10 May 2012
Angel Biotechnology Holdings plc
("Angel" or "the Group")
Acquisition of assets of biomaterial manufacturing business
Launch of Angel Biomedical Limited
Angel Biotechnology Holdings plc, (AIM:ABH), the biopharmaceutical contract manufacturer, is pleased to announce with immediate effect the acquisition of the assets of an established biomaterial and collagen manufacturing business, through its newly formed and wholly owned subsidiary, Angel Biomedical Ltd (ABL) (www.angelbiomedical.com).
ABL has been formed to enable the Group to become an active service provider and manufacturer of collagen products in the medical device, in-vitro diagnostic and regenerative medicine markets. The formation of this subsidiary also heralds a significant expansion of Angel's capabilities by supplying specialised high value products and services that will allow access to new clients, whilst synergising with Angel's existing GMP bio-manufacturing business.
The assets of the business have been acquired under favourable terms for a total cash consideration of £200,000. ABL will take ownership of the manufacturing plant, equipment and raw material stock based in premises in Glasgow. This, as well as a separate five year property lease on the premises which has also been negotiated on advantageous terms and working capital for the new business, has been made possible via a capital investment in ABL by Angel, financed using part of the proceeds from the Placing announced on 19th March 2012 and approved at the EGM on 13th April 2012.
The facility is 6,500 square feet and comprises one large Grade C clean room, two smaller grade B rooms, with laboratory and office suite. The facility will be staffed immediately by two senior scientists and will draw on Angel's resources for technical support, Quality Assurance / Quality Control, logistics and administrative support. The facility will operate under an ISO 13485 Quality System.
The facility has historically been used for the production of collagen, which has been the implantable biomaterial of choice for several decades due to its conserved structure across species and its physiologically resorbable nature. Collagen also has the flexibility to enable a range of product formulations and scaffolds for tissue engineering.
This significant precedence of use, coupled with the immaculate provenance of the business' raw material supply, critical to the manufacture of highly purified GMP medical grade collagen, will provide ABL with a significant competitive advantage to supply collagen, as well as extended services, such as product development, manufacture of collagen-based tissue scaffolds and the production of cell/scaffold products.
These activities will be complementary to Angel's existing core business in advanced biologics which will provide a major development engine and source of GMP cells and proteins for its advanced biologics products. ABL, coupled with Angel's expertise and knowledge of the stem cell market, will also seek to identify opportunities to develop its own products.
The opportunities within ABL's target market can be quicker to realise than Angel's core business and it is therefore anticipated that ABL will make a positive contribution to the Group's earnings within the short to medium term. Angel is nearing the end of negotiations with a sizeable customer on a long term supply contract for materials supplied directly from ABL. The Group anticipates other contracts will follow and is already in discussions with a number of companies who recognise the potential in ABL's extended value offering and looks forward to communicating these in due course.
Dr Paul Harper, Executive Chairman, Angel Biotechnology Holdings, said:
"The formation of ABL provides significant strategic advantages to the Group, and the distinctive competencies offered will provide a one-stop shop for companies in the regenerative medicine space. Angel will now have the capability to develop a new customer base with new products in sectors well understood by our business. ABL will also provide access to a range of new markets by offering customers the means by which to convert advanced biologics and cell therapies currently being manufactured by Angel into formulated, finished products such as medical devices and in vitro diagnostics.
The Group is strategically in a stronger position to respond to global demand in patient-defined personalised medicine, and also the commercial need by companies to expedite such products to market, allowing Angel to play its part in a robust regenerative medicine sector".
For further information:
Angel Biotechnology Holdings plc
Stewart White, Commercial Director, Acting CEO www.angelbio.com
Lorna Peers, Finance Director +44 (0) 131 445 6077
Grant Thornton, Corporate Finance
Colin Aaronson / Melanie Frean / Elliot Berg +44 (0) 20 7383 5100
Hybridan LLP (Broker)
Claire Noyce, Deepak Reddy +44 (0) 20 7947 4350
The Communications Portfolio Ltd
Ariane Comstive / Caolan Mahon +44 (0) 20 7536 2028 / 2029
Notes to Editors:
Angel Biotechnology Holdings plc is a full service contract bio-manufacturing partner to biotechnology and pharmaceutical companies worldwide. Angel specialises in advanced biologics including biopharmaceutical proteins and cell therapies, such as cellular vaccines and stem cells. At present, Angel's products are principally used in pre-clinical studies and clinical trials with a view to becoming the contract manufacturer of choice on a continuing basis.
Drug development companies outsource their biopharmaceutical manufacturing requirements to Angel to reduce their own capital requirements and enable them to develop products more rapidly. In addition, Angel provides complete regulatory services and documentation to its customers while its manufacturing processes adhere to the most stringent regulatory requirements. Products are produced to current Good Manufacturing Practice (cGMP) standards as required by the US Food and Drug Administration (FDA), and in facilities that are certified to European standards by the Medicines and Healthcare products Regulatory Agency (MHRA).
Its customers range from early-stage biotechnology companies including ReNeuron plc and US-based Pathfinder Cell Therapy, to established pharmaceutical companies such as Russian-based Materia Medica Holdings.
The Angel Group has three facilities: Pentlands Science Park near Edinburgh where it employs 38 people, Cramlington, near Newcastle-upon-Tyne, which is expected to employ up to 10 people by the end of 2012 and the newly announced facility in Glasgow.
More information is available at www.angelbio.com .
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Angel's MHRA licensed facilities are located at Pentlands Science Park on the outskirts of Edinburgh.