New CEO at Peplin Biotech

Brisbane small molecule drug development company Peplin Biotech (ASX: PEP) today announced the appointment of its new chief executive.

Michael Aldridge will take over as CEO and managing director of Peplin in mid-October, replacing Garry Redlich, who plans to stay on in a business development role.

Welcoming Aldridge's succession to the helm, Redlich said he had worked with the incoming CEO to build Peplin's institutional shareholder base from less than 3 per cent to more than 10 per cent over the past year.

He described Aldridge as an outstanding industry professional who was highly respected by the company's key stakeholders.

"Michael brings a wealth of experience relevant to strategic development of biotechnology businesses as well as domestic and international capital markets," Redlich said.

"In addition, his extensive international network of relationships in the pharmaceutical and biotechnology industries will be of great value to the company.

"I am delighted that he has accepted the challenge of a career change to lead Peplin Biotech into this critical new phase of its growth and development."

Aldridge spent several years working in the United States in roles including associate director of Bears, Stearns and Co Healthcare Investment Banking Group in New York, where he focused on the US and European biotechnology and small cap pharmaceutical industries, and similar positions with Volpe Brown Whelan & Company in San Francisco and SG Warburg Group in London and Sydney.

He returned to Australia in 2002 and has developed a biotechnology investment banking business with Wilson HTM.

"I was always impressed by Peplin's portfolio of products in development, its corporate and university collaborations and management team," said the incoming CEO.

"My involvement in the biotechnology industry over the last nine years has given me an appreciation of the combination of great science and effective collaborative business development.

"I feel that Peplin has accomplished much in this regard with near-term potential to deliver much more."

Peplin chairman Cherrell Hirst welcomed Aldridge to the top job and paid tribute to the accomplishments of Redlich during his nearly four years as CEO.

"He took on the task of rescuing the company four years ago and since then Peplin has created its own fast-pace success story with four successful financings," Hirst said.

"Garry also deserves the bulk of the credit for clinching last year's deal with Allergan, which made us the first Australian company ever to licence an anti-cancer drug into the US."

Cash injection

Peplin's cash reserves have already received a AUD$1.8 million injection from the Allergan deal, which gives the US-based company the right to develop and commercialise lead compound PEP005 for the topical treatment of non-melanoma skin cancer and actinic keratosis.

Under the research collaboration and licence agreement Allergan has been granted an exclusive licence to develop and commercialise PEP005 for the topical and intralesional treatment of skin and eye conditions in North and South America for the term of Peplin's US patent. In return, Peplin has received the upfront payment of $1.8 million and may receive up to a further $34.4 million including milestone and development payments.

Upon commercialisation, Peplin, which remains responsible for pre-clinical work on the compound, will receive a market rate royalty on net sales.

The Allergan payment comprised more than half of Peplin's consolidated revenues for the year as shown in its annual report, released to the stock market today.

The company's revenue from ordinary activities was two and a half times higher than the previous year at $3.2 million.

Despite its successes Peplin ended the financial year at a net loss of $3.7 million, up from $2.7 million in 2002, with research and development costs the main contributor. The biotech spent $5.2 million on R&D and 2003, compared with $2.5 million the previous year.

Nonetheless, Peplin holds comfortable cash reserves of $6.4 million, mostly thanks to $7.9 million in share issues during the year.

In a separate announcement, Peplin told the market it would hold its annual general meeting on October 21 in Brisbane.

Among items on the agenda will be the approval and ratification of a $3.5 million share issue in June this year to fund the acceleration and broadening of the company's drug candidate pipeline.

At the time of writing Peplin was trading 8.4 per cent higher at 90 cents.