ALPHA BIOLOGICS SET FOR GROWTH FOLLOWING
ACQUISITION OF CTM BIOTECH

19 February 2007

Alpha Biologics Sdn Bhd, the UK and Malaysian-based contract manufacturer of biologics drugs, has acquired CTM Biotech, a specialist process development company based in Cambridge. The cash deal was successfully concluded on 5th January 2007.

As a result of the acquisition, Alpha Biologics European HQ will relocate immediately to CTM’s present facility at the Babraham Research Campus near Cambridge in the UK. CTM founders Jon Mowles and Rod Smith have been appointed by Alpha Biologics as Commercial Director – Europe, and Director of Process Development, respectively.

The CTM deal is the second major development to be announced by Alpha Biologics in recent months. In November last year it raised $3 million in funds from Pequot Capital Management, Inc bringing the total raised over the past 10 months to $6 million. The company has also appointed Mary Hoffee as Commercial Director – North America. By the year end, the company expects to employ some 25 – 30 full time staff, the majority of whom will be based at the Penang facility.

Alpha Biologics was established in 2003 with the support of the Penang Development Corporation (PDC) and Malaysian Industrial Development Authority (MIDA). Alpha Biologics’ other investors include Springhill Bioventures and Asiaprise Biotech. Construction of the company’s $18 million manufacturing facility in Penang is scheduled for completion towards the end of 2007, with full scale production expected to commence early – mid 2008.

The company’s area of specialisation is the production of mammalian cell secreted protein drugs for pre-clinical, phase 1 and phase 2 trials. It will provide all of the necessary services required to develop and produce drugs in full compliance with US and European cGMP guidelines.

The acquisition of CTM Biologics is a key element of both Alpha Biologics’ corporate growth and scientific development strategies. The company can now offer clients a European HQ and process development facility – making it easier to participate in the process development stages of projects. It also means that Alpha Biologics can begin development work for clients now, in advance of full scale cGMP manufacture at the Penang facility later this year. The lower build and operational costs of the Penang facility enables Alpha to offer EMEA and FDA compliant cGMP contract manufacturing to its clients at significantly reduced prices compared to European or North American CMOs. Additionally, the Babraham facility will be used as a training base for scientists and technologists recruited locally in Malaysia.

Commenting on the acquisition, Simon Saxby, Chief Executive at Alpha Biologics, said: ‘The significance of this deal cannot be underestimated. The ability to offer clients process development and scale up services has been our main strategic aim for some time now and fits perfectly with our existing focus on cGMP manufacturing. I am delighted that we have secured such an experienced, Cambridge-based team. They have strengthened our position in the market considerably and with their relevant industry knowledge, are set to make an immediate impact.’

David Gough, ex-Chair and Co-founding Director of CTM, comments: ‘I believe the acquisition to be an exciting and natural development for CTM by connecting process development to GMP manufacturing.’

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