Completion of collaboration with Novartis
17 September 2004
Vernalis plc (LSE:VER, Nasdaq: VNLS) today announces that, all conditions now being satisfied, the worldwide license agreement with Novartis on Hsp90, Vernalis' lead oncology research programme, which was announced on 9 August 2004 was executed on 16 September 2004. Under the agreement, the companies will conduct a joint research programme under which Novartis will provide research funding to Vernalis over an initial three-year period. In addition, Novartis is responsible for funding and conducting the preclinical and clinical development of product candidates, and for commercialisation.
In addition to the execution of the license, Novartis is making an equity investment of approximately £5 million ($9 million) through the subscription for new Vernalis ordinary shares. Consequently, application has been made to the UK Listing Authority and the London Stock Exchange for 7,106,344 new Vernalis ordinary shares to be admitted to the Official List and to be admitted to trading on the London Stock Exchange's market for listed securities. It is expected that admission of the new ordinary shares will become effective on 22 September 2004. The new ordinary shares will rank pari passu with the existing ordinary shares.
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Enquiries:
Vernalis plc
Simon Sturge, Chief Executive
Officer
Tony Weir, Chief Financial Officer
+44 (0)118 977 3133
Brunswick Group (for analyst, financial media
enquiries)
Jon Coles; Wendel Carson
+44 (0)20 7404 5959
