CAMBRIDGE, U.K., Aug. 15, 2002 (PRIMEZONE) -- CeNeS Pharmaceuticals plc (LSE:CEN) today announced the spinout of its ion channel technology development business (Channelwork) as part of the ongoing restructuring programme initiated in October 2001.
CeNeS' Channelwork business has been acquired by a new company called Xention Discovery Ltd. in a transaction led by MVM, a venture capital fund manager specialising in life sciences startup companies. In addition to a minority shareholding in the new company, CeNeS retains certain option rights over clinical candidates for the treatment of pain disorders that arise from the research undertaken by Xention.
Under the terms of the transaction, Xention has acquired the AutoPatch(TM) technology and all related intellectual property. The seven CeNeS employees working on the project will also transfer to Xention. AutoPatch is a pioneering technology that enables highthroughput functional screening of ion channel drug targets at speeds and in volumes not possible with conventional technology. This enhanced throughput will be exploited by Xention to address more targets and to create more novel chemistry than would be possible using traditional methods.
On completion CeNeS will receive consideration of 750,000 pounds made up of a minority shareholding in Xention valued at 375,000 pounds, which is to be retained by CeNeS, and a loan note of 375,000 pounds. The intellectual property assets disposed of by CeNeS were not valued in the CeNeS consolidated accounts and the Channelwork business has historically generated losses.
Under the restructuring plan, CeNeS is focusing on its core business in the development, marketing and sale of drugs for the treatment of disorders of the central nervous system (CNS) and pain, which has entailed reducing or disposing of noncore activities.
Commenting on the divestment, Neil Clark, Chief Operating Officer and Finance Director of CeNeS, said: "This divestment is another successful step under our restructuring programme. We are pleased to retain a stake in the future of this leading technology and in the potential drug candidates that may be discovered by using it."
CeNeS is a biopharmaceutical company specialising in the development and commercialisation of drugs for CNS disorders and pain control. The company currently markets four products, and has research and development assets targeting pain and CNS disorders. The company is based in Cambridge, England.
Xention Discovery Ltd. is a drug discovery company based in Cambridge, England focussed on ion channels as drug targets.
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