KEY POINTS:
SYDNEY - Peptech Ltd has sold its stake in British drug development company Domantis for £71.3 million ($203 million).
The Sydney-based drug developer agreed last month to sell its 31.02 per cent share in Domantis to global pharmaceuticals giant GlaxoSmithKline plc, which has bought all of Domantis.
Peptech said it would realise a gain of A$138.2 million ($158.4 million) from a staged investment of A$40.2 million in Domantis beginning in 2001.
Chief executive John Chiplin said the transaction would enable Peptech to build on its acquisitions of Promics Ltd and the antibody business of Scancell Ltd.
"The Domantis proceeds together with Peptech's existing cash reserves and ongoing future licensing revenue (estimated to be A$100 million to A$130 million over the next four years) provides the company with significant cash resources required to further advance opportunities," Mr Chiplin said.
These include developing the company's research and development capability, deepening its product pipeline, focusing on integrating the development programs of Promics and Scancell and strengthening in-house platform capabilities, Mr Chiplin said.
- AAP
