Highlights of 2005:
-- EUR 96.7 million in cash and cash equivalents as of December 31,
2005
-- Successful stock market listing on Prime Standard of the
Frankfurt Stock Exchange raised EUR 49.6 million
-- Increase in revenues to EUR 9.6 million from EUR 6.4 million
in 2004
-- On track to report Phase III clinical trial results for Icatibant
in the treatment of hereditary angioedema in mid-2006
-- Collaboration agreement signed with Kos Pharmaceuticals, Inc.
for the development, marketing and distribution of Icatibant in
North America
BERLIN, March 28, 2006 (PRIMEZONE) -- Jerini AG (FSE:JI4) reported financial results for fiscal year ended December 31, 2005 at a press conference today in Frankfurt. "In the last year, we have made significant progress towards establishing Jerini as an international pharmaceutical company. Our November IPO, along with a private financing round early in 2005, raised more than EUR 86 million, laying a firm foundation for future growth," said Jens-Schneider-Mergener, CEO of Jerini.
Financial Review for Fiscal Year 2005
Under International Financial Reporting Standards (IFRS), revenues in 2005 increased by 49 percent to EUR 9.6 million from EUR 6.4 million in 2004, due to revenues generated from collaboration agreements with U.S.-based pharmaceutical companies Alcon Research Ltd., Baxter AG, Kos Pharmaceuticals, Inc., and Merck KGaA, and from higher revenues in its peptide services unit (JPT Peptide Technologies). Research and development expenses increased to EUR 18.9 million from EUR 12.3 million in 2004, largely attributable to expenses from current worldwide Phase III clinical trials for hereditary angioedema (HAE). The loss from operations (EBIT) of EUR 19.9 million (compared to EUR 13.2 million in 2004) was in line with the company forecast. Non-recurring financial income totaling EUR 4.3 million, related to changes in the fair value of warrants and the forfeiture of 1,468,949 warrants, led to a slight increase in net loss for the year (EUR 15.3 million compared to EUR 14.6 million in 2004). Net cash burn (calculated as cash used in operating activities plus cash for investment in property and equipment) amounted to EUR 6.9 million in 2005, compared to EUR 8.8 million in 2004.
As of December 31, 2005, cash and cash equivalents amounted to EUR 96.8 million (December 31, 2004: EUR 26.4 million). Through Jerini's IPO on November 1, 2005, a total of 15.5 million shares were issued as part of a capital increase. The IPO proceeds totaled EUR 49.6 million, and the net proceeds went entirely to the company for use mainly in establishing a sales and marketing organization to support Icatibant's market launch. The company also received EUR 27 million from a financing round in February 2005 and the redemption of warrants preceding the IPO. "Our successful private financing round and IPO in 2005 strengthened our cash position and give us the financial means to meet our goal of independently launching Icatibant in Europe. We have also increased our employee headcount by approximately 30 percent this year to 113, mainly in the marketing area," said Berndt Modig, Jerini CFO.
New Collaboration Agreement
On November 7, 2005, Jerini and U.S.-based Kos Life Sciences, a subsidiary of Kos Pharmaceuticals Inc., signed an exclusive partnership for the development, sales, and marketing of Jerini's lead product Icatibant in the United States and Canada. Jerini received an upfront payment from Kos Life Sciences, Inc. of EUR 12.0 million. Kos Pharmaceuticals, Inc. also invested EUR 10.0 million in new Jerini shares. In addition to Icatibant for the treatment of HAE, the partnership also outlines Icatibant's use in other forms of angioedema as well as the clinical development of Icatibant in asthma and refractory ascites in liver cirrhosis.
Outlook
Based on Icatibant's HAE clinical trial progress to date and the positive development of its other drug candidates, Jerini intends to concentrate in the future on the development of its own drug candidates. For 2006, the company forecasts a rise in operating expenses. Higher research and development expenses are anticipated as a result of the further development of Icatibant for treating HAE and at least one other indication, along with the start of clinical trials using Jerini's Integrin-antagonist for the treatment of age-related macular degeneration (AMD). Further expansion in the area of sales and marketing for the planned market launch of Icatibant in 2007 will also add expenses in 2006. These increases are likely to be offset, in part, by an increase in revenues in 2006, principally related to business activities in conjunction with Jerini's collaboration agreement with Kos Pharmaceuticals, Inc. As a result, an overall increase in losses from operations is to be expected in 2006, reflecting Jerini's strategy to independently bring its product to the market in 2007.
About Jerini AG
Jerini AG is a pharmaceutical company based in Berlin, Germany focusing on the discovery and development of peptide-based drugs. 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 currently in Phase III clinical trials for the treatment of hereditary angioedema (HAE). It is estimated between 1:10,000 and 1:50,000 people worldwide are affected with this disease. Based on its technology platform, Jerini has established several in-house development programs, which address indications within ophthalmology, oncology, and inflammatory therapeutic areas. The most advanced of these programs targets age-related macular degeneration (AMD), the leading cause of vision loss and blindness in people over the age of 55 in developed countries.