(‘Medgenics’ or the ‘Company’)
Statement Regarding Share Price Discrepancy
Medgenics (AIM: MEDG and MEDU), the company that has developed a novel technology for the manufacture and delivery of therapeutic proteins continuously in patients using their own tissue, has noted the widening discrepancy between the mid-market price of the MEDU and MEDG quotes for common shares of par value US $0.0001 each in the Company (“Common Shares”).
The Company would like to confirm that all of its issued and outstanding Common Shares, whether trading on the MEDU line or the MEDG line, rank pari passu in all respects and carry equal voting rights and equal rights to dividends. The only difference between the two quotes (MEDU and MEDG) is that the Common Shares trading on the MEDG line were when issued and remain subject to restrictions on transfer under the US Securities Act of 1933 (as amended) (the “US Securities Act”). The MEDG line of Common Shares cannot be settled electronically in the CREST system and, instead, settle in CREST only on a cash basis, with the buyer being responsible for re-registering the certificated holding. Buyers and sellers of the MEDG line of stock are both required to complete a representation letter in connection with a dealing in Common Shares trading on the MEDG line in order to assure compliance with the transfer restrictions and for settlement to be facilitated. A significant number of the Common Shares trading on the MEDG line may now qualify to have the restrictions lifted and for migration to the MEDU line of Common Shares.
Other than the transfer restrictions, the Company confirms that there are no differences in rights between the Common Shares quoted on the MEDU line and those quoted on the MEDG line.
For further information regarding the applicable restrictions on transfer on MEDG quoted Common Shares, the ability to transfer Common Shares from the MEDG line onto the MEDU line, participation in the depository interest arrangements that have been established by the Company and the transfer of Common Shares within CREST, shareholders should refer to the announcement made by the Company on 12 November 2008 or contact the Company directly at firstname.lastname@example.org.
For further information, contact:
Andrew Pearlman +972 4 902 8900
CEO Medgenics, Inc
Mike Wort / Anna Dunphy +44 207 861 3838
De Facto Communications (PR)
James Pinner / Derek Crowhurst +44 207 444 0800
Religare Capital Markets (Nomad)
Ian Callaway / Alex Mattey +44 207 638 5600
SVS Securities plc (Joint Broker)
Jonathan Senior +44 207 776 1219
Nomura Code (Joint Broker)
Notes to Editors:
Medgenics is a commercial -stage biopharmaceutical company developing its unique tissue-based Biopump platform technology to provide sustained-action protein therapy for the treatment of a range of chronic diseases. The first revenue generating commercial deal with a well known multinational pharmaceutical company was negotiated in late 2009.
Biopumps are made using needle biopsies taken from the lower layer of the patient’s skin under local anaesthetic and processed during 10-14 days to become 30 mm long tissue biofactories producing the required protein. The requisite number of Biopumps are injected under the patient’s skin to provide sustained protein production and delivery for many months. The Company is developing the Biopump to provide substantially greater safety and reliability in protein treatment in a more cost effective manner than experienced with the existing injected protein therapies. Medgenics currently has three products in development based on this technology and addressing the indications of:
- Anaemia – using EPODURE, a Biopump producing erythropoietin (EPO)
- Hepatitis-C – using INFRADURE – a Biopump producing interferon-alpha (IFN-a)
- Haemophilia – using a Biopump to produce clotting Factor VIII
The Company’s Phase I/II clinical trial using EPODURE to treat anaemia in patients with chronic kidney disease, has demonstrated proof of concept of the Biopump. Designed to produce and deliver a therapeutic dose of EPO steadily for six months or more, EPODURE Biopumps have already provided effective anaemia treatment in most of these patients for 6-12 months, even at the low administered dose.
Medgenics intends to develop its innovative products and bring them to market via multiple strategic partnerships with major pharmaceutical and/or medical device companies. In addition to treatments for Anaemia, Hepatitis-C, and Haemophilia, Medgenics plans to develop and/or out-license a pipeline of future Biopump products targeting the large and rapidly growing global protein therapy market, which is forecast to reach US $87 billion by the end of 2010. Other potential applications of Biopumps producing various proteins include multiple sclerosis, arthritis, pediatric growth hormone deficiency, obesity, and diabetes.
This information is provided by RNS
The company news service from the London Stock Exchange