China Medical System Holdings Limited invests £3.0 million in Destiny Pharma

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Destiny Pharma plc
(“Destiny Pharma” or “the Company”)

Subscription for Ordinary Shares 

China Medical System Holdings Limited invests £3.0 million in Destiny Pharma

Highlights

  • – Investment will be used to accelerate the development of Destiny Pharma’s novel antimicrobial pipeline
  • – Subscription for 1,910,828 new ordinary shares at a price of 157p per share
  • – Together with money raised at the time of Destiny Pharma’s placing and admission of shares to trading on AIM, gross funds recently raised now stands at over £18 million
  • – Destiny Pharma and China Medical System Holdings Limited have also finalised a development and commercialisation agreement for Destiny Pharma’s pipeline in China and certain other Asian countries (excluding Japan) (see separate announcement released today)

Brighton, United Kingdom – 1 December 2017 – The Board of Destiny Pharma (AIM: DEST), a clinical stage biotechnology company focused on the development of novel anti-microbial drugs, which address the global problem of anti-microbial resistance (AMR), are pleased to announce that China Medical System Holdings Ltd (“CMS”; HKSE:0867) has, through its wholly owned subsidiary CMS Medical Venture Investment Limited, invested £3.0 million in Destiny Pharma to accelerate the development of the Company’s pipeline of drug candidates. This follows finalisation of the development and commercialisation agreement with CMS, separately announced today.

Neil Clark, CEO of Destiny Pharma, noted, “Following the successful flotation, in which Destiny raised £15.3m, and this additional equity investment of £3m by CMS, Destiny is well funded through to 2020. The Company is now focused fully on delivering the phase 2b clinical trials for its lead programme XF-73 and developing its earlier pipeline over the next two years”.

The investment has been made by way of a subscription, dated 30 November 2017, for 1,910,828 new ordinary shares (the “Subscription Shares”) at a price of 157p per share.

Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Subscription Shares, will commence at 8.00 a.m. on or around Monday 4 December 2017.

Following the issue of the Subscription Shares, the Company’s issued share capital will comprise 42,447,948 ordinary shares of 1 pence each. The total number of voting rights in the Company will be 42,447,948. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority.

For further information, please contact:

Destiny Pharma
Neil Clark, CEO
Simon Sacerdoti, CFO
pressoffice@destinypharma.com
+44 (0)1273 704 440

FTI Consulting
Simon Conway / Victoria Foster Mitchell / Hanna Skeppner
destinypharma@fticonsulting.com
+44 (0) 20 3727 1000

Cantor Fitzgerald Europe (Nominated Adviser and Broker)
Philip Davies / Will Goode, Corporate Finance
pdavies@cantor.co.uk
+44 (0)20 7894 8337

About Destiny Pharma
Destiny Pharma is an established, clinical stage, innovative biotechnology company focused on the development of novel medicines that represent a new approach to the treatment of infectious disease. These potential new medicines are being developed to address the need for new drugs for the prevention and treatment of life-threatening infections caused by antibiotic-resistant bacteria, often referred to as “superbugs”. Tackling anti-microbial resistance has become a global imperative recognised by the WHO and the United Nations, as well as the G7 and the G20 countries. For further information, please visit https://www.destinypharma.com

About China Medical System Holdings Limited
CMS is a specialty pharmaceutical company based in China, focusing on marketing, promotion and sales of prescription drugs and other medicinal products to all therapeutic departments in hospitals nation-wide. CMS builds up its product portfolio for its target markets by asset acquisition, equity investment, licensing-in and distribution partnership on the global basis as well as in-house R&D. It is publicly traded on the Hong Kong Stock Exchange (867.HK) with a market capitalisation of approximately HK$39.9 billion (c. £3.8billion) as at 28 November 2017.

Regional development and commercialisation agreement finalised with China Medical System Holdings Limited

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Destiny Pharma plc
(“Destiny Pharma” or “the Company”)

Regional development and commercialisation agreement finalised with China Medical System Holdings Limited

Highlights

  • – Strategic partnership grants CMS full rights to Destiny Pharma’s pipeline of drug candidates in China and certain other Asian countries (excluding Japan)
  • – CMS will carry out all research and development required, in their territories, and both parties will share data and coordinate development plans
  • – CMS will be responsible for the commercialisation of the drug candidates in their territories
  • – Destiny Pharma will make a manufacturing margin on any product the Company supplies and will also receive a commercial milestone payment subject to the applicable sales milestones being met by CMS
  • – A Joint Steering Committee will be established to coordinate the collaboration
  • – Appointment of Dr Huaizheng Peng, General Manager of International Operations at CMS, to Destiny Pharma’s Board of Directors
  • – Agreement further validates the potential of Destiny Pharma’s novel pipeline and platform technology

Brighton, United Kingdom – 1 December 2017 – Destiny Pharma (AIM: DEST), a clinical stage biotechnology company focused on the development of novel anti-microbial drugs, which address the global problem of anti-microbial resistance (AMR), announces that the outline framework agreement, announced on 4 September 2017, covering a development and commercialisation collaboration agreement with CMS Medical Venture Investment Limited, a wholly owned subsidiary of China Medical System Holdings Limited (“CMS”; HKSE:0867), has now been finalised and signed.

Under the final terms of the agreement, Destiny Pharma will collaborate with CMS, who will have the full rights in China and certain other Asian countries (excluding Japan), to enable the development and commercialisation of the Company’s pipeline of drug candidates in the region. The parties will coordinate and share data from their respective clinical studies and Destiny Pharma will benefit from CMS investment in developing the Company’s assets in China. Destiny Pharma will also receive a future commercial milestone based on the achievement of sales milestones by CMS and make a manufacturing margin on any product the Company supplies.

Neil Clark, Chief Executive Officer of Destiny Pharma, commented:
“We are pleased to have now finalised and signed this development and commercialisation agreement with China Medical Systems. As a specialty pharmaceutical company based in China, CMS is the ideal strategic partner to help us advance our platform and commercialise potential products in this important region. We look forward to working closely with CMS, in particular, Dr Huaizheng Peng as our newly appointed Non-Executive Director who has a wealth of experience within the global life sciences sector.”

Dr Huaizheng Peng, General Manager of International Operations at CMS, added:
“I am excited by this opportunity to work with the Destiny Pharma team to drive forward the development of the Company’s portfolio. I believe Destiny Pharma’s XF-drug platform offers great potential as a novel approach to tackling the rising global issue of anti-microbial resistance, where there is a recognised unmet need for new effective treatment options.”  

Board Appointment
Dr Huaizheng Peng, General Manager of International Operations at CMS, will join the Board of Destiny Pharma as a Non-Executive Director, with immediate effect. Dr Peng has extensive and multi-faceted experience in the life sciences sector.

Dr Peng joined CMS in 2011 as a General Manager of International Operations. His current responsibilities at CMS include pharmaceutical asset acquisition, product licensing, international business development, outbound investment and asset management. Prior to 2011, Dr Peng previously served as a Non-Executive Director to CMS for three years.

Prior to joining CMS, Dr Peng worked in London as a partner of Northland Bancorp, a private equity firm, and before that, as the head of life sciences and a director of corporate finance at Seymour Pierce, an investment bank and stockbroker. He also served as a Non-Executive Director to China Medstar, a medical device company, while it was listed on AIM. Earlier in his career, Dr Peng was a senior portfolio manager, specialising in global life science and Asian technology investment at Reabourne Technology Investment Management Limited.

Dr Peng received his Bachelor’s degree in medicine from Hunan Medical College (now Central South University Xiangya School of Medicine) in Changsha, Hunan Province, China and he subsequently obtained a Master’s degree in medicine from Hunan Medical College. Dr Peng was awarded his PhD in molecular pathology from University College London (UCL) Medical School, London UK, where he subsequently practiced as a clinical lecturer in the Department of Histopathology.

The following information is disclosed pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies. Dr Huaizheng Peng, aged 55, is or has been a director / partner of the following companies / partnerships during the previous five years preceding the date of this announcement:

Current directorships Past directorships
Faron Pharmaceuticals Oy China Medical System Holdings Limited
Novamedic ASA
Helius Medical Technologies
Subsididiaries of CMS:
CMS Pharma
Bridging Pharma Ltd
TopRidge Pharma (IE and HK)CMS Medical Venture Investments Limited

Dr Peng has no beneficial interest in the ordinary shares of the Company.

There is no further information required to be disclosed in respect of the above appointment pursuant to Rule 17 or Schedule 2 (g) of the AIM Rules for Companies.

For further information, please contact:

Destiny Pharma
Neil Clark, CEO
Simon Sacerdoti, CFO
pressoffice@destinypharma.com
+44 (0)1273 704 440

FTI Consulting
Simon Conway / Victoria Foster Mitchell / Hanna Skeppner
destinypharma@fticonsulting.com
+44 (0) 20 3727 1000

Cantor Fitzgerald Europe (Nominated Adviser and Broker)
Philip Davies / Will Goode, Corporate Finance
pdavies@cantor.co.uk
+44 (0)20 7894 8337

About Destiny Pharma
Destiny Pharma is an established, clinical stage, innovative biotechnology company focused on the development of novel medicines that represent a new approach to the treatment of infectious disease. These potential new medicines are being developed to address the need for new drugs for the prevention and treatment of life-threatening infections caused by antibiotic-resistant bacteria, often referred to as “superbugs”. Tackling anti-microbial resistance has become a global imperative recognised by the WHO and the United Nations, as well as the G7 and the G20 countries. For further information, please visit https://www.destinypharma.com

About China Medical System Holdings Limited
CMS is a specialty pharmaceutical company based in China, focusing on marketing, promotion and sales of prescription drugs and other medicinal products to all therapeutic departments in hospitals nation-wide. CMS builds up its product portfolio for its target markets by asset acquisition, equity investment, licensing-in and distribution partnership on the global basis as well as in-house R&D. It is publicly traded on the Hong Kong Stock Exchange (867.HK) with a market capitalisation of approximately HK$39.9 billion (c. £3.8billion) as at 28 November 2017.