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For immediate release |
19 July 2006 |
PROXIMAGEN NEUROSCIENCE PLC
(“Proximagen” or “the Company”)
Interim Results
for the Six Months Ended 31 May 2006
London, UK, 19 July 2006 – Proximagen Neuroscience plc (AIM: PRX), the specialty drug discovery and development company focused on neurodegenerative diseases, today announces its interim results for the six months ended 31 May 2006.
Operational Highlights:
· New positive data generated from discovery programmes in Parkinson’s disease and neurodegenerative-related symptomatic relief-pipeline proceeding according to plan
· In-licensing agreement signed with Northwestern University, Chicago
· Two new service contracts commenced during the period
· Three new patent applications filed
Financial Highlights:
· R&D investment in the six month period of £708,000 increased from £330,000 in last full financial year
· Revenue from service contracts of £379,000
· Net cash as at 31 May 2006 of £12.4m
Commenting on the Group’s interim results, Kenneth Mulvany, Chief Executive Officer of Proximagen Neuroscience plc, said:
“Proximagen
has made significant progress with its discovery projects. We have put greater emphasis on our internal
R&D pipeline which is still sensibly supported by the service side of our
business. The revenue generated from our
service contracts also makes an important contribution to the Group’s
operations and cements long and beneficial relationships with many of the
world’s largest pharmaceutical companies.”
For more information please contact:
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Proximagen Neuroscience plc |
020 7848 6938 |
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Kenneth Mulvany, Chief Executive Officer |
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James Hunter, Finance Director |
020 7848 8158 |
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Buchanan Communications |
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Tim Anderson / Mark Court / Mary-Jane Johnson |
020 7466 5000 |
Chairman’s and Chief Executive’s Statement
The six months to 31 May 2006 has been an exciting period for Proximagen as there has been substantial progress made in all areas of the business. Our guiding strategy to raise the probability of successful development through stringent selection criteria and disciplined development is being successfully applied to our proprietary discovery programmes for the treatment of Parkinson’s disease and other age related neurodegenerative diseases. In parallel, our discovery pipeline has been expanded through the licensing agreement with Northwestern University for a platform of drug candidates for the treatment of central nervous system disorders. The compounds were discovered and synthesized by Professor Richard Silverman, who was responsible for the discovery of Lyrica, a novel medicine for the management of pain, currently marketed by Pfizer. Proximagen has the exclusive rights to further develop, manufacture and market this series of compounds worldwide.
The results for the first six months of 2006 reflect the significant investment made in research and development. As we bring our programmes through discovery and into development the expenditure has increased in line with expectations.
Our service business made an important contribution to the Group’s operations. Contracts with many of the world’s leading pharmaceutical companies demonstrate the value of our technology and expertise in the field of Parkinson’s disease, as well as reflecting our ability to provide clients with high quality support and technology.
Discovery and Development
The discovery of novel medicines to treat age-related neurodegenerative disease is the cornerstone of our business. Pioneering research in the fields of Parkinson’s disease and cognition has led to the development of a rich pipeline. During the six-month period, Proximagen continued to focus on its five proprietary programmes and has generated drug candidates designed to improve the standard of care for patients with neurodegenerative diseases.
As Proximagen grows, it is essential that its pipeline portfolio expands to include further areas of neurodegenerative and CNS medical need. Proximagen has enhanced its development capabilities to enable it to efficiently profile early opportunities in specialised disease areas, and which, through careful selection, can bring commercial success.
Intellectual property
During the period, Proximagen continued to pursue its aggressive intellectual property strategy and three new patent applications were filed based upon the Company’s growing pipeline of in-house discovery initiatives.
We recognise the enormous value that our existing and future intellectual property represents and we will continue to safeguard this value as we develop our proprietary programmes.
Financial review
We are pleased to report that revenues for the period were in line with expectations and the gross margin was maintained at 53%. The Company commenced two new service agreements with large pharmaceutical companies during the period. Revenue in H1 2006 of £379,000 is lower than the £630,600 we achieved during the same period last year, reflecting the shift in resources from our service business to our internal research and development. The outlook for the service business is healthy and we expect a full calendar of new service contracts, delivering similar levels of revenue in H2 as were achieved in H1.
Investment in R&D has accelerated in-line with expectation. R&D totalled £708,000 for the period compared with £330,000 for the year to November 2005 for the five ongoing programmes. As programmes advance through discovery and into full development, this rate of expenditure is expected to continue to increase.
Outlook
Proximagen looks forward with enthusiasm to the challenges and opportunities that our drug discovery and development programmes offer. The company will continue to generate value in its balanced, focused pipeline, while remaining disciplined in its use of capital expenditure.
The Board is confident that the Company’s clear strategic focus, coupled with the progress made in the first half of 2006 leaves Proximagen well placed to deliver increased value to shareholders.
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Bruce Campbell |
Kenneth Mulvany |
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Chairman |
Chief Executive |
PROXIMAGEN NEUROSCIENCE PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2006
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 31 May 2006
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Unaudited |
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Unaudited |
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Audited |
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Note |
Six months ended 31 May 2006 |
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Period ended 31 May 2005 |
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Year ended 30 November 2005 |
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£ |
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£ |
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£ |
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Turnover |
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379,060 |
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630,602 |
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878,310 |
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Cost of sales |
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(176,164) |
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(275,436) |
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(405,798) |
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Gross profit |
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202,896 |
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355,166 |
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472,512 |
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Net operating costs |
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Research and development |
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(708,128) |
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- |
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(329,842) |
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Administrative expenses |
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(478,306) |
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(309,452) |
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(632,087) |
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(1,186,434) |
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(309,452) |
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(961,929) |
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Operating (loss)/profit |
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(983,538) |
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45,714 |
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(489,417) |
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Net interest receivable |
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286,823 |
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103,007 |
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410,432 |
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(Loss)/profit before tax |
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(696,715) |
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148,721 |
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(78,985) |
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Corporation Tax |
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- |
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(44,617) |
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83,597 |
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(Loss)/profit after tax and retained for the period |
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(696,715) |
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104,104 |
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4,612 |
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Basic (loss)/earnings per share (pence) |
2 |
(3.5) |
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0.77 |
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0.03 |
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Diluted (loss)/earnings per share (pence) |
2 |
(3.5) |
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0.72 |
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0.03 |
CONSOLIDATED BALANCE SHEET AT 31 MAY 2006
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Unaudited |
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Unaudited |
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Audited |
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Note |
31 May 2006 |
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31 May 2005 |
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30 November 2005 |
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£ |
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£ |
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£ |
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Fixed assets |
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Tangible fixed assets |
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119,722 |
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- |
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87,437 |
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Current assets |
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Debtors |
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602,547 |
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364,966 |
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678,530 |
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Cash at bank and in hand |
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12,424,498 |
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13,312,508 |
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13,027,699 |
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13,027,045 |
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13,677,474 |
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13,706,229 |
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Creditors: amounts falling due within one year |
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(667,956) |
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(435,153) |
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(618,140) |
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Net current assets |
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12,359,089 |
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13,242,321 |
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13,088,089 |
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Net assets |
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12,478,811 |
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13,242,321 |
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13,175,526 |
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Capital and Reserves |
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Called up share capital |
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200,356 |
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200,356 |
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200,356 |
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Share premium account |
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12,659,223 |
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12,626,526 |
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12,659,223 |
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Merger reserve |
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