Announcement no. 17/2008
To the Nasdaq OMX Nordic Exchange Copenhagen Copenhagen, November 19,
2008
Interim Report for the Period January 1 to September 30, 2008
(Unaudited and Unreviewed)
Curalogic continues to expect that a solution will be found before the end of
2008
Curalogic is still in a process of reestablishing the company's biotech pipeline
and it is still expected that there will be a decision within this year. There
can be no assurance that the current expectations to reach an agreement before
the end of 2008 can be met. If this should turn out not to be possible, the
Company will seek the best solution to ensure that as much cash as possible is
returned to its shareholders.
Financial performance during the period July 1 to September 30, 2008
Curalogic recorded an operating loss (EBIT) of DKK 1.0 million in Q3 2008
compared to an operating loss of DKK 55.0 million in Q3 2007. This operating
loss was better than the Company's expectations and was due to
lower-than-expected costs incurred in connection with the termination of the
Company's development activities within oral immunotherapy. The main reason for
the difference in operating loss compared to Q3 2007 was that the development
activities in the Company within oral immunotherapy were terminated at the turn
of the year 2007/2008.
The Company's cash and cash equivalents amounted to DKK 282.8 million as of
September 30, 2008 compared to DKK 393.2 million as of September 30, 2007.
The Company adjusts the expectations for the financial year 2008 upwards
Curalogic expects to incur operating costs of approximately DKK 12 million in
the 2008 financial year. At the same time, net financial income of approximately
DKK 10 million is expected. Curalogic thus expects to incur a total loss of
approximately DKK 2 million in 2008. Curalogic's cash and cash equivalents as of
December 31, 2008 are expected to be approximately DKK 281 million. This outlook
will be affected if Curalogic finds new development projects during the 2008
financial year. This is an increase of the forecast for the full year 2008 by
approximately DKK 3 million from the forecast made in the Q2 interim report in
August 2008. The main reason for the revised forecast is lower estimated
operating costs due to cost savings achieved on the termination of the
development projects. The estimate of the Company's cash and cash equivalents
represents an increase of DKK 3 million.
Events during the period July 1 to September 30, 2008
Reestablishing a pipeline in 2008
Curalogic is still in a process of reestablishing the company's biotech pipeline
and it is still expected that there will be a decision within this year. The
process has not yet reached a point where Curalogic is able to give more details
on the contents or evaluate the likelihood of the process ending with the reach
of an agreement.
The development of oral immunotherapy is being closed down
Curalogic closed down its development activities within oral immunotherapy
around the turn of the year 2007/2008, and the closing down of the activities is
progressing as planned. Curalogic still expects to have all the previous
development activities closed down by the end of 2008.
Key events after September 30, 2008
The CEO and CFO of Curalogic have given notice of termination to Curalogic
Peter Moldt, CEO, and Helle Busck Fensvig, CFO, have both given notice of
resignation. The Company's strategy is unchanged, and Peter Moldt and Helle
Busck Fensvig will continue to perform their duties in the Company until a
biotech pipeline has been reestablished, or until the Company's cash and cash
equivalents have been returned to the shareholders.
Statement by the Management and the Board of Directors on the Interim Report
We have today considered and approved the interim report of Curalogic A/S for
the nine-month period January 1 to September 30, 2008.
The interim report has been prepared in accordance with IAS 34, Presentation of
Interim report, as approved by EU 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
September 30, 2008 and of the results of operations and cash flows for the
nine-month period January 1 to September 30, 2008.
We consider the management report gives a true and fair view on the development
in the company's activities and economic position, the result for the period and
financial position as a whole as well as a fair description of the main risks
and uncertainties, which the company faces.
Copenhagen, November 19, 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
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:
Jakob Schmidt, Chairman Tel. +45 20 22 68 60
Helle Busck Fensvig, EVP and CFO 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.
Interim Report for the Period January 1 to September 30, 2008 (Unaudited and Unreviewed)
| Source: Curalogic A/S
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