-- Increased development activity drives 34% growth in revenues for
first half-year.
-- New West Nile virus antibody discovered.
-- May 10th capital raising provides funds for further in-house product
development.
LEIDEN, Netherlands, July 18, 2005 (PRIMEZONE) -- Dutch biotechnology company Crucell N.V. (Nasdaq:CRXL) (Euronext:CRXL) today announced its financial results for the second quarter and first half-year of 2005.
Revenue for the first six months of 2005 increased to EUR 16.1 million (US$ 19.4 million), compared to EUR 12.0 million (US$ 14.5 million) in the first six months of 2004. The net loss for the first half of 2005 decreased to EUR 8.7 million (US$ 10.5 million) from EUR 9.1 million (US$ 11.0 million) in the same period last year. Cash and cash equivalents amount to EUR 120.3 million (US$ 145.1 million) on June 30, 2005.
"The 34% growth in revenue in the first six months of this year over last year is mainly driven by a strong increase in service fees, reflecting stepped-up development activities with our partners," said Crucell's Chief Financial Officer Leonard Kruimer. "The recent capital raise of EUR 52.2 million opens opportunities to fund in-house development of our proprietary antibodies, proteins and STAR(TM) technology. Strong cash inflow from license and service fees also allows us to maintain our guidance for cash burn for the year at EUR 15 to 20 million, despite increased development activity."
Key Figures Second Quarter and First Half 2005(EUR million, except net loss per share)
Q2 2005 % change Q2 2004 H1 2005 % change H1 2004
Revenue 10.1 26% 8.0 16.1 34% 12.0
Net loss (3.4) 67% (2.0) (8.7) (4%) (9.1)
Net loss per share (0.09) 50% (0.06) (0.23) (8%) (0.25)
(basic and diluted)
Cash and
equivalents:
June 30, 2005 120.3
December 31, 2004 76.7
Operational Review Second Quarter 2005
-- Ebola: Crucell and the NIH signed a EUR 21.4 million contract
for the manufacturing of Ebola vaccines.
-- Influenza: Crucell's production technology became part of a
major U.S. government influenza pandemic vaccine program as
sanofi pasteur secured a US$ 97 million grant from the Department
of Health and Human Services (HHS) for cell-based vaccine
development.
-- West Nile antibody: Crucell discovered a monoclonal antibody
for protection against West Nile virus. The antibody, derived
from patients who survived West Nile infection, effectively
neutralizes the virus and fully protects mice from infection.
-- STAR(TM) technology: A program was initiated with biotechnology
company Medarex, Inc. to evaluate Crucell's STAR(TM) technology.
The program will be performed with a Medarex antibody.
-- Licensing: A new PER.C6(R) licensing deal was secured by the
Crucell-DSM alliance with Ferring Pharmaceuticals.
-- Intellectual property: Crucell received a total of 13 patents
during the first half of 2005, including a number of patents
covering the Company's core technologies and programs.
Details of the Financial Results
SECOND QUARTER
Revenue
Crucell's revenues for the second quarter of 2005 were EUR 10.1 million (US$ 12.2 million), compared to EUR 8.0 million (US$ 9.7 million) in the same quarter last year. License revenue in the second quarter 2005 amounted to EUR 6.5 million (US$ 7.8 million). License revenue consisted of initial payments from new contracts as well as annual and other payments on existing contracts and included a second milestone payment from DSM.
Service fees amounted to EUR 2.6 million (US$ 3.2 million), compared to EUR 1.5 million (US$ 1.8 million) in the second quarter of 2004. Service fees represent revenues for product development activities performed under contracts with partners and licensees.
Government grants and other revenues amounted to EUR 1.0 million (US$ 1.2 million), up from EUR 0.8 million (US$ 1.0 million) in the same quarter last year.
Results
The Company reported a net loss for the second quarter 2005 of EUR 3.4 million (US$ 4.1 million), or EUR 0.09 net loss per share (US$ 0.11). This compares to a net loss of EUR 2.0 million (US$ 2.5 million), or EUR 0.06 net loss per share (US$ 0.07) for the second quarter 2004.
Total costs and expenses increased 33% over the same quarter last year, reflecting the stepping up of development activity. Total research and development (R&D) expenses in the second quarter 2005 were EUR 7.6 million (US$ 9.1 million), compared to a figure of EUR 4.7 million (US$ 5.7 million) in the second quarter of 2004. Cost of service fees were EUR 2.2 million (US$ 2.6 million) for the quarter, compared to EUR 1.2 million (US$ 1.4 million) last year.
Selling, general and administrative (SGA) expenses for the second quarter 2005 were EUR 2.9 million (US$ 3.5 million), compared to EUR 3.6 million (US$ 4.3 million) for the same quarter in 2004. This reduction in SGA expenses is due to a reduction in warrant expenses and a reduction in other general and administrative expenses.
HALF YEAR
Revenue
Crucell's revenues for the first half of 2005 amounted to EUR 16.1 million (US$ 19.4 million), up 34% on the EUR 12.0 million (US$ 14.5 million) recorded in the same period of 2004. License revenues in the first half year were EUR 8.3 million (US$ 10.0 million) compared to EUR 7.9 million (US$ 9.5 million) last year.
Service fees amounted to EUR 5.1 million (US$ 6.2 million) for the half year compared to EUR 2.2 million (US$ 2.6 million) for the same period in 2004.
Government grants and other revenues of EUR 2.6 million (US$ 3.2 million) for the half year compare with EUR 2.0 million (US$ 2.4 million) for the first half of 2004.
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 net loss for the first half of 2005 was EUR 8.7 million (US$ 10.5 million), or EUR 0.23 net loss per share (US$ 0.28), a decrease of 4% compared to the net loss of EUR 9.1 million (US$ 11.0 million), or EUR 0.25 net loss per share (US$ 0.30) for the first six months of 2004.
Total research and development expenses in the first half-year 2005 were EUR 13.5 million (US$ 16.2 million), compared to EUR 10.8 million (US$ 13.1 million) in the same period of 2004. Cost of service fees were EUR 4.1 million (US$ 4.9 million) compared to EUR 1.6 million (US$ 1.9 million) in the first half of 2004, reflecting the strong increase in service fees year on year.
Selling, general and administrative (SGA) expenses for the first half of 2005 were EUR 5.6 million (US$ 6.7 million), a significant decrease from the EUR 7.7 million (US$ 9.3 million) in the same period last year. This is due to a reduction in warrant expenses included in SGA as well as a reduction in other administrative expenses.
Cash Flow and Cash Position
Cash and cash equivalents recorded a net increase of EUR 43.6 million (US$ 52.6 million) in the first half of 2005. Cash used in operations was EUR 10.7 million (US$ 12.9 million). Crucell raised EUR 50.1 million net in a private equity offering priced at EUR 14.50 per share. The capital raised will support the acceleration of Crucell's product development with new opportunities in antibodies and therapeutic proteins. Total net proceeds from the May 10th private placement in addition to proceeds from options exercised in the first six months of 2005 amount to EUR 55.5 million (US$ 67.0 million). Furthermore, total lease payments made and investments in equipment amount to EUR 1.2 million (US$ 1.5 million). Crucell's cash and cash equivalents amount to EUR 120.3 million (US$ 145.1 million) on June 30, 2005.
Other
Crucell options were listed on the Chicago Board Options Exchange (CBOE) where trading began on May 19, 2005. On July 13, Euronext.liffe announced that Crucell options will begin trading in Europe on September 21, 2005. Crucell options are also traded on the AMEX and Pacific stock exchanges.
Crucell shall lodge its IFRS financial report for the first half-year 2005 with Euronext before September 30, 2005; this report will be available via Crucell's Web site, www.crucell.com.
Note: Euros are converted to US Dollars at the June 30, 2005 exchange rate of 1.2066 US$ per 1.0 EUR.
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 PER.C6(R) production technology. The company also licenses its PER.C6(R) technology to the biopharmaceutical industry. 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.
Forward-looking statements 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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