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Xenova Group PLC (XEN)

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Wednesday 15 January, 2003

Xenova Group PLC

ImmuLogic Interests

Xenova Group PLC
15 January 2003


                                Xenova Group plc

                          Addiction Treatment Vaccines
                 Xenova Buyout of Residual ImmuLogic Interests


Slough, UK, January 15, 2003  -  Xenova Group plc (NASDAQ NM: XNVA; London Stock
Exchange: XEN) today announces that it has reached an agreement with ImmuLogic
Pharmaceutical Corporation Liquidating Trust ('ImmuLogic') under which Xenova
will buy out all remaining ImmuLogic rights to future milestone and royalty
payments relating to two of Xenova's development stage vaccine programmes, TA-CD
and TA-NIC.

Under the terms of the agreement announced today, ImmuLogic will receive US$1m
from Xenova in return for ImmuLogic's rights to all future payments relating to
the two vaccine programmes.  Mutual releases from claims, proceedings and any
other liabilities were also exchanged.

Under a 1998 Purchase Agreement, Cantab Pharmaceuticals plc (which merged with
Xenova in 2001) undertook to pay ImmuLogic certain milestone payments relating
to the TA-CD and TA-NIC programmes, payable at the end of each clinical
development phase and valued at up to $11m, plus royalties.

ImmuLogic began voluntary liquidation proceedings in August 1999 and is now
expected to complete its liquidation following a final cash distribution to its
former shareholders.

In order to fund the buyout of ImmuLogic's interests, Xenova has raised £680,000
before expenses through the placing for cash of 1,766,235 new ordinary shares of
10 pence each.  The new shares, which represent approximately 1.02 per cent of
the Company's issued share capital prior to the placing, have been placed by
Nomura International plc at a price of 38.5 pence per share.  The placing
represents a discount of approximately 9.9 per cent to the closing middle market
price on the London Stock Exchange on 14 January 2003.

Application will be made today for the 1,766,235 new shares to be admitted to
the Official List and to trading on the London Stock Exchange, with admission
expected to become effective on 20 January 2003.  When issued, the new shares
will rank pari passu in all respects with the Company's existing ordinary
shares.

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

'We are delighted with this agreement, which releases Xenova from large
potential payment obligations and consequently increases our commercial
flexibility in relation to both TA-CD and TA-NIC.  Both programmes have a large
commercial potential and are designed to assist the significant number of people
worldwide who find it difficult to overcome their addiction.'


                                    - ends -


Contacts:
UK:                                                 US:
Xenova Group plc                                    Trout Group/BMC Communications
Tel: +44 (0)1753 706600                             Tel: 001 212 477 9007
David A Oxlade, Chief Executive Officer             Press: Brad Miles (Ext 17) Lauren Tortorete (Ext 20)
Daniel Abrams, Group Finance Director               Investors: Jonathan Fassberg (Ext 16) Lee Stern (Ext 22)
Hilary Reid Evans, Corporate Communications

Financial Dynamics
Tel: +44 (0)207 831 3113
David Yates/Ben Atwell


Notes to Editors

Xenova Group plc's product pipeline focuses principally on the therapeutic areas
of cancer and immune system disorders.  Xenova has a broad pipeline of
programmes in clinical development.  The Group has a well-established track
record in the identification, development and partnering of innovative products
and technologies and has partnerships with significant pharmaceutical companies
including Lilly, Pfizer, Celltech, Genentech, QLT and Millennium
Pharmaceuticals.

TA-NIC, an anti-nicotine vaccine designed to assist in giving up smoking,
successfully completed a Phase I trial in mid-2002.  This was the first
evaluation of an anti-nicotine vaccine in man.  It is anticipated that TA-NIC
will enter a further Phase I trial in mid 2003.

A Phase IIa dose escalation study is currently underway for TA-CD, an
anti-cocaine vaccine.  This study is designed to evaluate the safety and
immunogenicity of a four or five dose vaccination schedule and the results are
expected in the second half of 2003.  A further Phase II 'cocaine
administration' study is expected to begin in early 2003.

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


For Xenova: Disclaimer to take advantage of the 'Safe Harbor' provisions of the
US Private Securities Litigation Reform Act of 1995. This press release contains
'forward-looking statements,' including statements about the discovery,
development and commercialisation of products. Various risks may cause Xenova's
actual results to differ materially from those expressed or implied by the
forward looking statements, including: adverse results in our drug discovery and
clinical development programs; failure to obtain patent protection for our
discoveries; commercial limitations imposed by patents owned or controlled by
third parties; our dependence upon strategic alliance partners to develop and
commercialise products and services; difficulties or delays in obtaining
regulatory approvals to market products and services resulting from our
development efforts; the requirement for substantial funding to conduct research
and development and to expand commercialisation activities; and product
initiatives by competitors.  For a further list and description of the risks and
uncertainties we face, see the reports we have filed with the Securities and
Exchange Commission.  We disclaim any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.


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