PROXIMAGEN ACQUIRES CAMBRIDGE BIOTECHNOLOGY LTD

~ Acquisition of clinical stage programmes from Biovitrum ~  

Proximagen Neuroscience plc (AIM: PRX) is pleased to announce that it has signed a Sale and Purchase Agreement with Biovitrum AB (“Biovitrum”) (STO: BVT) to acquire Biovitrum’s wholly-owned subsidiary Cambridge Biotechnology Ltd (“CBT”), together with certain drug development programmes directly from Biovitrum. In consideration for these acquisitions, Proximagen will pay Biovitrum a percentage of future revenues generated from the acquired drug development programmes. Detailed financial terms of the deal are not being disclosed and it is expected that completion will take place by the end of November.

As part of the acquisition Proximagen will acquire certain of CBT’s programmes, as well as two clinical stage programmes (5-HT2c agonist programme and the cognition programme, 5-HT6) and a number of pre-clinical stage programmes including VAP-1 and TrkA from Biovitrum.

The acquisition of CBT is consistent with the strategy stated by Proximagen at the time of its £50 million fund-raising in June 2009 of raising capital to acquire later stage drug development programmes and to further develop these programmes to commercialisation. The structure of the deal is also consistent with Proximagen’s risk mitigation model as consideration is only payable when the programmes generate earnings for Proximagen.

CBT had unaudited net assets of £109,000 as at 30 September 2009, excluding intergroup balances. CBT will be acquired on a cash free/debt free basis and has not generated any third party revenues.

Commenting of the acquisition, Kenneth Mulvany, Chief Executive Officer of Proximagen Neuroscience plc, said:

“We are very pleased with this acquisition, as it strengthens our position as a growing leader in diseases of the brain and central nervous system (CNS). We are confident that the programmes we have acquired will become important value drivers for the Proximagen Group, offering significant market potential, with limited financial risk. The clinical stage programmes have shown strong clinical results and the pre-clinical programmes also show great promise. Moreover, the pipeline fits with and expands our core CNS focus. We look forward to updating investors with more specific details of our plans for these programmes in due course.”

For further information, please contact:

Proximagen Neuroscience plc

Kenneth Mulvany, Chief Executive Officer
James Hunter, Finance Director
Phone: +44 (0)20 7848 6938

Buchanan Communications

Tim Anderson, Catherine Breen
Phone: +44 (0)20 7466 5000

Evolution Securities Limited (NOMAD)

Stuart Andrews, Bobbie Hilliam
Phone: +44 (0)20 7071 4300