LONDON, May 13, 2004 (PRIMEZONE) -- Antisoma plc (LSE:ASM), the biotechnology company developing novel anti-cancer drugs, today announces its results for the three months ended 31 March 2004.
Summary - Cash and cash equivalents as at 31 March 2004 of GBP39.7 million vs GBP34.9 million at 31 March 2003 - Revenues increased to GBP5.0 million for the quarter from GBP4.2 million in the same period last year - Operating loss increased to GBP1.2 million for the quarter from GBP0.1 million in the same period last year - R1549 discontinued following results of phase III ovarian cancer study - AS1404 completes phase I trials - AS1405 starts clinical trials in brain cancer - Ursula Ney joins as Chief Operating Officer Dr Barry Price, Chairman of Antisoma, commented: "Whilst we were disappointed with the R1549 results, we go forward with confidence as we have three drugs in clinical trials, almost GBP40 million in the bank and a strong alliance with Roche. We remain focused on adding value to our oncology portfolio, both by advancing existing programmes and by judicious acquisition of new drugs. We are evaluating a range of opportunities and expect to in-license a new clinical product this year." Except for the historical information presented, certain matters discussed in this statement are forward looking statements that are subject to a number of risks and uncertainties that could cause actual results to differ materially from results, performance or achievements expressed or implied by such statements. These risks and uncertainties may be associated with product discovery and development, including statements regarding the company's clinical development programmes, the expected timing of clinical trials and regulatory filings. Such statements are based on management's current expectations, but actual results may differ materially. Chairman's report We suffered a setback at the end of the April when R1549 was found not to improve outcomes for patients in our ovarian cancer phase III study. Though development of R1549 has now been halted, findings from the trial will be of interest to clinicians concerned with ovarian cancer, and will therefore be presented at the American Society of Clinical Oncology meeting this June. As Roche's William Burns highlighted, results of this kind are unfortunately 'not unexpected in the development of novel treatment modalities.' Recognising the risks intrinsic to drug development, we had taken steps to ensure that our long-term growth prospects were not overly dependent on any one product. We have established a broad pipeline, including three products in clinical trials as well as a variety of promising preclinical drugs. We also have almost GBP40 million to support our drug development activities and a strong alliance with Roche, which provides us with a clear route through which to advance more drugs into late-stage trials and towards commercialisation. AS1404 In March, we successfully completed the third and final phase I study of AS1404 as a monotherapy. We are now preparing plans for a phase II programme of combination studies, which is scheduled to start during the second half of 2004. AS1404 belongs to a class of drugs called 'vascular targeting agents' that specifically disrupt tumour blood vessels and, as such, the drug has potential against a wide variety of cancers. AS1404 is considered most likely to provide a benefit when used alongside other therapies and it is intended that separate trials will be conducted in different tumour types, each combining AS1404 with an established cancer treatment. In at least one of the trials, AS1404 will be given with taxane drugs because this combination has shown particular promise in preclinical work. AS1405 During the period, AS1405 started its first clinical trial in patients with a highly malignant brain cancer called glioma. The phase I trial will provide information on safety, dosing and distribution of the drug, as well as looking for any initial signs of anti-tumour activity. Patients included in the study have suffered a relapse of their glioma with regrowth of the tumour after their initial treatment. In the trial, the majority of the new tumour growth is removed by surgery, then AS1405 is injected into the cavity left in the brain. AS1405 is a radiolabelled antibody that binds to a protein found around new tumour blood vessels. It delivers a targeted dose of radiation with the aim of preventing or delaying the relapse of cancer. Because glioma is a relatively rare cancer, a so-called 'niche indication', AS1405 is not included in Antisoma's alliance with Roche. Antisoma intends to pursue alternative routes to commercialisation, with the intention to maximise its retained share of the product's value. Given the very poor results with current treatments for glioma, Antisoma considers this an attractive opportunity. The Company estimates that on the basis of the need for a suitable surgical history, and taking together newly diagnosed patients and those with recurrent disease, some 29,000 patients could be eligible for the treatment each year in North America, Europe and Japan. R1550 Recruitment is progressing into the phase I study of R1550 being conducted in the USA by Roche. The drug is being evaluated in women with locally advanced or metastatic (spreading) breast cancer. Management We announced in February the appointment of Dr Ursula Ney as Chief Operating Officer. Reporting to CEO Glyn Edwards, her role is to oversee both the company's established drug development programmes and its business development activities. Dr Ney was previously CEO of Charterhouse Therapeutics Ltd and spent thirteen years at Celltech plc, where she was Director of Development from 1993 to 2001 and served on the Celltech plc board from 2000 to 2001. Financial Review Results of operations - nine months ended 31 March 2004 Revenues for the nine months ended 31 March 2004 totalled GBP14.3 million (2003: GBP7.1 million). Revenues represent amounts earned under the Roche agreements of GBP6.8 million (2003: GBP3.0 million) recognised from the (GBP23.2 million) upfront payment received and GBP7.5 million (2003: GBP2.8 million) in relation to the development costs of R1549 and R1550. Revenues in the comparative period also included GBP1.3 million under the now terminated agreement with Abbott Laboratories. The Roche agreements were signed on 16 November 2002 and the revenues for the comparative period reflect amounts earned from that date. Operating expenses increased to GBP16.6 million (2003: GBP12.3 million), including research and development expenses of GBP12.7 million (2003: GBP9.2 million). The increase in operating expenditure represents increased development expenditure in our clinical and preclinical portfolios, the costs associated with the acquisition of additional royalty rights from Cytogen and the in-licensing of the telomerase inhibitor programme together with a general increase in Company activities. A claim for Research and Development tax relief amounting to GBP1.2 million on qualifying expenditure for the year ended 30 June 2003 was made in the period. This compares with tax relief claimed in the prior year of GBP1.1 million. Losses for the nine months ended 31 March 2004 decreased to GBP0.2 million (2003: GBP3.4 million), primarily as a result of the impact of the increased revenues, offset by increased operating expenses. Results of operations - three months ended 31 March 2004 Revenues for the three months ended 31 March 2004 totalled GBP5.0 million (2003: GBP4.2 million), representing GBP2.3 million (2003: GBP2.3 million) revenue recognised from the upfront payments received under the Roche agreement and GBP2.7 million (2003: GBP1.9 million) in relation to reimbursement of development costs for R1549 and R1550. Operating expenses of GBP6.3 million (2003: GBP4.3 million) include research and development spending of GBP5.0 million (2003: GBP3.1 million). Net profits for the three months to 31 March 2004 were GBP0.3 million (2003: GBP0.2 million). Liquidity and capital resources Cash at bank and held in short-term investments totalled GBP39.7 million at 31 March 2004 (GBP34.9 million at 31 March 2003). Net cash outflow from operating activities for the quarter was GBP3.4 million (quarter ended 31 March 2003: GBP7.1 million). The net cash outflow for the nine-month period was GBP7.5 million compared with a net cash inflow of GBP10.3 million for the nine months ended 31 March 2003. Debtors have increased to GBP4.6 million from GBP3.6 million at 31 March 2003 as a result of the claim for Research and Development tax relief, which was received shortly after the period end. Creditors have decreased to GBP15.7 million from GBP22.9 million at 31 March 2003, largely as a result of the recognition of deferred income relating to the upfront payments received from Roche. The increase in fixed assets of GBP1.1 million represents the extension of the office and laboratory facilities and the purchase of associated equipment. Loss per share The profit per share for the quarter ended 31 March 2004 was 0.1p (2003: 0.1p - restated to take account of the bonus element of the Placing and Open Offer). Loss per share for the nine months ended 31 March 2003 has decreased from 1.6p (similarly restated) to 0.1p in the nine months ended 31 March 2004, reflecting the impact of the increased revenues from Roche. Outlook We expect to make significant advances in our oncology pipeline over the next eighteen months. Our phase II programme of combination studies on AS1404 is planned to start later this year, and multiple trials of this agent will be underway in different cancers during 2005. Key data are expected from a number of our clinical programmes during that year. Management believes that investors' prospects for returns are maximised by having multiple drugs in late-stage trials, as each of these provides short- to medium-term upside potential. We therefore remain committed not only to the development of our existing pipeline products but also to our previously announced plans to add a further clinical product to our portfolio during 2004. Consolidated profit and loss account For the nine months ended 31 March 2004 9 months 9 months 3 months Year ended ended ended ended 31 Mar 31 Mar 31 Mar 30 June 2004 2003 2004 2003 unaudited unaudited unaudited audited GBP'000 GBP'000 GBP'000 GBP'000 Revenue 14,298 7,097 5,019 11,837 Operating expenses (16,611) (12,268) (6,268) (17,212) -------- -------- -------- -------- Operating loss (2,313) (5,171) (1,249) (5,375) Interest receivable 943 677 391 978 -------- -------- -------- -------- Loss on ordinary (1,370) (4,494) (858) (4,397) activities before taxation Taxation on ordinary 1,178 1,098 1,178 1,098 activities -------- -------- -------- -------- (Loss)/profit on (192) (3,396) 320 (3,299) ordinary -------- -------- -------- -------- activities after taxation (Loss)/earnings per 1p share Basic and diluted (0.1p) (1.6p)* 0.1p (1.5p)* -------- -------- -------- -------- Weighted average 241,816 216,124* 266,077 219,892* number -------- -------- -------- -------- of shares (000's) * Loss per share and weighted average number of shares for the nine months ended 31 March 2003 and the year ended 30 June 2003 have been restated to take account of the bonus element of the Placing and Open Offer. The bonus arises because the shares were issued at a discount to market price. Consolidated balance sheet at 31 March 2004 31 Mar 31 Mar 30 June 2004 2003 2003 unaudited unaudited audited GBP'000 GBP'000 GBP'000 Fixed assets 1,368 284 263 -------- -------- -------- Current assets Debtors 4,637 3,564 3,529 Short term investments 22,669 33,459 31,854 Cash at bank and in hand 17,071 1,476 2,141 -------- -------- -------- 44,377 38,499 37,524 Creditors: amounts falling due (13,856) (11,895) (13,013) within -------- -------- -------- one year Net current assets 30, 521 26,604 24,511 -------- -------- -------- Total assets less current 31,889 26,888 24,774 liabilities Creditors: amounts falling due (1,872) (10,995) (8,715) after more than one year Provisions for liabilities and (109) - (70) charges -------- -------- -------- Net assets 29,908 15,893 15,989 -------- -------- -------- Capital and reserves Called up share capital 6,993 6,613 6,613 Share premium account 69,683 55,952 55,952 Other reserves 4,300 4,300 4,300 Profit and loss account (51,068) (50,972) (50,876) -------- -------- -------- Total shareholders' funds 29,908 15,893 15,989 -------- -------- -------- Shareholders' funds analysed as: Equity shareholders' funds 25,576 11,561 11,657 Non-equity shareholders' funds 4,332 4,332 4,332 -------- -------- -------- 29,908 15,893 15,989 -------- -------- -------- Consolidated cash flow statement for the nine months ended 31 March 2004 9 months 9 months 3 months Year ended ended ended ended 31 Mar 31 Mar 31 Mar 30 June 2004 2003 2004 2003 unaudited unaudited unaudited audited GBP'000 GBP'000 GBP'000 GBP'000 Net cash (7,470) 10,346 (3,419) 9,185 (outflow)/inflow -------- -------- -------- -------- from operating activities Returns on investments and servicing of finance Interest received 957 651 415 897 Net cash inflow from 957 651 415 897 returns on -------- -------- -------- -------- investments and servicing of finance Net cash inflow from - 1,098 - 1,098 taxation -------- -------- -------- -------- Capital expenditure and financial investment Purchase of tangible (1,431) (186) (348) (212) fixed assets -------- -------- -------- -------- Sale of tangible - - - 1 fixed assets Purchase of (423) - - - intangible fixed assets (1,854) (186) (348) (211) -------- -------- -------- -------- Net cash (8,367) 11,909 (3,352) 10,969 (outflow)/inflow -------- -------- -------- -------- before management of liquid resources and financing Management of liquid resources Purchase/(Sale) of 9,185 (15,500) 3,785 (13,895) current asset -------- -------- -------- -------- Investments Financing Issue of shares 15,204 4,147 - 4,147 Expenses paid in (1,092) - 7 - connection with share issues 14,112 4,147 7 4,147 -------- -------- -------- -------- Increase/(decrease) 14,930 556 440 1,221 in cash -------- -------- -------- -------- Notes to the financial statements 1. Basis of reporting The interim financial statements have been prepared in accordance with UK Generally Accepted Accounting Principles ('UK GAAP') on the basis of the accounting policies set out in the Group's 2003 statutory accounts. The statements were approved by the Board of Directors on 11 May 2004 and are unaudited. The financial information contained in this announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The figures for the year ended 30 June 2003 have been extracted from the statutory accounts which have been filed with the Registrar of Companies and which are available on request from the Company Secretary, Antisoma plc, West Africa House, Hanger Lane, Ealing, London W5 3QR. The auditors' report on those accounts was unqualified and did not contain any statement under section 237(2) or section 237(3) of the Companies Act 1985. 2. Operating expenses 9 months 9 months 3 months Year ended ended ended ended 31 Mar 31 Mar 31 Mar 30 June 2004 2003 2004 2003 unaudited unaudited unaudited audited GBP'000 GBP'000 GBP'000 GBP'000 Administrative 3,894 3,098 1,240 4,179 expenses Research and 12,717 9,170 5,028 13,033 development -------- -------- -------- -------- Operating expenses 16,611 12,268 6,268 17,212 -------- -------- -------- -------- This information is provided by RNS The company news service from the London Stock Exchange