Vernalis plc: Integration Update

26th November, 2003 Vernalis plc (LSE: VER, NASDAQ: VNLS) is today providing an update on the integration of British Biotech plc and Vernalis Group plc following the completion of the merger of the two companies in September 2003 and change of name of the enlarged group to Vernalis plc. 

Facilities and headcount rationalisation
The integration of the merged company is progressing well. Closure of the Oxford site will be completed this week and discussions are under way about the potential divestment of this facility. The planned reduction in headcount to 135 employees is expected to be largely completed by the end of 2003.  

Accounting period harmonisation 
Vernalis has decided to adopt a financial year end of 31st December; consequently, its next audited results will be for the eight month period from 1st May to 31st December 2003 and will be published in February 2004. Interim accounts for the merged company for the six months ended 31st October 2003 will also be prepared and will be published in January 2004.  

Repayment of Roche convertible loan 
As a result of the change of control of Vernalis Group plc, Roche became entitled to repayment of a £7 million convertible loan made to Vernalis Group plc in May 2002. Vernalis has now repaid this loan in full. Roche remains an important partner of the Company in relation to the 5HT2C receptor agonist programme (see accompanying R&D update release).  

----ends----

Enquiries: 

Vernalis plc
Simon Sturge, Chief Executive Officer
+44 (0)1223 895555
Tony Weir, Chief Financial Officer
+44 (0)118 936 7808

Brunswick Group
Jon Coles; Wendel Carson
+44 (0)20 7404 5959

Safe Harbour statement: this news release may contain forward-looking statements that reflect the Company’s current expectations regarding future events. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including the success of the Company’s research strategies, the applicability of the discoveries made therein, the successful and timely completion of clinical studies, the uncertainties related to the regulatory process, the successful integration of completed mergers and acquisitions and achievement of expected synergies from such transactions, and the ability of the Company to identify and consummate suitable strategic and business combination transactions.

About Vernalis
Vernalis plc was established in September 2003 following the merger of British Biotech plc and Vernalis Group plc. Operating from state-of-the-art R&D facilities at its headquarters in Reading (UK) and in Cambridge (UK), the company is equipped to undertake the full development of compounds from discovery through to product registration. It has a product – frovatriptan – that is approved and marketed in the US and Europe, and an innovative research and development portfolio. Its current market capitalisation is approximately £110 million, and it is pursuing a growth strategy based upon successful pipeline development and further consolidation within the biotechnology sector.