Vernalis records profit in second half 2001 following Frova™ milestone payments
19 March 2002
Vernalis Group plc (LSE: VER), the biopharmaceutical company specialising in CNS disorders, obesity and diabetes, today announced a profit after tax of £1.1 million for the second half of 2001, including milestone income of £10.3 million on FDA approval of frovatriptan. Turnover for the year increased by 372% to £13.8 million, and full year losses declined by 53% to £9.9 million (2000: £21.2 million).
During the period the Company has entered into further collaborations with major pharmaceutical companies in its core areas of expertise, providing potential new multiple revenue streams from important and fast growing therapeutic areas. Funding and potential milestone income from the Company's commercial collaborations now exceeds $150 million in addition to the potential royalty revenues.
Highlights
Migraine (FrovaTM / MigardR)
- FDA approval in Q4 2001 triggered $15m in milestone payments
- US launch expected Q2 2002
- Approval granted in all 15 European Union countries in Q1 2002
- Roll out of European launches anticipated from Q2 2002
Sexual Dysfunction
- CTX filed following positive outcome in Phase I studies
- Phase II patient studies expected to commence Q2 2002
Obesity
- First candidate drug moving into Phase I Q2 2002
- New agreement with Roche provides funding to identify additional candidate drugs, plus substantial potential milestones and royalties
Parkinson's Disease
- Selection of first candidate drug announced in Q1 2002
Diabetes
- Roche and Vernalis pool intellectual property in new strategic alliance
- Collaboration targets novel mechanisms of action
- Vernalis to receive research funding plus potential milestones and royalties
- New deal represents largest potential revenue stream to date
Corporate
- Company reports first ever half year profit in second half 2001
- Income from FrovaTM approval and new deals with Roche strengthen cashflow
- Registration of Company with SEC in the US completed Q3 2001 in preparation for secondary listing on Nasdaq
Commenting on the year, Chief Executive, Robert Mansfield
said:
"I am delighted to see the Company recording its first ever half
year profit in the second half of 2001. Our new strategic alliance
with Roche in diabetes is a landmark deal for Vernalis that has
significantly improved the Company's financial prospects. We are
also very pleased to report that preparations are well advanced for
the launch of FrovaTM in the US and MigardR in Europe. We believe
that the distinctive profile of frovatriptan provides an attractive
new alternative for migraine sufferers. The imminent launch of
frovatriptan in these major markets signals the start of a very
exciting stage for the Company".
"Our portfolio of candidate drugs targets disease areas with large patient populations and we believe that this and our CNS focus will produce significant interest from the US investment community as we pursue our plans for a Nasdaq listing".
View the financial document (PDF file - 69KB)
----ends----
