Cambridge, U.K., Sept. 30, 2002(PRIMEZONE) -- CeNeS Pharmaceuticals plc (LSE:CEN) today announced its unaudited interim financial results for the six months ended 30 June 2002. CeNeS also announced further phase II clinical progress for M6G -- its leading clinical candidate for the treatment of post-operative pain.
Operational highlights:
- The restructuring program initiated in October 2001 has now
been completed. CeNeS is now on course to be self-funding until
the end of 2003. Key events in the year to date:-
-- Cognition division sold May 2002
-- Ion channel business spun out August 2002
- M6G - for the treatment of post-operative pain - continues
to progress successfully through its phase II clinical
program and is scheduled to enter phase III in 2003.
- Discussions commenced with Elan regarding the simplification of
the CeNeS/Elan joint venture and the future management and
funding of M6G.
- CNS 5161 - CeNeS clinical candidate for the treatment of
neuropathic pain reported positive results from an interim
phase II study of a single cohort of 10 patients treated with
0.25mg infusion of CNS 5161.
- The pharmaceutical division continues to perform to plan.
- Revenues are up 9% to 1.6m pounds on comparative period in 2001.
Financial review
Net loss for first half of 2002 reduced to 2.1m pounds from 18.3m pounds for first half 2001.
Cash balances at period end of 0.1m pounds increased post-June 2002 by receipts of 2.0m pounds arising from research and development tax credit, loan draw down under Elan joint venture and other asset disposals/out licensing transactions.
Completion of restructuring program has secured self-funding status until end of 2003.
Commenting on the results, Alan Goodman, Chairman of CeNeS Pharmaceuticals plc said: "The difficult task of implementing the restructuring plan to make CeNeS self-funding until the end of 2003 has been achieved against a background of unprecedented market uncertainty. CeNeS is now clearly focussed and better positioned to move forward. The CeNeS Board will continue to review several strategic options to increase shareholder value."
Review of the six months ended 30 June 2002
Introduction
The year to date has seen CeNeS continue to deliver on its key objectives as set out in the restructuring plan announced twelve months ago. The restructuring plan is now complete and the achievements of CeNeS' management and employees under the plan are especially notable given the negative sentiment in the global markets and the biotech sector in particular.
CeNeS is now well positioned to move forward and increase shareholder value. The company has clinical assets focussed on pain, a portfolio of central nervous system (CNS) and pain pharmaceutical products, and interests in certain non-core assets that have been sold or partnered.
Interim results
Net decrease in cash for the period was 2.0m pounds (H1 2001 6.0m pounds). Loss for the period was 2.1m pounds (H1 2001 18.3m pounds). Cash at 30 June 2002 was 0.1m pounds (30 June 2001 4.7m pounds, 31 December 2001 2.2m pounds) (before July and August receipts of 2.0m pounds made up of research and development tax credit, Elan loan draw down and other out-licensing/asset disposals).
One of the key targets of the 2001 restructuring program was the attainment of self-funding status to the end of 2003. To date the major milestones in this plan have been met. However, the Board remains vigilant to ensure that working capital management is effective.
Revenues in the period were 2.9 m pounds (H1 2001 as represented 2.7m pounds). This increase was due to continued growth in the contribution from the pharmaceutical products division and the pharmaceutical services (CeNeS Cognition and CeNeS Channelwork) that have now been disposed of and are classed as discontinued activities in the attached interim results.
Research and development costs in total decreased significantly to 1.6m pounds (H1 2002 as represented 5.3m pounds) as a result of the cut backs in non-core activities. Similarly, administration costs were reduced to 3.3m pounds (H1 2001 as represented 5.6m pounds) following the reduction of the group's activities that was effected as part of the October 2001 restructuring. Administration costs in the first half of 2002 include amortization charges relating to the pharmaceutical product licenses and goodwill of 1.5m pounds (H1 as represented 2001 2.7m pounds). Following disposal of the cognition and ion channel businesses in 2002, staff numbers have reduced to 12 from 85 on 31 December 2001.
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