Consort Medical PLC Voke® (DEV200) update (1264T)

TIDMCSRT

RNS Number : 1264T

Consort Medical PLC

03 January 2017

Consort Medical plc

03 January 2017

Voke(R) (DEV200) update

Consort Medical plc ("Consort Medical") (LSE: CSRT) today announces that Nicovations Limited ("Nicovations"), a wholly-owned subsidiary of British American Tobacco plc ("BAT"), has served termination notices for all Supply Agreements with Bespak Europe Limited ("Bespak"), a Consort Medical subsidiary, for Voke(R). Termination is effective immediately.

-- Nicovations has terminated all supply agreements with Bespak for Voke, an MHRA approved nicotine inhaler for harm reduction in smoking

-- Bespak remains in a constructive dialogue with Kind Consumer and Nicovations over the future of the Voke programme

-- Voke is one of 16 programmes in Bespak's growing development pipeline and Consort Medical's Board at this time does not believe that the Termination materially impacts their expectations for the Group's underlying trading performance for the current financial year

Nicovations has terminated the Supply Agreements on the basis of lack of commercial launch of Voke before 31 December 2016, which is a termination right provided for in the Supply Agreements that Nicovation has chosen to invoke.

Voke, one of 16 programmes in Bespak's development pipeline, was designed by Kind Consumer, a developer of innovative, medically-authorised products, for licensing into consumer and pharmaceutical markets. The distribution rights to the product were licensed by Kind Consumer to Nicovations and, in relation to this licence agreement, in 2011 Nicovations also entered into separate Supply Agreements with Bespak. The agreements cover the build, manufacturing and supply of the filled Voke devices and associated valves.

Bespak remains in a constructive dialogue with Kind Consumer and Nicovations over the future supply of the Voke nicotine inhaler which addresses a fast growing multi-billion dollar market.

With a robust financial position and a strong development pipeline, the board of directors of Consort Medical at this time does not believe that the termination of the Supply Agreements materially impacts their expectations for Consort Medical Group's underlying trading performance for the current financial year ending 30 April 2017.

Jonathan Glenn, Chief Executive Officer of Consort Medical, commented:

"Our recent interim financial results highlighted the underlying strength in Bespak and Aesica and the momentum emanating from the growing and diverse pipeline portfolio of significant development programmes. Therefore, while we are naturally disappointed in the loss of the Supply Agreements for Voke to Nicovations, we continue our dialogue with Kind Consumer and with Nicovations on the future of the programme and we remain highly confident in the robustness of the remainder of our business and our prospects for the future".

- Ends -

Enquiries:

 
 Consort Medical                    Tel: [phone] 
 Jonathan Glenn - Chief Executive 
  Officer 
 
 FTI Consulting                     Tel: [phone] 
 Ben Atwell / Simon Conway 
 

Notes:

Market Abuse Regulations (MAR)

This announcement contains inside information.

About Consort Medical

Consort Medical plc is a leading, global, single source drug and delivery device company (CDMO). We are at the leading edge of innovation and we are committed to investing in patient, clinician and customer driven innovation to create new treatments, new markets and new opportunities.

Our businesses

Bespak is a global market leader in the manufacture of drug delivery devices for pharmaceutical partner companies, including respiratory, nasal, and injectable products, and the manufacture of devices for the point of care diagnostics market. www.bespak.com.

Aesica is a leading provider of finished dose and active pharmaceutical ingredient (API) development and manufacturing services to pharmaceutical partners. www.aesica-pharma.com.

We employ more than 2000 people globally of which 1400 are located in the UK. We have UK facilities in King's Lynn, Cambridge, Nelson, Milton Keynes, Cramlington, Queenborough and Hemel Hempstead, German facilities in Monheim and Zwickau and a facility in Pianezza, Italy. Consort Medical is a public company quoted on the premium list of the London Stock Exchange (LSE: CSRT). www.consortmedical.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCBTMBTMBIMTTR

(END) Dow Jones Newswires

January 03, 2017 02:00 ET (07:00 GMT)