Arana Therapeutics - Sale of Animal Health

Fri Feb 1, 2008 5:43am EST

* Reuters is not responsible for the content in this press release.

RNS Number:0819N
Arana Therapeutics Limited
01 February 2008


For Immediate Release                                            1 February 2008


                           Arana Therapeutics Limited

                         Sale of Animal Health Division


Friday, 1 February 2008: Biotechnology company Arana Therapeutics Limited (AIM:
AAHx ASX: AAH) today announced that it has sold its animal health subsidiary -
Peptech Animal Health Pty Limited ("PAH"). The sale has been completed after a
substantial worldwide sale process over a period of 18 months.


CEO Dr John Chiplin commented "This has been a long and very difficult process.
While the PAH business has potential, it is currently losing money and this has
turned many potential buyers away from the business."


"In the short term, Arana will be $2 million - $3 million per annum better off
by not incurring the ongoing losses from operating the animal health business in
its development phase. In the longer term, if the new owners can build a
successful company, Arana will receive a useful royalty stream."


The animal health division has been acquired by a private investment company,
Parma Corporation Pty Ltd, controlled by Mr Mel Bridges, a former chairman of
Peptech. Following legal advice, the Arana board concluded that the arms length
offer from Parma Corporation was demonstrably superior to the only other
competing offer or future alternatives for the business.


Details of the transaction, which represent only a minor part of Arana's $309.2
million net equity, are to remain confidential.


Mr Robin Beaumont, Chairman of Arana Therapeutics said "We have now divested all
our non-core assets - the shareholding in Domantis (for a profit of $136
million), the joint venture with Biosceptre and the animal health business. We
are now a company ready to move forward solely focussed on developing next
generation human therapeutics."


For further information, please contact:


Arana Therapeutics Limited
Dr John Chiplin, Chief Executive Officer              +61 (0)2 8061 9900
Niall Henderson, Chief Financial Officer              +61 (0)2 8061 9900

Buchanan Communication
Lisa Baderoon/Rebecca Skye Dietrich                   +44 (0)20 7466 5000


Nomura Code Securities
Charles Walker                                        +44 (0)20 7776 1206


About Arana Therapeutics:


Arana Therapeutics (AIM: AAHx ASX: AAH) is an international biopharmaceutical
company formed through the merger of Peptech and EvoGenix in August 2007. The
company uses superior technology to develop next generation drugs that will
improve the lives of patients with inflammatory diseases and cancer.



Arana Therapeutics' innovative engineering technologies provide the basis for
clinical development in the antibody space, a market which draws on high demand.
With a market capitalisation of around A$250 million and solid cash
resources, Arana Therapeutics has the financial stability and management
expertise to accelerate its clinical programs, and is on track to have at least
3 clinical stage assets within three years.



Arana is listed on the Australian Securities Exchange (ASX) and the London Stock
Exchange (AIM).



The pipeline consists of four lead drug programs: ART621 to treat severe
rheumatoid arthritis and other inflammatory diseases; ART010 to treat
osteoporosis and bone cancer; ART104 to treat solid tumours in colorectal
cancer; and ART150 for lung cancer and melanoma.  Additionally, the company has
earlier stage products in development for the treatment of a range of conditions
including age related macular degeneration, psoriasis, colorectal cancer, and
leukaemia.


Arana has recurring revenues from commercial and development partnerships with
six international companies including GSK, CSL, Centocor (J&J) and Abbott
Laboratories.


For further information: www.arana.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

DISEAEAFELFPEFE