Innogenetics Reports Results for the First Half of 2003 in Line with Expectations


GENT, Belgium, Aug. 19, 2003 (PRIMEZONE) -- Innogenetics (Other OTC:INGTF) today announced its unaudited results for the first half ending June 30, 2003.

First half 2003 highlights (versus first half 2002)

 * Product sales increased by 16% to Eur 27.5 million
 * Gross margin reached 54.5% versus 53.8% 
 * R&D expenses increased by 22%, driven by investments in
   the Therapeutics programs 
 * Operating loss of Euro 10.0 million, with Diagnostics
   operations close to break-even 
 * Diagnostics positive EBITDA reached Euro 2.0 million
 * Cash position of Euro 27.4 million

 Therapeutics activities:

 * Positive results in pivotal preclinical study in sepsis 
   (INNO 202) 
 * Successful recruitment for phase II clinical study with 
   LyphoDerm (treatment of chronic hard-to-heal venous leg ulcers)
 * Phase II studies with E1-based therapeutic vaccine (treatment
   of chronic hepatitis C) progressing according to plan,
   with new positive results in 9 HCV patients confirming earlier

Diagnostics activities: results on track to meet 2003 objectives

Philippe Archinard, CEO of Innogenetics, commented: "In the first half of this year, the progress of our Diagnostics activities was in line with our 2003 plan and we expect a significant increase in license fee income during the second half of this year. Within our Therapeutics programs, we continue to see significant progress in the field of sepsis with promising preclinical results, in the field of wound care with the successful completion of the patient recruitment for LyphoDerm Phase II study, and in the field of hepatitis C with two phase II studies ongoing. Our objectives for 2003 remain unchanged."

Diagnostics operations: increased sales, positive EBITDA and close to break-even

For the first six months of 2003, Innogenetics' Diagnostics activities operated close to break-even with a small operating loss of Euro 230,000 and realized a positive EBITDA of Euro 2.0 million. Diagnostics product sales reached Euro 27.3 million, an all-time high. This increase occurred across all diagnostics fields: infectious diseases, genetic testing, and neurodegeneration.

Furthermore, the continued efforts to optimize productivity and control costs have resulted in a further enhancement of the Diagnostics' gross margin to a level of 54.2%, while Diagnostics operating expenses remained in line with expectations.

Increased R&D investments in Therapeutics

R&D expenses for the Therapeutics programs amounted to Euro 9.5 million for the first six months of 2003 and are in line with the 2003 budget. These expenditures reflect the accelerating clinical efforts in the fields of hepatitis C and wound care, and further investments in promising preclinical programs, such as in the area sepsis.

Increased total revenues

Total revenues, including R&D income, amounted to Euro 33.6 million in the first six of 2003. Overall product sales, including Therapeutics, increased by 16% to Euro 27.5 million.

Royalty and license fee income in the first half of 2003 decreased relative to the same period in 2002 during which time Innogenetics received significant royalty and milestone payments of over Euro 2.0 million.

R&D contract income and R&D grants were in line with expectations reaching a level of Euro 4.0 million, reflecting the collaborations with Solvay, Bayer, and Roche as well as new grants in the field of hepatitis C and neurodegeneration testing.

Expenses under control

Confirming the trend in productivity improvement, the gross margin for the first six months of 2003 increased to 54.5% versus 53.8% for the same period in 2002.

R&D expenses reached Euro 15.7 million during the first six months of 2003, representing a 22% increase compared to the same period in 2002. Diagnostics R&D expenses remained stable at a level of Euro 6.2 million, while Therapeutics R&D expenses amounted to Euro 9.5 million in the first half of 2003.

Both Sales & Marketing and General & Administrative expenses increased in the first six months of 2003 compared to the same period in 2002, to reach Euro 15.3 million.


For the first six months of 2003, Innogenetics posted an operating loss of Euro 10.0 million, compared to Euro 4.9 million for the same period of 2002. The increased operating loss mainly reflected higher R&D investments in the promising Therapeutics programs and the lower royalty and license fee income. The net loss for the first half of 2003 amounted to Euro 10.5 million.

Cash position

As of June 30, 2003, Innogenetics' cash position was Euro 27.4 million compared to Euro 46.8 million at the end of June 2002.

The cash flow during the first six months of 2003 was mainly influenced by expenditures for intellectual property protection, and new investments in computer and laboratory equipment.

About Innogenetics

Innogenetics is an international biotechnology company building two businesses in the areas of speciality diagnostics and therapeutic vaccines. The Company's advanced therapeutic vaccine for the treatment of hepatitis C virus -- a global unmet medical need -- is currently considered to be ahead of the competition. In its Diagnostics Division, Innogenetics develops a large number of speciality products covering three disease areas: infectious diseases, genetic testing, and neurodegeneration. In 2002, diagnostics sales increased by 16% to Euro 48 million and total revenues reached Euro 62 million. With a strong commercially oriented management team and distinctive dual business model, Innogenetics provides a low-risk biotech investment with potentially high returns. Founded in 1985, Innogenetics is listed on Euronext Brussels. The Company's headquarters are in Gent, Belgium, with sales affiliates in France, Germany, Italy, the Netherlands, Spain, and the USA. Innogenetics employs 600 people worldwide and has a market capitalization of approximately Euro 330 million.

For further information, please contact:

Innogenetics Noonan Russo Jean-Christophe Donck Veronica Cefis Sellar Vice President, Investor Senior Account Manager Relations Tel +44 (0) 20 7726 4452 Tel +32 (0)9 329 1701 Fax +44 (0) 20 7726 4453 Fax +32 (0)9 329 1908 E-mail E-mail

Special Note Regarding Forward-Looking Information

This press release contains forward-looking statements that involve risks and uncertainties, including but not limited to projections of future revenues, operating income, and other risks. Prospective investors should be aware that these statements are estimates, reflecting only the judgment of our management, and they should not place undue reliance on any forward-looking statements.

Please click on the link provided to view the full press release with financials:


Contact Data