ARDANA PLC ANNOUNCES OUTCOME OF STRATEGIC REVIEW

Edinburgh, UK, December 3 2007: Ardana Plc (LSE:ARA), the pharmaceutical company focused on improving human reproductive health, today announces the initial findings of the strategic review of the Company’s activities.

The review has placed considerable emphasis on the ongoing development and commercialisation of the Company’s late stage products in order to maximise shareholder value in an acceptable period of time. A key feature of the review is ensuring that any further investment is directed towards those areas with the greatest potential return whilst conserving cash.

The highlights of the review are as follows:

Focus on key clinical development projects and near term commercialisation products

• Teverelix LA in prostate cancer, benign prostatic hyperplasia (BPH) and endometriosis, in all markets
• Testosterone Cream for the treatment of hypogonadism with particular focus on the US market
• ARD-07, growth hormone secretagogue in the diagnosis of growth hormone deficiency, in the United States
• ARD-07, growth hormone secretagogue in adults and children requiring treatment with growth hormone, in particular idiopathic short stature in children, in all markets

Projects with lower priority placed on hold

• ARD-07 in the diagnosis of growth hormone deficiency in Europe due to the probable requirement for an additional comparator study and the relatively small size of the opportunity
• Development of terbutaline vaginal gel
• Development of the fizzy tablet platform technology

Strengthening of Business Development Function

There will be an increased focus on creating business development opportunities for the Company’s most attractive clinical development projects and near term commercialisation candidates highlighted above. In order to augment Ardana’s business development capability the Company has appointed John Dawson as SVP Corporate Strategy for a defined period.  John’s most recent appointment was as CFO and Head of Business Development, Europe for Cephalon Inc. where he served for 11 years in various senior roles including Vice President Pharmaceutical Operations, Europe. Prior to joining Cephalon, John spent five years as Finance Director for Serono UK. The areas of focus for John and his team will be:

• The completion of a strategic development alliance for Teverelix LA
• Seeking partnerships, particularly in the USA, for Testosterone Cream for the treatment of male hypogonadism
• Seeking a partnership in the USA for ARD-07 which is in Phase III as a diagnostic agent for growth hormone deficiency
• An emphasis on out-licensing of the Company’s marketed product portfolio in continental Europe
• Exploration of alternative means of funding the development of ARD-07 in therapeutic indications

The Company will consider a wide range of options for delivery of these business development imperatives ranging from local commercial partnerships to M&A activity.

Board composition

Following the move of Huw Jones from non-executive Director to Chief Executive Officer, the Company is evaluating the composition of the Board.

Other business areas

Ardana is continuing to review additional aspects of its business strategy and expects to report on further developments in due course.

Commenting on today’s announcement, Ardana’s CEO, Dr Huw Jones, said:  “The results of our strategic review will focus the Company’s efforts and resources on the high-value, near term opportunities in our pipeline such as Teverelix LA, in our two lead indications, and Testosterone Cream, both of which have recently reported strong clinical results. 

“In addition, we are pleased to welcome John Dawson to Ardana, his appointment substantially enhances our Business Development capability and we are now well positioned to focus on the delivery of significant shareholder value.  We look forward to the implementation of our review.”

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