-- Agreements signed for further development and
commercialization of Ebola and Marburg vaccines.
-- Strong US and European endorsement of PER.C6(R)-based
vaccine technology.
-- Five new PER.C6(R) licensing deals secured.
-- Revenue up 50%; strong increase in service revenue from
contracts with partners and licensee
LEIDEN, Netherlands, April 18, 2005 (PRIMEZONE) -- Dutch biotechnology company Crucell N.V. (Euronext:CRXL) (Nasdaq:CRXL) today announced its financial results for the first quarter of 2005. Crucell's revenue for the first quarter was Euro 6.0 million (US$7.7 million), up 50% over the same quarter in 2004. The Company's net loss for the quarter decreased 24% to Euro 5.3 million (US$6.8 million). Positive cash-flow of Euro 0.2 million (US$0.2 million) for the quarter resulted in a cash balance of Euro 76.9 million (US$99.3 million) at March 31, 2005. Positive cash flow was mainly due to proceeds from the issuance of shares upon share option exercises.
"The new licensing deals and new agreements closed in the first quarter are yet another clear indication that Crucell's technology is receiving strong industry support as a manufacturing platform," said Crucell's Chief Financial Officer Leonard Kruimer. "Crucell's core vaccine product programs are all progressing as planned. We expect the recently signed HHS pandemic flu contract as well as the recently signed Ebola vaccine manufacturing contract with the NIH to further accelerate growth in our product development. While we expect these new contracts to contribute to top line growth, we maintain our guidance for the full year cash burn at Euro 15 - 20 million at this time."
Key Figures First Quarter 2005
(Euro million, except net loss per share data)
Q1 2005 % change Q1 2004
Revenue 6.0 50% 4.0
Net loss (5.3) (24%) (7.0)
Net loss per share
(basic and diluted) (0.14) (26%) (0.19)
Cash and cash equivalents:
March 31, 2005 76.9
December 31, 2004 76.7
Operational Review First Quarter 2005
-- STAR(TM) technology: Genentech entered the second phase
of its evaluation of Crucell's STAR(TM) technology.
The evaluation is focused on the ability of STAR(TM)
technology to increase production yields of Genentech's
proprietary systems.
-- Ebola: Crucell extended its Cooperative Research and
Development Agreement (CRADA) with the NIH's Vaccine
Research Center (VRC) for the development and manufacturing
of vaccines against Ebola, Marburg and Lassa infections.
Crucell also obtained an exclusive license to patents
of the NIH to develop and commercialise vaccines against
Ebola.
-- Influenza: Crucell's cell culture technology became part
of a major U.S. government influenza pandemic vaccine
program. Sanofi pasteur / Crucell is the only manufacturer
in the European FLUPAN collaboration. Crucell became
a new member of the Influenza Vaccine Supply (IVS)
International Task Force.
-- Licensing: New PER.C6(R) licensing deals were secured by
the Crucell-DSM alliance with Roche, JCR Pharmaceuticals
and Mitsubishi. Crucell signed further PER.C6(R)
deals with SingVax and Vascular Biogenics Ltd.
-- Intellectual property: Crucell received a European
patent covering PER.C6(R) for vaccine production and
other European and US patents covering PER.C6(R) for
protein production. Crucell also received US patent
covering its STAR(TM) technology.
-- Midkap: Crucell was included in the Amsterdam Midkap (AMX)
index as of March 2005.
-- SEC Annual Report: Crucell filed its Form 20-F Annual
Report with the United States Securities and Exchange
Commission (SEC) on April 14, 2005. The report is available
on the SEC website at www.sec.gov
(file reference: 000-30962) and on the Investor/Financial
Reports page of Crucell's website www.crucell.com.
Details of the Financial Results
Revenue Crucell's revenue for the first quarter 2005 was Euro 6.0 million (US$7.7 million), compared to Euro 4.0 million (US$5.2 million) in the same quarter last year. License revenue in the first quarter 2005 amounted to Euro 1.8 million (US$2.4 million), compared to Euro 2.2 million (US$2.8 million) in the first quarter 2004. Average initial payments were higher in the first quarter of 2004. License revenue consisted of initial payments from new contracts as well as annual and other payments on existing contracts.
Service fees amounted to Euro 2.5 million (US$3.2 million), a more than 3-fold increase over the level of service fees of Euro 0.6 million (US$0.8 million) recorded in the first quarter 2004. Service fees represent revenues for activities performed under contracts with partners and licensees. Service fee revenues increased due to increased service activities in influenza and malaria programs.
Government grants and other revenues amounted to Euro 1.6 million (US$2.1 million), compared to Euro 1.2 million (US$1.5 million) in the same quarter last year.
Crucell seeks to increase revenues from year to year. The Company has in the past experienced significant fluctuations in quarterly revenues and expects to continue to experience such fluctuations in the future.
Results
The Company reported a net loss for the first quarter 2005 of Euro 5.3 million (US$6.8 million), or Euro 0.14 net loss per share (US$0.18). This compares to a net loss of Euro 7.0 million (US$9.1 million), or Euro 0.19 net loss per share (US$0.25) for the first quarter 2004.
Total costs and expenses increased 2.3% versus the same quarter last year. The decrease in net loss to Euro 5.3 million (US$6.8 million) is attributable to the increase in revenue. Total research and development (R&D) expenses in the first quarter 2005 were Euro 5.9 million (US$7.6 million), excluding cost of service fees. This compares to a figure of Euro 6.1 million (US$7.9 million) in the first quarter of 2004.
Cost of service fees are from this time forward reported separately from R&D expenses. Cost of service fees represents expenses incurred for activities performed under contracts with partners and licensees. Cost of service fees increased to Euro 1.9 million (US$2.4 million) during the first quarter, up from Euro 0.4 million (US$0.5 million) in the first quarter last year. The increase in cost of service fees is directly related to the significant increase in contract-related service activities.
Selling, general and administrative (SGA) expenses for the first quarter 2005 were Euro 2.7 million (US$3.5 million), compared to Euro 4.1 million (US$5.3 million) for the same quarter in 2004. This reduction in SGA expenses is due to a reduction in warrant and non-employee stock option expenses and other general and administrative expenses.
Cash Flow and Cash Position
Cash and cash equivalents increased by Euro 0.2 million (US$0.2 million) in the first quarter of 2005. Crucell's cash and cash equivalents amount to Euro 76.9 million (US$99.3 million) on March 31, 2005.
Cash used in operating activities in the first three months of 2005 was Euro 3.5 million (US$4.6 million). Net cash used in investing activities amounted to Euro 0.3 million (US$0.4 million) in the first quarter, representing equipment purchases.
The Company generated Euro 4.0 million (US$5.2 million) in financing activities. This is primarily attributable to proceeds from the issuance of ordinary shares after employee stock options were exercised during the quarter.
Note: Euros are converted to US Dollars at the March 31, 2005 exchange rate of 1.2916 US$ per 1.0 Euro.
About Crucell
Crucell N.V. is a biotechnology company focused on developing vaccines and antibodies that prevent and treat infectious diseases, including Ebola, influenza, malaria, West Nile virus and rabies. The Company's development programs include collaborations with sanofi pasteur for influenza vaccines, the U.S. National Institutes of Health for Ebola and malaria vaccines, and GlaxoSmithKline (GSK), Walter Reed Army Institute of Research and New York University for a malaria vaccine. Crucell's products are based on its innovative PER.C6(R) technology, which offers a safer, more efficient way to produce biopharmaceuticals. The Company licenses its PER.C6(R) technology to the biopharmaceutical industry on a mostly non-exclusive basis. Licensees and partners include DSM Biologics, GSK, Centocor/J&J and Merck & Co., Inc. Crucell is headquartered in Leiden, The Netherlands, and is listed on the Euronext and NASDAQ stock exchanges (ticker symbol CRXL). For more information, please visit www.crucell.com.
This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For information relating to these factors please refer to our Form 20-F, as filed with the U.S. Securities and Exchange Commission on April 14, 2005, and the section entitled "Risk Factors". The company prepares its financial statements under generally accepted accounting principles in the United States.
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-0- -0- CONTACT: For further information contact: Crucell N.V. Leonard Kruimer Chief Financial Officer Tel. +31-(0)71-524 8722 l.kruimer@crucell.com For Crucell in the U.S. Redington, Inc. Thomas Redington Tel. +1 212-926-1733 tredington@redingtoninc.com