the age....the largest in the world

Peptech sells Domantis stake for $A178m
Email Print Normal font Large font January 8, 2007 - 10:44AM

Advertisement
AdvertisementPeptech Ltd believes it has the capabilities to become the world's largest antibody-based drug company after the $178 million sale of its stake in British drug developer Domantis.

The Sydney-based company on Monday said it has finalised the sale of its 31.02 per cent stake in Domantis for STG71.3 million ($A178 million).

Peptech announced the agreement last month to sell its holding in the company to global pharmaceutical giant GlaxoSmithKline plc, which has bought all of Domantis.

It said it would realise a gain of $138.2 million from a staged investment in Domantis of $40.2 million that began in 2001.

Peptech chairman Mel Bridges said the transaction provided the funds for future acquisitions and transactions.

"This is a real opportunity going forward and has put us in a strong position," Mr Bridges said.

"We will do further expansion and, I believe, become Australia's largest anti-body drug based company, and probably one if not the largest in the world.

"We will become a world class antibody based drug company."

Chief executive John Chiplin said Peptech would continue to build on its acquisition of Promics Ltd and the antibody business of Scancell Ltd.

"The Domantis proceeds, together with Peptech's existing cash reserves and ongoing future licensing revenue (estimated to be between $100 million and $130 million over the next four years), provides the company with significant cash resources required to further advance opportunities," Mr Chiplin said.

These include developing the company's research and development capability, deepening its product pipeline, focusing on integrating the development programs of Promics and Scancell and strengthening in-house platform capabilities, Mr Chiplin said.