LEIDEN, The Netherlands, Jan. 27, 2003 (PRIMEZONE) -- Crucell N.V. (Nasdaq:CRXL) today announced its 2002 financial results. Total revenues for the year ended December 31, 2002 are $9.6 million ($10.0 million), an increase of 4.3% over 2001. A significant payment received from a commercial contract signed in December 2002, is not recognized as revenue, but will be deferred to future years in accordance with U.S. GAAP accounting principles. Total deferred revenues per December 31, 2002 increased to $6.0 million ($6.3 million) from $2.0 million ($2.1 million) at December 31, 2001.
Crucell's burn rate decreased 39% to $9.6 million ($10.1 million) compared to $15.8 million ($16.6 million) in 2001, while investment in R&D increased by $6.9 million ($7.2 million) to $24.3 million ($25.5 million). Cash and cash equivalents on December 31, 2002 are $110.6 million ($116.0 million).
The net loss in 2002 was $55.7 million ($58.4 million), compared to $24.0 ($25.1 million) in 2001. A goodwill impairment charge of $30.9 million ($32.4 million) is the most significant contributor to the net loss. The impairment charge is the result of the Company's annual impairment test as required by new U.S. accounting principles adopted on January 1, 2002.
Key Figures 2002
($ million, except per share data)
2002 % Change 2001
Revenues: 9.6 4.3% 9.2
Net loss: (55.7) (132.1%) (24.0)
Net loss per share: (1.57) (130.9%) (0.68)
Cash and cash equivalents
on December 31: 110.6 (8.0%) 120.2
Highlights 2002
Production technology PER.C6(TM)
-- Alliance with DSM Biologics to jointly develop and commercialize
Crucell's production technology for antibodies and proteins.
-- Innogenetics, NatImmune, AME and GenVec take licenses on PER.C6(TM).
Vaccines
-- Cooperation with National Institutes of Health in the U.S. in the
area of vaccines against bioterrorism.
-- Genexine takes PER.C6(TM) license for Hepatitis B vaccine.
Antibodies
-- Crucell settles patent dispute with Cambridge Antibody Technology
(CAT) and obtains license on antibody-technology from CAT.
-- Centocor returns anti-CD46 rights to Crucell.
Other
-- Dr. Jaap Goudsmit appointed Chief Scientific Officer of Crucell.
Details of Financial Results 2002
Revenues
Crucell's revenues for the year 2002 were $9.6 million ($10.0 million), compared to revenues of $9.2 million ($9.6 million) in 2001. The first payment of the agreement with DSM biologics is not reflected in 2002 revenues. Crucell reports under U.S. GAAP, which presents specific guidelines for revenue recognition. Crucell will recognize revenues from this payment over the development period of the related technology. The payment from the DSM contract and other payments under multiple year contracts appear in the balance sheet under deferred revenues. Total deferred revenues on December 31, 2002 are $6.0 million ($6.3 million), compared to $2.0 million ($2.1 million) in 2001.
Results
The net loss for the year 2002 amounts to $55.7 million ($58.4 million), versus net loss of $24.0 million ($25.1 million) in 2001. Net loss per share in 2002 is $1.57 ($1.65) versus a net loss per share of $0.68 ($0.71) in 2001.
The increase in the net loss is mainly caused by a goodwill impairment charge of $30.9 million ($32.4 million). This impairment charge is the result of the Company's annual impairment test required by U.S. accounting principles, adopted by Crucell on January 1, 2002. The impairment charge does not affect company operations, cash flow or cash position.
Excluding the goodwill impairment charge, the net loss for 2002 is $24.8 million ($26.0 million) compared with a net loss of $24.0 million ($25.1 million) in 2001.
Cash Flow and Cash Position
Total cash used in 2002 was $9.6 million ($10.1 million). This is 39% below the $15.8 million ($16.6 million) cash used in 2001. Higher proceeds on commercial contracts were compensated by higher investment in R&D, resulting in a $1.0 net increase in net cash used in operating activities ($13.0 million ($13.6 million)) in 2002 compared to $12.0 million ($12.6 million) in 2001. Investments in laboratories and other fixed assets are $3.0 million ($3.1 million); $2.2 million ($2.1 million) lower than in 2001. Crucell entered into sale and leaseback agreements for $5.3 million ($5.6 million) during 2002 to finance plant and equipment.
Cash and cash equivalents on December 31, 2002 are $110.6 million ($116.0 million).
Result Fourth Quarter 2002
Revenues in the fourth quarter of 2002 were $2.6 million ($2.7 million), compared to $3.9 million ($4.1 million) in the same quarter in 2001. License revenues were $1.4 million ($1.5 million), compared to $3.5 million ($3.7 million) in the fourth quarter 2001. The decrease in license revenues is attributable to the fact that under U.S. GAAP, Crucell defers the recognition of up-front payments received from the DSM contract to future years. Government grants and other revenues increased to $1.1 million ($1.2 million) compared to $ 0.4 million ($0.4 million) in the fourth quarter last year. The total investments in research and development increased in the fourth quarter of 2002 to $6.3 million ($6.6 million), compared to $4.8 million ($ 5.0 million) in the fourth quarter of 2001. Sales, general and administrative expenses increased to $3.1 million ($3.2 million) versus $ 2.2 million ($2.3 million) in the same period 2001.
The net loss over the fourth quarter was $ 37.7 million ($ 39.5 million), compared to $ 5.3 million ($ 5.5 million) in the same quarter in 2001. This large increase is almost entirely caused by the goodwill impairment charge of $ 30.9 million ($ 32.4 million).
Option Plans
To create long-term commitment from employees, Crucell's Supervisory Board has decided to allow employees holding previously issued options with an exercise price of $21 to exchange their options on January 30, 2003, for an equal number of new options. The new options will have an exercise price of 161% of Crucell's share price at date of grant.
Furthermore, the Company has decided to grant new options to all permanent personnel. These options will also have an exercise price of 161% of the share price on the date of grant. Members of the Management Board and Executive Committee will not participate in this new option grant.
Strategy
As a result of a strategic evaluation performed by the Company, Crucell has decided to focus on two strategic areas: the development and commercialization of the PER.C6(TM) production technology, and the development of its own vaccines.
The objective is to make PER.C6(TM) the industry standard for the production of vaccines, antibodies and other proteins. Crucell expects that alliances with contract manufacturers such as DSM Biologics will increase the acceptance of its technology in the market place. Crucell will also continue to develop its own vaccines based on PER.C6(TM), including the Ebola- and Influenza-vaccines. As a consequence of the strategic refocus, investment in the Company's antibody research has been reduced. Crucell is currently evaluating whether its MAbstract(TM) antibody technology can also be employed in new areas.
Note: Euros are converted to U.S. Dollars at the December 31, 2002 exchange rate of 1.0483.
About Crucell
Crucell N.V. discovers and develops biopharmaceuticals that use the human immune system to combat infectious diseases and other conditions. Crucell leverages its patented technologies, PER.C6(TM), AdVac(TM), and MAbstract(TM), for discovery, development and production of antibodies and vaccines. Crucell offers its technologies to the pharmaceutical and biotechnology industry and also uses them to create its own product pipeline. Crucell and DSM Biologics have formed an alliance to develop and produce recombinant proteins and monoclonal antibodies. Other partners include Merck & Co. for a HIV vaccine and the National Institutes of Health (NIH) for an Ebola vaccine. In addition, Crucell has over 20 licensees for its PER.C6(TM) technology. These include Novartis, GSK, Aventis and Schering AG. Crucell is headquartered in Leiden, The Netherlands and is listed on Euronext and NASDAQ (ticker symbol CRXL). For more information visit www.crucell.com.
This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For information relating to these factors please refer to our Form 20-F, as filed with the U.S. Securities and Exchange Commission on June 13, 2002, and the section entitled "Risk Factors." The company prepares its financial statements under generally accepted accounting principles in the United States.
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