Announcement no. 3/2007
To OMX Nordic Exchange Hørsholm, 5 March 2007
LifeCycle Pharma announces its financial results for the financial year 2006
Summary: The board of directors of LifeCycle Pharma today approved the financial
statements for the financial year 2006. The company recorded an operating loss
of DKK 149.1 million for 2006 compared to DKK 94.3 million in 2005. The company
had a cash position of DKK 464.7 million by year end 2006 compared to DKK 87.2
million by year end 2005. The results for 2006 were in line with management's
expectations for 2006.
LifeCycle Pharma A/S (OMX: LCP) announced today that the board of directors
approved the financial statements for the financial year 2006. The financial
highlights for LifeCycle Pharma for the financial year 2006 compared with 2005
are set out below.
LifeCycle Pharma's operating loss for 2006 was DKK 149.1 million and the net
loss was DKK 147.7 million. The corresponding operating loss and net loss for
2005 totaled DKK 94.3 million and DKK 95.2 million, respectively. The increase
is primarily attributable to the increasing level of clinical activities arising
from the advancement of the company's product pipeline. Revenues increased from
DKK 2.8 million in 2005 to DKK 9.7 million in 2006. The increased revenue is
attributable to the company's collaboration agreements with Sandoz, Recordati
and Merck Generics.
Research and development costs increased by DKK 48.5 million, or by 60%, from
DKK 80.9 million in 2005 to DKK 129.4 million in 2006. The increase in research
and development costs is primarily attributable to the increased level of
clinical activities arising from the advancement of LifeCycle Pharma's product
pipeline.
On an overall basis, research and development costs account for 86.8% of our
total operations costs in 2006 compared to 84.2% in 2005, when adjusted for
warrant compensation.
General and administrative expenses increased by DKK 13.2 million, or by 82%,
from DKK 16.2 million in 2005 to DKK 29.4 million in 2006. The increase in
general and administrative expenses is primarily attributable to a significant
increase in warrant compensation expenses in 2006. Warrant compensation expenses
increased by DKK 9.0 million, from DKK 1.0 million in 2005 to DKK 10.0 million
in 2006.
Despite the significant increase in general and administrative expenses, on an
overall basis, general and administrative expenses share of our total costs of
operations has decreased in 2006 to 13.2% compared to 15.8% in 2005, when
adjusted for warrant compensation.
Net financial income increased by DKK 2.1 million, from financial expenses of
DKK 0.8 million in 2005 to financial income of DKK 1.3 million for 2006. This
increase reflects the impact of the strengthening of our cash position by the
completion of the IPO on the OMX Nordic Exchange in November 2006.
LifeCycle Pharma had a cash position of DKK 464.7 million by 31 December 2006.
During 2006, the company's operating activities required cash flow of DKK 125.8
million compared to DKK 86.8 million in 2005. The increase is primarily due to
increasing research and development costs reflecting the increasing level of
clinical activities arising from the advancement of LifeCycle Pharma's product
pipeline.
The net cash flow from financing activities was DKK 510.5 million in 2006. This
reflects primarily the cash inflow from the completion of the IPO on the OMX
Nordic Exchange in November 2006, resulting in net proceeds of approximately DKK
500 million. Total expenses incurred in connection with the IPO amounted to
approx. DKK 56.5 million.
The following key figures and financial ratios have been calculated in
accordance with the recommendations of the Association of Danish Financial
Analysts.
Key figures comply with the requirements under IFRS and the Danish financial
reporting requirements. All key figures and financial ratios conform with the
current accounting policies.
Key Figures and ratios
DKK
--------------------------------------------------------------------------------
| Income Statement | 2006 | 2005 | 2004 | 2003 | 2002(1) |
| for the period 1 January - | | | | | |
| 31 December | | | | | |
| (In thousands, except per | | | | | |
| share data) | | | | | |
--------------------------------------------------------------------------------
| Revenue | 9,740 | 2,754 | 4,648 | 190 | 0 |
--------------------------------------------------------------------------------
| Research and development | (129,40 | (80,919 | (36,542 | (8,743) | (3,180) |
| costs | 3) | ) | ) | | |
--------------------------------------------------------------------------------
| Administrative expenses | (29,395 | (16,170 | (12,543 | (6,607) | 0 |
| | ) | ) | ) | | |
--------------------------------------------------------------------------------
| Operating loss | (149,05 | (94,335 | (44,437 | (15,160 | (3,180) |
| | 8) | ) | ) | ) | |
--------------------------------------------------------------------------------
| Net Financial expenses | 1,345 | (834) | (281) | 140 | 125 |
| /Income | | | | | |
--------------------------------------------------------------------------------
| Net loss for the year | (147,71 | (95,169 | (44,718 | (15,020 | (3,055) |
| | 3) | ) | ) | ) | |
--------------------------------------------------------------------------------
| Basic and diluted earnings | (7.65) | (6.82) | (4.58) | (3.00) | (0.90) |
| per share | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet at 31 | 2006 | 2005 | 2004 | 2003 | 2002(1) |
| December | | | | | |
| (In thousands) | | | | | |
--------------------------------------------------------------------------------
| Assets | | | | | | |
--------------------------------------------------------------------------------
| Total non-current | 29,891 | 28,245 | 18,744 | 5,569 | 1,451 | |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 464,65 | 87,224 | 9 | 10,621 | 7,986 | |
| equivalents | 8 | | | | | |
--------------------------------------------------------------------------------
| Total current assets | 477,16 | 108,11 | 5,794 | 11,832 | 8,423 | |
| | 6 | 2 | | | | |
--------------------------------------------------------------------------------
| Total assets | 507,05 | 136,35 | 24,538 | 17,401 | 9,875 | |
| | 7 | 7 | | | | |
--------------------------------------------------------------------------------
| Equity and liabilities | | | | | | |
--------------------------------------------------------------------------------
| Equity | 458,08 | 92,430 | (1,647 | 14,130 | 6,946 | |
| | 3 | | ) | | | |
--------------------------------------------------------------------------------
| Total current | 24,309 | 18,647 | 10,030 | 3,271 | 2,929 | |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 48,974 | 43,927 | 26,185 | 3,271 | 2,929 | |
--------------------------------------------------------------------------------
| Total equity and | 507,05 | 136,35 | 24,538 | 17,401 | 9,875 | |
| liabilities | 7 | 7 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investment in property, | 7,222 | 13,572 | 15,169 | 4,348 | 510 |
| plant & equipment | | | | | |
--------------------------------------------------------------------------------
Key Figures and ratios
DKK
--------------------------------------------------------------------------------
| Cash flow | 2006 | 2005 | 2004 | 2003 | 2002 | | |
| statement | | | | | (1) | | |
| for the period 1 | | | | | | | |
| January - 31 | | | | | | | |
| December | | | | | | | |
| (In thousands) | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | (125,81 | (86,771 | (43,53 | (15, | (504 | | | |
| operating | 3) | ) | 0) | 057) | ) | | | |
| activities | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | (7,222) | (13,572 | (15,16 | (4,3 | (1,5 | | | |
| investing | | ) | 9) | 48) | 10) | | | |
| activities | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow from | 510,469 | 187,558 | 48,087 | 22,0 | 10,0 | | | |
| financing | | | | 40 | 00 | | | |
| activities | | | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 464,658 | 87,224 | 9 | 10,6 | 7,98 | | | |
| equivalents at 31 | | | | 21 | 6 | | | |
| December | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other financial data | 2006 | 2005 | 2004 | 2003 | 2002(1 | | |
| | | | | | ) | | |
--------------------------------------------------------------------------------
| Number of fully paid | 30,369 | 4,428, | 2,634 | 1,746 | 1,000, | | |
| Shares in issue as at | ,816 | 569 | ,269 | ,370 | 000 | | |
| 31 December (2) | | | | | | | |
--------------------------------------------------------------------------------
| Weighted average number | 19,313 | 13,965 | 9,768 | 5,014 | 3,402, | | |
| of Shares during the | ,737 | ,252 | ,052 | ,244 | 136 | | |
| year (3) | | | | | | | |
--------------------------------------------------------------------------------
| Asset/equity at year | 1.11 | 1.48 | N/A | 1.23 | 1.42 | | |
| end | | | | | | | |
--------------------------------------------------------------------------------
| Average number of | 44 | 35 | 21 | 8 | 4 | | |
| employees for the | | | | | | | |
| year | | | | | | | |
| (full-time | | | | | | | |
| equivalents) | | | | | | | |
--------------------------------------------------------------------------------
(1) Key figures and ratios for 2002 have been altered compared to the Annual
Report for 2002. The alteration concerns the presentation of operating expenses.
The alteration/preparation has not been audited.
(2) At a board meeting held 5 December 2005 the share capital was increased by
509,551 Shares. 67,824 Shares were paid in after 31 December 2005.
(3) Weighted average number of shares during 2002-2005 has been adjusted
according to the issue of bonus shares in the ration 1:3
2006 Highlights
The key event for LifeCycle Pharma in 2006 was the listing of the company's
shares on the OMX Nordic Exchange on 13 November 2006. Through the initial
public offering (IPO), LifeCycle Pharma raised approx. DKK 500 million in net
proceeds by offering a total of 12.65 million new shares at an offer price of
DKK 44 per share.
This IPO was essential in securing a strong financial foundation for the
continued clinical development of our existing products as well enabling us to
further develop our new product candidates through pre-clinical development and
clinical trials.
Another significant event was the submission of an New Drug Application (NDA) to
the U.S. Food And Drug Administration (“FDA”) under Section 505(b)(2) to produce
and market our LCP-FenoChol product for a cholesterol lowering indication in the
United States. As reported in December, the FDA accepted our NDA for review.
This submission evidences LifeCycle Pharma's strong research and development
capabilities, as in less than 4 years we have been able to bring a product
candidate from the initial idea stage to FDA submission.
In addition to the above key highlights, LifeCycle Pharma passed a number of
other significant milestones in 2006. The most important business and scientific
milestones were:
Positive Pivotal data for LCP-FenoChol demonstrating that LifeCycle Pharma's
LCP-FenoChol has an improved absorption compared to Antara® as well as no food
effect
Positive pilot Phase I data for LCP-Tacro, an anti-rejection product used in
organ transplantation care, demonstrating once-daily profile as well as a more
than 49% increase in bioavailability compared to Prograf®. Additional Phase I
clinical studies were initiated in September 2006
Granted Sandoz exclusive U.S. rights and Merck Generics exclusive European
rights to develop and commercialize LCP-Feno, a cholesterol lowering product
Expanded our cooperation with Recordati regarding the collaboration for LCP-Lerc
Entered into a service agreement with Lundbeck where Lundbeck will use the
MeltDose Technology for two of their new pre-clinical compounds
Initiation of Phase I clinical studies for LCP-AtorFen a combination product
consisting of two cholesterol lowering agents, fenofibrate and atorvastatin
Grant of first EU patent for MeltDose Technology
Outlook for 2007
During 2007, LifeCycle Pharma will continue to advance the development of the
company's 6 named product candidates, one of which is under FDA registration
review and the other five are in various stages of clinical development. The
company's scientific team will continuously investigate promising new product
candidates for potential addition to our growing product pipeline.
In 2007, LifeCycle Pharma expects to be advancing LCP-FenoChol through the FDA
review process to ensure that the product is ready for introduction to the
United States market in the beginning of 2008. Introduction of such a product
into the United States market requires sales capabilities that LifeCycle Pharma
does not currently posses and the company is currently pursuing the possibility
to outlicense LCP-FenoChol as an alternative to building a sales team in the
United States at this stage.
Further, LifeCycle Pharma plans to initiate two Phase II clinical trials with
LCP-Tacro to treat organ transplant patients and patients with auto-immune
diseases. Also, in February 2007, the company received positive clinical data
for its Phase I program with LCP-AtorFen and the company plans to initiate a
Phase II clinical program with LCP-AtorFen to treat patients with abnormal lipid
levels. Finally, LifeCycle Pharma expects to expand its existing product
pipeline with one named product by advancing one of our internal pre-clinical
product candidates into clinical trials during 2007.
As costs will increase for the expanded regulatory and clinical development
activities, LifeCycle Pharma's operating expenses are expected to be
significantly higher in 2007 compared to 2006. In 2007, LifeCycle Pharma is
projecting an operating loss of DKK 260 to 285 million compared to DKK 149
million for 2006. Under the conditions described above, the net loss for 2007 is
expected to be in the range of DKK 255 to 280 million compared to the net loss
of DKK 148 million in 2006.
As of 31 December 2006, the company's cash position equalled approximately DKK
465 million and the company's projected 31 December 2007 cash position is
expected to be in the range of DKK 215 to 240 million.
The above estimates are subject to possible change primarily due to the timing
and variation of clinical activities, related costs and fluctuating exchange
rates. The estimates also assume that no further outlicense agreements are
entered into during 2007 that could materially affect the results.
The 2006 Annual Report is expected to be available on our home page on 12 March
2007.
The management of LifeCycle Pharma will hold a telephone conference call to
discuss the company's 2006 Full Year results on
Tuesday 6 March 2007 at 3pm CET (2pm GMT/9am Eastern)
The dial-in details for the call are as follows:
Participants in Denmark: 70 26 50 40
Participants outside Denmark: +45 70 26 50 40
Ask for the LifeCycle Pharma conference call.
The conference call will be held in English. We very much look forward to you
joining the call.
An archived version of the call will be subsequently available on the LifeCycle
Pharma website www.lcpharma.com
Grant of warrants
Also today, the board of directors decided to issue 160,000 warrants to new
employees. No members of the company's board or management were granted
warrants. Of the 160,000 warrants, 155,000 warrants are allocated to key
employees and the remaining 5,000 warrants are allocated to other employees.
Each warrant entitles the holder to subscribe one share of nominal DKK 1 in the
company against cash contribution equal to the closing price of the company's
shares at the OMX Nordic Exchange on March 6, 2007, to ensure that the exercise
price reflects the fair market price per share following the disclosure of the
preliminary annual report.
By application of the Black-Scholes formula, the market value of the warrant
program can be calculated as DKK 17.77 per warrant assuming an exercise price of
DKK 54.50, equal to the closing price of the company's share at the OMX Nordic
Exchange on March 5, 2007, based on an interest rate of 4.00% and a volatility
of the company's shares set to 35%. The aim of the issue is to give an incentive
to the new employees to work towards a positive development in the company's
business and by extension, an increase in the market price of the company's
shares. The warrants vest by 1/48th per month of employment after the date of
grant. The exercise periods are determined as 21 days from the company's
announcements of its preliminary annual report and the interim financial report
for the first half of a year, respectively. The first exercise period is 21 days
after publication of the preliminary annual report for 2007 and the last
exercise period is 21 days from publication of the interim financial period for
the first half of 2013. The board of directors has issued the warrants by partly
exercising the authorization contained in Article 8 of the company's articles of
association according to which the board of directors - for a period ending on 1
July 2011 - on one or more occasions may issue up to 500,000 warrants each
conferring a right to subscribe 1 share of nominally DKK 1 each in Lifecycle
Pharma without preemptive subscription rights for the shareholders. After the
issue of the 160,000 warrants, 211,619 warrants remain available for issue under
the authorization and the total number of warrants issued in the company is
4,983,712 warrants.
Income Statement for the period 1 January - 31 December
(In thousands)
--------------------------------------------------------------------------------
| | 2006 | 2005 | 2006 | 2005 |
| | DKK | DKK | *EUR | *EUR |
--------------------------------------------------------------------------------
| Revenue | 9,740 | 2,754 | 1,306 | 370 |
--------------------------------------------------------------------------------
| Research and development costs | (129,403 | (80,919) | (17,356) | (10,853) |
| | ) | | | |
--------------------------------------------------------------------------------
| Administrative expenses | (29,395) | (16,170) | (3,942) | (2,169) |
--------------------------------------------------------------------------------
| Operating loss | (149,058 | (94,335) | (19,992) | (12,652) |
| | ) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 2,993 | 945 | 402 | 127 |
--------------------------------------------------------------------------------
| Financial expenses | (1,648) | (1,779) | (221) | (239) |
--------------------------------------------------------------------------------
| Loss before tax | (147,713 | (95,169) | (19,811) | (12,764) |
| | ) | | | |
--------------------------------------------------------------------------------
| Tax for the year | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Net loss for the year | (147,713 | (95,169) | (19,811) | (12,764) |
| | ) | | | |
--------------------------------------------------------------------------------
The board of directors proposes the net loss be carried forward to next year.
--------------------------------------------------------------------------------
| | 2006 | 2005 | 2006 | 2005 |
--------------------------------------------------------------------------------
Basic and diluted EPS (in DKK / EUR) (7.65)
(6.82) (1.03) (0.91)
Weighted average number of shares(1) 19,313,737 13,965,252
* The figures in EUR have been translated for convenience. These figures are
unaudited
(1) Weighted average number of shares during 2005 has been adjusted according
to the issue of bonus shares in the ration 1:3
Balance Sheet - Assets at 31 December
(In thousands)
--------------------------------------------------------------------------------
| | 2006 | 2005 | 2006 | 2005 |
| | DKK | DKK | *EUR | *EU |
| | | | | R |
--------------------------------------------------------------------------------
| Licenses and rights | 779 | 829 | 104 | 111 |
--------------------------------------------------------------------------------
| Intangible assets | 779 | 829 | 104 | 111 |
--------------------------------------------------------------------------------
| Process plant and machinery | 23,184 | 16,310 | 3,110 | 2,188 |
--------------------------------------------------------------------------------
| Other fixtures and fittings, | 80 | 195 | 11 | 26 |
| tools and equipment | | | | |
--------------------------------------------------------------------------------
| Leasehold improvements | 5,848 | 6,636 | 784 | 890 |
--------------------------------------------------------------------------------
| Prepayments for property, | 0 | 4,275 | 0 | 573 |
| plant and equipment | | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 29,112 | 27,416 | 3,905 | 3,677 |
--------------------------------------------------------------------------------
| Non-current assets | 29,891 | 28,245 | 4,009 | 3,788 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Receivables from capital | 0 | 9,889 | 0 | 1,326 |
| increase | | | | |
--------------------------------------------------------------------------------
| Trade Receivables | 6,707 | 0 | 900 | 0 |
--------------------------------------------------------------------------------
| Other receivables | 5,430 | 8,609 | 728 | 1,155 |
--------------------------------------------------------------------------------
| Prepayments | 371 | 2,390 | 50 | 321 |
--------------------------------------------------------------------------------
| Receivables | 12,508 | 20,888 | 1,678 | 2,802 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents | 464,658 | 87,224 | 62,320 | 11,698 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | 477,166 | 108,112 | 63,998 | 14,500 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | 507,057 | 136,357 | 68,007 | 18,288 |
--------------------------------------------------------------------------------
* The figures in EUR have been translated for convenience. These figures are
unaudited
Balance Sheet - Equity and Liabilities at 31 December
(In thousands)
--------------------------------------------------------------------------------
| | 2006 | 2005 | 2006 | 2005 |
| | DKK | DKK | *EU | *E |
| | | | R | UR |
--------------------------------------------------------------------------------
| Share capital | 30,370 | 4,429 | 4,073 | 594 |
--------------------------------------------------------------------------------
| Share premium | 717,039 | 242,822 | 96,169 | 32,567 |
--------------------------------------------------------------------------------
| Retained earnings/loss | (289,326) | (154,821) | (38,804) | (20,765) |
--------------------------------------------------------------------------------
| Equity | 458,083 | 92,430 | 61,438 | 12,396 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance lease | 24,665 | 25,280 | 3,308 | 3,391 |
--------------------------------------------------------------------------------
| Non-current liabilities | 24,665 | 25,280 | 3,308 | 3,391 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance lease | 6,081 | 5,044 | 816 | 677 |
--------------------------------------------------------------------------------
| Trade payables | 11,957 | 10,714 | 1,604 | 1,437 |
--------------------------------------------------------------------------------
| Deferred Revenue | 373 | 0 | 50 | 0 |
--------------------------------------------------------------------------------
| Debt to shareholders | 166 | 46 | 22 | 6 |
--------------------------------------------------------------------------------
| Other payables | 5,732 | 2,843 | 769 | 381 |
--------------------------------------------------------------------------------
| Current liabilities | 24,309 | 18,647 | 3,261 | 2,501 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | 48,974 | 43,927 | 6,569 | 5,892 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and liabilities | 507,057 | 136,357 | 68,007 | 18,288 |
--------------------------------------------------------------------------------
* The figures in EUR have been translated for convenience. These figures are
unaudited
Cash Flow Statement for the period 1 January - 31 December
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2006
DKK 2005
DKK 2006
*EUR 2005
*EUR Operating
loss(149,058)(94,335)(19,992)(12,652)Share-based
payment13,2082,0401,771274Depreciation and amortisation 5,5764,071748546Working
capital changes3,1162,287418308Cash flow from operating activities before
interest(127,158)(85,937)(17,055)(11,526)Interest received2,993945402127Interest
paid(1,648)(1,779)(221)(239)Cash flow from operating
activities(125,813)(86,771)(16,874)(11,638)Purchase of property, plant and
equipment(7,222)(13,572)(969)(1,820)Cash flow from investing
activities(7,222)(13,572)(969)(1,820)Proceeds from bank borrowings and finance
lease 5,25114,1827051,902Instalment on bank borrowings and finance
lease(4,829)(3,941)(648)(529)Proceeds from issuance of shares,
net510,047177,31768,40823,782Cash flow from financing
activities510,469187,55868,46525,155Increase/decrease in cash and cash
equivalents377,43487,21550,62211,697Cash and cash equivalent, 1 January
87,224911,6981Cash and cash equivalents at 31 December
464,65887,22462,32011,698Cash and cash equivalents comprise 31 December:Deposit
on demand and cash464,65887,22462,32011,698(In thousands)
* The figures in EUR have been translated for convenience. These figures are
unaudited
Statement of Change in Equity
1 January 2006 - 31 December 2006
(In thousands, except number of shares)
--------------------------------------------------------------------------------
| | Number | Share | Share | Retained | Total | Total |
| | of | capit | premiu | earnings | DKK | *EUR |
| | shares | al | m | /loss | | |
| | | DKK | DKK | DKK | | |
--------------------------------------------------------------------------------
| Equity as of | 4,428,56 | 4,429 | 242,82 | (154,821 | 92,430 | 12,397 |
| 1 January 2006 | 9 | | 2 | ) | | |
--------------------------------------------------------------------------------
| Comprehensive | 0 | 0 | 0 | (147,713 | (147,713 | (19,811 |
| income: | | | | ) | ) | ) |
| Net loss for the | | | | | | |
| year | | | | | | |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 0 | (147,713 | (147,713 | (19,811 |
| comprehensive | | | | ) | ) | ) |
| income | | | | | | |
--------------------------------------------------------------------------------
| Issuance of | 12,650,0 | 12,65 | 543,95 | 0 | 556,600 | 74,651 |
| shares | 00 | 0 | 0 | | | |
--------------------------------------------------------------------------------
| Warrant exercise | 1,385 | 1 | 42 | 0 | 43 | 6 |
--------------------------------------------------------------------------------
| Share-based | 0 | 0 | 0 | 13,208 | 13,208 | 1,771 |
| payment | | | | | | |
--------------------------------------------------------------------------------
| Bonus shares | 13,289,8 | 13,29 | (13,29 | 0 | 0 | 0 |
| | 62 | 0 | 0) | | | |
--------------------------------------------------------------------------------
| Cost related to | 0 | 0 | (56,48 | 0 | (56,485 | (7,576 |
| capital increase | | | 5) | | ) | ) |
--------------------------------------------------------------------------------
| Equity as of | 30,369,8 | 30,37 | 717,03 | (289,326 | 458,083 | 61,438 |
| 31 December 2006 | 16 | 0 | 9 | ) | | |
--------------------------------------------------------------------------------
The share capital is not available for distribution, while other reserves are
distributable for dividend purposes subject to the provision of the Danish
Public Company Act.
* The figures in EUR have been translated for convenience. These figures are
unaudited
Statement of Change in Equity
1 January 2005 - 31 December 2005
(In thousands, except number of shares)
--------------------------------------------------------------------------------
| | Number | Share | Share | Retained | Total | Total |
| | of | capita | premiu | earnings | DKK | *EUR |
| | shares | l | m | /loss | | |
| | | DKK | DKK | DKK | | |
--------------------------------------------------------------------------------
| Equity as of | 2,634,2 | 2,634 | 57,411 | (61,692) | (1,647) | (221) |
| 1 January 2005 | 69 | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | 0 | 0 | 0 | (95,169) | (95,169) | (12,764 |
| income: | | | | | | ) |
| Net loss for the | | | | | | |
| year | | | | | | |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 0 | (95,169) | (95,169) | (12,764 |
| comprehensive | | | | | | ) |
| income | | | | | | |
--------------------------------------------------------------------------------
| Issuance of | 1,784,0 | 1,785 | 186,27 | 0 | 188,062 | 25,223 |
| shares | 22 | | 7 | | | |
--------------------------------------------------------------------------------
| Warrant exercise | 10,278 | 10 | 314 | 0 | 324 | 43 |
--------------------------------------------------------------------------------
| Share-based | 0 | 0 | 0 | 2,040 | 2,040 | 274 |
| payment | | | | | | |
--------------------------------------------------------------------------------
| Cost related to | 0 | 0 | (1,180 | 0 | (1,180) | (158) |
| capital increase | | | ) | | | |
--------------------------------------------------------------------------------
| Equity as of | 4,428,5 | 4,429 | 242,82 | (154,821 | 92,430 | 12,397 |
| 31 December 2005 | 69 | | 2 | ) | | |
--------------------------------------------------------------------------------
* The figures in EUR have been translated for convenience. These figures are
unaudited
For further information please contact:
LifeCycle Pharma A/S
Dr. Flemming Ørnskov Michael Wolff Jensen
President & CEO Executive VP & CFO
Tel.: +45 24 20 03 68 Tel.: +45 40 74 62 44
--oo0oo---
About LifeCycle Pharma:
LifeCycle Pharma is an emerging pharmaceutical company with a broad and late
stage product pipeline in therapeutic areas of cholesterol management,
hypertension and organ transplant. LifeCycle Pharma's most advanced product has
been filed with the U.S. FDA and is expected to enter the US market in the first
quarter of 2008. LifeCycle Pharma's product candidates are proprietary and
designed to improve the quality of existing drugs by enhancing the release and
absorption of drugs in the human body. LifeCycle Pharma's proprietary technology
platform, MeltDose® technology, offers lower dosing, reduced side effects and
improved safety and patient compliance as well as reduced product development
time and production costs. LifeCycle Pharma has formed several partnerships with
major pharmaceutical companies and is clinically developing product candidates
within a number of areas, including cholesterol management, hypertension and
organ transplant. LifeCycle Pharma is listed on the OMX Nordic Exchange under
the trading symbol (LCP). Please visit www.lcpharma.com for further information
about LifeCycle Pharma A/S.
