Interim Management Statement

Ardana PLC
19 February 2008

                                   Ardana plc

                          INTERIM MANAGEMENT STATEMENT
                      THREE MONTHS ENDED 31 DECEMBER 2007

Edinburgh, UK, February 19, 2008: Ardana plc (LSE:ARA), the emerging
pharmaceutical company focused on the discovery, development and marketing of
innovative products to improve human reproductive health, is today issuing its
third quarter Interim Management Statement ('IMS') and provides an update on the
business.  This IMS has been produced solely to provide additional information
to shareholders as a body to meet the relevant requirements of the UK Listing
Authority's Disclosure and Transparency Rules.  It should not be relied upon by
any other party or for any other purpose.

This IMS relates to the three month period from 1 October 2007 to 31 December
2007 and contains information that covers this period and the period from 1
January 2008 up to the publication of this IMS ('the period'), unless otherwise
specified.

Ardana has announced today in a separate press release that:

  • it is seeking to sell or merge the Company and Piper Jaffray Ltd. has been
    appointed to advise in connection with this process; and
  • it has put in place a restructuring programme to reduce  the Company's
    cash commitments.

PROPOSED SALE OR MERGER OF THE COMPANY

In December 2007 the Company announced the results of a strategic review as a
result of which the Board has directed the Company's efforts and resources on
the high-value, nearer term opportunities in Ardana's pipeline, such as
Teverelix LA and Testosterone Cream.  Ardana has reported positive clinical
results in both these product candidates during the period and believes that
they both have substantial commercial potential.  Partnering discussions
continue on the co-development of Teverelix LA and for the co-development and
commercialisation of Testosterone Cream in the USA.  Interest has also been
expressed for other assets within the Company's portfolio of clinical products.

Following the strategic review announcement Ardana has had consultations with
its major shareholders to explore the options available to the Company to
realise increased value for its pipeline. As a result of these discussions and
the prevailing market conditions, the Board has concluded that shareholder value
is more likely to be maximised through seeking a sale or merger partner which
will be better placed to fund the Company's extensive clinical development
portfolio.

RESTRUCTURING

Ardana also announces a restructuring of the business to reduce the Company's
cash commitments and enhance the Company's position in future discussions with
potential sale or merger partners.  The Company operates a 'virtual' business
model which has resulted in a low cost base such that most activity and cost is
borne by the research and clinical development programmes. The specific impact
of the restructuring on the Company's clinical programme and the Company as a
whole are summarised as follows:

  • Teverelix LA:  the current Phase II programmes in prostate cancer and BPH
    have now been completed and positive preliminary results were announced in
    the period; further planned development programmes will not be initiated;
    and

  • Testosterone Cream:  a Phase III study in the USA commenced in 2007 and
    enrolment is now complete.  In addition, differentiation studies, from which
    positive preliminary results were announced at the end of last year, will be
    completed.  Further activity is on hold.

All other development, manufacturing, commercial and overhead activities will be
scaled back or halted bearing in mind the Company's contractual obligations,
reducing both cash commitments and headcount.

PIPELINE UPDATE IN THIRD QUARTER

The Company continued to invest in the product development pipeline during the
third quarter and product candidates continued to advance to plan.

TEVERELIX LA

  • Teverelix LA, continues to progress well and we announced positive Phase
    II results in prostate cancer and BPH as well as the positive outcome of a
    pre-IND meeting in the third indication of endometriosis.
  • In September 2007 data were announced in prostate cancer demonstrating a
    new dose regimen extended to 8 weeks from 4 weeks.  This important data
    underlines the commercial potential for Teverelix LA in prostate cancer;
  • Data announced in November 2007 in BPH shows that patients may only need
    to have two maintenance doses per year for symptomatic treatment.  The
    Company believes that this may represent significant potential improvement
    over current treatments;
  • In the third indication of endometriosis, the positive outcome of a
    pre-Investigational New Drug (IND) meeting with the FDA was recently
    announced allowing the clinical development path for Teverelix LA in this
    indication to be agreed.

TESTOSTERONE CREAM

  • A Phase III study in the USA for Testosterone Cream, our transdermal
    delivery of testosterone for the treatment of male hypogonadism, commenced
    in the period and the enrolment target total of 130 testosterone deficient
    men into the study has now been reached.  After an initial titration period
    where the correct dose level for the patient is established, patients will
    then receive Testosterone Cream daily for three months. Results from the
    study are expected in the second half of 2008.

  • In addition two Phase I studies to support the development of Testosterone
    Cream were reported during the period. In the first, a study to determine
    the dermal tolerability of the cream, low irritant potential was identified
    as a characteristic of patient use. This is an important factor for
    user-friendliness. The second study measured the effect of showering post
    application on absorption of testosterone using the cream. Preliminary
    analysis showed no detrimental effect on the absorption of testosterone if a
    patient showers as early as one hour after drug application when compared to
    drug application with no subsequent showering.
  • These supplementary studies indicate a potential advantage for
    Testosterone Cream in terms of patient acceptability.

ORAL GHS

A pivotal Phase III registration study of the oral formulation of the Company's
growth hormone secretagogue (GHS) is ongoing, for the diagnosis of growth
hormone deficiency.

MARKETED PRODUCTS

Revenues from the sale of the marketed products, Striant(TM) SR, Invicorp(TM) 
and Emselex(R) are growing but are not considered material to the results of the
business at present.

CASH

Net cash used by operating activities in the business for the nine month period
to 31 December 2007 was £10.4 million (nine months to 31 December 2006: £9.7
million).

Cash and cash equivalents as at 31 December 2007 was £6.6 million (31 December
2006: £19.2 million). Cash and cash equivalents as at the latest month end being
31 January 2008 was £6.1 million (31 January 2007: £17.4 million).

Chief Executive's comments

Ardana's Chief Executive, Dr Huw Jones said 'Ardana's key strength is its
portfolio.  We are pleased with the progress of our compounds in development and
we continue to add value to our key assets which we believe will have
significant commercial advantages in their respective markets.  Successful
execution of our strategy to sell or merge the Company, announced separately
today, will enable the potential in the pipeline to be maximized.'


For more information contact:

Ardana plc                                              Financial Dynamics
Dr. Huw Jones. Chief Executive Officer                  Julia Phillips
Tel: + 44 (0) 131 226 8550                              Emma Thompson
                                                        Tel: [phone]

Ardana plc (LSE: ARA) is an emerging pharmaceutical company focused on the
discovery, development and marketing of innovative products to improve human
reproductive health, a $25.5 billion market.

Ardana's lead products are summarised below:

  • Teverelix LA, in development for three initial indications (prostate
    cancer, benign prostatic hyperplasia and endometriosis);
  • ARD-0705 a growth hormone secretagogue in Phase III for the diagnosis of
    growth hormone deficiency in adults;
  • Testosterone Cream, a transdermal testosterone delivery system in
    development for the treatment of male hypogonadism, in Phase III trials;
  • Emselex(R), a once a day treatment for the symptoms of overactive bladder
    syndrome, which Ardana has exclusive UK marketing and promotion rights and
    is being distributed in collaboration with Novartis UK Limited;
  • Striant(TM) SR, a testosterone replacement therapy that has been launched by
    Ardana through its own sales force in the UK and through marketing partners
    in certain European countries, as a treatment for men with confirmed
    hypogonadism; and
  • Invicorp(TM), an injectable combination drug treatment for erectile
    dysfunction, for which Ardana has marketing and manufacturing rights in
    Europe and has been launched in Denmark.


For further information please see www.ardana.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange