HUDDINGE, Sweden, April 26, 2002 (PRIMEZONE) -- Tripep AB (publ):
- A pharmacological pig study designed to determine the best
administration form for GPG(R) will be launched during the
second quarter.
- The CarryVac-HIV project has produced the first component of
the vaccine currently being developed in cooperation with VRISD.
Tests are being performed to analyze the efficacy of this
component in neutralizing the HIV virus.
- The restructuring work resulting from the company's new
strategy has now been completed.
Tripep is a biotech company that develops and commercializes candidate drugs based on patented technologies, which include: research and development of GPG(R), a potential HIV inhibitor drug, preclinical research focusing on the development of therapeutic and prophylactic HIV and hepatitis C vaccines, and the RAS(TM) technology platform.
For more details about the company's technologies, please visit the company's web site at www.tripep.se
Operations
GPG
Tripep has developed an analytical method that enables the direct measurement of GPG(R) levels in the blood. The method will be validated, and development of an analytical method for measuring one of GPG(R)' s active metabolites is also under way. This method will also be validated.
As part of the preparation to continue clinical work, Tripep will be conducting a pharmacological study on pigs during the second quarter of 2002. Several preparation forms and administration methods will be analyzed. The analysis will use Tripep's new analytical methods and will result in important information for our continued work with GPG(R).
Preclinical research portfolio
Vaccines
ChronVac-Ctm - Hepatitis C - therapeutic vaccine. The main difficulty in developing a drug to treat hepatitis C is that, like HIV, the virus constantly mutates and thus evades the immune system. Tripep's researchers have therefore focused their research efforts on trying to produce an immune response to stable parts of the hepatitis C virus that are not affected by mutations. In model systems, the discovery made by Tripep's researchers produces a significantly better immune response than that reported by other research groups. Further development is under way, both at the molecular level and as regards administration form, and Tripep has also begun work on finding a suitable partner for this product.
CarryVac-HIV 1-The amino-acid sequences patented by Tripep are used in research focusing on both a prophylactic HIV vaccine and a therapeutic vaccine for use together with inhibitory drugs. Cooperation is under way with the Vaccine Research Institute of San Diego, from whom Tripep has inlicensed an interesting carrier technology that will probably produce a far better immune response than traditional technologies. Tests are being performed using the first of Tripep's virus sequences attached to the carrier' spikes. Development work on additional components of this multivalent vaccine is under way.
CarryVac-Hepatitis C-prophylactic vaccine
In collaboration with the Vaccine Research Institute of San Diego, Tripep is also developing a prophylactic vaccine for hepatitis C. The planning of tests using virus sequences attached to the carrier's spikes has begun.
RAS(TM), Redirecting Antibody Specificity Staphylococcus aureus-This research focuses on a unique method of attacking resistant staphylococci that cause nosocomial (hospital-acquired) infections. A number of interesting substances have been identified and will be evaluated in in-vivo trials on mouse models that resemble a clinical situation. The optimization of these substances is under way alongside further development of the models, and the aim is to achieve "proof of concept."
Acquisitions
Tripep has some SEK 100 million available for the acquisition and operation of research companies and/or inlicensing of pharmaceutical projects that have reached the clinical phase. A number of companies with drugs in the clinical phase that could prove interesting to Tripep are currently being carefully analyzed and evaluated.
Ongoing studies
Following the advice of both the company's Scientific Advisory Board and its Clinical Advisory Board, Tripep has decided to look into the conditions for starting a new phase I study designed to determine the best administration form for GPG(R).
This study will involve the clinical evaluation of several preparation forms, one of which is a dose powder developed by Tripep and taken perorally in liquid form. GPG(R) may also be administered intravenously to a parallel group.
In preparation for this study, Tripep will launch a pharmacological study on pigs. The study will test several different preparation forms, as well as intravenously administered GPG(R). GPG(R)'s active metabolite will also be tested. Preliminary results from the pig study are expected to be available during the summer of 2002.
Patents
Tripep's strategy is to establish patent protection in the global regions crucial to the company, in other words, North America, Europe and Asia.
At the end of the quarter, the company had 12 approved patents and 54 patents pending.
Cooperation agreements
Tripep's strategy is to develop parts of the company's project portfolio together with partners who can contribute both expertise and other resources.
Tripep has a cooperation agreement with the Vaccine Research Institute of San Diego concerning the development of an HIV vaccine and a hepatitis C vaccine.
As previously announced, active efforts are under way to conclude cooperation agreements for pre-clinical and clinical development of therapeutic hepatitis C vaccine, ChronVac-C(TM).
Staff
At the end of the quarter, the company had a staff of 27 (45 the previous quarter), 17 of whom were employees (26 the previous year).
Earnings
As yet, the company has no revenue.
First quarter 2002 2001 Research and development 2.8 4.9 expenditures, SEK mill. Of which external researchers 4.3 and subcontractors, SEK mill. 2.5
The closedown costs for the organ chemistry and safety laboratories and for projects that have been phased out total SEK 3.2 million.
Capital expenditures First quarter 2002 2001 Net capital expenditures, SEK mill. -0.6 0.4
Tripep has sold equipment belonging to the organ chemistry and safety laboratories during the last quarter.
In connection with the quarterly accounts, a review has been made of all Tripep's capitalized patent costs. The company believes their commercial value to be at least the same as their book value.
Financial position
The company's liquid assets on 31 March 2002 amounted to SEK 145.1 million (SEK 157.3 million on 31 December 2001). In addition, there is a confirmed but unutilized conditional loan from the Swedish Industrial Development Fund of SEK 15 million. It is now unlikely that Tripep will be conducting phase III trials on GPG(R) under its own management, which could mean that the conditional loan will not be utilized. In this event, the 75,000 options held by the Swedish Industrial Development Fund will be returned to the company's ownership.
The market value of short-term investments in fixed-income and other yield-generating funds totaled SEK 139.3 million on 31 March.
Shareholders' equity on 31 March 2002 was SEK 134.0 million (SEK 145.2 million on 30 December 2001). The company's capital stock is SEK 2,770,000, distributed over 13,850,000 shares with a par value of SEK 0.20 each.
In addition, warrants corresponding to 2,021,120 shares have been issued, of which 432,000 are owned by the company.
Financial calendar Interim Report for Q2 2002 Thursday, 29 August 2002 Interim Report for Q3 2002 Wednesday, 23 October 2002 Year-End Report for 2002 Friday, 31 January 2003
Huddinge, Sweden, 26 April, 2002 Tripep AB (publ)
Hans Moller President & CEO
This report has not been examined by the company's auditor.
Web site: www.tripep.se
For more information, please contact: Hans Moller, President Tel.: +46 8-449 84 80, mobile: +46 708-15 16 89 e-mail: hans.moller@tripep.se or Inga Lundberg, Vice President of Investor Relations Tel.: +46 8-449 84 89, mobile: +46 709-83 94 89 e-mail: inga.lundberg@tripep.se
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