Vernalis plc: interim results for the six months ended 30 June 2004
17 September 2004
Vernalis plc (LSE: VER, Nasdaq: VNLS) today announces its interim results for the six months ended 30 June 2004.
Vernalis has made sustained progress during 2004. Losses are almost halved, with significant cost savings realised following last year’s restructuring. Three major collaborations have been secured with Biogen Idec, Novartis and, most importantly, Endo Pharmaceuticals. The pipeline has achieved important progress. As a result, Vernalis has transformed its cash position and has significant growth potential through a combination of sales of frovatriptan, the successful development and commercialisation of its product pipeline candidates and through further participation in the consolidation of the biotechnology sector.
Highlights
Financial
- Revenue: £5.1 million (2003: £7.0 million).
- Loss almost halved for the period of £13.1 million (2003: £26.0 million). Significant cost savings realised from 2003 restructuring.
- Cash and short term investments of £11.0 million at 30 June 2004 increased to £37.2 million at 31 August 2004 after receipt of the amounts due under the Biogen Idec and Endo collaborations. During September a further £6 million will be received from Novartis in relation to their collaborative programme.
Frovatriptan
- Reacquisition of North American rights to Frovatriptan in May 2004 for $50 million.
- Re-licensing of North American rights to Frovatriptan to Endo Pharmaceuticals, announced on 15 July 2004 and completed on 17 August 2004, for payments that could exceed $400 million.
- Relaunch of Frova™ in USA by Endo in September 2004
- Early repayment of amounts due to Elan saving $6m using $50m loan from Endo.
- Regulatory Approval for frovatriptan for acute treatment of migraine in Canada.
- Completion of recruitment for Phase III safety study of frovatriptan for the short-term prophylaxis of menstrually-related migraine (MRM).
- Constructive dialogue with FDA for the remaining confirmatory efficacy trial to support a label for prophylaxis of menstrually-related migraine.
Product Portfolio
- Positive results from an initial Phase II proof of concept study of V10153 in acute myocardial infarction patients. Its further development will continue with a Phase II study in stroke beginning in Q1 2005.
- Positive data from a Phase I study of V2006 a novel treatment for Parkinson’s disease.
- Phase II trials of V140 in pain indications are expected to begin in H1 2005.
Other collaborations
- Biogen Idec (June 2004): Collaboration to advance V2006 and supporting A2A receptor antagonist programme which targets Parkinson’s disease and other central nervous system disorders for payments that could exceed $100 million. Biogen Idec made an initial payment of $10 million and an equity investment of $6 million.
- Novartis (August 2004): Extension of cancer research collaboration on Hsp90. Novartis to make an equity investment of $9 million and an initial payment of $1.5 million.
Simon Sturge, CEO commented "The last six months have seen Vernalis take a quantum leap forward. The collaborations with Endo, Biogen Idec and Novartis have significantly strengthened the company’s cash position as well as endorsing its products and technology. We look forward to further building shareholder value in the second half of the year."
View the interim results for the six months ended 30 June 2004 (PDF - 220KB).
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Simon Sturge and Tony Weir, CEO and CFO of Vernalis respectively, will today host an analyst / investor presentation and conference call at 8:45am BST to discuss the interim results. This may be accessed by dialling: 0845 245 3471, and quoting 'Vernalis conference call'. A recording of the call will be available for one week by dialling: in the UK, 0845 245 5205 and international, +44 1452 550 000, with the access code: 1921830#.
Enquiries:
Vernalis plc
Simon Sturge, Chief Executive Officer
Tony Weir, Chief Financial Officer
+44 (0)118 977 3133
Brunswick Group (for analyst, financial media
enquiries)
Jon Coles; Wendel Carson
+44 (0)20 7404 5959
Northbank Communications (for trade media
enquiries)
Peter Colley
+44 (0)1260 296500
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.
