Novocellus Update

RNS Number : 2008W

Angle PLC

26 January 2012

 



For immediate release

26 January 2012

ANGLE plc ("ANGLE" or "the Company")

Novocellus Update

TRIALS OF EMBRYOSURE^® IMMINENT

ANGLE plc (AIM:AGL) is delighted to announce that trials for Novocellus' product EmbryoSure^® for IVF embryo viability, will commence shortly. Key highlights are as follows:

·     New improved development terms agreed between Novocellus and ORIGIO

·     ANGLE's holding in Novocellus increased to 92%

·     Trials with EmbryoSure^® to commence shortly

·     ORIGIO targeted to launch EmbryoSure^® by mid-year 2014

Novocellus, has a partnership with ORIGIO, a leading supplier of specialised IVF products. ORIGIO is responsible for managing and funding the final trials for Novocellus' EmbryoSure^® and also has the right to license the EmbryoSure^® IP in exchange for milestone payments and a royalty on future net sales. 

ANGLE previously announced on 16 November 2011 that it was holding discussions with ORIGIO to review options for progressing the trials. 

There are two elements to the trials.  Firstly, "retrospective" trials where the benefit of EmbryoSure^® is assessed by considering what would have happened to the pregnancy success rate had EmbryoSure^® been deployed.  Secondly, "prospective" trials where EmbryoSure^® is used to select embryos for transfer and the effect on pregnancy success rate is measured.

Recognising that the costs of the trials are higher than previously anticipated, ANGLE has now agreed with ORIGIO that it will contribute to the costs of the retrospective study and development of the analysis module. Assuming the retrospective study is successful, ANGLE's contribution will be limited to a maximum of £175,000.  Whereas, in the event that it is unsuccessful, ANGLE's contribution will be up to £0.5 million at current exchange rates.

The revised terms have been agreed on the following basis:

(1) The retrospective study is initiated immediately and conducted expeditiously with a target completion in mid-year 2013; 

(2) European regulatory approval CE marking of the culture medium and preparation of the analysis module will be initiated as soon as positive retrospective study interim results are obtained;

(3) As soon as positive results are obtained from the full retrospective study, CE marking of the culture medium is complete and an analysis module is ready, ORIGIO will launch EmbryoSure^® in the UK market, currently estimated to be mid-year 2014; and

(4) The terms relating to milestone payments of up to £4.5 million and royalty payments of up to 25% of net sales of EmbryoSure^® remain unchanged.  However the period for the royalty payments has been extended for an additional 12 months beyond the life of the patents.

Arrangements for the prospective study have been agreed in principle and will be confirmed after the retrospective study is completed. 

ANGLE believes that the new arrangements are to the benefit of all parties.  By sharing the risk, ANGLE has been able to kick start the trials process and accelerate the timescales.  ANGLE remains confident of the potential for EmbryoSure^® to make a major impact in the IVF market and believes ORIGIO is a strong partner which will strengthen access to the market once the trials work is completed successfully. 

ANGLE has converted an outstanding loan from ANGLE to Novocellus increasing its holding in Novocellus to 92% and, as announced today, raised additional funding to enable it to support Novocellus.  See separate release. 

ANGLE Founder and Chief Executive, Andrew Newland, commented:

"We are delighted that the EmbryoSure^® trials are now progressing without delay and continue to believe that EmbryoSure^® has the potential to make a major impact in the IVF market."

For further information:

ANGLE plc	01483 685830
Andrew Newland, Chief Executive Ian Griffiths, Finance Director
Cenkos Securities Stephen Keys, Adrian Hargrave (Nominated adviser) Andy Roberts (Sales)	020 7397 8900
Buchanan Lisa Baderoon, Mark Court, Sophie Cowles	020 7466 5000
Scott Harris Stephen Scott, Harry Dee	0207 653 0030

 

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