Nutri Pharma reports results and progress according to plans

(Copenhagen, November 1st, 2000) Nutri Pharma (OSE: NUT), the Scandinavian Biotech company today announced the results for the third quarter 2000.
* Pre tax results: NOK –9,3 million (-0,8 million) Accumulated for the first three quarters NOK –47,6 million.
* The revenues are NOK 3,0 million (1,8 million) for the third quarter. Accumulated for the first three quarters NOK 5,2 million (2,8 million).

The results are according to plan.

* Operating result for the third quarter was NOK –17,7 million (-2,8 million). Accumulated for the first three quarters NOK -61,4 million.
* Operating costs were NOK 20,7 million (4,6 million).
* Financial items were NOK 8,4 million (2,0 million); accumulated for the first three quarters NOK 13,8 million.

Comments to the results
The revenues during the period mainly refer to royalties from outlicensed products, mainly the weight-reducing product Nutrilett/ ScanDiet, sold in the Nordic market through Nycomed, and in the American market through GNC (Numico).

The increased operational costs mainly refer to marketing plans/preparation of future products, and expenses concerning negotiations with future licensees and partners. A significant part refers to purchasing of consultancy services as a supplement to the company’s otherwise cost restrictive administration. When it comes Research and Development, the company has spent NOK 13 millions so far this year.

Research and Development
The research organisation will in the fourth quarter be strengthen by the establishment of a research unit in Berlin under the supervision of the new Director of Research, Dr Jörg Grünwald.

A number of clinical tests are in progress, mainly concerning Abacor, a cholesterol-lowering product that will be introduced on the market within the first six months of 2001. Also, studies on Nutrilett/ ScanDiet in combination with the weight-reducing medicine Xenical. This will be made by the international pharmaceutical company Roche.

In the week to come, NAASO (North American Association for the Study of Obesity) has published a study by scientists at Colombia University. The study shows that Nutrilett/ ScanDiet is more effective in weight-reduction than known medicines.

Patents
Nutri Pharma today announces that the United States Patent Authorities have granted the company a patent that protects the composition of the company’s unique soy product. The product is the basis of all Nutri Pharma’s products, and covers several combinations of isolated soy proteins with soy fibres and/or soy-phosphor lipids. It has taken Nutri Pharma over five years to get the patent approved.
The CEO of Nutri Pharma, Michael Oredsson, describes the occasion as a break-through for the company on the US-market. He also says this give Nutri Pharma extensive competitiveness to the company’s product line.
This is Nutri Pharma’s second patent (within this field), there are also six other requests for patents in the process.

Business Development
Intense preparations are being made for the market introduction of the cholesterol-lowering product Abacor. The first introduction will take place at the Swedish “National Medical Conference” in the beginning of December this year. The broader market introduction will take place in the beginning of next year.

The next generation of Abacor –Abacor Forte- has been introduced during the third quarter. Abacor Forte will be marketed as a dietary supplement or a prescription free medicine, which will lower the cholesterol level. The market for cholesterol-lowering medicines is calculated to approximately USD 14 billions. In random, placebo controlled double blind tests it is shown that Abacor, in the shape of Abacor Forte, lowers the cholesterol level in the blood by up to 20 per cent during a period of four months.

ScanDiet has continued to be successful on the American market, and has reached a broad audience, i.e. by presentations in relevant media. The demand is related to season, and a slowdown is expected in the late fall, but should be succeeded by an increased demand in the beginning of the new year.

Share price development
The Nutri Pharma share was introduced on the Oslo Stock Exchange on the 5th of May 2000. The price has been fluctuating between NOK 22 to 53. In connection with the stock exchange introduction, the company collected new capital: NOK 500 million.

Prospects for the future
The operation is still developing. The company continues to experience strong demand for its products from possible partners.

For full report including tables, follow the enclosed link.