Collaboration Agreement and Financial Position

 

TIDMPYN 
 
RNS Number : 0422N 
Phynova Group PLC 
10 February 2009 
 
10 February 2009 
 
 
Phynova Group plc 
("Phynova" or the "Company") 
 
 
Collaboration agreement and update of the Company's financial position 
 
 
Phynova (AIM: PYN), the developer of prescription pharmaceuticals derived from 
plants used in Chinese medicines, today announces that it has entered into a 
Commercial Collaboration Framework Agreement with Tasly Modern Chinese Medicine 
Resource Ltd ("Tasly MCMR"), a subsidiary of Tasly Group of Tianjin, China 
("Tasly Group"). 
 
 
Under the agreement Phynova and Tasly MCMR will collaborate in the following 
areas: 
 
 
  *  Technology development, including new product development and new technologies 
  for the processing and manufacture of botanical products; 
 
  *  Tasly MCMR becomes Phynova's preferred partner for the manufacture of its 
  pipeline of drug candidates on a commercial scale; and 
 
  *  Phynova is able introduce Tasly MCMR to potential clients in western economies 
  interested in using Tasly MCMR's contract manufacturing services in return for a 
  commission or share of the profits from sales. 
 
 
 
Tasly Pharma is one of the world's largest producers of botanical drugs with 
sales totalling GBP500 million in China and 16 countries around the world, 
including one of China's best selling pharmaceutical drug, Fufang Danshen Di Wan 
a plant-derived drug for the treatment of cardiovascular disease. Through Tasly 
MCMR, Tasly Pharma has a state of the art manufacturing plant for botanical 
drugs located in Tianjin that has been audited by Australia's Therapeutic Goods 
Agency. 
 
 
Robert Miller, CEO of Phynova China, commented: 
"We are very pleased to be entering this strategic partnership with Tasly MCMR, 
which has extensive research and development experience, know-how and expertise 
in the development and manufacturing of botanical drugs. As Phynova moves closer 
to the commercialisation of its pipeline candidates, Tasly MCMR is an ideal 
partner to work with Phynova on the potential supply and manufacturing of its 
drugs to licensing partners around the world". 
 
 
In addition, Phynova today announces that it is trading in line with 
management's expectations. As announced on 29 December 2008 the Company will 
shortly be seeking to raise additional funds to allow it to continue trading 
through 2009 and an announcement concerning that fundraising will be made in due 
course. The Company has recently received a UK research and development tax 
credit of GBP189,000. 
 
 
Should Phynova be unsuccessful in raising these funds, this is likely to have a 
material adverse effect on the Company's operations and it would be obliged to 
seek alternative financing solutions and/or significantly scale back these 
operations. 
 
 
For further information, please contact: 
 
 
+------------------------------------------------------+-------------------------+ 
| Phynova Group plc                                    |       Tel: [phone] | 
| John Pool (Executive Chairman)                       |                         | 
| Tony Mills (CEO Phynova Limited)                     |                         | 
| Robert Miller (CEO Phynova China Limited)            |                         | 
|                                                      |                         | 
+------------------------------------------------------+-------------------------+ 
| John East & Partners Limited                         |      Tel: [phone] | 
| Simon Clements                                       |                         | 
|                                                      |                         | 
+------------------------------------------------------+-------------------------+ 
| Capital MS&L                                         |     Tel: [phone] | 
| Mary Clark/Anna Mitchell                             |                         | 
|                                                      |                         | 
+------------------------------------------------------+-------------------------+ 
 
 
Notes to editors: 
 
 
Tasly Group 
 
 
Tasly Group is one of China's leading pharmaceutical manufacturers. Founded in 
1994 it is based in Tianjin and manufactures modern botanical drugs derived from 
traditional Chinese medicine, synthetic drugs, biological drugs and functional 
foods. Tasly Group is one of China's three largest pharmaceutical distributors 
and one of its subsidiary companies, Tasly Pharmaceutical Co. Ltd. is listed on 
China's Shanghai Stock Exchange with a market cap of $1 billion. In 2007 it 
signed a joint venture agreement with the UK's Cooperative Group to create 
Tianjin Tasly Sants Pharmaceutical Company Ltd, which will manufacture generic 
drugs in China for the Cooperative's 800 pharmacies here in the UK. A state-of 
-the-art GBP20 million production facility in Tianjin meeting UK environmental 
standards is currently under construction and will begin production in 2010. 
 
 
About Phynova 
 
 
Phynova (AIM: PYN) is a UK company developing new prescription pharmaceuticals 
derived from plants used in Chinese medicines. The Company is focused on viral 
and bacterial diseases, metabolic diseases and cancer. Phynova's lead product 
for hepatitis C has now completed a Phase I/II trial in the US. Two further 
products, for fatty liver disease and post-operative ileus, are targeted for 
entry to the clinic and there are a further four products in preclinical 
development. 
 
 
For further information please visit www.phynova.com. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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