SUDA Takes Full Control of ArTiMist

26th August 2015, ASX Release

SUDA LTD (ASX: SUD) (SUDA), a leader in oro- mucosal drug delivery, is pleased to announce the acquisition of the 20% minority shareholding in SUDA’s subsidiary company, Malaria Research Company Pty Ltd (MRC), which was owned by UK-based ProtoPharma Ltd (PPL) and its parent London Pharma Ltd (LPL).

MRC owns the rights to SUDA’s novel sublingual anti-malarial spray, ArTiMist™. PPL is selling its 20% shareholding in MRC to SUDA for A$1.2 million. This payment is in full and final settlement of all outstanding liabilities between the two companies. In addition, PPL and LPL have agreed not to compete with MRC’s ArTiMist™ spray. This acquisition is an important step towards SUDA’s objective to commercialise ArTiMist™ through a collaboration or trade sale.

SUDA originally licensed commercial rights to ArTiMist™ for certain territories from PPL in 2006. Under a subsequent agreement, which was signed in November 2013 between SUDA and PPL, all of the intellectual property and global rights in relation to ArTiMist™ were put into the newly incorporated Australian company, MRC. SUDA owned 80% of MRC with PPL owning the balance. Both companies retained obligations in relation to the development, registration and commercialisation of ArTiMist™.

Since SUDA took control of the development of ArTiMist™ in November 2013, the Company has taken significant steps forward, including:

1. i. setting up a Clinical Advisory Board;
2. ii. initiating discussions with the Medicines for Malaria Venture, the World Health Organisation, the Gates Foundation and other philanthropic groups;
3. iii. progressing partnership discussions with the pharmaceutical industry;
4. iv. expanding the market opportunity for ArTiMist™ to include its use in the pre- referral setting of malaria; and
5. v. resolving quality issues that had been the responsibility of PPL.

As a result of this acquisition, SUDA will own 100% of the ArTiMist™ asset with no further payment or royalty obligations to PPL. The payment to PPL is being made from SUDA’s existing cash reserves, and the Company remains in a strong cash position as it negotiates with various parties regarding ArTiMist™ and its other lead clinical projects.

“We are delighted to be buying out ProtoPharma’s minority stake in ArTiMist™ which brings to a close a tenuous relationship,” noted Mr Stephen Carter, Chief Executive Officer of SUDA LTD.

“The purchase followed a request from ProtoPharma who wanted to refocus all their resources into non-malarial products and SUDA was able to negotiate favourable terms. Simplification of the ownership structure of ArTiMist™ alleviates a variety of issues including tax implications on the commercialisation of the project.

Furthermore, the acquisition eliminates any counterparty risk; gives SUDA full control of commercial negotiations without referring to ProtoPharma; and, importantly, ensures that SUDA receives 100% of anticipated deal proceeds.” To listen to an audio broadcast of Mr Carter discussing the transaction, please copy the following details into your web browser:

http://brrmedia.com/event/140157

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