Alizyme plc

27 Jul 1999

SIMMONS & SIMMONS ADVISES ON LATEST FUND RAISING

SIMMONS & SIMMONS ADVISES ON LATEST FUND RAISING BY ALIZYME PLC

Alizyme plc, the biopharmaceutical discovery and development group, was advised by Simmons & Simmons in respect of its £5.2 million placing and open offer with warrants, which was announced on 28 June 1999. The ordinary shares of Alizyme were admitted to trading on AIM in July 1996 raising £5 million before flotation expenses. In May 1998, Alizyme raised a further £5.5 million net of expenses by means of a placing and open offer. Simmons & Simmons acted for Alizyme on each of these transactions.

Alizyme is focused on developing products for unmet medical needs. It is targeting the treatment and management of obesity and related diseases such as diabetes and of gestrointestical disorders such as irritable bowel syndrome, and it now has one drug candidate moving into Phase II clinical trials, one in Phase I clinical trials and two further drug candidates in pre-clinical development. Alizyme is distinguished from many biopharmaceutical companies in that it started from a market focus rather than a technology focus. It has in-licenced product opportunities and appropriate technologies and has implemented its own discovery programmes with collaborators to create a research and development portfolio.

The placing and open offer comprised a placing of 5,405,406 units and an open offer of up to 5,454,153 units, both at 74p per unit, each unit comprising of 2 ordinary shares of 2p each in the capital of the company and one warrant. Alizyme conditionally placed firm £4 million to certain institutional and other investors, and qualifying shareholders were given the opportunity to participate in the fund raising under the open offer at the same issue price applicable to the institutional and other investors under the placing. The warrants, if exercised in full, would provide Alizyme with an additional £2.8 million (approximately) to help fund its continuing development. The Simmons & Simmons team was co-led by partners Charles Fuller (Corporate Finance) and Charles Mayo (Corporate) and included Rachael Hubbard, Katie Oliver and Patrick Casey (Corporate); partner Gerry Kamstra, Bryan Driscoll and Scott Parker (Intellectual Property); partner Paul Hale and Gareth Amdor (Tax); Victoria Lewis (Employment); Monica Ma (Share Options/Pensions); and Ruth Davies (Property).

Other advisers involved in the transaction included Nomura International plc (nominated adviser and broker to Alizyme), Arthur Andersen (auditors to Alizyme) and Ashurst Morris Crisp (for Nomura International plc).

ENDS Notes for editors:

1. Simmons & Simmons is worldclass law firm with offices in London, Paris, Brussels, Düsseldorf, Lisbon, Milan, Rome, Madrid, Abu Dhabi, Hong Kong, Shanghai and New York with over 1,400 staff worldwide. For further information on Simmons & Simmons please visit our website at www.simmons-simmons.com.

2. The Corporate Department at Simmons & Simmons comprises over 220 legal staff (115 in London), including 47 partners (27 in London). It advises on the whole range of corporate finance activity, and mergers and acquisitions as well as other corporate law matters for listed and unlisted companies, in the United Kingdom and overseas.