Angel Biotechnology Holdings Plc Publication of interims and update on JV (5905S)

TIDMABH

RNS Number : 5905S

Angel Biotechnology Holdings Plc

03 December 2012

3 December 2012

Angel Biotechnology Holdings plc

("Angel" or "the Group")

Update

Publication of interim results

MMH Joint Venture contract update and likely effect on interim results

The Angel board of directors anticipates that the results for the six months ended 30 September 2012 will be published on 10 December 2012.

Following detailed negotiations in Moscow held on 29 and 30 November 2012, Angel confirms that the key parameters of the joint venture agreement with OOO NPF Materia Medica Holding ("MMH") have now been agreed and that completion of legalities and signing of the agreement remain on course for completion before the end of the calendar year.

The agreement provides for the transfer of all existing contracts currently carried out by Angel for MMH to the JV company in which Angel will have a minority stake. The terms upon which such contracts are to be transferred will likely give rise to an exceptional book loss in the interim accounts of circa GBP1.7 million, a substantial portion of which is expected to be recovered in future periods, and a further write off of accrued income in respect of the contracts of circa GBP0.35 million. Because the liability created will be paid for through the transfer of fixed assets, licensing support and the achievement of milestones by the JV company, the transfer of contracts to the JV is expected to be cash neutral for the Group.

Mr Nicholas Smith said: "The detailed negotiations in Moscow mark the end of a lengthy and disruptive process to agree the basis of transfer of work from Angel to the JV company and the business plan of the JV company going forward. The decision to transfer part-complete contracts to the JV company crystallises liabilities under the contracts which have to be recognised in Angel's accounts at this stage. It is important to note that the terms of the joint venture agreement will provide for the offset of such liabilities. The joint venture agreement will represent a significant reduction of exposure to risks and a transfer of substantial ongoing fixed costs for Angel, allowing the Group to focus on the continued development of its Biologics and Biomedical businesses. Angel looks forward to announcing the terms of the joint venture agreement as soon as it is signed."

For further information:

Angel Biotechnology Holdings plc

Nicholas Smith, Non-Executive Chairman +44 (0) 131 445 6077

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

Philip Ranger / Caolan Mahon +44 (0) 20 7536 2028 / 2029

Notes to Editors:

Angel Biotechnology Holdings plc is a full service contract bio-manufacturing partner to biotechnology and pharmaceutical companies worldwide. Angel specialises 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 pioneering biotechnology companies such as ReNeuron Group plc to established pharmaceutical companies such as Russian-based Materia Medica Holdings.

Angel has three facilities: Pentlands Science Park near Edinburgh, a site in 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

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