Information  X 
Enter a valid email address

Xenova Group PLC (XEN)

  Print      Mail a friend

Thursday 21 June, 2001

Xenova Group PLC

Strategic Review

Xenova Group PLC
21 June 2001


                                                       FOR IMMEDIATE RELEASE


            Xenova Group plc: Strategic Review Programme Announced


Slough, UK, 21st June 2001 - Xenova Group plc (London Stock Exchange: XEN;
Nasdaq NM: XNVA) ('Xenova') today announces that it has completed a major
strategic review of its enlarged research and development pipeline and other
activities, following its recent merger with Cantab Pharmaceuticals plc ('
Cantab').

It is anticipated that the implementation of this review, together with the
elimination of duplicated resources and other efficiency improvements made
since the merger with Cantab, will result in a significant reduction in
operating expenses.  In the financial year ended 31 December 2000, the
operating expenses of the enlarged Group totalled £24.3m (£9.5m for Xenova and
£14.8m for Cantab).  Cost reduction measures, including the loss of some 45
jobs, have been put in place with immediate effect which the directors expect
will reduce these expenses by up to approximately £9m per annum, based on the
current year's operating expenditure.  The pro forma cash and liquid resources
for the enlarged Group as at 31 March 2001 was £24.9m.

Going forward, Xenova will focus its resources on those projects and
programmes with the greatest potential for the Group and will seek to optimise
value from its broad range of technologies and capabilities through a planned
programme of commercial collaborations and out-licensing activities.  A
product pipeline update is planned for inclusion in Xenova's interim results
statement, scheduled for 14 August 2001.


Commenting on today's announcement, David Oxlade, Chief Executive of Xenova,
said:


'Having undertaken a thorough review of both companies' projects, it is
evident to us that the merger has produced what we intended it would - a
company with a broadly based drug development pipeline and a clear focus on
cancer.  We very much regret the loss of jobs announced today, but we
recognise the need to focus our efforts and resources on those projects that
we believe will create the greatest value for our shareholders.'




                                   Contacts


Xenova Group plc                                   Financial Dynamics
Tel: +44 (0) 1753 706600                           Tel: +44(0) 207 831 3113
David Oxlade: Chief Executive Officer              David Yates/Fiona Noblet
Daniel Abrams: Finance Director
Hilary Reid Evans: Corporate Communications



Notes to Editors


Xenova's product pipeline focuses principally on the therapeutic areas of
cancer, infectious diseases and addiction.  The Group has a well-established
track record in the identification, development and partnering of innovative
products and technologies.  The Group has partnerships with a number of major
pharmaceutical companies including Glaxo SmithKline, Lilly, Pfizer and
Celltech.


For further information about Xenova and its products please visit the Xenova
website at www.xenova.co.uk