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NEXTGEN GROUP PLC

Divestment of non core business

5 December 2008.  Ann Arbor, Michigan - NextGen Group plc (AIM: NGG, 'the Group', 'NextGen' ), the provider of biomarker testing services, has sold its non core 'gene to protein' automation and software business to a management led spin-out called eXeTek Ltd ('eXeTek'). 

The disposal involves an exclusive licence of the technology and an asset and liability transfer that enables NextGen to accept and recognise revenues from two existing customer orders. This will allow revenue recognition for the Group of £0.3m in 2008 with an ongoing project which is expected to recognise a further £0.9m in early 2009.  

eXeTek will receive £0.2m in cash in the liability and asset transfer leaving the Group with a £0.6m net cash profit. As part of the deal NextGen will acquire a 24% stake in eXeTek and receive 5% royalty on sales for three years. The automation and software business unit in 2007 recognised a total of £424,000 with a gross margin of 49%.

eXeTek is led by two former NextGen employees, Stephen Woodall and Stuart Hill.   

The disposal is in line with NextGen's strategic plan, announced in April 2008, to divest or wind down its software and instrumentation UK-based businesses and to focus all resources including the profit realised from these transactions on growing the biomarker services business.

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Enquiries:

NextGen Group
Dr Michael Pisano, CEO	+1 734 973 7914
College Hill
Lorna Cuddon/Adrian Duffield	+44 20 7457 2020
nextgen@collegehill.com
Seymour Pierce (Nomad for NextGen)
Jonathan Wright/Nicola Marrin	+44 20 7107 8000

Notes to Editors

NextGen Group PLC www.nextgensciences.com

NextGen Group PLC is a provider of biomarker services for pharmaceutical and biotech companies globally. Using advanced techniques, such as Multiple Reaction Monitoring (MRM) mass spectrometry analysis, the Company is developing a portfolio of robust assays for testing clinical samples for drug safety and efficacy, and the development of personalized treatment for patients. 

Headquartered in Ann Arbor, Michigan, NextGen's range of services, which include biomarker testing, discovery and assay development, are employed by its customers as a key part of the biomarker-based drug and diagnostic development process. 

Further details about the technology

Biomarkers

A biomarker is a substance (e.g. a protein) used as an indicator of a biologic state. A biomarker can be measured from a clinical sample, such as blood or urine, and evaluated as an indicator of normal biologic processes, pathogenic processes, or pharmacologic responses to a therapeutic intervention.

The pharmaceutical industry's interest in biomarkers is increasing as they can be used not only for diagnosis but also for understanding the mechanism of the disease and development of therapeutics. Biomarkers have been shown to play a key role in drug discovery and development, particularly in therapeutic areas including cancer, cardiovascular diseases and disorders of the central nervous system. It is believed that biomarkers will lead the move towards personalised medicine.

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