Statement re Russian Business Operations

RNS Number : 8349D

Ovoca Bio PLC

07 March 2022

 

Ovoca Bio plc

("Ovoca" or the "Company")

Statement regarding Russian business operations

Dublin, Ireland, 7 March, 2022 - The Board of Ovoca Bio, an international biopharmaceutical company focusing on women's health, today issues a statement in response to events in Ukraine and Russia.

Ovoca is an Irish incorporated and headquartered company, whose shares are admitted to trading on the AIM Market of the London Stock Exchange and Euronext Growth Dublin. Ovoca has a truly international team and operations, with a presence in Ireland, the UK, Australia and Russia. Ovoca has no operations or activities in Ukraine.

Over 90% of Ovoca's 2021 cashflow is international and originated outside of Russia. In 2021, 60% of the Company's operating cash flow fell under subsidiaries in Australia and Ireland - these entities are not exposed to Russia and are not materially affected by current events.

OVB (Ireland) Ltd, an Irish subsidiary of Ovoca, holds the rights to all international Intellectual Property outside of Russia.

The Ovoca Bio group of companies has two subsidiaries registered in Russia:

· IVIX LLC, a subsidiary of Ovoca, which holds Russian Marketing Authorization and patents for Orenetide (BP-101) in the Russian market. IVIX LLC was accountable for only 10% of the total Ovoca operating cash flow in 2021. The IVIX R&D office is operating as usual.

· Comtrans LLC, a dormant Ovoca subsidiary, with no operations or assets.

Neither of the Ovoca subsidiaries registered in Russia are state or government-funded and are not currently subject to EU/US/International sanctions or restrictions. The Company confirms that no member of the Board, management or its substantial shareholders are on the list of sanctioned individuals.

Ovoca's current strong cash position with over US$ 9.5 million (in cash and cash equivalents)  is held in UK, Irish and Australian banks, and supports the Company in pursuing its ongoing and planned R&D activities throughout 2022. Ovoca also has a holding of 125,000 shares in Polymetal International PLC ("Polymetal"), a Jersey registered company, headquartered in Cyprus and quoted on the London Stock Exchange.

The Board of Ovoca is concerned about the situation in Ukraine and Russia and the tragic consequences unfolding there and is hopeful for a peaceful resolution as soon as possible. The Board is closely monitoring the situation and its impact on Ovoca and will provide a timely update should any additional risks to the business be identified.

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For further information:

Ovoca Bio plc

Kirill Golovanov (Chief Executive)

Tel [phone]

[e-mail]

Davy (Nominated Adviser, Euronext Growth Advisor and Broker)

John Frain / Daragh O'Reilly

Tel: [phone]

Consilium Strategic Communications

Chris Gardner, Chris Welsh

[e-mail]

Tel: [phone]

About Ovoca Bio

Ovoca Bio is a European-based biopharmaceutical company with a focus on women's health. The Company is currently developing a novel treatment for women with hypoactive sexual desire disorder (HSDD), a condition characterized by a distressing lack or loss of sexual desire affecting an estimated ~4 million premenopausal women in the US alone.

The Company's lead product, Orenetide (BP-101), a novel synthetic peptide administered through a nasal spray, is clinically validated, with Phase II and Phase III studies conducted in Russia demonstrating statistically significant improvement in a number of key efficacy outcomes, including an increase in female sexual desire and reduction of symptoms of distress associated with HSDD.

Ovoca Bio has been granted marketing approval in the Russian Federation and is seeking to develop the drug for major global markets - in particular the United States and Europe.

 

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