Strong Financials Back Celltech's R&D

Celltech's strong financial position will enable the company to expandits investment in key research areas in which it possesses a highly competitive position and patented leading-edge technology, comments John Jackson, Celltech's chairman, in the firm's annual report for 1996.

A major change in Celltech's structure was achieved last year with the divestment of Celltech Biologics, its manufacturing business, to Alusuisse-Lonza. The latter acquired 75.1% of the business for an initial payment of L31.5 million ($50.4 million). The purchase of the remaining 24.9%, together with payments dependent upon sales growth over a three-year period, is expected to generate a further L18.5 million, according to Peter Fellner, Celltech's chief executive. A payment of L10.5 million is expected in December this year, and the remaining L8 million of earn-out payments will follow.

In addition, the firm received L5.6 million in 1996 in milestone payments, and L1 million in royalties on the sale by Centocor and Eli Lilly of ReoPro (abciximab); the latter has been granted a license to Celltech's Boss patent. Celltech expects ReoPro's sales to continue to advance further in 1997.