Oxford BioMedica, specialist in the research
and development of novel gene-based therapeutics, today announces
that it is to raise £3.56 million (before expenses) by way
of a Rights Issue.
The Rights Issue, which has been fully underwritten
by Beeson Gregory, will provide further funds for the continued
development of the Group's candidate products and allow Oxford
BioMedica to continue its first clinical trail programme which
commenced in December 1998. The funds will also enable the
Group to take advantage of new commercial and technical opportunities
and to strengthen further its product pipeline.
Details of the Rights Issue
The Company will offer 23,707,169 New Ordinary Shares
to Qualifying Shareholders at 15p per Ordinary Share. The
Rights Issue will be made on the basis of 1 New Ordinary Share
for every 5 Existing Ordinary Shares held by Qualifying Shareholders
at the close of business on 19 February 1999 and so in proportion
for any greater number of Existing Ordinary Shares held.
Certain of the Directors have undertaken
to take up, or procure the take up of, in aggregate a total
of 203,416 New Ordinary Shares (representing 0.9 per cent.
of the New Ordinary Shares). Prelude Trust plc has undertaken
to take up in aggregate a total of 2,266,667 New Ordinary
Shares (representing 9.6 per cent. of the New Ordinary Shares).
The remainder of the Director's and Prelude Trust plc's entitlements
under the Rights Issue together with those of Sir Brian Richards
and The Chancellor, Master and Scholars of the University
of Oxford, totalling in aggregate 9,429,867 New Ordinary Shares
(representing 39.8 per cent. of the New Ordinary Shares) have
been placed by Beeson Gregory with institutional and other
investors.
In addition, Beeson Gregory has received
indications from certain existing institutional shareholders
that they intend to take up in aggregate a total of 3,981,594
New Ordinary Shares (representing 16.8 per cent. of the New
Ordinary Shares).
Recent developments and current trading
The Company's commercial strategy is to develop its therapeutic
candidate products and take them through their initial stages
of clinical testing. The candidate products are expected to
be licensed to suitable business partners, who will then complete
the later phases of clinical trails, and ultimately manufacture
and market the products. The Company also intends to exploit
commercial opportunities arising from its platform technologies
and product components with appropriate business partners.
In January 1998 Oxford BioMedica signed an
agreement to undertake a collaborative research feasibility
study with Rhône-Poulenc Rorer (RPR) in a functional genomics
programme. RPR has recently indicated that it wishes to expand
this research feasibility programme on terms to be agreed.
In December 1998 Oxford BioMedica signed a
collaboration and license agreement with RPR. The total amount
of research funding, milestone payments and equity subscriptions
that could be received by Oxford BioMedica in connection with
this collaboration is approximately US$18 million. Oxford
BioMedica has also agreed to develop screens for small molecule
therapeutics for RPR. Further milestone payments may be received
for this work.
Strategy
Whilst continuing the research, preclinical and clinical development
of its product pipeline the Company is continuing discussions
with a number of other companies with a view to establishing
further collaborations in due course. The collaboration with
RPR represents only a small fraction of the Company's technology
available for commercialisation. For example, the Company
is in discussion with four potential partners in connection
with its TroVaXT tumour vaccine product.
It should be recognised that the Company will
require to raise further funds in due course and the Board
considers that such fundraising could be carried out on a
larger more sophisticated stockmarket such as the Official
List of the London Stock Exchange or EASDAQ.
Professor Alan Kingsman, Chief Executive of
Oxford BioMedica commented "I have been delighted by the progress
made by the Company since flotation on the Alternative Investment
Market of the London Stock Exchange in December 1996 and the
continuing support of its shareholders. The proceeds of this
Rights Issue will strengthen the Company's balance sheet and
allow us to build on the considerable achievements to date."
