ATD Bioseek

TIDMATD

RNS Number : 7914O

Asterand PLC

23 September 2011

For Immediate Release 23 September 2011

Asterand plc

("Asterand" or the "Company")

Contract Change

Asterand plc ("Asterand" or the "Group" - LSE: ATD) announces today that it has received notification from the National Cancer Institute ("NCI") that NCI will not exercise extension options with its suppliers on The Cancer Genome Atlas contract ("TCGA") as appropriate funds are not available. Therefore, the contract with Asterand is due to expire on 23 February 2012. The Company was also notified that it may apply to the NCI for a no cost contract extension to realise any unexpended funds beyond this expiration date.

In the announcement issued on 1 October 2010, the Company had stated that the TCGA project was worth up to $5.4m over 17 months, with an option to extend for up to $24.3m, over a five year term. As was mentioned in the Interim Results, Asterand has experienced inefficiencies in supplying against an increasing demand for highly annotated tissues. This situation is being addressed but may affect the Company's ability to realise the full $5.4 million by February 2012. Therefore, the Company has applied for an extension of the current contract to allow expenditures beyond February 2012. Although the Company remains optimistic that an extension will be granted, this is not guaranteed.

Expected revenue for the TCGA through 2011 remains consistent with the guidance provided in the Company's Interim Results issued 31 August 2011. As such, the Company does not expect any impact on the projections for the current financial year as a consequence of this notification.

Following on from the statements made in Asterand's Interims Results announcement on 31 August, the Company confirms that there has been no further deterioration in trading and that it will provide shareholders with an update in the next few weeks. As also stated in the recent interims, Asterandis in discussions with a number of parties with a view to raising additional capital and expects to make a further announcement in due course.

Contacts:

 
 Asterand plc 
 Jack Davis, Chairman and Interim Chief   Tel: + 44 (0) 1763 211 600 / + 
  Executive Officer                        1 (313) 263-0960 
 Alan Fishman, Interim Chief Financial    As above 
  Officer 
 
 Buchanan Communications 
 Lisa Baderoon / Mark Court / Isabel      Tel: +44 (0) 20 7466 5000 
  Podda 
 
 Daniel Stewart & Company plc 
 Antony Legge                             Tel: +44 (0) 20 7776 6550 
 Martin Lampshire 
 

About Asterand

Asterand plc is a leading supplier of high quality human tissue and tissue-based services. Our comprehensive approach to human tissue and research services offers pharmaceutical, biotech and diagnostic companies the unique opportunity to have one company meet all of their human biomaterial needs along the continuum of drug discovery and development. Our mission is to accelerate target discovery and compound validation and enable pharmaceutical and biotechnology companies to take safer and more effective drugs into the market. For more information about Asterand, go to www.asterand.com

This information is provided by RNS

The company news service from the London Stock Exchange

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