Phytopharm PLC
25 February 2004
25 February 2004
Not for release, publication or distribution in, or into, the United States,
Canada, Australia or Japan
Phytopharm plc
Placing raises £6.5 million
Phytopharm plc ('Phytopharm' or the 'Company') today announces that it has
raised approximately £6.5 million before expenses (£6.3 million after expenses)
through a placing of new shares. The placing was oversubscribed and the
proceeds will be used to strengthen the Company's balance sheet and continue the
development of its products.
Phytopharm's lead programmes in development are P57 for obesity and P58 for
Alzheimer's disease. The Company is currently in discussions with a number of
potential partners to progress the development of P57 for the dietary control of
obesity. A substantial expansion of the raw material production capacity is
underway. Phytopharm continues to develop its other lead development programme
P58 with its partner Yamanouchi. A product from this programme (PYM50028)
entered Phase II studies in December 2003 and is expected to report initial
safety results in the second half of 2004, following which the Company
anticipates receiving further milestone payments from Yamanouchi. Phytopharm
also has two programmes, P7v for canine atopic dermatitis and P54v for canine
arthritis, with products that are anticipated to launch in the UK during the
first half of 2004.
The placing of 3,882,218 new ordinary shares of 1 penny each represents 9.99 per
cent of the Company's issued share capital prior to the placing. The new shares
have been placed with a range of institutional investors by Nomura International
plc and Canaccord Capital (Europe) Ltd at a placing price of 167 pence per
share. The placing price represents a discount of approximately 7.2 per cent to
the closing middle market price on the London Stock Exchange on 24 February
2004. This placing was undertaken pursuant to a resolution of shareholders at
the Company's Annual General Meeting on 23 February 2004 which approved the
disapplication of shareholders' pre-emption rights in relation to 10 per cent of
the then issued share capital of the Company.
Application will be made today for the new shares to be admitted to the Official
List and to trading on the London Stock Exchange. The placing is conditional on
admission, which is expected to become effective on 1 March 2004. When issued,
the new shares will rank pari passu in all respects with the Company's existing
ordinary shares. Following the placing, Phytopharm will have a total of
42,743,269 ordinary shares in issue.
Enquiries:
Phytopharm plc Tel: +44 (0)1480 437 697
Dr. Richard Dixey, Chief Executive Officer
Dr Wang Chong, Chief Financial Officer
Nomura International plc Tel: +44 (0)20 7521 2000
David Rasouly
John Milad
Financial Dynamics Tel: +44 (0)20 7831 3113
David Yates
Ben Atwell
BACKGROUND INFORMATION
Phytopharm is a leading company in the development of Botanical pharmaceuticals.
These plant-based medicines, manufactured to pharmaceutical standards, can be
clinically evaluated in chronic and poorly understood diseases. Where novel
modes of action are discovered, such research can form the basis for drug
discovery platforms, which enable the development of new medicines and the
isolation of single chemical entities of clinical importance. Phytopharm has
four drug discovery platforms in full development, for metabolic disease,
neurodegeneration, inflammation and dermatology.
Phytopharm is developing nine programmes based on its four drug discovery
platforms alongside a number of other projects in early evaluation.
More information concerning Phytopharm's activities can be found on its web site
at http://www.phytopharm.com
This information is provided by RNS
The company news service from the London Stock Exchange
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