York acquires Rosanto in $4M all share deal

Hitchin, UK-based York Pharma, a strategic acquirer, developer and marketer of dermatology pharmaceuticals, has acquired the UK's Rosanto Pharmaceuticals for L2.0 million ($4.0 million) accessing its patented research in the fields of inflammatory diseases, dermatology, cancer and antivirals.

York Pharma is to issue 1,616,814 new ordinary shares at a price of 123.7 pence, as consideration for 100% of Rosanto's issued share capital. York has also raised L5.25 million, before expenses, through the issue of 4,375,000 new ordinary shares at a price of L1.20 to provide working capital for the expanded pipeline

One of the key acquired compounds is a novel topical anti-tumor necrosis factor-alpha product with the potential to treat psoriasis and other inflammatory diseases. York also gains an international portfolio of three wholly-owned patent families including applications and associated knowledge in the fields of dermatology, skin cancers and novel antiviral agents. In its results for the six-month period ended March 30, 2007, York saw a pre- and post-tax loss of L3.24 million, lower than management expectations, and had cash of L2.6 million at the end of the period.