VASTox nabs DanioLabs, Dextra to strengthen drug discovery

STORY UPDATE
OXFORD, U.K.—July 20, 2007—Having greatly expanded its drug pipeline and technology portfolio, VASTox announced it changed the company's name to Summit Corp. plc and launched a new web site.
 
 
OXFORD, U.K.—VASTox plc announced recently that it had completed the simultaneous acquisition of DanioLabs Ltd., a private U.K.-based drug discovery company, and Dextra Laboratories Ltd., a specialist carbohydrate chemistry service company.
 
The completion of both deals is considered to be an important strategic step for VASTox because the two companies together strengthen and diversify its drug discovery and development pipeline through the addition of two clinical and two preclinical programs in neurological and ophthalmic diseases, which will provide increased near-term opportunities for high-value licensing and partnership deals. Also, the deals enhance the company's scientific expertise and capabilities in zebrafish chemical genomics and carbohydrate chemistry and are expected to boost its scientific infrastructure through the acquisition of two high-tech laboratory facilities in Cambridge and Reading.
 
These technology platforms reportedly are crucial to VASTox's ability to create value as they underpin its internal drug discovery and development programs as well as forming a basis for the enhanced growth of its profitable pharmaceutical services business.
 
In addition, the strengthened technology platforms will immediately increase the revenues generated by the service business and also offers the potential for an increase in number of higher-value collaboration deals with its now enlarged client base.
 
"Following these transactions, plus the earlier deal with MNL Pharma in December 2006, VASTox now has a broad drug discovery pipeline with programs in clinical and discovery phases of development targeting neuro-disorders, cancer, ophthalmology, infectious diseases and regenerative medicine," says Dr. Steve Lee, VASTox's CEO. "In addition, the Company has established itself as the dominant global player in the areas of chemical genomics and carbohydrate chemistry, both of which are increasingly being recognized by pharmaceutical and biotechnology companies as valuable and effective technologies for the drug discovery and development process."
 
DanioLabs was acquired for £15 million payable through the issue of 11,732,361 new 10p ordinary shares and cash of £159,000 to DanioLabs' existing shareholders based on a VASTox share price of 126.5p, calculated as an average share price over a ten-day period ending 20 March 2007, the last business day before the deal was concluded. The CEO and CFO of DanioLabs was to step down immediately. VASTox will retain Daniolabs' scientific research facility in Cambridge and all 37 remaining staff will take up new positions within the enlarged Group.
 
Dextra Laboratories was acquired for £1.5 million, payable through the issue of 1,185,771 new 10p ordinary shares to Dextra's existing shareholders, based on a VASTox share price of 126.5p, calculated as an average share price over a ten-day period ending 20 March 2007, the last business day before the deal was concluded. VASTox will retain Dextra's chemistry facility in Reading with all 17 Dextra employees becoming employees of VASTox.


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