Ahead of its Annual General Meeting to be held at the offices of Buchanan Communications, 45 Moorfields, London EC2Y 9AE on 20 February 2008, Renovo Group plc (LSE: RNVO) today publishes its first Interim Management Statement. This announcement covers the period from 1 October 2007 to 15 February 2008.
Material Events and Transactions
The Company has continued to expend its cash balances progressing its clinical and preclinical development portfolio, in line with management expectations and guidance previously provided to the financial markets, and there have been no material events or transactions affecting the Company that have not already been reported.
Renovo continues to be on track to report trials for Juvista® in both scar revision and breast augmentation surgery in the first half of 2008. As previously stated, Phase 3 trials for Juvista in the European Union are expected to start in the second half of 2008.
Financial Position and Performance
The combination of cash and cash equivalents with term deposits maturing within one year as at 31 December 2007 was £93.8m, compared to the £100.7m previously reported as at 30 September 2007. The difference of £6.9m primarily reflects the cash invested in operations, in particular the continued development of the Company’s drug portfolio. Based on its cash position, management believes Renovo is appropriately funded for continuing ongoing operations.
For further information please contact:
Renovo Group plc Professor Mark Ferguson, Chief Executive Officer +44 (0) 161 606 7222 Simon Bielecki, Head of Communications +44 (0) 161 606 7328
Renovo is a biopharmaceutical product company and is the world leader in scar reduction research and the development of drugs to reduce scarring.
Renovo has a portfolio of drugs which exploit different novel mechanisms of action to reduce scarring at multiple body sites and to accelerate healing. Juvista, Renovo’s lead drug for the reduction of scarring in the skin has been safely administered to over 1,500 human subjects and has reported statistical and clinical significance in six Phase 2 efficacy trials.
Renovo announced in June 2007 that it had signed an exclusive licensing agreement with Shire plc to develop and commercialise Juvista. The agreement covers every country in the world except the European Union, the rights to which have been retained by Renovo. Under the terms of the deal Renovo has already received an initial payment of US$125 million. Contingent on the successful development and commercialisation of Juvista Renovo will be eligible for further payments of up to $700 million together with escalating royalties on sales
Zesteem®, Renovo’s lead drug for the acceleration of wound healing in the skin, commenced Phase 3 clinical trials in December 2006. Prevascar™ reported statistically significant Phase 2 efficacy data for the prevention and reduction of scarring in the skin in April 2007 and is additionally being investigated for enhancing regeneration of peripheral nerves following injury or trauma.
According to external research, the potential commercial market for prevention and reduction of scarring in the skin is worth, in the order of, $4 billion per annum in the US alone.