TIDMFARN
RNS Number : 2424Y
Faron Pharmaceuticals Oy
30 December 2019
Faron Pharmaceuticals Oy
Update on Traumakine drug substance manufacturing
- Faron contests termination of the agreement and files for arbitration
- Proceedings funded by a third party on a non-recourse basis
Company announcement, 30 December 2019 at 11.30 am (EET)
Inside information
TURKU - FINLAND - Faron Pharmaceuticals Oy (AIM: FARN, First
North: FARON) ("Faron" or the "Company"), the clinical stage
biopharmaceutical company, announces that, further to the update on
Traumakine(R) drug substance ("API") manufacturing announced on 2
October 2019, the Company has carried out a detailed investigation
into the circumstances around manufacturing arrangements and
concluded that it considers the letter in which Rentschler
Biopharma SE ("Rentschler") states that it terminates the agreement
concerning the API manufacturing process for Traumakine(R) to be
without merit and in breach of the underlying agreement between the
parties. Faron also considers Rentschler to have otherwise breached
the agreement.
As a remedy, the Company has filed a request for arbitration
with the Arbitration Institute of the Stockholm Chamber of Commerce
seeking damages. To fund the proceedings, the Company has entered
into a litigation funding agreement with a third-party recovery
services provider offering non-recourse financing which, subject to
final quantum, is expected to cover both the Company's legal
expenses and the adverse party costs. The funder would receive a
typical portion of any damages awarded in the event of success.
Further updates will be provided in due course as and when
appropriate.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 ("MAR").
For more information please contact:
Faron Pharmaceuticals Oy
Dr Markku Jalkanen, Chief Executive Officer
investor.relations@faron.com
Panmure Gordon (UK) Limited, Nomad and Broker
Emma Earl, Freddy Crossley (Corporate Finance)
James Stearns (Corporate Broking)
Phone: +44 207 886 2500
Sisu Partners Oy, Certified Adviser on Nasdaq First North
Juha Karttunen, Jussi Majamaa
Phone: +358 (0)40 555 4727
Consilium Strategic Communications
Mary-Jane Elliott, David Daley, Lindsey Neville
Phone: +44 (0)20 3709 5700
E-mail: faron@consilium-comms.com
About Faron Pharmaceuticals Ltd
Faron (AIM: FARN, First North: FARON) is a clinical stage
biopharmaceutical company developing novel treatments for medical
conditions with significant unmet needs. The Company currently has
a pipeline based on the receptors involved in regulation of immune
response in oncology and organ damage. Clevegen, its precision
immunotherapy, is a novel anti-Clever-1 antibody with the ability
to switch immune suppression to immune activation in various
conditions, with potential across oncology, infectious disease and
vaccine development. Currently in phase I/II clinical development
as a novel macrophage checkpoint immunotherapy for patients with
untreatable solid tumours, Clevegen has potential as a single-agent
therapy or in combination with other standard treatments including
immune checkpoint molecules. Traumakine, the Company's pipeline
candidate to prevent vascular leakage and organ failures, has
completed a phase III clinical trial in Acute Respiratory Distress
Syndrome (ARDS). Plans for its future development are being
finalised to avoid interfering steroid use together with
Traumakine. Faron is based in Turku, Finland. Further information
is available at www.faron.com
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as "believe",
"could", "should", "expect", "hope", "seek", "envisage",
"estimate", "intend", "may", "plan", "potentially", "will" or the
negative of those, variations or comparable expressions, including
references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current
expectations and assumptions regarding the Company's future growth,
results of operations, performance, future capital and other
expenditures (including the amount, nature and sources of funding
thereof), competitive advantages, business prospects, opportunities
and results of arbitration. Such forward looking statements reflect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors.
A number of factors could cause actual results to differ
materially from the results and expectations discussed in the
forward-looking statements, many of which are beyond the control of
the Company. In particular, the outcome of the arbitration could be
materially different to the damages sought. Furthermore, the early
data from initial patients in the MATINS trial may not be
replicated in larger patient numbers and the outcome of clinical
trials may not be favourable or clinical trials over and above
those currently planned may be required before the Company is able
to apply for marketing approval for a product. In addition, other
factors which could cause actual results to differ materially
include the ability of the Company to successfully licence its
programmes within the anticipated timeframe or at all, risks
associated with vulnerability to general economic and business
conditions, competition, environmental and other regulatory
changes, actions by governmental authorities, the availability of
capital markets or other sources of funding, reliance on key
personnel, uninsured and underinsured losses and other factors.
Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be
reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with such forward looking
statements. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Subject to any continuing
obligations under applicable law or any relevant AIM Rule
requirements, in providing this information the Company does not
undertake any obligation to publicly update or revise any of the
forward-looking statements or to advise of any change in events,
conditions or circumstances on which any such statement is
based.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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December 30, 2019 04:30 ET (09:30 GMT)
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