Chiroscience to Regain License for Chirocaine From Zeneca
LONDON (March 1) BUSINESS WIRE -March 1, 1999--Chiroscience Group plc today announced that Zeneca Group PLC has reached agreement in principle with Chiroscience for a mutually acceptable solution to the issues arising from the license agreement with Zeneca regarding Chirocaine, as a consequence of Zeneca's proposed merger with Astra AB. In March 1998, Zeneca secured a license from Chiroscience for Chirocaine in all markets, excluding Japan where the product is licensed to Maruishi. The principles of the agreement with Zeneca will ensure the ongoing commercialization of Chirocaine.
Arrangements by which Chiroscience will take back all its rights to Chirocaine are being made as a direct result of an undertaking given by Zeneca to the EU competition authorities who wish to ensure that effective competition will be maintained in Europe in the area of long-acting local anesthetics. The European Commission has approved the terms of the undertaking. The US competition authorities are reviewing the proposals for the return of the license, which includes the appointment of a Trustee (which the European Commission also requires) to monitor the commitments made by Zeneca, with a similar objective to maintain competition in the United States market.
Chiroscience and Zeneca have already agreed that Chiroscience may hold early negotiations with prospective new partners. These discussions may use commercial information and promotional material created by Zeneca. Further details of the current arrangements include: -- Continuing in full for a transitional period, the planned support
by Zeneca, which they will fund, to enable Chirocaine's continued development and commercialization. -- Ensuring that no confidential information relating to Chirocaine
can or will be disclosed or used by AstraZeneca. -- Extending the earliest date when Zeneca would be able to sell the
shares in Chiroscience they acquired in March 1998.
The final terms of the agreement with Zeneca will be disclosed when the Federal Trade Commission gives final US clearance.
The license agreement for Japan between Chiroscience and Maruishi is unaffected by these developments.
Dr. John Padfield, Chief Executive of Chiroscience Group plc, commented: "The period since Zeneca announced its intention of merging with Astra has created uncertainty regarding the commercialization of Chirocaine. The anesthesia community has been looking forward to the introduction of Chirocaine and the competition authorities in the US and EU have been very keen to ensure that Chirocaine has every opportunity to succeed in the marketplace.
The EU clearance of the merger between Astra and Zeneca announced today is an important step in Chiroscience regaining the full rights to commercialize Chirocaine, while ensuring that its competitive position is not adversely affected by the merger. Zeneca's ongoing support will maintain the excellent progress made to date, including regulatory approval in Sweden announced in December 1998 and the receipt of an approvable letter from the FDA, announced today.
Discussions with potential new partners have been underway for some time. FDA review of the proposed final printed labeling is at an advanced stage, which enables us to take into account the views of potential partners before the FDA approval process is concluded."
This document is intended to provide information on Chiroscience to interested members of the public and not to provide product information to health professionals.
Chiroscience Group plc
Chiroscience is an emerging pharmaceutical company which uses its diverse technology platform to discover, develop and bring to market novel medicines for improved healthcare. It has three businesses: Chiroscience R&D, Rapigene and ChiroTech.
Chiroscience R&D's focus is on innovative small molecule drugs and related diagnostics in the therapeutic areas of inflammatory disease, pain, osteoporosis, cancer and autoimmune diseases. Its technology platform allows the conception and development of receptor-based and enzyme-inhibiting small molecule drugs with high selectivity of action. Rapigene is involved in the creation and provision of genomic technologies and services to partner companies and to Chiroscience's drug discovery programs. Its DNA analysis systems comprise of DNA hybridization, DNA arrays and mass spectrometry tags. ChiroTech provides chiral technology services to pharmaceutical and related industries, including Chiroscience R&D.
Chiroscience financial highlights for the six months to August 31, 1998 (unaudited): -- Revenues increased to(pound)11.4 million (H1 1997:(pound)9.2
million); net loss for the period(pound)11.4 million (H1 1997:(pound)14.4 million) -- ChiroTech contributed sales of(pound)6.8 million (H1
1997:(pound)5.9 million); Chiroscience's drug discovery business contributed revenues of(pound)4.5 million (H1 1997: (pound)3.3
million). -- Investment in research and development of (pound)13.5 million (1H
1997: (pound)19.0 million). -- Current cash reserves of (pound)59 million as at September 24,
1998.
Chiroscience Group plc is listed on the London Stock Exchange and is based in Cambridge and Stevenage, UK, and Seattle, Washington, USA. Additional information on Chiroscience can be accessed on the company's home page: http://www.chiroscience.com.
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CONTACT: Chiroscience Group plc, London
Dr. John Padfield, Chief Executive
Christine Soden, Finance Director
44-1223-420-430
- or -
Taylor Rafferty Associates, New York
James P. Prout
212-889-4350
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