Business
Strategic Review
Strategic Review.
About this update from Sareum Holdings Plc
[{"type":"text","content":"\n Sareum Holdings PLC\n02 May 2008\n\n\nFor immediate release 2 May 2008\n\n\n\n Sareum Holdings PLC\n (\"Sareum\" or \"Company\")\n\n\n Strategic Review\n\nSareum Holdings plc (AIM:SAR), the specialist structure-based drug discovery\nbusiness, announces that the Board is undertaking a strategic review to consider\nhow best to take the business forward.\n\nSareum, which was formed in August 2003, employs a structure-based approach to\nthe discovery of new drugs for the treatment of cancer. In parallel, the\nCompany provides specialist drug discovery capabilities to partners in the\npharmaceutical and biotechnology industries. The Company has historically been\nfunded via fee-for-service-contract revenues and funds raised through equity\nissues.\n\nThe strategic review has been initiated by the Sareum Board for a number of\nreasons, inter alia;\n\n• Difficult trading conditions resulting from a reticence in the research \n service sector, particularly in the USA, to use cash reserves to sponsor \n new research activities until financial conditions improve. Combined with \n a high level of M&A activity within the pharmaceutical and biotechnology \n sector, this has tended to interfere with the decision making process for \n the initiation of new research programs. This was highlighted in Sareum's \n interim results statement for the six months ended 31 December 2007\n which was released on 6 March 2008.\n\n• The current depressed share price in common with most \"small cap\" plcs; and\n\n• The Board has received approaches from parties interested in the Company's \n drug discovery business and in-house cancer drug discovery programs.\n\n\nThe Sareum Board will be considering a number of options including; the sale of\nall or part of the business, the raising of additional equity funds, entering\ninto partnering arrangements, or the acquisition of a suitable business to give\nthe Company additional critical mass. The Board has appointed Grant Thornton\nCorporate Finance as financial advisers to assist with this process.\n\nThe Sareum Board intends to complete this evaluation process to ensure that the\nfuture strategy adopted is in the best interests of both shareholders and\nemployees. As and when a decision on the optimum future strategy for the\nCompany is reached, if appropriate, an announcement will be made.\n\nAcco...