GENT, Belgium, May 15, 2003 (PRIMEZONE) -- Innogenetics today announced its results for the first quarter ending March 31, 2003.
First quarter 2003 highlights (versus first quarter 2002)
- Product sales increased by 13% to 13.6 million euro - Gross margin reached 55.1% versus 53.3% (including Therapeutics) - R&D investments increased by 15%, driven by Therapeutics programs - Operating loss of 4.1 million euro, with Diagnostics operations close to break-even - Cash position at 32.2 million euro - Diagnostics activities: results on track to meet 2003 objectives Therapeutics activities: positive results in pivotal preclinical study in sepsis (INNO 202); successful recruitment for the XCELLentis' phase II clinical study with LyphoDerm (treatment of chronic hard-to-heal venous leg ulcers) and new phase II studies with E1-based therapeutic vaccine (treatment of chronic hepatitis C) progressing according to plan
Philippe Archinard, CEO of Innogenetics, commented: "In the first quarter 2003, the results of the Diagnostics activities evolved in line with the 2003 plan. On the Therapeutics front, we continue to book significant progress especially in the field of sepsis with promising preclinical results, in the field of wound care with the successful completion of the patient recruitment for XCELLentis' LyphoDerm, and in the field of hepatitis C with two phase II studies ongoing."
Diagnostics operations: increased sales and break-even
For the first three months of 2003, Innogenetics' Diagnostics activities operated close to break-even with an operating loss of 0.1 million euro. Diagnostics product sales reached 13.4 million euro, an all-time high. This increase occurred across all diagnostics fields: infectious diseases, neurodegeneration, and genetic testing.
Furthermore, the continued efforts to optimize productivity and control costs have resulted in a further enhancement of the gross margin to a level of 54.7%, while Diagnostics operating expenses remained in line with expectations.
Increased R&D investments in Therapeutics
R&D expenses for the Therapeutics programs amounted to 4.1 million euro for the first three months of 2003 and are in line with the 2003 budget. These expenditures reflect the accelerating clinical efforts in the fields of hepatitis C and wound care, and further investments in promising preclinical programs, especially in the area of sepsis.
Increased total revenues
Total revenues, including R&D income, amounted to 16.5 million euro in the first quarter of 2003. Overall product sales, including Therapeutics, increased by 13% to 13.6 million euro.
During the first three months of 2003, royalty income was lower, mainly due to the retroactive nature of the large royalty payment during the same period in 2002. License fee income remained at the current level of 0.7 million euro.
R&D contract income and R&D grants were in line with expectations reaching a level of 2.0 million euro, reflecting the collaborations with Solvay, Bayer, and Roche as well as new grants in the field of hepatitis C.
Expenses under control
Confirming the trend in productivity improvement, including Therapeutics, the gross margin for the first three months of 2003 increased to 55.1% against 53.3% for the same period in 2002.
R&D expenses reached 7.2 million euro during the first three months of 2003, representing a 15% increase compared to the same period in 2002. Diagnostics R&D efforts remained stable at a level of 3.1 million euro, while Therapeutics R&D expenses amounted to 4.1 million euro in the first quarter of 2003.
Both Sales & Marketing and General & Administrative expenses increased slightly in the first three months of 2003 compared to the same period in 2002, to reach 7.3 million euro.
Operating results
For the first three months of 2003, Innogenetics posted an operating loss of 4.1 million euro, compared to 2.7 million euro for the same period of 2002. The increased operating loss mainly reflected higher R&D investments in the promising Therapeutics programs. The net loss for the first quarter of 2003 amounted to 4.4 million euro.
Cash position
As of March 31, 2003, Innogenetics' cash position was 32.1 million euro compared to 51.9 million euro at the end of March 2002.
The cash flow during the first three months of 2003 was mainly influenced by expenditures for intellectual property protection, new investments in computer and laboratory equipment, and reimbursement payments for the financing of the Gent-based facilities.
About Innogenetics
Innogenetics, a Belgium-based, international biotechnology company, is pursuing a challenging twofold growth strategy, encompassing both Diagnostics and Therapeutics.
The Company is committed to becoming a worldwide leader in high value-added diagnostics (especially "theranostics") focusing on infectious diseases, neurodegeneration, and genetic testing. With its vertically integrated diagnostics activities, Innogenetics is leveraging its intellectual property, know-how, and product offerings through strategic partnerships with leading in vitro diagnostic players such as Bayer, Roche, and Abbott. By running a profitable diagnostic business, Innogenetics can therefore support the development of new therapeutics.
At present, the Company's therapeutics portfolio consists of innovative candidates in the fields of hepatitis C, immune disorders, and wound care (the latter through its wholly owned subsidiary XCELLentis). Its clinical development program for a hepatitis C therapeutic vaccine is currently in phase II. A phase II clinical trial is ongoing in the field of chronic venous leg ulcers. Finally, preclinical programs are also underway for the treatment of pulmonary edema and sepsis, as well as for a hepatitis C prophylactic vaccine.
Founded in 1985, Innogenetics is listed on NASDAQ Europe and Euronext Brussels. The Company has its headquarters in Gent, Belgium, with sales affiliates located in France, Germany, Italy, the Netherlands, Spain, and the USA. It employs over 600 people worldwide.
For further information, please contact:
Innogenetics Noonan Russo Presence Jean-Christophe Donck Veronica Cefis Sellar Vice President, Investor Relations Senior Accounts Manager Tel +32 (0)9 329 1701 Tel +44 (0) 20 7726 4452 Fax +32 (0)9 329 1908 Fax +44 (0) 20 7726 4453 E-mail jeandon@innogenetics.com E-mail v.sellar@nrp-euro.com
To view the entire press release including financials, please click on the link provided: http://reports.huginonline.com/903962/118084.pdf