19/10/2004
ReGen Therapeutics Plc (‘ReGen’) a Company developing a treatment for Alzheimer’s Disease, announces that it has today entered into an agreement to acquire the entire share capital of Guildford Clinical Pharmacology Unit Limited(GCPUL’). The consideration for the acquisition is £250,000 which will be satisfied by the issue of ReGen ordinary 0.1p shares at a price determined by the mid market closing price of ReGen ordinary shares on 21 October 2004 (‘Consideration Shares’).
Guildford Clinical Pharmacology Unit Limited is a contract research organisation (‘CRO’). The key features of its business are innovation in measuring pain and motility of the gastrointestinal system, its hospital site and an international list of clients. GCPUL refocused its strategy after a difficult trading year to 30 June 2003. In the 18-month period to December 2004 revenues are expected to be just under £1,000,000 and pre-tax profits around £50,000. GCPUL expects to achieve increases in sales revenue and margins in the year 2005 against the 18-month period to December 2004.
Percy Lomax the Chairman and Chief Executive of ReGen commented that:
‘The acquisition of GCPUL is a significant step towards our stated goal of building ReGen into a profitable healthcare business. We have previously stated that we intend to make acquisitions, which are revenue and profit generating, in areas which have synergy with our existing business. As a drug development company ReGen’s integration with a CRO makes obvious sense as CRO’s have been a significant part of our expenditure in the past and will be so in the future.
We and the management of GCPUL have significant plans to expand GCPUL as part of the ReGen Group. We continue to actively examine further revenue generating and profitable businesses’.
He continued: ‘This development in no way changes our strategy to develop ColostrininTM and its derivatives as either pharmaceutical or nutraceutical products. Indeed, the growth of our medical services revenue generating business will be helpful in funding the development of ColostrininTM and its derivatives.
I also personally welcome Dr Andrew Sutton who will become Group Medical Director and Dr Graham Mould whose pharmaceutical expertise will be very useful to the group as a whole. As a group we are pleased to have the professionals of GCPUL as part of our team’.
Application has been made to admit the Consideration Shares to trading on the AIM market of the London Stock Exchange. Admission of the Consideration Shares is expected to take place on 25 October 2004. Completion of the Acquisition is expected to take place shortly thereafter.
For further information, please contact:
Andrew Marshall
Marshall Robinson Roe
Tel No 020 7960 6007