Contract Change (7914O)
23 September 2011 - 4:00PM
UK Regulatory
TIDMATD
RNS Number : 7914O
Asterand PLC
23 September 2011
For Immediate Release 23 September 2011
Asterand plc
("Asterand" or the "Company")
Contract Change
Asterand plc ("Asterand" or the "Group" - LSE: ATD) announces
today that it has received notification from the National Cancer
Institute ("NCI") that NCI will not exercise extension options with
its suppliers on The Cancer Genome Atlas contract ("TCGA") as
appropriate funds are not available. Therefore, the contract with
Asterand is due to expire on 23 February 2012. The Company was also
notified that it may apply to the NCI for a no cost contract
extension to realise any unexpended funds beyond this expiration
date.
In the announcement issued on 1 October 2010, the Company had
stated that the TCGA project was worth up to $5.4m over 17 months,
with an option to extend for up to $24.3m, over a five year term.
As was mentioned in the Interim Results, Asterand has experienced
inefficiencies in supplying against an increasing demand for highly
annotated tissues. This situation is being addressed but may affect
the Company's ability to realise the full $5.4 million by February
2012. Therefore, the Company has applied for an extension of the
current contract to allow expenditures beyond February 2012.
Although the Company remains optimistic that an extension will be
granted, this is not guaranteed.
Expected revenue for the TCGA through 2011 remains consistent
with the guidance provided in the Company's Interim Results issued
31 August 2011. As such, the Company does not expect any impact on
the projections for the current financial year as a consequence of
this notification.
Following on from the statements made in Asterand's Interims
Results announcement on 31 August, the Company confirms that there
has been no further deterioration in trading and that it will
provide shareholders with an update in the next few weeks. As also
stated in the recent interims, Asterandis in discussions with a
number of parties with a view to raising additional capital and
expects to make a further announcement in due course.
Contacts:
Asterand plc
Jack Davis, Chairman and Interim Chief Tel: + 44 (0) 1763 211 600 / +
Executive Officer 1 (313) 263-0960
Alan Fishman, Interim Chief Financial As above
Officer
Buchanan Communications
Lisa Baderoon / Mark Court / Isabel Tel: +44 (0) 20 7466 5000
Podda
Daniel Stewart & Company plc
Antony Legge Tel: +44 (0) 20 7776 6550
Martin Lampshire
About Asterand
Asterand plc is a leading supplier of high quality human tissue
and tissue-based services. Our comprehensive approach to human
tissue and research services offers pharmaceutical, biotech and
diagnostic companies the unique opportunity to have one company
meet all of their human biomaterial needs along the continuum of
drug discovery and development. Our mission is to accelerate target
discovery and compound validation and enable pharmaceutical and
biotechnology companies to take safer and more effective drugs into
the market. For more information about Asterand, go to
www.asterand.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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