Announcement no. 10/2008
To OMX Nordic Exchange Copenhagen
Copenhagen, May 21, 2008
Interim Report for the Period January 1 to March 31, 2008 (Unaudited and
Unreviewed)
Curalogic seeks new development projects
Curalogic has initiated a search process to identify new development projects
offering an attractive risk profile. The Company has identified a number of
biotech companies with interesting pipelines and is in continuing discussions
with several parties. Curalogic still expects to be able to conclude an
agreement in 2008. The search process was initiated after Curalogic decided in
late January 2008, based on a detailed scientific and strategic review, to
terminate the development of oral immunotherapy in the Company. As a result of
the lower level of activity, the staff has been reduced from 14 to 7 employees.
Financial performance during the period from January 1 to March 31, 2008
Curalogic recorded an operating loss (EBIT) of DKK 5.0 million in Q1 2008
compared to an operating loss of DKK 37.4 million in Q1 2007. The operating loss
was in line with the Company's expectations. The main reason for the difference
in operating loss compared to Q1 2007 is the termination of the development
activities within oral immunotherapy in the Company by the end of January 2008.
Net financials deviate from the Company's expectations and were adversely
affected by the falling value of USD.
The Company's cash and cash equivalents amounted to DKK 289.6 million as of
March 31, 2008 compared to DKK 136.8 million as of March 31, 2007.
Outlook for 2008
Curalogic expects to incur operating costs of approximately DKK 18 million in
the financial year 2008. To this should be added expected net financial income
of approximately DKK 9 million. Curalogic expects to incur a total loss of
approximately DKK 9 million in 2008. Curalogic's cash resources as of December
31, 2008 are still expected to be approximately DKK 276 million. This outlook
will be affected if Curalogic finds new development projects during the 2008
financial year.
This is a reduction of the expected loss for the financial year 2008 by
approximately DKK 3 million since March 2008. It is expected that operating
costs will improve by approximately DKK 1 million, but as the Company's
financial income is affected by already realized exchange rate losses as a
result of the fall in the value of the USD, net financial income is now expected
to be approximately DKK 9 million, which is DKK 4 million lower than the
Company's original forecast.
Events during the period form January 1 to March 31, 2008
The development of oral immunotherapy has been terminated
Based on a detailed strategic and scientific review Curalogic decided to
terminate the development of oral immunotherapy in the Company. Based on this
decision, Curalogic terminated the ongoing clinical study of the grass product
(GPE 03) in January 2008. The Company's ongoing clinical study of the house dust
mite product (DME 01) was close to completion, and this study was therefore
completed. As a result of the lower level of activity, the staff has been
reduced from 14 to 7 employees.
Search for new projects
Curalogic has initiated a search process to identify new development projects
offering an attractive risk profile that can replace its previous pipeline of
clinical projects. The search process was initiated after Curalogic decided to
terminate the development of oral immunotherapy in the Company.
Key events after March 31, 2008
Adoption of new guidelines for incentive pay
Pursuant to Section 69b of the Danish Public Companies Act, the board of
directors of a listed company is required to lay down general guidelines for the
company's incentive pay to the board of directors and management board before
any specific agreement on incentive pay can be made with any member of the
Company's board of directors or management board. The guidelines must be
considered and adopted by the company's shareholders. Curalogic's new guidelines
were approved at the Company's Annual General Meeting held on April 21, 2008.
Annual General Meeting
Curalogic's Annual General Meeting was held on April 21, 2008.
Statement by the Management Board and the Board of Directors on the interim
report
We have today considered and approved the interim report of Curalogic A/S for
the three-month period January 1 to March 31, 2008.
The interim report has been prepared in accordance with IAS 34, the Company's
accounting policies for the financial year 2007 and additional Danish
disclosure requirements for interim reports of listed companies. The interim
report is unaudited and unreviewed.
We consider the accounting policies to be appropriate. Accordingly, the interim
report gives a true and fair view of the Company's financial position as of
March 31, 2008 and of the results of operations and cash flows for the
three-month period January 1 to March 31, 2008.
Copenhagen, May 21, 2008
Curalogic A/S
Board of Directors
Jakob Schmidt Christian Karsten Hansen
Chairman
Pamela J. Kirby Alf A. Lindberg
Carl Spana
Management Board
Peter Moldt
President and CEO
Jakob Schmidt is President and CEO of Pharmexa A/S.
Christian K. Hansen is a partner of Nordic Biotech.
Pamela J. Kirby holds a number of directorships.
Alf A. Lindberg is President and CEO of Nobel Web AB.
Carl Spana is President and CEO of Palatin Technologies Inc.
For additional information, please contact:
Peter Moldt, President and CEO Tel. +45 99 99 24 01
Helle Busck Fensvig, EVP and CFP Tel. +45 99 99 24 03
This announcement contains forward-looking statements regarding the Company's
future financial development and performance and other statements which are not
historical facts. Such statements are made on the basis of assumptions and
expectations which, to the best of the Company's knowledge and belief, are
reasonable, at this time, but may prove to be erroneous in the future.
Status of Curalogic's activities
Interim Report for the Period January 1 to March 31, 2008 (Unaudited and Unreviewed)
| Source: Curalogic A/S
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