ALLSCHWIL and BASEL, Switzerland, April 20, 2006 (PRIMEZONE) -- Actelion Ltd (SWX:ATLN) today announced its financial results for the first quarter of 2006. With total net revenue of CHF 210.6 million (Q1 2005: CHF 146.4 m) and operating expenses (including Cost Of Goods Sold and cost of employee stock options) of CHF 149.5 million (Q1 2005: 102.7 m), the company reported an operating income of CHF 61.0 million (Q1 2005: CHF 43.7 m). The net income for the quarter was CHF 53.7 million (Q1 2005: CHF 42.1 m).
Basic earnings per share (EPS) for the first quarter of 2006 improved to CHF 2.38, compared to CHF 1.90 in Q1 2005. In the first quarter 2006, Actelion generated net cash flow from operating activities of CHF 34.4 million (Q1 2005: 27.3 m). Cash, cash equivalents and short-term deposits as at 31 March 2006 were CHF 401.9 million (31 December 2005: CHF 382.9 m).
Jean-Paul Clozel, MD and Chief Executive Officer commented: "Our efforts to expand the marketplace for Tracleer(r) in pulmonary arterial hypertension (PAH) are successful. The number of prescribers is growing and so is the demand for therapies that have an impact on disease progression. Prescribing physicians and their patients also demand more experience data to optimize therapy and Actelion generates such data on an ongoing basis."
Jean-Paul Clozel concluded: "The substantial revenue stream from Tracleer(r) is allowing us to implement our long-term strategy of discovering, developing and marketing medical break-through therapies. With multiple clinical trials reporting over the coming 18 months, Actelion has several opportunities for further growth."
Andrew J. Oakley, Chief Financial Officer commented: "With Tracleer(r) sales growth above our expectations, we can now expect 2006 total net revenue to reach between 840 and 860 million Swiss Francs, compared to between 810 and 840 million as previously guided. I expect that we will manage costs within the previously communicated range. Unforeseen events excluded, 2006 operating income should fall between 185 and 205 million Swiss Francs, 20 million higher than previously guided."
Financial Result Overview -- Table Q1 2006 vs. Q1 2005
In CHF thousands Results Q1 Results Q1 Variance in %
2006 2005
Net Revenue 210,554 146,353 64,201 +44%
Operating Expenses 149,547(a) 102,687 46,860 +46%
Operating Income 61,007 43,666 17,341 +40%
Net Income 53,666 42,110 11,556 +27%
Basic EPS in CHF 2.38 1.90 0.48 +25%
Diluted EPS in CHF 2.33 1.82 0.51 +28%
Gross Cash 401,894 293,367 108,527 +37%
(a) Includes a non-cash charge of CHF 6.3 million for employee stock
options under FAS123R (effective since 1 July 2005)
The full financial statements for the first quarter 2006 can be found on http://www.actelion.com.
Strong Top Line Growth
In the first quarter of 2006, Actelion's total net revenue was CHF 210.6 million (Q1 2005: 146.4 m). On a quarter-to-quarter basis, total net revenue grew by 13 percent (Q4 2005: 186.5 m).
Contract revenues in Q1 2006 amounted to CHF 3.8 million (Q1 2005: 4.2 m). On a quarter-to-quarter basis, contract revenues were unchanged (Q4 2005: 3.9 m).
Tracleer(r) Territory Managers and New Treatment Options Expand PAH Market
In Q1 2006, Tracleer(r) sales were CHF 201.4 million (Q1 2005: CHF 139.8 m). On a quarter-to-quarter basis, Tracleer(r) sales increased by 13 percent (Q4 2005: CHF 178.0 m). A proportion of this increase might be attributable to buying pattern variations.
At the end of March 2006, Tracleer(r) was marketed in 34 countries worldwide, including all major pharmaceutical markets. In early April 2006, regulatory authorities in South Korea and China approved Tracleer(r) in PAH. In both countries, reimbursement discussions are ongoing.
In the first quarter of 2006, Zavesca(r) sales reached CHF 5.4 million (Q1 2005: CHF 2.4 m). On a quarter-to-quarter basis, Zavesca(r) sales increased by 17 percent (Q4 2005: 4.6 m). Zavesca(r) is commercially available in the United States and in most European markets.
Christian Chavy, President Business Operations, commented: "I am very pleased that our strategy -- combining sales force expansion, increased educational outreach and rapid data generation from clinical trials and market experience -- is resulting in increased prescriptions. The growth momentum in the PAH market is especially remarkable, with more treating physicians diagnosing more patients earlier in their disease."
Expenditure in Line With Company Expectations
In Q1 2006, operating expenses were CHF 149.5 million (Q1 2005: CHF 102.7 m). Compared to the previous quarter, this represents a 7 percent decrease (Q4 2005: CHF 160.3 m), mainly the result of seasonally lower marketing and sales spending and a large clinical study achieving full enrollment in November 2005.
In Q1 2006, research and development expenses were CHF 47.7 million (Q1 2005: CHF 32.0 m). Compared to the previous quarter, this represents a decrease of 5 percent (Q4 2005: CHF 50.2 m).
In Q1 2006, marketing and advertising costs were CHF 41.1 million (Q1 2005: CHF 26.9 m). Compared to the previous quarter (Q4 2005: CHF 51.4 m), this represents a decrease of 20 percent.
In Q1 2006, selling, general and administrative expenses amounted to CHF 39.4 million (Q1 2005: CHF 28.9 m). Compared to the previous quarter, selling, general and administrative expenses were unchanged (Q4 2005: CHF 39.4 m).
Strong Operating Income
In the first quarter of 2006, Actelion's operating income was CHF 61.0 million (Q1 2005: CHF 43.7 m). Q1 2006 operating profit was 133 percent higher than the previous quarter (Q4 2005: CHF 26.2 m).
Net Income
Net income for the first quarter 2006 was CHF 53.7 million (Q1 2005: 42.1 m). This includes interest income of CHF 1.0 million, interest expense of CHF 0.01 million, a non-cash convertible bond charge of CHF 2.0 million and other financial income - predominantly related to non-cash currency hedge valuations - of CHF 2.9 million. In Q1 2006, the net income tax expense was CHF 9.2 million.
Compared to the previous quarter (Q4 2005: 24.3 m), net income increased by 121 percent.
Cash and Cash Flow
The company generated cash from operations in the first quarter of 2006 of CHF 34.4 million (Q1 2005; CHF 27.3 m). Cash from operations in Q4 2005 was CHF 48.2 million. As at 31 March 2006, the company held gross cash, cash equivalents and short term deposits of CHF 401.9 million (31 December 2005: CHF 382.9 m).
Research and Development Programs on Track
At Actelion's Media and Analyst Day at the end of February 2006, the company provided a full update on its Development program.
Before the end of June 2006, the company expects top-line results of CONSCIOUS-1, evaluating the safety and efficacy of clazosentan for the prevention of vasospasm in patients suffering from aneurismal subarrachnoid hemorrhage. This study is designed to provide the necessary information on dosing and mortality/morbidity event rate so as to determine the appropriate dose and size for a mortality/morbidity-driven Phase III study.
The company expects to provide a comprehensive update on Actelion's development pipeline when reporting Q2 2006 results on 20 July 2006.
For documentation purposes -- Table Q1 2006 vs. Q4 2005
In CHF thousands Results Q1 Results Q4 Variance in %
2006 2005
Net Revenue 210,554 186,533 24,021 +13%
Operating Expenses 149,547(a) 160,317(b) (10,770) -7%
Operating Profit 61,007 26,216 34,791 +133%
Net Profit 53,666 24,286 29,380 +121%
Basic EPS in CHF 2.38 1.08 1.30 +120%
Diluted EPS in CHF 2.33 1.07 1.26 +118%
Gross Cash 401,894 382,917 18,977 +5%
(a) Includes a non-cash charge of CHF 6.3 million for employee
stockoptions under FAS123R
(b) Includes a non-cash charge of CHF 6.3 million for employee stock
options under FAS123R
Actelion Ltd
Actelion Ltd is a biopharmaceutical company with its corporate headquarters in Allschwil/Basel, Switzerland. Actelion's first drug Tracleer(r), an orally available dual endothelin receptor antagonist, has been approved as a therapy for pulmonary arterial hypertension. Actelion markets Tracleer(r) through its own subsidiaries in key markets worldwide, including the United States (based in South San Francisco), the European Union, Japan, Canada, Australia and Switzerland. Actelion, founded in late 1997, is a leading player in innovative science related to the endothelium - the single layer of cells separating every blood vessel from the blood stream. Actelion focuses on the discovery, development and marketing of innovative drugs for significant unmet medical needs. Actelion shares are traded on the SWX Swiss Exchange (ticker symbol: ATLN).
For further information please contact:
Actelion Ltd, Gewerbestrasse 16, CH-4123 Allschwil
Investor Contact Roland Haefeli +41 61 565 64 58
+1 650 624 6936
Media Contact Peter Engel +41 61 565 66 28
+1 650 624 6996
Conference Call
Actelion will host an Investor Conference Call and discussion/Q&A on Thursday, 20 April 2006, 16.00 CEST / 10.00 a.m. EDT / 15.00 BST
Dial: +41 (0) 91 610 56 00 (Europe)
+1 (1) 866 291 41 66 (U.S.)
+44 207 107 06 11 (U.K.)
Webcast -- Live and Replay on Demand
Actelion webcasts its Investor Conference Call. On the Web, you may either follow the call live or have the call replayed later on demand.
To access the webcast live, simply visit the link on our homepage http://www.actelion.com 5-10 minutes before the conference is due to start.
Approximately 60 minutes after the call has ended, the archived investor webcast will be available for replay through our homepage. After 4 May 2006, it will be stored under Investors/Past Events.
Document as PDF: http://www.newsbox.ch/public/6608/att/6788_mediareleasepdf.pdf Description: Media Release (PDF) Document as PDF: http://www.newsbox.ch/public/6608/att/6789_financialstatementspdf.pdf Description: Financial Statements (PDF)