BERLIN, May 15, 2006 (PRIMEZONE) -- Jerini AG (FSE:JI4) reported financial results for its first quarter ended March 31, 2006. Under International Financial Reporting Standards (IFRS), revenues for the three-month-period increased by 61.4 percent to EUR 3.2 million from EUR 2.0 million for the same period in 2005, primarily attributable to revenues from a partnership agreement with Kos Life Sciences, Inc. As of March 31, 2006, cash and cash equivalents amounted to EUR 89.3 million, compared to EUR 96.7 million at year end 2005. "Our solid financial position further supports our expansion in the area of sales and marketing for the expected 2007 market launch of Icatibant for hereditary angioedema," said Jens Schneider-Mergener, CEO of Jerini. "We remain on track to report top line results from both Phase III clinical trials in the third quarter." Research and development expenses of EUR 5.9 million (EUR 3.0 million in the prior year period) reflect higher spending for clinical studies, including the current Phase III hereditary angioedema (HAE) trials, and for the advancement of other projects. An increase in general and administrative expenses to EUR 1.6 million (compared to EUR 1.1 million in the prior year period) is mainly the result of expenses related to personnel, compensation for stock options granted in the third quarter of 2005, and to the increased reporting requirements of the company and investor relations activities. Therefore, loss from operations before tax and finance cost (EBIT) increased to EUR 5.3 million (EUR 3.2 million in the prior year period). For the three-month-period ended March 31, 2006, net loss amounted to EUR 4.7 million (compared to EUR 3.0 million in 2005), and loss per share amounted to EUR 0.09 million (EUR 0.38 million in the prior year period). Cash used in operating activities as of March 31, 2006 totaled EUR 6.2 million (compared to EUR 3.0 million in the prior year period). Net cash burn for the first three months in 2006 amounted to EUR 6.7 million. Net cash burn is calculated by the addition of cash used in operating activities (EUR 6.2 million) and cash used in investing activities (EUR 0.5 million), as disclosed in the unaudited consolidated cash flow statements for the three-month-period ended March 31, 2006.
Outlook
Based on the progress of Icatibant's HAE clinical trials to date and the progress of its other drug candidates, Jerini will continue to concentrate on developing its own drug candidates. For 2006, the company forecasts an increase 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) in the fourth quarter 2006. 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. Kos and Jerini recently made the joint decision not to pursue the development of Icatibant in refractory ascites in liver cirrhosis (RAIL) at this time. Instead, the companies are evaluating an alternative patient population with liver cirrhosis and ascites for potential clinical development. An overall increase in losses from operations is to be expected in 2006, reflecting Jerini's strategy to bring its first product independently 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 that 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.
ISIN: DE0006787476
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