Interim Management Statement (6711D)

TIDMATD

RNS Number : 6711D

Asterand PLC

18 May 2012

18 May 2012

Asterand plc

("Asterand" or the "Group")

Interim Management Statement

Asterand plc (LSE: ATD), a leading global supplier of human tissue and human tissue-based research services to pharmaceutical and biotechnology companies engaged in drug discovery research, today issues its Interim Management Statement.

Since 1 January 2012, the Board has been focused on resolving the funding crisis that arose in the fourth quarter of last year. As previously announced on 30 April 2012, it has not been possible to find a single buyer for the whole Group and, instead, the Board has focused on securing buyers for the constituent parts of the Group. Negotiations regarding the sale of the non BioSeek Tissue based Solutions ("Tissue") business are continuing and the Board expects that a circular, seeking shareholder approval for the sale, will be sent to shareholders in the next few weeks. The Board also continues to explore a number of alternatives in respect of the BioSeek business including the continuation of the business on a stand alone basis or the sale of the business after the potential disposal of the Tissue business. In an effort to reduce costs, the Board is also considering whether or not it is appropriate for the Group to continue as a listed company following a disposal of the Tissue business.

Despite these distractions and volatile trading conditions, revenue for the period ended 31 March 2012 is flat over the previous year, although the mix has changed with Tissue revenues improving and BioSeek revenues declining. Cash remains tight and the Group continues to manage its cash flow carefully in order that it may have sufficient funds to complete a transaction for the Tissue business. The Group maintains a constructive dialogue with its major creditors regarding the settlement of its secured loans, in which regard Asterand remains in default, and believes that it continues to receive the support of its lenders during this process.

Shareholders should note that the proceeds from a successful disposal of the Tissue business should enable the Group to repay its secured creditors but that its cash resources will not be sufficient to cover transaction costs and retained liabilities. Further funding will be required after the disposal of the Tissue business to sustain the BioSeek business on an ongoing basis or until a sales agreement for the business can be reached.

Shareholders should be aware that the completion of any disposal or the securing of additional funding for the Group is not guaranteed.

Further announcements will be made in due course.

For further information contact:

 
 Asterand plc 
  Jack Davis, Chairman, 
  Interim Chief Executive Officer 
  and                                     Tel:     + 44 (0) 1763 211 600 / 
  Company Secretary                        Tel:     + 1 [phone] 
 Alan Fishman, Interim Chief Financial             As above 
  Officer 
 
 Daniel Stewart & Company plc 
  Antony Legge                            Tel:     [phone] 
 

About Asterand

Asterand plc is a leading supplier of high quality human tissue and tissue-based services. Our comprehensive approach to human tissue and research services offers pharmaceutical, biotech and diagnostic companies the unique opportunity to have one company meet all of their human biomaterial needs along the continuum of drug discovery and development. Our mission is to accelerate target discovery and drug compound validation and enable our clients to take safer and more effective drugs into the market.

For more information about Asterand please visit http://www.asterand.com

This information is provided by RNS

The company news service from the London Stock Exchange

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