Asterand plc is the leading global supplier of high quality, well characterized human tissue and human tissue-based research services to drug discovery scientists. Their mission is to provide human tissues and services to accelerate the identification and validation of drug targets and enhance the selection of drug candidates with an increased likelihood of clinical success.
Asterand secures no-cost extension to NCI contract
8th Nov 2011, 10:56 am by Giles Gwinnett
Asterand (LON:ATD) has been granted a no cost extension to its human tissue supply contract with America’s National Cancer Institute (NCI).
The extension will allow Asterand to realise any unexpected funds for the initial US$5.4 million contract beyond the initial expiration date of September 23 2012.
The expiration date of the contract has now been extended to September 30 2014.
Investors welcomed the news, sending shares in the human tissue supplier up 20 percent to trade at 2.25 pence this morning, valuing the company at £2.67 million.
Under the contract, which was announced in October 2010, Asterand would provide bio-specimens to the NCI as part of the prestigious cancer research project – the Cancer Genome Atlas (CGA).
The contract was worth an initial US$5 million over the first 17 months and up to US$24 million over five years.
However, NCI notified the company in September that it would not exercise extension options with its suppliers on CGA as appropriate funds were not available.
Last month, the board formally placed Asterand up for sale as it explored funding options, also saying the company had been in discussions with a “potential funder” with a view to refinancing the business.
“The board is currently targeting a deadline of second half of November for determining a potential offer for the company,” Asterand said.
“Due to the board's desire to conclude a deal within a short period of time, preference will be given to cash only offers for the company.”
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