Business Weekly - Cambridge, UK

MMI's non-exec chairman, Phil Cartmell

The new focus means that the company's anti-viral ribozyme technology - aimed at fighting infectious diseases - will be divested or out-licensed.

MMI's resources and efforts will now focus on two oncology-related technology platforms: DNA vaccines primarily targeted towards cancer therapy and ruthenium chemotherapy.

On 4 April MMI reported positive progress in an academic Phase Ib/IIa prostate cancer trial conducted by the University of Southampton which demonstrated that a DNA vaccine based on the company's Genvax technology is able to induce the CD8+ cytotoxic T cell activity that is believed to be critical for effective immunotherapy against cancer.

MMI said it will now focus on the initiation of Phase Ib/IIa trials with a commercial product for the treatment of prostate cancer and lymphoma/myeloma.

Meanwhile, dosing studies for the leading ruthenium compounds ONCO 4403 and ONCO 4417 have now been completed. The studies have shown that ONCO 4417 is tolerated at a dose three to four times higher than, and remains in blood for at least twice as long as, ONCO 4403. Efficacy studies for ONCO 4403 have also been completed.

Cartmell said the Board had reviewed those results and had decided to focus resources on the more promising compound ONCO 4417 and discontinue the development of ONCO 4403.

In his statement, Cartmell said: "MMI's strategy will be to focus the company's resources on those projects which have the greatest potential to maximise shareholder return within a reasonable period of time. The review has concluded that MMI's technologies in oncology are at the leading edge in the field and that the company will benefit from a greater focus in this area.

"The board also believes that the company's risk-reward profile could be significantly enhanced by further expansion of its oncology pipeline. As a result, the Board plans to actively review opportunities to in-license and or acquire other oncology platforms."

MMI's founding husband and wife team - David Best and Margaret Mitchell -were ousted from the company in March amid claims that Best had presented an over optimistic picture of the company's drug development pipeline to the market.

Together, the couple controlled over a third of the company's shares, and had been collecting over half a million pounds a year from the company, according to industry analysts.

Cartmell said: "What MMI has been able to achieve over the past few years is to complete the 'design' element of its lead drug development projects. The challenge now is to take the completed design of each of our two lead projects into the 'build' phase and our review has concluded that the quality of the projects merits further development.

"Each of our oncology programmes has the potential to deliver a step-change in treatment for cancer patients and we have a clear objective to create value for shareholders through the partnering of these programmes with pharmaceutical companies once proof-of-principle has been achieved."

The reorganisation received a less than positive reception from the market, with MMI's shares falling over 11 per cent to 17.5p immediately after the announcement. A year ago today the company's shares were trading at 173.5p.

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