CANNOT BUY ONLINE

More good news contract win with Rene,
Biopharmaceutical contract manufacturer Angel Biotechnology Holdings has signed a GMP manufacturing contract with ReNeuron Group plc.

The signing of this contract follows on from ReNeuron's recent MHRA regulatory approval to commence a clinical trial with stem cell therapy for stroke.

As ReNeuron's manufacturing partner, Angel will be manufacturing the stem cell clinical product for a phase one clinical trial.

The value of the contract was not disclosed.

18 January 2010

Angel Biotechnology Holdings Plc ("Angel" or the "Company")
Trading Update

Angel Biotechnology Holdings Plc, (AIM: ABH) the biopharmaceutical contract manufacturer, is pleased to provide an update on trading activities for the six month period ended 31st December 2009

Business Highlights during the period include:

8 new contracts with a total value in excess of 2.2m were secured in H2. In addition, the Frame Agreement signed with Materia Medica represents a new opportunity for non-manufacturing contracts and a simpler mechanism for signing this business.

The value of contracts signed in the full year 2009 exceeds 3.8m. A significant part of the related revenues will be recognised over the 2010 and 2011 financial years.

We expect to announce a substantial increase in revenues in full year 2009 over full year 2008.

We have already signed more than 67% of our budgeted business for 2010 and we have a pipeline of potential new business with an estimated value of more than 6m.

Involvement in 3 grant awards in the cell therapy and regenerative medicine fields.

Gordon Sherriff, COO of Angel Biotechnology Holdings Plc, said: "Angel has enjoyed a productive and successful second half 2009. Based upon the amount of business already signed up for 2010 and our continued business development efforts, we expect 2010 to be a strong year. We are also seeing demand for stand alone regulatory services and intend to develop this aspect of our business. As a result of the strong demand for our core cGMP manufacturing services, we are now actively assessing options to expand our existing capacity and the means by which this can be achieved most expeditiously. This will include construction of new cGMP production space."

Making me a nice profit so far.

Bought in this morning @ .00494p ... probably bought at the top of the spike and it'll fall now...apologies if it does!...however, med/long term good story developing here so will hold for a good while.... onwards and upwards!

nice to see you here and yes you've sent it down, lol not sure if it will continue to rise as much as last time. BB

As ever, my first purchase was bought a couple of weeks ago at the top of the spike!

So...bought some more this morning to average out....must be onto a winner at these levels ?

thought at the time you got in high, I didn't get out on the peak but still got nice profit, as you say back to normal now and wait for next news.

The more you read the recent announcements the more convinced I am that there are significant gains to be made from these levels as ABH moves into profitability, so will buy more when I have some funds freed up... the next set of results (prob due end Mar/April) should make good reading....(imho)...onwards and upwards!

Am back in at .26p a few days ago and waiting for news.

"back in"

:-))

after all the sh*t you gave me a day ago........

no wonder it's gone to 25p

Balderboy.

Stop being abusive, you were encouraging me to buy Abh last week and then you post you have "bought back in" suggesting that you sold very quickly after your
post last week, not really what you would class as reliable, better off sticking to
the other side, they all seem to post like that :-))

Just too much stock floating about for me to get involved, i've saved 15% by sticking to that theory from last week.

Pot calling kettle black when it comes to abuse i think, can't help if you assume the wrong meaning, IF you had looked at the chart as suggested the last spike was a few days ago, I had bought at .27p and sold on spike at .49p and now back in at 26p and waiting. Profit whether YOU like it or not....

Ok you have it your way, i will filter you out and ignore you from now on.

Good luck

lovely.

Rec'd this earlier tonight...nothing new and you might've already seen this...


Buy Angel Biotechnology (ABH) at 0.24p

Says The AIM & PLUS Newsletter

THE BUSINESS

Penny stock Angel Biotechnology joined AIM in november 2005 raising GBP1.5 million to pursue its ambition of becoming a leading manufacturer of biopharmaceuticals. founded in December 2000 the Edinburgh-based business manufactures and supplies biologics (medicines produced through biological processes rather than combining chemicals) to biotechnology and pharmaceutical firms. some of the applications of its expertise include treatments for hospital acquired infections such as Mrsa and Clostridium difficile (C-Diff), virus-based treatments for cancer tumours and new stem cell-based treatments. the company specialises in early stage drug development work, on behalf of clients, for pre-clinical studies and Phase i, ii and iii of clinical trials.

Angel derives its competitive advantage through two important licences. these authorisations enable the firm to manufacture investigational medicinal products for the purpose of trials and to manufacture licensed products. the licences are subject to audits every two years by the government's medicine safety regulator: the Medicines and Healthcare Products regulatory agency (MHRA). in addition, the company's Pentlands science Park facility is licensed by the Human tissue authority thus enabling the storage, use and disposal of human tissue in the UK.

So why do companies use Angel Biotechnology's services? not only do they enable firms to comply with CGMP (current good manufacturing practice regulations) in drug development, which require those involved in the industry to ensure the safety and efficacy of drugs, clients can reduce the risk and costs involved with developing new medicines by outsourcing to Angel.

Contracts received by the business are typically longterm in nature, with revenue recognition triggered by the achievement of certain milestones. revenues are reported on a geographical basis and in the 2008 financial year sales from the UK accounted for 75.6% of group turnover. operations in the rest of Europe accounted for 19.8% of revenues, while business from the USA and Canada and the rest of the World made up the remainder.




FINANCIALS

In results for the six months to 30th June 2009 the firm reported a 25% increase in sales, to GBP600,000, despite reporting that manufacturing companies had scaled back their research spending as they opted to conserve cash during the downturn. However, a 66% increase in cost of sales to GBP422,000 coupled with a 6% rise in operating expenses to GBP670,000 as the firm expanded operations to deliver new programmes resulted in an 11.7% widening in pre-tax losses to GBP516,000. Losses per share remained unchanged at 0.04p as the exercise of warrants expanded the number of shares in issue.

At the half-year end the' balance sheet presented a not so pleasing picture, with net current liabilities of GBP1.78 million and net liabilities of GBP1.4 million as a result of GBP6.4 million in historic losses. During the first six months of 2009 just GBP28,000 in cash was generated from operations, which after deducting interest payments and funds used for investment resulted in cash holdings rising by GBP10,000 on the year-end figure to GBP83,000. While this is a worrying position a number of developments seen since the half-year end should enable the Angel to continue to finance operations. in november 2009 the firm secured a GBP4 million committed equity facility with trafalgar Capital advisers under which it will be able to access funds through the placing of shares. since the half-year end liabilities to the company's stockbrocker and Trafalgar Capital advisers have been paid down by issuing shares on three occasions. In addition, further breathing room was gained whe n EPhag as, a major shareholder and client, agreed not to redeem its GBP383,000 loan note before June 2010 under revised terms.

On the outlook Angel said in its results that a "major proportion" of contracts from a russian customer will be recognised in the second half of the 2009 financial year and in the first six months of 2010. Encouragingly, the company reported its best-ever pipeline of work, with a number of new contracts at an advanced stage of negotiation together with quotations for a number of new projects with existing customers. the company added that it anticipated the trading climate to remain difficult but expressed optimism about its future in light of its ability to take on a wider variety of projects and the possibility of collaborating with other firms in order to develop new medicines

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CURRENT TRADING

Since its half-year end the biotechnology specialist has announced a number of contract wins. a notable deal was the October 2009 signing of a fourth manufacturing contract with russian pharmaceutical firm Materia Medica, a long standing client, for approximately GBP1.2 million. 90% of the value of the deal will be recognised over the next one and a half years. another important contract, worth approximately GBP0.5 million, was secured in December 2009. the deal, due for completion in June 2010, involves the manufacture of an advanced biologic for Phase ii clinical trials on behalf of an unnamed UK-based biotechnology firm. another GBP110,000 deal with Materia Medica was signed in January 2009 for regulatory consultancy services. the total value of these long-term deals alone equates to GBP1.81 million in revenues, which is nearly twice sales achieved in the 2008 financial year.

In addition to the above contracts the firm has also secured new business with other clients for which financial details have not been disclosed. an agreement was struck with Azellon Ltd, a spin-out company from the University of Bristol, to work on Phase i studies of a cell therapy treatment for the repair of meniscal (crescent shaped muscular) tears. a minor deal to work as a contractor alongside three consortiums of UK companies involved in regenerative medicine has also been secured and a contract has been signed with AIM-listed stem cell therapy business Reneuron Group to perform work to further develop and manufacture clinical-grade lots of a second-generation formulation of Reneuron's CTX stem cell line, for subsequent pre-clinical and clinical applications.

But the most upbeat news came in the form of a trading update for the second half of the year to 31st December 2009. Angel said a "substantial increase" in year-on-year revenues would be announced in results for the 2009 financial year, while 67% of budgeted business had been secured for 2010. By the 2009 financial year the firm said contracts worth GBP3.8 million (four times 2008 revenues) had been signed, with a significant part of these sales due to be recognised in 2010 and 2011. Work is also ongoing to secure potential new business opportunities worth GBP6 million. Encouragingly, the firm also noted "strong demand" for its core manufacturing services and was considering expanding capacity. furthermore, it noted growing demand for the provision of standalone regulatory services, a new area of activity, and was looking to develop this new revenue stream.

OPPORTUNITIES & THREATS

The company feels that the drive by governments to reduce the costs of medicine, as well as the threat to the industry posed by generic drugs, mean that pharmaceutical firms will look towards biopharmaceuticals as a way to create a new range of patented products. in this regard Angel believes it is well-placed to take advantage of new opportunities opening up in the bacteria, advanced biologics and regenerative medicine markets.

Another opportunity comes from legislation that encourages the development of stem cell research. in March 2009 US President Barack Obama lifted a ban on federal funding of stem cell research in the US thereby encouraging research in this field. furthermore, in the UK, in May 2008 the UK government approved research using human-animal hybrid embryos. While this vote is part of a much larger Human fertilisation and Embryology Bill, any further legislation opening up research on these issues will also work to the firm's advantage.

A significant threat to the execution of Angel Biotechnology's strategy comes from possible cuts in research and development spend by its clients. an anaemic economic recovery would mean that firms would continue to be reluctant to invest in new treatments thus impacting Angel Biotechnology's business opportunities. furthermore, since the majority of the firm's turnover comes from the UK, its prospects are tied to the health of pharmaceutical industry and business optimism in the UK.

Another major problem facing the company is its weak balance sheet. While the equity facility agreed provides a source of funds, use of this means of funding will lead to investors being diluted. While the firm has secured a number of new contracts since the half-year end we note that there is a long lead time (between 6 and 12 months) before an opportunity is converted into a sale. furthermore anticipating future revenues is difficult, leading to variability in year-on-year revenues. this is because the company has long-term deals with clients with revenues recognised as and when milestones are reached.

VALUATION

Due to the firm's loss making nature and its weak funding position at the half-year end it is difficult to value Angel Biotechnology using conventional earnings and net-asset based metrics. in addition, there are no forecasts currently available on the market. DisclAIMers out of the way, the investment case rests on the spate of contract wins secured consortiums of UK companies involved in regenerative medicine has also been secured and a contract has been signed with AIM-listed stem cell therapy business Reneuron Group to perform work to further develop and manufacture clinical-grade lots of a second-generation formulation of reneuron's CtX stem cell line, for subsequent pre-clinical and clinical applications.

But the most upbeat news came in the form of a trading update for the second half of the year to 31st December 2009. Angel said a "substantial increase" in year-on-year revenues would be announced in results for the 2009 financial year, while 67% of budgeted business had been secured for 2010. By the 2009 financial year the firm said contracts worth GBP3.8 million (four times 2008 revenues) had been signed, with a significant part of these sales due to be recognised in 2010 and 2011. Work is also ongoing to secure potential new business opportunities worth GBP6 million. Encouragingly, the firm also noted "strong demand" for its core manufacturing services and was considering expanding capacity. furthermore, it noted growing demand for the provision of standalone regulatory services, a new area of activity, and was looking to develop this new revenue stream.

A significant threat to the execution of Angel Biotechnology's strategy comes from possible cuts in research and development spend by its clients. an anaemic economic recovery would mean that firms would continue to be reluctant to invest in new treatments thus impacting Angel Biotechnology's business opportunities. furthermore, since the majority of the firm's turnover comes from the UK, its prospects are tied to the health of pharmaceutical industry and business optimism in the UK.

Another major problem facing the company is its weak balance sheet. While the equity facility agreed provides a source of funds, use of this means of funding will lead to investors being diluted. While the firm has secured a number of new contracts since the half-year end we note that there is a long lead time (between 6 and 12 months) before an opportunity is converted into a sale. furthermore anticipating future revenues is difficult, leading to variability in year-on-year revenues. this is because the company has long-term deals with clients with revenues recognised as and when milestones are reached.

In the second half of 2009 and the potential revenue visibility on offer in light of the multi-year nature of the recent deals. Despite doubts over the funding situation and the scheduled repayment of its convertible loan we believe the shares are due a re-rating as revenues are recognised and cash flows in as contracts are delivered. SPECULATIVE BUY.

Key Data
EPIC: ABH
Market: AIM
Spread: .23p - .24p (4%)

Results released today look good to me for a company at this stage of thier development. good pipeline of contracts with more to be announced...one for the back burner for us LTHs but I've no doubt we'll be rewarded. Will buy more on any significant dips...

GL to all genuine LTH ABH believers!

Bought more this morning...it's looking good!

good for you, still have plenty myself.