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For immediate release
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29 August 2007
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PROXIMAGEN
NEUROSCIENCE PLC
(“Proximagen” or “the Company”)
INTERIM
RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2007
London,
UK, 29 August 2007 – 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 2007.
Operational
Highlights:
· Encouraging pre-clinical studies
from the PRX1 programme revealed enhanced efficacy compared to L-DOPA (the
gold standard of care treatment for patients with Parkinson’s disease) which
has led to the identification of a lead molecular series that is currently
being considered for development status
· A new indication within the PRX2
programme has been initiated targeting neuropathic
pain, a global market worth $2.7 billion, which leverages the Company’s
growing expertise with selective neuronal nitric oxide synthase
(nNOS) inhibitors
· Proprietary compounds from the PRX5 programme
targeting cognitive decline and Parkinson’s disease, have been shown to be
orally active, selective, and highly potent.
Financial
Highlights:
· R&D investment was in line
with expectations and totalled £1.03 million, compared with £708,000 for the
same period last year, as proprietary programmes accelerate
· One new research contract signed
during the period, one post-period – revenue from research service contracts
was £191,000
· Strong net cash position as at 31
May 2007 of £10.4 million.
Post
period-end Highlights:
· Funding award received from The
Michael J. Fox Foundation with Elan Corporation plc
having first option to obtain exclusive worldwide commercial licensing rights
to the PRX4 programme
· Statement made regarding possible
acquisition offer.
Commenting
on the Group’s interim results, Kenneth Mulvany, Chief Executive Officer of
Proximagen Neuroscience plc, said: “I
am delighted to report that Proximagen has made strong progress with its
R&D programmes in our focused area of neurodegeneration. We have generated exciting
efficacy and safety data from some of our compounds and have expanded the
portfolio to now include five announced programmes.
With a strong cash position and strengthened pipeline, we have been pleased
to invest more resource during this interim period into our in-house R&D,
whilst still servicing and generating a revenue stream from our contract
research capability.”
For more information please
contact:
Proximagen Neuroscience plc (www.proximagen.com)
Kenneth Mulvany, Chief Executive
Officer
020 7848 6938
James Hunter, Finance
Director
020 7848 6938
Buchanan Communications
Tim Anderson / Mary-Jane Johnson /
Catherine
Breen
020 7466 5000
KBC Peel Hunt (Nominated
Adviser and Broker)
Capel Irwin / Gordon
Suggett
020 7418
8900
Chairman’s and Chief Executive’s
Statement
The six months to 31 May 2007 have seen substantial
progress made in our research and development programmes.
During the period we are pleased to announce the introduction of a further
indication from our PRX2 programme. This
indication, which targets neuropathic pain, a
global market worth $2.7 billion according to IMS Health, leverages the
Company’s growing expertise with selective neuronal nitric oxide synthase (nNOS) inhibitors.
The Company
is pleased with the encouraging pre-clinical studies in our PRX1 programme.
Studies conducted in this programme have demonstrated a drug candidate with
an enhanced efficacy compared to L-DOPA, the gold standard of care treatment
for patients with Parkinson’s disease (PD). This programme
leads our commitment to maximising returns from our
pipeline of promising drug candidates for the treatment of Parkinson’s
disease, cognitive decline, and other age related neurodegenerative diseases
and CNS indications.
The Company was delighted to announce an award from The
Michael J. Fox Foundation (MJFF), made possible through leadership funding
from Elan Corporation (Elan).
The funding is to continue Proximagen’s PRX4 programme which studies a neuroprotective
gene that delivers
genetic material
directly into brain cells. The combined neuroprotective
gene and viral vector is targeted to an area of the brain that degenerates in
PD.
The
financial results for the first six months of 2007 reflect the significant
investment made in research and development. As we hit our milestones
and bring our programmes through discovery and into
development the expenditure has increased in line with expectations.
Our service business continues to make an important
contribution to the Group’s operations, though the group has needed to be
mindful to reserve resource capacity for our proprietary research and
development programmes.
Following press speculation, the Company made a statement
on 31 July 2007 that confirmed that it had been approached by a number of
parties who have expressed an interest in acquiring the Company.
Discovery
and Development
Considerable progress has been made in our leading drug
discovery programmes during 2007. Pre-clinical
development for PRX1 for the symptomatic treatment of PD is ongoing with the
intention to conduct a first proof of concept clinical trial study in 2008.
The global market for PD is worth over $2bn annually with the potential for a longer acting L-DOPA with a reliable absorption profile
to make significant headway into this market. Results generated to date are
very encouraging with a pre-clinical profile showing reliable onset of
activity, a longer plasma half-life, and an overall improved efficacy
compared to L-DOPA.
The PRX2 programme is designed
as a novel treatment for the uncontrollable movements that are frequently seen
in PD. Once established, these involuntary movements are persistent and may
become the factor significantly limiting current Parkinson’s disease
treatment strategies. Our pre-clinical studies indicate that our lead
candidate series is likely to be safe and well tolerated.
Our PRX5
programme is aimed at both the symptomatic
treatment of PD and the control of cognitive decline. During the
period, compounds from our PRX5 programme were demonstrated to be potent and selective for the D1
receptor as well as orally active. Studies had previously shown the
association between the D1 receptor and improvements in cognitive
awareness. Recent pre-clinical data shows
these compounds to be effective in experimental models of PD.
The Company’s PRX4 programme is
aimed at slowing or preventing the inevitable progression of
neurodegenerative disease. The Company has now published data showing that a
specific gene product may provide a naturalistic approach to neuroprotection, which may be relevant to cell death in a
range of neurodegenerative disorders. Proximagen’s pre-clinical studies have already shown
that this neuroprotective gene product is
implicated in the control of many mechanisms associated with the degeneration
of neurons in PD. If successful, the treatment may prevent the disease from
causing further damage and may restore normal brain function to patients,
reversing the difficulties in movement that characterise
the illness.
During the period, a new indication within the PRX2 programme has been initiated in
the area of neuropathic pain. Drug candidates which
selectively inhibit nNOS were shown to be as potent as the known analgesic, L-NG-nitroarginine methyl ester (L-NAME). However,
unlike the nonselective NOS inhibitor L-NAME, which is known to cause
hypertension in pre-clinical models, these compounds were shown not to affect
heart rate or blood pressure. The Company has initiated a lead
optimization chemistry campaign in areas of unique intellectual property to
improve the pharmacokinetic profile of its existing compounds.
Pioneering research originated at King’s College London
by Professor Jenner, Proximagen’s chief Scientific
Officer and co-founder, in the fields of PD and cognition has formed the
foundation of a rich pipeline at Proximagen. As Proximagen continues to grow, it has been
essential that our pipeline portfolio be expanded to include further areas of
neurodegenerative and CNS medical need. To meet this challenge, Proximagen
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. The Company now has growing
drug discovery programmes in both niche PD and
PD-related disease, as well as more common central nervous system disorders.
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.
To date, the Group has rights to patent applications
pending in nine distinct patent families that encompass all aspects of our
discovery programmes, ranging from specific
composition of matter patents to use patents claiming novel mechanisms of
actions associated with those programmes.
Financial
review
R&D expenditure of £1.03m for the period was in line
with expectations and compares with R&D expenditure of £1.03m for H2
2006. Our PRX1 and PRX5 programmes accounted
for the majority of this expenditure and PRX5, in particular, has seen a
significant increase in the rate of investment. We expect expenditure
on R&D to increase in H2 as we move to late stage pre-clinical
development on PRX1 and accelerate investment in PRX5.
Revenue
for the period at £191,000 was achieved with a gross margin of 54%. The
total is materially below the levels achieved for the same period in 2006
owing to the fact that we prioritised our more advanced R&D programmes
when allocating our finite resources, consequently reducing our capacity for
undertaking client research contracts.
Cash balances totalled £10.4m,
a net outflow of £1.1m since the year end in November 2006. We expect
our cash consumption to increase in H2 as in addition to continued investment
in our programmes we will be investing in capital
equipment and taking in hand new laboratory facilities at King’s College, London.
Outlook
Proximagen has a growing number of quality programmes. Our PRX1 is well positioned to deliver clear
proof of concept data in the next twelve months and which will, if
successful, add significant value to the Company. We are also encouraged by
the commercial interest in our other programmes
from potential partners. The Board is confident
that the Company’s clear strategic focus, coupled with the progress made in
the first half of 2007 leaves Proximagen well placed to deliver increased
value to shareholders.
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Bruce Campbell
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Kenneth Mulvany
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Chairman
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Chief Executive
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28 August 2007
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28 August 2007
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PROXIMAGEN
NEUROSCIENCE PLC
INTERIM
RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2007
CONSOLIDATED
PROFIT AND LOSS ACCOUNT
For
the six months ended 31 May 2007
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Restated
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Restated
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See Note 1
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See Note 1
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Note
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Six
months ended 31 May 2007
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Six
months ended 31 May 2006
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Year
ended 30 November 2006
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£
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£
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£
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Turnover
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191,089
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379,060
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737,509
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Cost of sales
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(87,204)
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(176,164)
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(334,353)
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Gross profit
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103,885
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202,896
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403,156
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Net operating costs
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Research and development
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(1,027,104)
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(708,128)
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(1,742,528)
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Administrative expenses
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(442,373)
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(496,136)
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(916,331)
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(1,469,477)
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(1,204,264)
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(2,658,859)
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Operating loss
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(1,365,592)
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(1,001,368)
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(2,255,703)
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Net interest receivable
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276,435
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286,823
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564,033
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Loss before tax
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(1,089,157)
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(714,545)
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(1,691,670)
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Corporation Tax
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-
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-
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32,361
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Loss after tax and retained for
the period
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(1,089,157)
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(714,545)
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(1,659,309)
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Basic loss per share (pence)
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2
|
(5.4)
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|
(3.6)
|
|
(8.3)
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|
Diluted loss per share (pence)
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2
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(5.4)
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|
(3.6)
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|
(8.3)
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CONSOLIDATED
BALANCE SHEET AT 31 MAY 2007
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|
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Restated
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Restated
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See Note 1
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See Note 1
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Note
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31 May
2007
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31 May
2006
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30
November 2006
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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
|
|
213,106
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|
119,722
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|
231,543
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Current assets
|
|
|
|
|
|
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Debtors
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|
547,304
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|
602,547
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|
526,934
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Cash at bank and in hand
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10,381,355
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12,424,498
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11,486,310
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|
|
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10,928,659
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13,027,045
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12,013,244
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Creditors: amounts falling due within
one year
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(622,888)
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(667,956)
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(673,057)
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Net current assets
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10,305,771
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12,359,089
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11,340,187
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Net assets
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10,518,877
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12,478,811
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11,571,730
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Capital and Reserves
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Called up share capital
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200,461
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200,356
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200,356
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Share premium account
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|
12,660,212
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|
12,659,223
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|
12,659,223
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|
Merger reserve
|
|
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