk

Notes to Editors:

Angel Biotechnology Holdings plc is a full service contract bio-manufacturing partner to biotechnology and pharmaceutical companies worldwide. Angel specializes in advanced biologics including biopharmaceutical proteins and cell therapies, such as cellular vaccines and stem cells. At present, Angel's products are principally used in pre-clinical studies and clinical trials with a view to becoming the contract manufacturer of choice on a continuing basis.

Drug development companies outsource their biopharmaceutical manufacturing requirements to Angel to reduce their own capital requirements and enable them to develop products more rapidly. In addition, Angel provides complete regulatory services and documentation to its customers while its manufacturing processes adhere to the most stringent regulatory requirements. Products are produced to current Good Manufacturing Practice (cGMP) standards as required by the US Food and Drug Administration (FDA), and in facilities that are certified to European standards by the Medicines and Healthcare products Regulatory Agency (MHRA).

Its customers range from early-stage biotechnology companies including ReNeuron plc and US-based Pathfinder Cell Therapy, to established pharmaceutical companies such as Russian-based Materia Medica Holdings.

Angel has three facilities: Pentlands Science Park near Edinburgh, Cramlington, near Newcastle-upon-Tyne and Angel Biomedical Ltd facility in Glasgow.

More information is available at www.angelbio.com .

- Ends -

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCDXLFFLKFEBBB

Angel Biotechnology (LSE:ABH)
Historical Stock Chart
From Apr 2024 to May 2024

Angel Biotechnology (LSE:ABH)
Historical Stock Chart
From May 2023 to May 2024