Antisoma plc reports Q3 results


LONDON, May 13, 2004 (PRIMEZONE) -- Antisoma plc (LSE:ASM), the biotechnology company developing novel anti-cancer drugs, today announces its results for the three months ended 31 March 2004.



 Summary

 -  Cash and cash equivalents as at 31 March 2004 of GBP39.7 million
    vs GBP34.9 million at 31 March 2003
 -  Revenues increased to GBP5.0 million for the quarter from GBP4.2
    million in the same period last year
 -  Operating loss increased to GBP1.2 million for the quarter from
    GBP0.1 million in the same period last year
 -  R1549 discontinued following results of phase III ovarian cancer
    study
 -  AS1404 completes phase I trials
 -  AS1405 starts clinical trials in brain cancer
 -  Ursula Ney joins as Chief Operating Officer

 Dr Barry Price, Chairman of Antisoma, commented: "Whilst we were
 disappointed with the R1549 results, we go forward with confidence as
 we have three drugs in clinical trials, almost GBP40 million in the
 bank and a strong alliance with Roche. We remain focused on adding
 value to our oncology portfolio, both by advancing existing
 programmes and by judicious acquisition of new drugs. We are
 evaluating a range of opportunities and expect to in-license a new
 clinical product this year."

 Except for the historical information presented, certain matters
 discussed in this statement are forward looking statements that are
 subject to a number of risks and uncertainties that could cause
 actual results to differ materially from results, performance or
 achievements expressed or implied by such statements. These risks and
 uncertainties may be associated with product discovery and
 development, including statements regarding the company's clinical
 development programmes, the expected timing of clinical trials and
 regulatory filings. Such statements are based on management's current
 expectations, but actual results may differ materially.

 Chairman's report

 We suffered a setback at the end of the April when R1549 was found
 not to improve outcomes for patients in our ovarian cancer phase III
 study. Though development of R1549 has now been halted, findings from
 the trial will be of interest to clinicians concerned with ovarian
 cancer, and will therefore be presented at the American Society of
 Clinical Oncology meeting this June. As Roche's William Burns
 highlighted, results of this kind are unfortunately 'not unexpected
 in the development of novel treatment modalities.' Recognising the
 risks intrinsic to drug development, we had taken steps to ensure
 that our long-term growth prospects were not overly dependent on any
 one product. We have established a broad pipeline, including three
 products in clinical trials as well as a variety of promising
 preclinical drugs. We also have almost GBP40 million to support our
 drug development activities and a strong alliance with Roche, which
 provides us with a clear route through which to advance more drugs
 into late-stage trials and towards commercialisation.

 AS1404

 In March, we successfully completed the third and final phase I study
 of AS1404 as a monotherapy. We are now preparing plans for a phase II
 programme of combination studies, which is scheduled to start during
 the second half of 2004.

 AS1404 belongs to a class of drugs called 'vascular targeting agents'
 that specifically disrupt tumour blood vessels and, as such, the drug
 has potential against a wide variety of cancers. AS1404 is considered
 most likely to provide a benefit when used alongside other therapies
 and it is intended that separate trials will be conducted in
 different tumour types, each combining AS1404 with an established
 cancer treatment. In at least one of the trials, AS1404 will be given
 with taxane drugs because this combination has shown particular
 promise in preclinical work.

 AS1405

 During the period, AS1405 started its first clinical trial in
 patients with a highly malignant brain cancer called glioma. The
 phase I trial will provide information on safety, dosing and
 distribution of the drug, as well as looking for any initial signs of
 anti-tumour activity. Patients included in the study have suffered a
 relapse of their glioma with regrowth of the tumour after their
 initial treatment. In the trial, the majority of the new tumour
 growth is removed by surgery, then AS1405 is injected into the cavity
 left in the brain. AS1405 is a radiolabelled antibody that binds to a
 protein found around new tumour blood vessels. It delivers a targeted
 dose of radiation with the aim of preventing or delaying the relapse
 of cancer.

 Because glioma is a relatively rare cancer, a so-called 'niche
 indication', AS1405 is not included in Antisoma's alliance with
 Roche. Antisoma intends to pursue alternative routes to
 commercialisation, with the intention to maximise its retained share
 of the product's value. Given the very poor results with current
 treatments for glioma, Antisoma considers this an attractive
 opportunity. The Company estimates that on the basis of the need for
 a suitable surgical history, and taking together newly diagnosed
 patients and those with recurrent disease, some 29,000 patients could
 be eligible for the treatment each year in North America, Europe and
 Japan.

 R1550

 Recruitment is progressing into the phase I study of R1550 being
 conducted in the USA by Roche. The drug is being evaluated in women
 with locally advanced or metastatic (spreading) breast cancer.

 Management

 We announced in February the appointment of Dr Ursula Ney as Chief
 Operating Officer. Reporting to CEO Glyn Edwards, her role is to
 oversee both the company's established drug development programmes
 and its business development activities. Dr Ney was previously CEO of
 Charterhouse Therapeutics Ltd and spent thirteen years at Celltech
 plc, where she was Director of Development from 1993 to 2001 and
 served on the Celltech plc board from 2000 to 2001.

 Financial Review

 Results of operations - nine months ended 31 March 2004
 Revenues for the nine months ended 31 March 2004 totalled GBP14.3
 million (2003: GBP7.1 million). Revenues represent amounts earned
 under the Roche agreements of GBP6.8 million (2003: GBP3.0 million)
 recognised from the (GBP23.2 million) upfront payment received and
 GBP7.5 million (2003: GBP2.8 million) in relation to the development
 costs of R1549 and R1550. Revenues in the comparative period also
 included GBP1.3 million under the now terminated agreement with
 Abbott Laboratories. The Roche agreements were signed on 16 November
 2002 and the revenues for the comparative period reflect amounts
 earned from that date.

 Operating expenses increased to GBP16.6 million (2003: GBP12.3
 million), including research and development expenses of GBP12.7
 million (2003: GBP9.2 million). The increase in operating expenditure
 represents increased development expenditure in our clinical and
 preclinical portfolios, the costs associated with the acquisition of
 additional royalty rights from Cytogen and the in-licensing of the
 telomerase inhibitor programme together with a general increase in
 Company activities.

 A claim for Research and Development tax relief amounting to GBP1.2
 million on qualifying expenditure for the year ended 30 June 2003 was
 made in the period. This compares with tax relief claimed in the
 prior year of GBP1.1 million.

 Losses for the nine months ended 31 March 2004 decreased to GBP0.2
 million (2003: GBP3.4 million), primarily as a result of the impact
 of the increased revenues, offset by increased operating expenses.

 Results of operations - three months ended 31 March 2004

 Revenues for the three months ended 31 March 2004 totalled GBP5.0
 million (2003: GBP4.2 million), representing GBP2.3 million (2003:
 GBP2.3 million) revenue recognised from the upfront payments received
 under the Roche agreement and GBP2.7 million (2003: GBP1.9 million)
 in relation to reimbursement of development costs for R1549 and
 R1550.

 Operating expenses of GBP6.3 million (2003: GBP4.3 million) include
 research and development spending of GBP5.0 million (2003: GBP3.1
 million).

 Net profits for the three months to 31 March 2004 were GBP0.3 million
 (2003: GBP0.2 million).

 Liquidity and capital resources

 Cash at bank and held in short-term investments totalled GBP39.7
 million at 31 March 2004 (GBP34.9 million at 31 March 2003). Net cash
 outflow from operating activities for the quarter was GBP3.4 million
 (quarter ended 31 March 2003: GBP7.1 million). The net cash outflow
 for the nine-month period was GBP7.5 million compared with a net cash
 inflow of GBP10.3 million for the nine months ended 31 March 2003.

 Debtors have increased to GBP4.6 million from GBP3.6 million at 31
 March 2003 as a result of the claim for Research and Development tax
 relief, which was received shortly after the period end. Creditors
 have decreased to GBP15.7 million from GBP22.9 million at 31 March
 2003, largely as a result of the recognition of deferred income
 relating to the upfront payments received from Roche.

 The increase in fixed assets of GBP1.1 million represents the
 extension of the office and laboratory facilities and the purchase of
 associated equipment.

 Loss per share

 The profit per share for the quarter ended 31 March 2004 was 0.1p
 (2003: 0.1p - restated to take account of the bonus element of the
 Placing and Open Offer). Loss per share for the nine months ended 31
 March 2003 has decreased from 1.6p (similarly restated) to 0.1p in
 the nine months ended 31 March 2004, reflecting the impact of the
 increased revenues from Roche.

 Outlook

 We expect to make significant advances in our oncology pipeline over
 the next eighteen months. Our phase II programme of combination
 studies on AS1404 is planned to start later this year, and multiple
 trials of this agent will be underway in different cancers during
 2005. Key data are expected from a number of our clinical programmes
 during that year. Management believes that investors' prospects for
 returns are maximised by having multiple drugs in late-stage trials,
 as each of these provides short- to medium-term upside potential. We
 therefore remain committed not only to the development of our
 existing pipeline products but also to our previously announced plans
 to add a further clinical product to our portfolio during 2004.

 Consolidated profit and loss account
 For the nine months ended 31 March 2004


                           9 months    9 months    3 months       Year
                              ended       ended       ended      ended
                             31 Mar      31 Mar      31 Mar    30 June
                               2004        2003        2004       2003
                          unaudited   unaudited   unaudited    audited
                            GBP'000     GBP'000     GBP'000    GBP'000

  Revenue                    14,298       7,097       5,019     11,837
  Operating expenses       (16,611)    (12,268)     (6,268)   (17,212)
                           --------    --------    --------   --------
  Operating loss            (2,313)     (5,171)     (1,249)    (5,375)
  Interest receivable           943         677         391        978
                           --------    --------    --------   --------
  Loss on ordinary          (1,370)     (4,494)       (858)    (4,397)
  activities
  before taxation
  Taxation on ordinary        1,178       1,098       1,178      1,098
  activities               --------    --------    --------   --------
  (Loss)/profit on            (192)     (3,396)         320    (3,299)
  ordinary                 --------    --------    --------   --------
  activities after
  taxation
  (Loss)/earnings per
  1p share
  Basic and diluted          (0.1p)     (1.6p)*        0.1p    (1.5p)*
                           --------    --------    --------   --------
  Weighted average          241,816    216,124*     266,077   219,892*
  number                   --------    --------    --------   --------
  of shares (000's)

 * Loss per share and weighted average number of shares for the nine
 months ended 31 March 2003 and the year ended 30 June 2003 have been
 restated to take account of the bonus element of the Placing and Open
 Offer. The bonus arises because the shares were issued at a discount
 to market price.

 Consolidated balance sheet
 at 31 March 2004

                                         31 Mar      31 Mar    30 June
                                           2004        2003       2003
                                      unaudited   unaudited    audited
                                        GBP'000     GBP'000    GBP'000

  Fixed assets                            1,368         284        263
                                       --------    --------   --------
  Current assets

  Debtors                                 4,637       3,564      3,529
  Short term investments                 22,669      33,459     31,854
  Cash at bank and in hand               17,071       1,476      2,141
                                       --------    --------   --------
                                         44,377      38,499     37,524
  Creditors: amounts falling due       (13,856)    (11,895)   (13,013)
  within                               --------    --------   --------
  one year
  Net current assets                    30, 521      26,604     24,511
                                       --------    --------   --------
  Total assets less current              31,889      26,888     24,774
  liabilities
  Creditors: amounts falling due        (1,872)    (10,995)    (8,715)
  after more
  than one year
  Provisions for liabilities and          (109)           -       (70)
  charges                              --------    --------   --------
  Net assets                             29,908      15,893     15,989
                                       --------    --------   --------
  Capital and reserves

  Called up share capital                 6,993       6,613      6,613
  Share premium account                  69,683      55,952     55,952
  Other reserves                          4,300       4,300      4,300
  Profit and loss account              (51,068)    (50,972)   (50,876)
                                       --------    --------   --------
  Total shareholders' funds              29,908      15,893     15,989
                                       --------    --------   --------
  Shareholders' funds analysed as:
  Equity shareholders' funds             25,576      11,561     11,657
  Non-equity shareholders' funds          4,332       4,332      4,332
                                       --------    --------   --------
                                         29,908      15,893     15,989
                                       --------    --------   --------
 Consolidated cash flow statement
 for the nine months ended 31 March 2004


                           9 months    9 months    3 months       Year
                              ended       ended       ended      ended
                             31 Mar      31 Mar      31 Mar    30 June
                               2004        2003        2004       2003
                          unaudited   unaudited   unaudited    audited
                            GBP'000     GBP'000     GBP'000    GBP'000

  Net cash                  (7,470)      10,346     (3,419)      9,185
  (outflow)/inflow         --------    --------    --------   --------
  from
  operating activities
  Returns on
  investments and
  servicing of finance
  Interest received             957         651         415        897
  Net cash inflow from          957         651         415        897
  returns on               --------    --------    --------   --------
  investments and
  servicing of finance
  Net cash inflow from            -       1,098           -      1,098
  taxation                 --------    --------    --------   --------
  Capital expenditure
  and financial
  investment
  Purchase of tangible      (1,431)       (186)       (348)      (212)
  fixed assets             --------    --------    --------   --------
  Sale of tangible                -           -           -          1
  fixed assets
  Purchase of                 (423)           -           -          -
  intangible fixed
  assets
                            (1,854)       (186)       (348)      (211)
                           --------    --------    --------   --------
  Net cash                  (8,367)      11,909     (3,352)     10,969
  (outflow)/inflow         --------    --------    --------   --------
  before
  management of liquid
  resources and
  financing
  Management of liquid
  resources
  Purchase/(Sale) of          9,185    (15,500)       3,785   (13,895)
  current asset            --------    --------    --------   --------
  Investments
  Financing
  Issue of shares            15,204       4,147           -      4,147
  Expenses paid in          (1,092)           -           7          -
  connection with
  share issues

                             14,112       4,147           7      4,147
                           --------    --------    --------   --------

  Increase/(decrease)        14,930         556         440      1,221
  in cash                  --------    --------    --------   --------

 Notes to the financial statements

 1. Basis of reporting

 The interim financial statements have been prepared in accordance
 with UK Generally Accepted Accounting Principles ('UK GAAP') on the
 basis of the accounting policies set out in the Group's 2003
 statutory accounts.

 The statements were approved by the Board of Directors on 11 May 2004
 and are unaudited.

 The financial information contained in this announcement does not
 constitute statutory accounts within the meaning of Section 240 of
 the Companies Act 1985. The figures for the year ended 30 June 2003
 have been extracted from the statutory accounts which have been filed
 with the Registrar of Companies and which are available on request
 from the Company Secretary, Antisoma plc, West Africa House, Hanger
 Lane, Ealing, London W5 3QR. The auditors' report on those accounts
 was unqualified and did not contain any statement under section
 237(2) or section 237(3) of the Companies Act 1985.

 2. Operating expenses


                            9 months    9 months    3 months      Year
                               ended       ended       ended     ended
                              31 Mar      31 Mar      31 Mar   30 June
                                2004        2003        2004      2003
                           unaudited   unaudited   unaudited   audited
                             GBP'000     GBP'000     GBP'000   GBP'000

  Administrative               3,894       3,098       1,240     4,179
  expenses
  Research and                12,717       9,170       5,028    13,033
  development               --------    --------    --------  --------
  Operating expenses          16,611      12,268       6,268    17,212
                            --------    --------    --------  --------

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