BERLIN, Dec. 1, 2005 (PRIMEZONE) -- Jerini CEO Schneider-Mergener: "Our partnership with U.S.-based Kos provides the basis for realizing the excellent market potential of Icatibant in North America."
CFO Modig: "Proceeds from the IPO further strengthen our financial position and enable us to pursue our growth strategy."
The Berlin-based pharmaceutical company Jerini AG (FSE:JI4) reported a 47 percent increase in its third quarter revenues to EUR 2.5 million from EUR 1.7 for the same period in 2004. The G&A expense increased to EUR 2.4 million compared to EUR 0.8 million as a result of the expansion in the investor relations and marketing departments. The loss from operations (EBIT) in the third quarter amounted to (EUR 4.2 million) compared to (EUR 3.0 million) for the third quarter 2004. Net loss decreased during the three months ended September 30, 2005 due to the fair-value adjustment of warrants to (EUR 0.9 million) compared to (EUR 3.1 million) for the third quarter 2004.
Positive Development for the First Nine Months
In the first nine months, revenues increased by 59 percent to EUR 7 million compared to EUR 4.4 million in the same period 2004. The loss from operations increased to (EUR 11.9 million) from (EUR 7.8 million) as a result of increased research and development expenses as well as compensation expense from stock options and the expansion of the investor relations and marketing departments. Jerini's wholly-owned subsidiary JPT Peptide Technologies recorded an operating profit of EUR 0.4 million compared to EUR 0.3 million for the previous year.
At the end of September, Jerini had 104 employees. In the next twelve months new positions will be added, mostly in the areas of sales and marketing.
IPO and US Partnership Form the Basis for Further Growth
Jerini founder and CEO Jens Schneider-Mergener expects continued positive development in the fourth quarter 2005. "Our IPO and subsequent US marketing deal with Kos Pharmaceutical for our lead product Icatibant deal have generated the basis for further growth."
Since November 1, 2005, Jerini's shares are listed on the Prime Standard of the Frankfurt Stock Exchange. Through the issue of 15.5 million new shares, Jerini raised Eur 49.6 million in proceeds. On November 7, 2005, the United States based Kos Pharmaceuticals and Jerini signed an exclusive agreement for the development, marketing, and distribution of Jerini's lead compound, Icatibant, in the United States and Canada. Jerini received an upfront licensing payment of Eur 12.0 million from Kos along with a Eur 10.0 million equity investment out of a capital increase at Eur 3.20 per share. Undisclosed milestone payments and sales royalties are specified in the agreement, as well as collaborations in hereditary angioedema (HAE), other forms of angioedema, asthma, and refractory ascites in liver cirrhosis (RAIL).
"Proceeds from the IPO further strengthen our financial position and enable us to pursue our growth strategy. We are projecting a year-end cash position of approximately EUR 95 million," said Berndt Modig, Jerini CFO.
Jerini's lead compound, Icatibant, is in final Phase III clinical trials for the treatment of hereditary angioedema. Results from the trials are expected to be reported in mid-2006. HAE is a debilitating and potentially life-threatening genetic disease characterized by spontaneous and recurring attacks of edema (swelling) in various body parts including the hands, feet, face, throat, and abdomen. HAE attacks in the hands, face, and feet can be disfiguring whereas abdominal attacks, caused by swelling in the intestinal wall, result in severe bouts of pain. Attacks that affect the throat are life-threatening, as swelling constricts the airway and can lead to suffocation. The company plans to file for market authorization in the United States and Europe in 2006.
Phase II clinical results of Icatibant for the treatment of HAE and life-threatening laryngeal attacked in the open-label extension phase of the Phase III study have demonstrated a 100% response rate to the drug. Overall, Icatibant has exhibited a strong safety profile in over 1,000 individuals who have been exposed to the compound. Icatibant has been granted market exclusivity through orphan-drug-status in the United States and Europe for the field of angioedema and has also been granted fast track status by the United States Federal Drug Administration (FDA).
Apart from Icatibant, Jerini has five other drug candidates in various preclinical research programs in ophthalmology and oncology. Jerini expects to begin clinical testing of JSM 6427, its drug candidate for macular degeneration, in the end of the second quarter 2006.
About Jerini AG
Jerini AG is a pharmaceutical company based in Berlin, Germany focused on the discovery and development of peptide-derived peptidomimetic and small molecule therapeutics. Having recognized the potential of peptides as natural starting molecules for drug discovery, the company has developed state-of-the-art technologies to identify and transform peptides into drugs. The company's lead product, Icatibant, is a peptidomimetic and is currently in Phase III clinical trials for the treatment of hereditary angioedema.