For what it's worth, here's the Semi-Annual...1 October 1997
Chiroscience Group plc Interim Results for the six months to
31 August 1997
Chiroscience Group plc today announces its interim results for the six months to 31 August
1997.
Highlights:
Revenues increase by 96% to œ9.2m ($14.9m*), (1996: œ4.7m).
ChiroTech contributes first half sales of œ5.9m ($9.6m*), (1996: œ3.9m) and an
operating profit of œ2.3m ($3.7m*), (1996: œ0.2m); excellent outlook for full year.
Investment in research and development increases to œ19.0m ($30.8m*), (1996:
œ7.1m); net loss contained to œ14.4m ($23.3m*), (1996: œ7.6m).
Levobupivacaine (ChirocaineTM) successfully completes seven Phase III trials, with
published results in major surgery and post-operative pain management; drug on
course for European regulatory filing in December 1997, US filing in April 1998.
Two MMP inhibitors (D1927 and D2163), potential treatments for cancer, completing
pre-clinical studies for Phase I studies to begin by year end.
Collaboration agreed in June with Schering-Plough Corporation to develop oral
treatments for asthma and other inflammatory diseases; leading candidate D4418
successfully completes Phase I study, confirming no emesis.
Further four collaborations agreed to exploit R & D capabilities; opportunities to
commercialise genomics technologies being negotiated.
Dr John Padfield, chief executive of Chiroscience, commented: "The product pipeline we
have created is leading to significant value for the Group. Phase III development of
ChirocaineTM has continued on track, creating broad clinical uses and a product of
significant commercial opportunity. Our approach to evaluating new drug discoveries in the
clinic has been underlined through the successful completion of the first clinical trial on our
asthma drug.
"Financially, the excellent ChiroTech revenue and profit performance has underlined the
value of this business which, through an expected strong second half performance, will
contribute to the control of the Group's cash at the year end."
* US dollar equivalents are provided for reader convenience only at the exchange rate of œ1 = US
$1.62.
The following is an extract from the Chiroscience Interim Report for 1997.
CHAIRMAN'S STATEMENT
The first half year has seen considerable technical and commercial achievements
throughout the Group.
Good progress has been made in the integration of Darwin Discovery's activities, which
brings together operations in Cambridge, Seattle and Stevenage into a cohesive drug
discovery business. Through the development of cross-locational and multi-functional project
teams our staff are gaining increasing understanding of each other's capabilities, assisted by
visits and secondments and the creation of shared systems and databases. Collaborative
agreements have been established with Schering-Plough Corporation, PowderJect
Pharmaceuticals plc, Trega Biosciences Inc, Alcon Laboratories Inc and Geron
Corporation, all of which, if successful, will allow the Group to receive additional revenues.
The ChiroTech business is continuing to build its reputation amongst the pharmaceutical and
related communities, reinforcing the decision to focus this business and operate it under a
separate management structure. ChiroTech has had a good financial performance in the
first half of the year, and the prospects for the second half are very encouraging. We
continue to explore the greater potential which could be afforded to this business through
strategic alliances with manufacturing partners.
Much work has been undertaken in exploring the most effective way to commercialise
levobupivacaine (ChirocaineTM), built upon a comprehensive clinical trials programme which
is nearing completion, with the first regulatory filing planned for December 1997.
The area of pain and anaesthesia is one in which we have considerable knowledge and
expertise, and we have become increasingly aware that chronic pain is an area of major
unmet medical need. This has already brought in a new development opportunity through
our alliance with PowderJect Pharmaceuticals. Few of the major pharmaceutical companies
are devoting R & D or sales and marketing resources to pain as an exclusive area of
disease focus; rather they see it as an additional revenue source associated with sales in
another product area.
One of the options under review by the Board is to access the pain-management market
further through an alliance with one or more companies with existing products and sales
force capabilities in the pain and neurology fields, with the aim of building a significant
presence in the area. Alternatively levobupivacaine could be licensed to a major
pharmaceutical company on a global basis. The Board has currently ruled out the option of
establishing its own stand alone sales force. Negotiations are reaching advanced stages for
the options under consideration.
We continue to strengthen our management teams through the recruitment of key members
of staff ensuring our skill-base complements the changing needs of the business. Dr Robert
Jackson has joined the Board of Chiroscience Group plc as Executive Director, with
responsibility for Research and Development within the UK operations of Darwin
Discovery. He is working closely with Dr David Galas, who is based in Seattle and has
responsibility for Discovery Research. I would like to take this opportunity to thank Dr Jon
Dickens for the role he played in establishing Chiroscience's R&D programmes and to wish
him well following his recent retirement from the Board and the Company.
Looking forward, ChiroTech's revenues and profitability are expected to increase
substantially in the coming months. During the second half we are anticipating further
advances in our development pipeline with consequent potential for cash and revenue as a
result of relevant commercialisation strategies. New research targets are expected to be
created from both our Cambridge and Seattle operations, with opportunities to feed and
maintain our development pipeline. Commercialisation of our proprietary genomic
technologies will continue to be explored.
Revenues for the second half of the year are thus anticipated to exceed those of the first
half. Combining this with a reduction in expenditure levels as ChirocaineTM clinical trials are
completed, there should be a significantly smaller loss in the second half of the year. I look
forward to reporting on many exciting developments in six months' time.
Lord Chilver, Chairman
1 October 1997 |
