RII Plc to acquire BioPartners

UK-based cash shell RII Plc, which asked for its shares to be suspended from the AIM (Alternative Investment Market) on 17 January 2005 pending the announcement of a reverse takeover, has announced plans to acquire drug development company BioPartners.

At the same time RII has raised £3m from investors and is seeking readmission to AIM under the name of Minster Pharmaceuticals plc.

RII will acquire BioPartners for a consideration of between 968m and 1,613m shares. The company has raised £3.0m from investors through the placing of 400m shares at 0.75p per share. At this price the market value of the enlarged share capital is £11.6m.

In 2001 BioPartners acquired worldwide development licences for two compounds from GlaxoSmithKline (GSK) and with the new money raised from investors Minster will continue to develop these compounds in a range of indications.

Both compounds have benefited from substantial earlier investment from SmithKline Beecham. Tonabersat, a novel compound for the treatment and prevention of migraine, completed a Phase II programme in more than 800 patients in the late 1990s. Sabcomeline has completed clinical trials in more than 2,500 patients, and has been identified as a potential treatment for chronic schizophrenia. Dr Paul Sharpe, chairman and ceo of Minster, managed the development work on both compounds during his time at SmithKline Beecham up to the end of 1998.

With the new funds available, Minster will initiate a clinical programme to progress tonabersat to the proof of concept stage for migraine. At the same time it will seek a development partner for sabcomeline in schizophrenia.

'As well as continuing our work on sabcomeline and tonabersat, we have the project management capacity to take on further projects,' added Sharpe.