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RNS Number:4255Y
Ark Therapeutics Group PLC
15 February 2006
Ark signs marketing deal with Sino Tau for Kerraboot(R) in China
15 February 2006, London UK: Ark Therapeutics Group plc today announces that it
has signed an exclusive licensing agreement granting Sino Tau International
Company Limited (Sino Tau), a Chinese healthcare company, the sales and
marketing rights to Kerraboot(R) for the Chinese market. Kerraboot(R) is Ark's
novel wound care device for the management of leg and foot ulcers. Sino Tau,
based in Beijing, is an established distributor of both pharmaceuticals and
medical devices in China and markets products through its own sales and
sub-distributor network.
Under the terms of the licence, Sino Tau will be responsible for all the
processes necessary to market Kerraboot(R), including obtaining the necessary
Government and regional approvals. Ark will supply the product to Sino Tau at
an agreed transfer price. Other financial terms of the transaction were not
disclosed.
China has a population of 1.3 billion and lower leg and foot ulceration affects
around 2% of the adult population. At present, approximately 40% of the Chinese
population is able to afford western healthcare products and these people are
located in the main urban areas. The market potential for Kerraboot(R) in
China is very large and it will initially be marketed for the growing problem of
diabetic ulcers and those venous ulcer patients who are intolerant of current
treatments, giving an estimated initial target group of 160,000 patients(1). The
prevalence of diabetes in China is approximately three times higher than 10
years ago and China now ranks second, behind India, as the country with the
highest prevalence, with an estimated 24 million diabetic population1.
Diabetics are 25 times more likely to lose a leg by amputation than non
diabetics and it is estimated that 50,000 diabetes-related lower extremity
amputations are performed each year in China, of which 85% are preceded by a
foot ulcer(2).
Kerraboot(R) provides a new approach to the management of these ulcers, in the
form of a novel, non pressurized, boot-like dressing device, which is simple,
quick and pain free to change. Kerraboot(R) facilitates the draining and
isolation of wound exudates such as matrix metalloproteases (which inhibit
angiogenesis) from the ulcer. This allows natural growth factors, such as
Vascular Endothelial Growth Factors (VEGF), to stimulate healing. In clinical
studies of ulcers managed with Kerraboot(R), reductions in ulcer sizes of up to
60% were observed over the four-week study period, with both healthcare
professionals and patients expressing a strong preference for Kerraboot(R) over
current standard treatments. UK-based studies have also shown that management of
ulcers with Kerraboot(R), which does not involve any additional dressings, can
be extremely cost effective saving up to 50% of nurse time and with patients
often becoming nurse independent. Late last year Ark launched a new and more
versatile extra-absorbent version of the device to extend both the range of
ulcers that can be treated and the length of treatment for more exudative
wounds. Launched in response to market demand, the new version has had a very
favourable reception from nurses and other healthcare professionals. Ark will
be supplying the extra absorbent version to its international licensees.
Nigel Parker, CEO of Ark, commented: 'The flow of independent case histories
illustrating the effectiveness of Kerraboot(R) in managing leg ulcers has been
of increasing interest to potential partners. This licensing deal with Sino Tau
opens up a very substantial market in which Kerraboot(R) can make a significant
impact on those suffering from these serious conditions. We continue to discuss
licensing arrangements with other international partners to bring the benefits
of Kerraboot(R) to the greatest possible number of patients.'
For further information please contact:
Ark Therapeutics +44 (0)20 7388 7722
Dr Nigel Parker, Chief Executive
Martyn Williams, Chief Financial Officer
Financial Dynamics +44 (0)20 7831 3113
David Yates / Davina Langdale
1. World Health Organisation data (www.who.org)
2. Figures estimated by Ark by combination of data contained in (i) Boulton,
AJ et al (2005) The Global burden of diabetic foot disease Lancet, Nov
12;366(9498):1719-24, (ii) International Diabetes Federation - Position
Statement, The Diabetic Foot: amputations are preventable, May 2005 and
(iii) World Health Organisation data (www.who.org).
Notes to Editors
Ark Therapeutics Group plc
Ark is an emerging healthcare group (the 'Group') now entering the
commercialisation phase, with one product introduced into hospitals and three
further lead products in late stage clinical development. Capitalising on over
ten years of research in vascular biology and gene-based medicine, Ark has a
balanced portfolio of proprietary healthcare products targeted at specific unmet
clinical needs within vascular disease and cancer. These are large and growing
markets, where opportunities exist for effective new products to generate
significant revenues.
Ark's products are sourced from related but largely non-dependent technologies
within the Group and have been selected to enable Ark to take each product
through development and to benefit from Orphan Drug Status and/or Fast Track
Designation, as appropriate. The Group generally retains ownership of its
product candidates throughout clinical development. Ark has secured patents or
has patent applications pending for all its lead products in principal
pharmaceutical markets and retains the right to market its lead products in the
key North American and European markets.
Ark has its origins in businesses established in the mid-1990s by Professor John
Martin and Mr Stephen Barker of University College London and Professor Seppo
Yla-Herttuala of the AI Virtanen Institute at the University of Kuopio,
Finland, all of whom play leading roles in the Company's research and
development programmes.
Ark's shares were first listed on the London Stock Exchange in March 2004
(AKT.L).
Sino Tau International Company Limited
Part of an established healthcare group, Sino Tau Intl. has diversified business
performance in both medical device and pharmaceutical fields with expertise
covering regulatory, marketing and sales, OEM and contract research. With
particular expertise in oncology, organ transplantation, diabetic,
interventional therapy, liver disease and neurology, Sino Tau are exclusively
representing a number of novel high-tech medical products in China.
This announcement includes 'forward-looking statements' which include all
statements other than statements of historical facts, including, without
limitation, those regarding the Group's financial position, business strategy,
plans and objectives of management for future operations (including development
plans and objectives relating to the Group's products and services), and any
statements preceded by, followed by or that include forward-looking terminology
such as the words 'targets', 'believes', 'estimates', 'expects', 'aims',
'intends', 'will', 'can', 'may', 'anticipates', 'would', 'should', 'could' or
similar expressions or the negative thereof. Such forward-looking statements
involve known and unknown risks, uncertainties and other important factors
beyond the Group's control that could cause the actual results, performance or
achievements of the Group to be materially different from future results,
performance or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous assumptions
regarding the Group's present and future business strategies and the environment
in which the Group will operate in the future. Among the important factors that
could cause the Group's actual results, performance or achievements to differ
materially from those in forward-looking statements include those relating to
Ark's funding requirements, regulatory approvals, clinical trials, reliance on
third parties, intellectual property, key personnel and other factors. These
forward-looking statements speak only as at the date of this announcement. The
Group expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in this
announcement to reflect any change in the Group's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statements are based. As a result of these factors, readers are cautioned not to
rely on any forward-looking statement.
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