REG - Ovoca Bio PLC - Disposal of Russian Assets

Ovoca BioAnnouncement

08/03/2023 07:00

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RNS Number : 1981S  Ovoca Bio PLC  08 March 2023

Ovoca Bio plc

 

("Ovoca" or the "Company")

 

Disposal of Russian Assets

 

Dublin, Ireland, 8 March 2023 - Ovoca Bio, a biopharmaceutical company with a
focus on women's health, today announces that it has agreed the disposal of
certain Russian assets to Desirix LLC, a private Russian company, for a cash
consideration of 84.6 million Russian rubles (approximately €1.05 million at
the current exchange rate(1))(the "Disposal"). Pursuant to the Disposal, Ovoca
has agreed to sell certain Russian assets related to its clinical development
product Orenetide, namely the Russian patents for Orenetide, the results of
completed scientific development of Orenetide in Russia, together with the
right to own a Russian Marketing Authorization for Orenetide in Russia.

 

Ovoca expects the Disposal to complete by 31 March 2023. Upon completion of
the Disposal, all operational activities of Ovoca in Russia will cease and
Ovoca's Russian subsidiary, IVIX LLC ("IVIX") will be transferred to an
inactive, non-operating status. The proceeds from the Disposal will be used
for general corporate purposes.

 

Background and rationale for the Disposal

 

As a consequence of the Russia-Ukraine conflict and subsequent international
sanctions imposed on the Russian economy and financial system, the Board of
Ovoca has concluded that there is no longer any practical opportunity for
Ovoca to further invest in, nor conduct normal operations and generate income
for shareholders from operating in Russia. In addition, the continuation of
business in Russia may carry reputational and legal risks for the entire
Company.

 

Having considered the options available to it with regards to its Russian
operations and taking into account the constraints under which it would be
required to operate, such as the current sanctions environment, the Board has
concluded that the best course of action for Ovoca is to proceed with the
Disposal and sell the Company's assets in Russia and thereby cease operating
in Russia.

 

Following completion of the Disposal, Ovoca will continue with its current
clinical development plans for Orenetide in major global markets. This
includes the Company's Phase II dose ranging study of Orenetide being
conducted in Australia and New Zealand. As previously noted, all enrolled
participants have completed the designated course of treatment and Ovoca
expects data from the study to become available during the first half of 2023.
The Phase II study will provide data in a Western population fully compliant
with the standards of the International Conference on Harmonisation that, if
successful, will ultimately support a clinical programme in the US and EU.

Kirill Golovanov, Chief Executive Officer of Ovoca Bio plc, said:

"Regretfully, it has proved increasingly difficult to continue Ovoca's
operations in Russia under the current constraints and this has led us to
conclude that a disposal of our Russian assets is the correct course of action
for the wider business.

However, we are optimistic about further increasing the value of our global
assets associated with Orenetide as a potential treatment for hypoactive
sexual desire disorder in wider international markets, including the US and
EU. We look forward to providing further updates in due course."

 

 

Additional Information

As at 1 December 2022 the Net Book Value for Development Costs of Orenetide in
Russia within IVIX was 47.8 million Russian rubles (approximately €0.60
million(1)), and Russian patents for Orenetide were independently valued at
25.1 million Russian rubles (approximately €0.31 million(1)).

 

(1) Converted at FX rate of 80.24 RUB/EUR as at 7 March 2023

 

End

 

 

For further information:

Ovoca Bio plc

Kirill Golovanov (Chief Executive)

Tel +353 1 661 9819

info@ovocabio.com (mailto:info@ovocabio.com)

 

Davy (Nominated Adviser, Euronext Growth Listing Sponsor and Broker)

Ivan Murphy / Daragh O'Reilly

Tel: +353 1 679 6363

 

 

About Ovoca Bio

Ovoca Bio is a European-based biopharmaceutical company with a focus on
women's health. The Company is currently developing a novel treatment for
women with hypoactive sexual desire disorder (HSDD), a condition characterized
by a distressing lack or loss of sexual desire affecting an estimated ~4
million premenopausal women in the US alone.

 

The Company's lead product, Orenetide (BP-101), a novel synthetic peptide
administered through a nasal spray, is clinically validated, with regional
Phase II and Phase III studies conducted in Russia demonstrating statistically
significant improvement in a number of key efficacy outcomes, including an
increase in female sexual desire and reduction of symptoms of distress
associated with HSDD.

 

Ovoca Bio is seeking to develop the drug for major global markets - in
particular the United States and Europe.

 

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