Angel Biotech takes off on new contracts

Angel Biotechnology, the AIM listed producer of proteins and cell therapies, has signed a further three manufacturing contracts with Materia Medica worth in excess of £4.5m.

The agreement, which has seen Angel's stock rocket 13.7% this morning, is expected to take 22 months to complete.

Initial production will take place in Edinburgh but the company hopes to transfer activities to its recommissioned site in Cramlington, near Newcastle, during 2012.

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Materia and Angel had already agreed to form a joint venture in October last year and the contracts for this work will transfer to the joint entity.

Dr Paul Harper, the Executive Chairman of Angel Biotechnology said the deal put the joint venture on to a "sure footing" while Professor Oleg Epstein from Materia said he believed the deal will enable the firms to bring new products to market in a "timely manner".

Over the last 12 months Angel has lost 35% of its value.

BS