This announcement is not for release, publication or distribution in the United States, Canada, Australia or Japan. This announcement is not an offer of securities for sale in the United States or elsewhere. . Announcement no. 14/2007 To OMX the Nordic Exchange Copenhagen, June 8, 2007 Curalogic offers new shares to accelerate the development and changes the company's financial expectations for 2007 Summary: Curalogic today announces an offering circular in connection with the company's offering of 18 million new shares each with a nominal value of DKK 0.50 with an overallotment option of 2 million new shares each with a nominal value of DKK 0.50, so that the total offering can be on DKK 20 mio OMX The Nordic Exchange Copenhagen A/S. With the proceed from the offering, Curalogic can amongst other things accelerate development of the grass product, which means that the company can submit a license application for this product in Europe in 2009; one year earlier than previously planned. Providing that the offering is completed as planned, the increase level of activities means that Curalogic changes the financial expectations for the year 2007 to a net loss in the range of DKK 195-210 million, compared to previous expectation of a net loss in the range of DKK 125 - 140 million. In the spring of 2007, Curalogic successfully completed a phase II clinical trial with the company's product for the treatment of grass allergy. The results from this trial enable Curalogic to accelerate the execution of a phase III clinical trial with the grass product to 2008. This means that Curalogic now expect to submit a license application for the grass product in Europe in 2009; one year earlier than previously planned. Reasons for the offering and use of proceeds The proceeds from the offering will be invested in the development of products targeting ragweed, grass and house dust mite allergy over the next 24-month period. At the end of that period, Curalogic expects to have: initiated (and have the financial resources to complete) a US Phase III trial (RPE 06) with the ragweed product candidate, which is expected to lead to registration of this product in the United States. Curalogic's planned costs for this development are estimated at approximately DKK 130 million (covering both costs of development of manufacturing and of the clinical trial); successfully completed an EU Phase III trial (GPE 03) with the grass product candidate concerning two active doses versus placebo expected to involve 200 - 250 subjects in each group and be ready to file for registration of this product in Europe. Curalogic's planned costs for this development are estimated at approximately DKK 120 million (covering both costs of development of manufacturing and of the clinical trials); and if the Option is fully exercised, this will create a background for additional activities. If the Offerprice is determined at DKK 19.1 per share (corresponding to the closing price on May 30, 2007), Curalogic expects to receive net proceeds from the Offering of approximately DKK 327 million after deduction of Curalogic's estimated offering expenses, see “Offering Expenses”, assuming no exercise of the Option. If the Option is exercised in full, the net proceeds after deduction of Curalogic's estimated offering expenses are expected to be DKK 363 million. Prospective financial information for 2007 The Company's clinical development activities concerning the ragweed, grass and house dust mite products will continue in 2007. A substantial part of the costs of the EU Phase III trial with the ragweed product candidate will be incurred in 2007, and the Company also expects to incur substantial costs for the final development of the manufacturing processes of the ragweed product. The Phase II trials with the grass and house dust mite product candidates will also to a wide extent affect costs in 2007, and the costs of launching the EU Phase III clinical trial with the grass product candidate will also affect costs in 2007. Research and development costs are estimated in the range of DKK 195 - 205 million for the year 2007. Administrative expenses are expected to be in the range of DKK 8 - 12 million for the year 2007, which represents a slight increase caused by an adjustment of administrative resources for the Company's ongoing activities. Moreover, interest income is estimated at a level of DKK 8 - 9 million. The Company expects a total loss in the rage of DKK 195 - 210 million for the entire year 2007. The offering The Offering includes 18,000,000 offer shares each with a value of DKK 0.50, including the overallotment option of up to on up to 2.000.000 new shares. The offering comprises (a) a public offering to retail and institutional investors in Denmark (”The Danish Public Offer”) and (b) an international private placement outside the United States to institutional investors in reliance on Regulation S of the Securities Act. Managers Global Co-ordinator & Bookrunner: Danske Markets (division af Danske Bank A/S) Holmens Kanal 2-12 1092 Copenhagen K Denmark Co-Lead Manager: Piper Jaffray Ltd. Fifth Floor One South Place London EC2M 2RB England Offer price The Offer Price will be determined by the Company in consultation with the Global Co-ordinator & Bookrunner on the basis of a bookbuilding process. The offer price is expected to be announced through the OMX Nordic Exchange Copenhagen on or before June 21, 2007. Offer Period The offer shares may be subscribed for in the period as from 15 June, 2007 expectedly until on or about 20 June, 2007 at 4:00 pm (Copenhagen time), but the Offering may be closed wholly or in part prior to the end of the Offer Period. The Danish Public Offering may be closed for applications by Danish retail investors for amounts up to and including DKK 2,000,000 independently of the rest of the Offering. Any closing of the offering (wholly or in part) will be announced separately through the OMX Nordic Exchange Copenhagen. The offering will not be closed (wholly or in part) before 18 June, 2007 at 4:00 pm (Copenhagen time). Allocation and reductions If the total number of Shares applied for in the Offering exceeds the number of Offer Shares, reductions will be made as follows: In respect of applications for subscription for amounts of up to and including DKK 2 million, reductions will be made pro rata. In respect of applications for subscription for amounts of more than DKK 2 million, individual allocations will be made. The Global Co-ordinator will allocate the Offer Shares to institutional investors upon consultation with the Company. Following expiry of the offer period, investors will receive a statement indicating the number of offer shares allocated and the equivalent value at the offer price. It is expected that the basis of the allocation will be announced on or before June 21, 2007. If the offering is closed before June 20, 2007, the announcement of allocation will be moved forward accordingly. In the event that the total number of shares applied for in the offering exceeds the number of offer shares, reductions will be made, and in such case the Global Co-ordinator and the Co-Lead Manager reserves the right to demand documentation of the authenticity of all applications and the names of the applicants and to perform individual reductions if applications believed to derive from the same applicant appear several times. Delivery and payment Payment is expected to be effected on or before June 26, 2007 against subsequent registration of the Offer Shares in the investor's account with VP Securities Services. Offering circular Request for copies of the offering circular may be addressed to: Danske Bank Corporate Actions Holmens Kanal 2-12 1092 Copenhagen K Denmark Phone: +45 7023 0833 Fax: +45 4355 1223 Subject to certain exceptions, the Offering circular can also be downloaded from the Company's website: www.curalogic.com The offering circular will not be delivered to the Inuted States, Canada, Australia or Japan. Yours sincerely, Curalogic A/S For additional information, please contact: Peter Moldt, President and CEO, Phone +45 33 11 41 01, mobile +45 26 25 04 22 Helle Busck Fensvig, EVP and CFO, Phone +45 33 11 41 01, mobile +45 20 70 55 37 About Curalogic Curalogic is a Danish biopharmaceutical company listed on the OMX Nordic Exchange Copenhagen (CUR.CO). Curalogic develops innovative pharmaceuticals for the treatment of allergy. By combining the best of two worlds - the efficacy of immunotherapy combined with the safety and patient convenience of symptomatic treatments - Curalogic aims to develop a novel and user-friendly form of allergy treatment, and make it the preferred type of allergy treatment among patients. Curalogic has a broad and mature pipeline with a product for treatment of ragweed allergy in Phase III, a product for treatment of grass allergy ready for Phase III, a product for treatment of cat allergy in Phase II and a product for treatment of house dust mite allergy preparing for clinical trials. DISCLAIMER This announcement does not contain all information that may be of relevance to prospective investors. Before deciding on any investment, prospective investors should read Curalogic's published offering circular thoroughly, including the section with the heading “Risk factors”. In connection with the offering, Danske Markets (Division of Danske Bank A/S) may as stabilisation manager engage in transactions in order to stabilise the market price of the shares at a level higher than that which might otherwise prevail for a limited period after the offering. There can be no assurance that Danske Markets (Division of Danske Bank A/S) will undertake such stabilisation. Such stabilisation, if commenced, will begin upon commencement of trading in the new shares on the OMX Nordic Exchange Copenhagen, and may be discontinued at any time without prior notice. The stabilisation must be discontinued after 30 days from first day of trading for the new shares. It may be unlawful to distribute this announcement in certain jurisdictions. This announcement is not for distribution in the United States, Canada, Australia or Japan. The information in this announcement does not constitute an offer of securities for sale in the United States, Canada, Australia or Japan. The Company does not intend to register securities in the United States or to conduct a public offering of securities in the United States. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration.
Curalogic offers new shares to accelerate the development and changes the company's financial expectations for 2007
| Source: Curalogic A/S
Attachments
