RNS Number:8605J
PPL Therapeutics PLC
10 April 2003



Date:               For immediate release: Thursday 10 April 2003



Contact: Geoff Cook, Chief Executive Officer
Lindsay Dunsmuir, Chief Financial Officer
PPL Therapeutics plc                      Telephone: 0131 440 4777



Alistair Mackinnon-Musson
Philip Dennis
Hudson Sandler                           Telephone: 020 7796 4133
                                         Email: ppl@hspr.co.uk





                               PPL Therapeutics plc

                  Spin-out of Regenerative Medicine Business



PPL Therapeutics plc ("PPL"), a leading company in the application of transgenic
technology to the production of human proteins for therapeutic applications, is
pleased to announce that, further to the update provided on 30 January 2003, it
has signed an agreement for the spin-out of its Regenerative Medicine Business.
This business is to be sold to Regenecor Holdings Inc ("Regenecor") for a
consideration of 1 million of Regenecor's Series A Preferred Stock representing
22.2 per cent of Regenecor and reimbursement of operating expenses incurred
during 2003.



The Regenerative Medicine Business comprises PPL's wholly owned subsidiary PPL
Therapeutics Inc, which is engaged in the development of xenograft, stem cell
and polyclonal antibody programmes in the USA, together with the related
intellectual property.  As previously indicated to shareholders, the Board of
PPL decided to consolidate PPL's resources behind its core business of
developing and producing therapeutic proteins.  The Board believes that the
further financial and management resources required to capitalise on the
research in the regenerative medicine arena which PPL has undertaken to date,
and to bring products from this early research phase to market, will be
significant.  The Board of PPL does not believe it is possible for PPL to be
successful in developing both its core protein business and the Regenerative
Medicine Business within the financial and management resources currently
available to it.



Regenecor is a new company formed by University of Pittsburgh Medical Center 
("UPMC"), Highmark Health Ventures Investment Fund LP ("Highmark"), Fujisawa
Investments for Entrepreneurship I LP and Fujisawa Investments for
Entrepreneurship II LP (together "FITE") to effect the transaction.  UPMC,
Highmark and FITE have together subscribed a total of $3.5 million for Regenecor
Series A Preferred Stock.  Regenecor has indicated that it expects this base
funding, together with the expected revenues receivable under government grants,
to be sufficient to allow continued research and development of the Regenerative
Medicine Business for at least 18 months.  This funding, together with the
benefits expected to flow from combining the knowledge and expertise within UPMC
and the University of Pittsburgh's Thomas E Starzl Transplantation Institute
should enhance the probability of successful development of the Regenerative
Medicine Business.   The Thomas E Starzl Transplantation Institute has been
engaged in scientific collaboration with PPL Therapeutics for the last three
years.



The consideration payable to PPL comprises $1 million payable by the issue to
PPL of 1 million of Regenecor Series A Preferred Stock at completion, credited
as fully paid and representing 22.2 per cent of the issued share capital of
Regenecor.  In addition, Regenecor will within 30 days of completion also pay a
cash sum based upon the operating expenses of the Regenerative Medicine Business
incurred by PPL between 1 January 2003 and completion of the transaction.



The Regenecor Series A Preferred Stock has no redemption rights, can be
converted at PPL's option into Regenecor Common Stock at any time and carries a
cumulative floating rate dividend payable in preference to dividends on
Regenecor Common Stock.  Regenecor Series A Preferred Stock has preference over
Common Stock in a liquidation or winding up of the company.  Both the Regenecor
Series A Preferred Stock and the Regenecor Common Stock carry one vote per
share.  Regenecor's share capital is not listed on any recognised stock
exchange.  The terms of the investment allow for PPL to follow its initial
investment but do not require it to do so.  PPL intends to retain the
shareholding in Regenecor as a long term investment.



The Regenerative Medicine Business had net assets at 30 June 2002 of #0.6
million (31 December 2001 : #0.8 million).  During the six months ended 30 June
2002 the Regenerative Medicine Business had operating costs of #1.0 million
(Year ended 31 December 2001 : #2.3 million), other operating income of #0.5
million (Year ended 31 December 2001: #0.9 million) and a loss before tax of
#0.5 million (Year ended 31 December 2001:  #1.4 million).  In the six months to
30 June 2002 the loss before tax for the Regenerative Medicine Business broadly
equates to the cash outflow for that period as capital expenditure net of lease
funding was minimal.  The transaction will safeguard the employment of the 24
staff working on these programmes.



Commenting on the spin-out Geoff Cook, PPL's Chief Executive, said "I am pleased
that we have been able to agree terms for our Regenerative Medicine Business.
In doing so we believe we have found partners who have the scientific and
commercial capabilities to build on the significant scientific achievements the
team at PPL Inc has made so far.  In addition, by spinning out this area of our
business we have achieved an important milestone in the strategy put in place by
PPL's new management team to focus the business on the development of protein
based therapeutics."



                                    - END -

Notes to editors

1      PPL Therapeutics is a biopharmaceutical company focused on the
development of therapeutic proteins.  The company is one of the world's leaders
in the application of transgenic animal technologies to the development and
production of human proteins for therapeutic applications. PPL's three lead
products are Alpha-1-Antitrypsin (AAT), Fibrin I and bile salt stimulated lipase
(BSSL). The company's GMP-grade production facility has the capability to
produce up to 1 kg/week of clinical grade material.



2      PPL's transgenic production of human proteins involves the introduction
of copies of human DNA into the genetic material of another species. The
resulting transgenic animals express the human gene product (protein) in the
mammary gland allowing its collection and purification during lactation. The
technique offers the opportunity to produce human proteins economically and in
potentially unlimited quantities.



3      Xenotransplantation is the transfer of organs from one species to
another. The fundamental problem with transferring organs between species is
rejection by the recipient's immune system. PPL's program aims to overcome the
causes of rejection and allow the development of a stock of transgenic animals
containing genetic modifications which can be used as organ donors for humans.



4      Further information on PPL, its products and technologies can be found
at: www.ppl-therapeutics.com



5      Fujisawa Investments for Entrepreneurship I LP and Fujisawa Investments
for Entrepreneurship II LP (together "FITE") are investment vehicles established
by Fujisawa Pharmaceutical Co. Ltd (Osaka, Japan) to develop links with drug
research venture companies, especially start-ups.  FITE aims to identify
companies with a unique approach to meet unmet medical needs and to support them
through equity investment.


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

DISUUUUCCUPWGRB