Portfolio company Proximagen deal with Lundbeck

RNS Number : 1813P

IP Group PLC

29 September 2011

 



PRESS RELEASE

29 SEPTEMBER 2011

IP Group plc - Portfolio company Proximagen signs partnership with Lundbeck

IP Group plc (LSE: IPO) ("IP Group" or "the Group" or "the Company"), the developer of intellectual property based businesses, is pleased to note that Proximagen Group plc ("Proximagen") has signed a strategic partnership agreement with H. Lundbeck A/S ("Lundbeck"), the international pharmaceutical company and a world leader in treating central nervous system ("CNS") disorders.

Under the terms of the Agreement, Proximagen will issue 5,738,100 new ordinary 1p shares ("New Shares") to Lundbeck at a price of 180p per New Share, representing a premium of 36% over the average daily closing price of Proximagen's shares in the six month period from 29 March 2011 to 28 September 2011.

Prior to the issue of the New Shares, IP Group has an 8.4% beneficial holding in Proximagen, a spin-out company from King's College, London.

The full text of the announcement is copied below.

For more information, please contact:

IP Group	www.ipgroupplc.com
Alan Aubrey, Chief Executive Officer	[phone]
Liz Vaughan-Adams, Communications	[phone]/07979 853802 [e-mail]
Financial Dynamics
Ben Atwell, John Dineen	[phone]

Notes for editors

About IP Group

IP Group is a leading UK intellectual property ("IP") commercialisation company, developing technology innovations primarily from its research intensive partner universities. The Group offers more than traditional venture capital, providing its companies with access to business building expertise, networks, recruitment and business support.

The Company's portfolio comprises holdings in over 60 companies including Oxford Nanopore Technologies, the DNA sequencing development company, Revolymer, best known for its removable chewing gum and Xeros, which has received many accolades for its revolutionary clothes washing techniques with a much reduced requirement for water.

The portfolio includes early stage to mature businesses and has exposure to five main sectors - Energy & Renewables, Medical Equipment & Supplies, Pharma & Biotech, IT & Communications and Chemicals & Materials. To date, thirteen of the portfolio companies IP Group has backed have listed on the AIM market of the London Stock Exchange and one on PLUS Markets.

Founded in 2001, IP Group listed on AIM in October 2003 and moved to the Official List in June 2006. The Group now has long-term partnerships with twelve core universities including those under its commercialisation agreement with Fusion IP plc.

For more information, please visit our website at www.ipgroupplc.com.

H. Lundbeck A/S and Proximagen Group plc
Lundbeck and Proximagen Sign Strategic Partnership Agreement

Lundbeck to make equity investment of £10.3 million in Proximagen at 180 pence per share

Valby, Denmark and London, UK, 29 September 2011- H. Lundbeck A/S ("Lundbeck"), the international pharmaceutical company and a world leader in treating central nervous system ("CNS") disorders and Proximagen Group plc ("Proximagen"), the rapidly growing company also with a focus on the treatment of disorders of the CNS, today announce that they have entered into a Strategic Partnership Agreement (the "Agreement").

The Agreement is designed to formalise a partnership between the two companies, a partnership in which Lundbeck and Proximagen will jointly apply their expertise in CNS drug development towards achieving their collective strategic and growth objectives.

As part of the Agreement, a steering committee involving experts from both companies will focus on developing three of Proximagen's programmes, with the aim of identifying novel innovative therapies for serious diseases such as epilepsy, pain and inflammatory disorders. Lundbeck will also receive certain negotiation rights in relation to these programmes.

Under the terms of the Agreement, Proximagen will issue 5,738,100 new ordinary 1p shares ("New Shares") to Lundbeck at a price of 180p per New Share.  The total consideration paid for the New Shares will be £10,328,580. The subscription price of 180p represents a premium of 36% over the average daily closing price of Proximagen's shares in the six month period from 29 March 2011 to 28 September 2011.

Anders Gersel Pedersen, Lundbeck's Executive Vice President for Research and Development, said: "We are very pleased to be working with Proximagen and its experienced scientific and management team. Proximagen has built an exciting pipeline which offers real promise in treating a number of CNS disorders. This strategic partnership will provide Lundbeck with exposure to some very exciting research programmes."

Proximagen's Chief Executive Officer, Kenneth Mulvany, said: "We are delighted to have Lundbeck, one of the most respected pharmaceutical companies in the CNS field, as a strategic shareholder in Proximagen. Acquiring and developing high quality assets, mitigating risk and building closer relationships with Big Pharma are three of our strategic priorities.  The partnership with Lundbeck validates our strategy and represents a major step forward in realising the value of key compounds in our pipeline. We look forward to working closely with Lundbeck as we each share our expertise to develop therapies for patients."

-Ends-

Enquiries:

Proximagen Group plc	Tel: [phone]
Kenneth Mulvany, Chief Executive Officer
James Hunter, Finance Director
H.Lundbeck A/S	Tel: [phone]
Palle Holm Olesen, Chief Specialist, Investor Relations	[e-mail]
Mads Kronborg, Media Relations Manager	[e-mail]
Singer Capital Markets (Nominated Adviser for Proximagen)	Tel: [phone]
Shaun Dobson / Claes Spång
M:Communications (Media enquiries for Proximagen)	Tel: [phone]
Mary Clark / Peter Laing  / Emma Thompson	[e-mail]

About Proximagen

Proximagen Group plc (AIM:PRX) is focused on the development and commercialisation of novel therapeutics primarily for diseases of the central nervous system. The Company is developing a broad pipeline of drug candidate programmes and has plans for substantial future growth through a strategy of acquisition and consolidation of innovative drug candidate programmes in its core disease areas. Proximagen believes that significant value creation opportunities can arise by building critical mass, reducing the cost base, and focusing resources on a more promising pipeline where tough decisions will be taken to discontinue weak programmes.

Proximagen strives for true scientific innovations that break new ground in treatment. Using this standard as a development benchmark makes things more challenging, but demonstrates the Company's commitment to pursuing only those opportunities that improve upon current therapies in meaningful ways and represent the best chance of generating significant commercial value. For more information, please visit the Company's website at www.proximagen.com.

About Lundbeck

H. Lundbeck A/S (LUN.CO, LUN DC, HLUKY) is an international pharmaceutical company highly committed to improving the quality of life for people suffering from central nervous system (CNS) disorders. For this purpose, Lundbeck is engaged in the research, development, production, marketing and sale of pharmaceuticals across the world. The company's products are targeted at disorders such as depression and anxiety, schizophrenia, insomnia, epilepsy and Huntington's, Alzheimer's and Parkinson's diseases.

Lundbeck was founded in 1915 by Hans Lundbeck in Copenhagen, Denmark. Today Lundbeck employs approximately 5,900 people worldwide. Lundbeck is one of the world's leading pharmaceutical companies working with CNS disorders. In 2010, the company's revenue was DKK 14.8 billion (approximately EUR 2.0 billion or USD 2.6 billion). For more information, please visit www.lundbeck.com.

ENDS

 

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