OXFORD
BIOMEDICA
Announces Interim Results For Six Months to 30 June 1999
Oxford BioMedica, the UK's leading gene therapy
company, reports on a successful first half of 1999 and announces
its interim results for the six months ended 30 June 1999.
Highlights
- Collaboration with Rhone-Poulenc
Rorer expanded
- New joint venture established
to develop gene therapy products in Korea
- Collaboration established
with Modex SA to develop diabetes therapy
- Clinical programme BC1 on
target
- MetXia-P450T to be trialled
in ovarian cancer in OC1 programme
- TroVaxT cancer vaccine programme
moves closer to clinic
- 1 for 5 Rights Issue raising
£3.2 million in March 1999
- Revenue of £0.2 million for
H1 1999; net loss £2.1 million
- Two new Non Executive Directors
join the Board
Commercial Interactions
The Company's collaboration with Rhone-Poulenc Rorer (RPR)
to develop gene therapies to treat cardiovascular disease,
announced in December 1998, has started well. In addition,
the LentiVectorT programme with RPR that commenced in January
1998 has been expanded. This development is seen as a clear
endorsement of Oxford BioMedica's technological expertise
by a company well respected for its own gene therapy research.
Oxford BioMedica has established collaborative
programmes with two biotechnology companies to jointly create
new product opportunities. The first of these is a 50:50 joint
venture with the Korean company ViroMed to develop gene therapy
products based on the Company's LentiVectorT systems for the
treatment of cancer and other diseases in the Far East. The
second is a collaboration with Modex S.A. of Switzerland to
develop encapsulated cell therapies, initially to treat insulin-dependent
diabetes. This creative approach to product development is
not intended to generate significant immediate cash, but it
establishes potentially valuable opportunities for the future.
Oxford BioMedica's innovative technology continues
to generate significant scientific and commercial interest,
and the Company is in discussions with several potential partners
from the pharmaceutical and biotechnology industries.
Research and Development
Excellent progress has been made in the clinical and R&D pipelines.
In particular, promising results from the TroVaxT cancer vaccine
programme have led to substantial interest from potential
partners, and regulatory submissions for clinical trials of
TroVaxT are expected to be made before the end of the year.
The BC1 programme testing BioMedica's anti-cancer
therapy MetXia-P450T in late-stage breast cancer is on course,
and regulatory submissions for a trial of MetXia-P450T in
ovarian cancer, the OC1 programme, have been made.
Other programmes, including LentiVectorT gene
delivery systems, ImmStatT gene therapy to treat HIV infection
and AIDS, the oxygen-sensitive gene switch Hypoxia Response
Element and the cell-based therapy MacroGenT continue to make
exciting progress. The Company's scientific data have been
presented at several international scientific conferences
this year and a number of scientific papers are in preparation.
Financial
Turnover of £0.2 million in the first half of 1999 came
from the Company's two collaborations with RPR. Research and
development expenditure was £1.9 million and the net loss
was £2.1 million.
The 1-for-5 Rights Issue in March 1999 raised
£3.2 million net of costs. At 30 June 1999 the Company had
cash reserves of £5 million. The net cash outflow before financing
(the "cash burn") was £1.8 million.
Board Changes
The Board has been strengthened by the appointment of two
further Non Executive Directors. Mark Berninger, formerly
Vice President of Business Development at Gene Therapy Inc.
joined the Board in February, and Dr Peter Johnson, former
Chairman and Managing Director of Smith Kline and French Research
Limited and former Director of Pharmaceutical Research and
Development of Fisons plc was appointed in July. They bring
to the Board invaluable experience in business development,
intellectual property management and pharmaceutical product
development from both a North American and European perspective.
Prof. Alan Kingsman, Chief Executive of Oxford
BioMedica, commented "I am delighted to be able to report
on another very productive period with many achievements,
particularly on the commercial side. I thank all who have
contributed to this success, and in particular I thank our
shareholders for their continued support. I also welcome as
Non Executive Directors, Mark Berninger and Peter Johnson."
|
Consolidated Profit
& Loss Account
| |
6 months ended
30 June 1999
(unaudited)
£ |
6 months ended
30 June 1998
(unaudited)
£ |
Year
ended
31 December 1998
(audited)
£ |
|
Turnover |
194,494
|
5,002
|
|
|
Research and development |
(1,908,471) |
(1,321,844) |
(2,981,726) |
|
Administrative expenses |
(688,631)
|
|
|
|
Operating expenses |
(2,597,102) |
(1,987,012) |
(4,176,539)
|
|
Other operating
income: government
grants receivable |
180,955 |
34,846 |
181,895
|
|
Net operating expenses |
(2,416,147)
|
|
|
|
Operating loss |
(2,221,653) |
(1,947,164) |
(3,944,642) |
|
Interest receivable |
118,747 |
116,179 |
263,384
|
|
Interest payable |
(26) |
(53) |
(54) |
|
Loss on ordinary
activities before taxation |
(2,102,932) |
(1,831,038) |
|
|
Tax on loss on ordinary
activities |
- |
- |
- |
|
Loss for the period |
(2,102,932)
|
(1,831,038)
|
|
|
Loss per ordinary share |
(1.6p) |
(2.0p) |
|
|
Diluted loss per ordinary
share |
(1.6p)
|
(2.0p)
|
(3.4p) |
| The results for the periods above
are derived entirely from continuing operations.
The Group has no recognised gains and losses
other than the above results, and therefore no separate statement
of total recognised gains and losses has been presented.
There is no difference between the loss on
ordinary activities before taxation and the loss for the periods
stated above, and their historical cost equivalents. |
Consolidated Balance
Sheet
| |
As
at
30 June 1999
(unaudited)
£ |
As
at
30 June 1998
(unaudited)
£ |
As
at
31 December 1998
(audited)
£ |
| Fixed
assets |
|
|
|
| Intangible
assets |
356,862
|
406,085
|
381,473
|
| Tangible
assets |
843,915
|
957,778
|
935,976
|
| |
|
|
|
|
Current assets
|
|
|
|
| Debtors:
amounts falling
due within one year |
497,320
|
266,853
|
357,524
|
| Cash
at bank and in
hand |
4,976,906
|
5,079,284
|
3,566,074
|
| |
5,474,226
|
5,346,137
|
|
| Creditors:
amounts
falling due within one
year |
788,125
|
383,657
|
480,111
|
| Net
current assets
|
4,686,101
|
4,962,480
|
|
| Net
assets
|
5,886,878
|
6,326,343
|
|
| Capital
and reserves |
|
|
|
| Called-up
share capital |
1,422,430
|
1,170,286
|
1,185,358
|
| Share
premium account |
12,548,722
|
9,287,125
|
9,556,920
|
| Other
reserves |
710,952
|
710,952
|
710,952
|
| Profit
and loss account
(deficit) |
(8,795,226)
|
(4,842,020)
|
(6,692,294) |
| Equity
shareholders' funds |
|
|
|
Consolidated Cash
Flow Statement
| |
6
months ended
30 June 1999
(unaudited)
£ |
6 months ended
30 June 1998
(unaudited)
£
|
Year
ended
31 December 1998
(audited)
£ |
| Operating
activities |
|
|
|
| Net
cash outflow from continuing operating activities (reconciliation
to operating loss below) |
(1,861,270)
|
(1,772,772)
|
|
|
Returns on investments and
servicing of finance |
|
|
|
| Interest
received |
101,965
|
92,169
|
263,652
|
| Interest
paid |
(26)
|
(53)
|
(54) |
| |
|
|
|
|
Capital expenditure and financial
investment |
|
|
|
| Purchase
of tangible fixed assets
|
(46,960)
|
(148,584)
|
|
| Net
cash outflow before management of liquid resources and financing
|
(1,806,291)
|
(1,829,240)
|
|
|
Management of liquid resources
|
|
|
|
| Transfer
to deposit accounts |
(6,291,000)
|
(5,200,000)
|
(5,200,000) |
| Transfer
to current accounts |
1,371,000
|
500,000
|
5,200,000 |
| |
|
|
|
|
Financing |
|
|
|
| Issue
of ordinary shares |
3,556,074
|
6,000,000
|
6,301,459
|
| Expenses
of share issue |
(338,951)
|
(603,604)
|
(608,445) |
| |
3,217,123
|
5,396,396
|
|
|
Decrease/increase in
cash in the period |
(3,509,168)
|
|
2,053,946
|
Reconciliation
of Operating Loss to Net Cash Outflow from Operating Activities
| |
6
months ended
30 June 1999
(unaudited)
£ |
6
months ended
30 June 1998
(unaudited)
£ |
Year
ended
31 December 1998
(audited)
£ |
| Continuing
activities |
|
|
|
| Operating
loss |
(2,221,653)
|
(1,947,164)
|
(3,944,642) |
| Amortisation
on intangible fixed assets |
24,611
|
24,611
|
49,223
|
| Depreciation
on tangible fixed assets |
144,304
|
128,062
|
264,512
|
| Loss
on disposal of tangible fixed assets |
693
|
-
|
910 |
| Increase
in trade debtors |
(44,881) |
|
- |
| Increase
in other debtors and other tax receivable |
(20,376)
|
(4,973)
|
(132,325) |
| Increase
in prepayments and accrued income |
(57,757)
|
(12,888)
|
(485) |
| Increase/(decrease)
in trade creditors |
209,296
|
(4,564)
|
18,870
|
| Increase
in other taxation and social security |
8,452
|
7,379
|
4,777
|
| Increase
in accruals and deferred income
|
96,041
|
36,765
|
103,313
|
| Net
cash outflow from continuing operating activities
|
|
(1,772,772)
|
|
| Notes
|
| 1. |
Copies of this statement are
being sent to all shareholders. Copies are also available
at the registered office of the Company, Medawar Centre, Oxford
Science Park, Oxford OX4 4GA. |
| 2.
|
On 26 March 1999 the
Company issued 23,707,169 new ordinary shares of 1p each in
a 1 for 5 Rights Issue at 15p per share, raising cash proceeds
of £3,556,074 before expenses. |
| 3. |
The interim results
are unaudited and do not constitute statutory accounts within
the meaning of section 240 of the Companies Act 1985. The interim
results are prepared in accordance with the accounting policies
set out in the Report and Accounts for the year ended 31 December
1998 but have not been reviewed by the auditors. The financial
information relating to the year ended 31 December 1998 has
been extracted from the full report and accounts for that period
which have been filed with the Registrar of Companies. The report
of the auditors on those accounts was unqualified. |
| 4. |
The basic loss
per share has been calculated by dividing the net loss for
the period by the weighted average number of 132,956,799 shares
in issue during the six months ended 30 June 1999 (six months
ended 30 June 1998: 93,075,702, year ended 31 December 1998:
106,853,160). The number of shares in issue prior to the Rights
Issue in March 1999, including the number of shares in issue
during prior periods has been adjusted in accordance with
FRS 14.
The Company had no
dilutive potential ordinary shares in either period, and there
is therefore no difference between the loss per ordinary share
and the diluted loss per ordinary share. |
Return to the News
| For
further information please contact: |
|
|
Oxford BioMedica plc
Professor Alan
Kingsman, Chief Executive |
Tel:
+44 (0)1865 783000 |
| City/Financial
Enquiries
David
Simonson, Melanie
Toyne Sewell Merlin Financial |
Tel:
+44 (0)171 606 1244 |
| Scientific/Trade
Enquiries
Michaela
Mahon HCC•De Facto Group |
Tel:
+44 (0)171 496 3300 |
|
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