HERTFORDSHIRE, U.K., April 26, 2004 (PRIMEZONE) -- York Pharma plc "York Pharma" or "the Company"
First day of dealings on the Alternative Investment Market
York Pharma plc ("York Pharma" or "the Company"), a strategic acquirer, developer and marketeer of pharmaceutical products specifically in the field of dermatology, today announces the commencement of dealings of its Ordinary Shares and Warrants on the Alternative Investment Market (AIM) of the London Stock Exchange. Daniel Stewart & Co. is acting as Nominated Adviser and J.M. Finn as Broker to the Company. The stock market EPIC will be YRK.L for the Ordinary Shares and YRKA.L for the Warrants.
Placing Statistics
Issue Price 25p Number of new Ordinary Shares being issued pursuant to the Placing (which incorporates the Offer for 4,000,000 Subscription) Gross proceeds of the Placing and the Offer for Subscription receivable by the Company GBP1,000,000 Proportion of enlarged issued share capital being issued under the Placing (which incorporates the 44.4% Offer for Subscription) Number of Warrants being issued pursuant to the Placing and Offer for Subscription 1,000,000 Number of Ordinary Shares in issue at Admission 9,000,000 Number of Warrants in issue at Admission 4,850,000 Market capitalisation on Admission at the Issue Price GBP2,250,000 Estimated net proceeds of the Placing and the Offer for Subscription to be received by the Company GBP735,000 (including VAT)
The Offer for Subscription of GBP150,000 has attracted high levels of interest resulting in it being oversubscribed.
Reasons for the Admission and Placing and use of proceeds
York Pharma will use the net proceeds to develop further the Company's existing product, AbasolTM, as well as to fund the Company's working capital requirements for at least 12 months.
Terry Sadler, Chief Executive of York Pharma, said: "We are delighted that the flotation of the Company has been completed successfully and with such demand. This listing makes both strategic and commercial sense as we take York Pharma to the next stage of its development. We feel that we are excellently placed to pursue opportunities in Europe, the USA and Asia."
The Offer for Subscription
Under the Offer for Subscription, made to the shareholders and warrantholders of Westside Acquisitions Plc, valid applications were received for a total of 1,967,000 Offer Shares and accordingly applications (other than in respect of the application made by Terry Sadler which has been accepted in whole for 100,000 Offer Shares) have been scaled back on the following basis:
- Applications for less than 40,000 Offer Shares will receive an allocation of approximately 63 per cent. of their application; and
- Applications for 40,000 Offer Shares or more will receive an allocation of 25,000 Offer Shares.
Background Terry Sadler, Chief Executive Officer of York Pharma plc, founded the Group's core business in April 2003, in order to capitalise on market opportunities created by the changing environment within both pharmaceutical markets and the pharmaceutical industry. A number of mergers between major pharmaceutical corporations have resulted in widespread rationalisation in the industry and the adoption of lower risk product development strategies and the divestment of non-core products and product portfolios. This divestment has allowed York Pharma to commence the building of its product portfolio within the dermatological market, which will be the Group's core focus area. York Pharma will market and supply branded prescription products to pharmaceutical wholesalers, hospitals and general practitioners within the area of dermatology.
The Company is set to become a leading provider of high quality prescription products principally in Europe, the USA and Japan. It is also intended that the Company will expand through the development of its own subsidiaries, or by entering into exclusive distribution agreements with established pharmaceutical companies and distributors.
The Market Opportunity
The activities of York Pharma will be focused in the branded prescription pharmaceutical market and particularly within the dermatological sector. The barriers to market entry for prescription products remain substantial. Basic research and development, followed by Phases I, II and III of clinical testing, regulatory approval and price approval are all precursors to the free sale of a prescription pharmaceutical product to the medical profession.
The total prescription market is segmented by both the therapeutic area, and by sub segments within a therapeutic area. The major pharmaceutical companies traditionally operate in the larger therapeutic areas such as cardiovascular, central nervous system and cancer treatments. There are many therapeutic areas and an even greater number of sub segments that hold little attraction for the pharmaceutical majors in view of their smaller size and fragmentation. It is these areas that are attractive to companies such as York Pharma, where significant market share and value can be generated without entering into head to head competition with the pharmaceutical majors.
York Pharma is marketing driven and has been formed to capture late stage or already marketed and approved products in the North American and European arena from a number of sources. These may include the acquisition of non-core products from other pharmaceutical companies and products from specialist developers of dermatological products.
Sales of dermatological products in the developed territories of the world for the 12 months ending October 2003 (as measured by IMS) were US$9.3 billion having grown 10% year on year since October 2002.
Completed Product Acquisitions
The Company's first product is AbasolTM (Abafungin), a patented prescription pharmaceutical product, which is also a new chemical entity. AbasolTM was developed by one of Europe's major chemicals and pharmaceuticals group with a global presence in life sciences.
AbasolTM has benefited from a full and comprehensive research and development programme up to and including Phase III Clinical Studies. Over 3,000 patients have been treated with a topically applied cream formulation of AbasolTM and the results demonstrated levels of activity, in some areas, significantly superior to currently marketed products.
AbasolTM has the ability to treat fungal infections alone or where complicated with yeasts or certain gram-positive bacteria. York Pharma has acquired ownership of the patents and a perpetual licence to the know-how for the Abafungin molecule.
AbasolTM provides York Pharma with a leading edge, novel branded patented pharmaceutical product with which the Company can build its business. With global rights to the AbasolTM product for dermatological use, the Company is in a position to exploit the major pharmaceutical markets in Europe, the USA and Japan. In addition York Pharma will also seek licensees and strategic partners for AbasolTM in those territories where the Company does not envisage having a direct presence.
York Pharma will now proceed to file for marketing authorisations in Europe, USA and Japan. The first regulatory filing in Europe is anticipated in the second half of 2006.
Strategy
York Pharma will sub-contract the manufacture of its products. The Company's current production strategy will be to seek to minimise the production cost of goods manufactured, whilst maintaining product quality. The Company believes that outsourcing the activities of manufacturing and distribution should enable the Company to focus on the core activities of product identification, acquisition, development and commercialisation.
The Board
Geoffrey Simmonds (aged 61) Non-Executive Chairman, is currently Non-Executive Chairman of the Group and is chief executive officer of both Westside and RTI. He qualified as a Chartered Accountant in 1966. He has had extensive involvement and experience in corporate and strategic planning, acquisitions and finance. He holds various other private company directorships and was one of the founder shareholders and directors of United Trust & Credit Plc (now part of Carlisle Holdings Limited), UTC Trading Corporation Plc (subsequently renamed Hemingway Properties Plc) and Chelsea Flowers Plc (now part of Game Group Plc). Geoffrey will remain as Non-Executive Chairman of the Group during its initial development phase.
Terry Sadler (aged 56), CEO, founded York Pharma Limited in April 2003. Prior to founding York, he was Chairman & Chief Executive of Bioglan Pharma plc, a company which he also founded in 1985, floated in 1999, and built into a FTSE 250 multi-national company. He has over 30 years experience in the pharma industry with small, medium and multi-national companies, and has created pharmaceutical operating companies in many of the world's major pharmaceutical markets. Mr Sadler was awarded the accolade of United Kingdom Master Entrepreneur 2000.
Lothar Nau (aged 41), Chief Operating Officer, joined the Group in April 2004. Mr Nau is a German national with sixteen years experience in the pharmaceutical industry. Most recently he was Managing Director of Riemser Arzneimittel AG, responsible for the development of their dermatology and oncology business in Europe. Prior to that he was Managing Director of Bioglan Pharma GmbH, and also spent seven years in charge of the dermatology and dental care business units of Dumex GmbH, a subsidiary of the US Alpharma Group.
Ian Harvey (aged 52) Finance Director, joined the Group in March 2004. Mr Harvey qualified as a Chartered Accountant with Thompson McLintock & Co. in 1973, and went on to become a Partner in BDO Stoy Hayward, where he worked for 17 years. Since leaving BDO, he has chosen to hold a number of Finance Director positions in both private and public companies.
Norman Freedman (aged 65), Non-Executive Director, is a pharmacist who qualified in 1961 and developed a small group of pharmacies, which he sold in 1984. Norman then formed Rexodent Ltd, a company supplying the dental profession with materials, equipment and services. In 1990 Rexodent entered into a joint venture with Henry Schein Inc., the largest US and international dental distributor. Norman was also a council member of the British Dental Trade Association and the British Dental Health Foundation and has also served on a Medicines Control Agency committee.
- Ends - This information is provided by RNS The company news service from the London Stock Exchange