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UPDATE 1-Plethora sells lead drug rights, cuts debt by 90 pct
May 26, 2009 / 8:41 AM / in 8 years

UPDATE 1-Plethora sells lead drug rights, cuts debt by 90 pct

* Reports wider full-year loss from cont ops

* Says Sciele Pharma to pay extra $8.4 mln for drug rights

* Says chairman to retire at AGM, names new chairman

* Cash, short-term investments 2.9 mln stg at April 30

* Shares rise 6 pct (Adds details)

May 26 (Reuters) - British urology specialist Plethora Solutions Holdings Plc PLE.L said on Tuesday it had reduced its debt by over 90 percent as it received $8.4 million more for the global rights for its premature ejaculation drug from Sciele Pharma Inc.

The company also said it divested its Timm Medical Technologies Inc unit to reduce financing burden.

Plethora said Sciele Pharma, a unit of Shionogi Corp, would also share development costs for the drug, PSD502, for non-U.S. territories and pay a royalty on future revenue.

“Following the combination of transactions announced today cash resources have increased, gearing has been reduced and the board believes that the group is now in a position to enhance shareholder value,” Chief Executive Steven Powell said in a statement.

The company reported a loss of 13.3 million pounds ($21.14 million) from continuing operations relating to drug development activities for 2008, compared with a loss of 10.9 million pounds in 2007.

Cash and short-term investments at April 30 stood at 2.9 million pounds, up from 0.5 million pounds at Dec. 31, 2008.

The company also said its Chairman Stuart Wallis would retire at the end of the forthcoming annual general meeting and would be replaced by Bill Robinson, a non-executive board member.

Three other non-executive directors have also agreed to retire, it said.

Plethora shares were up 6 percent at 35.5 pence at 0834 GMT on the London Stock Exchange. ($1=.6292 Pound) (Reporting by Ramkumar in Bangalore; Editing by Anne Pallivathuckal and Gopakumar Warrier)

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