Company Announcement no. 36/2008 To: OMX Nordic Exchange Copenhagen Hørsholm, Denmark, November 27, 2008 LifeCycle Pharma Announces Interim Report For the 9 Months Ended September 30, 2008 LifeCycle Pharma has a strong financial position and prepares to enter clinical Phase 3 for LCP-Tacro LifeCycle Pharma A/S (OMX:LCP) reported a net loss of DKK 69.1 million for the first nine months of 2008, compared to a net loss of DKK 87.9 million for the same period in 2007. This is in line with the expectations for 2008 which were announced in the Q2 2008 interim report of August 21, 2008. For the first nine months of 2008 LCP recognized DKK 165.3 million in revenue compared to DKK 60.7 million in the same period of 2007. Revenue mainly consists of the USD 29 million (equivalent to DKK 152 million) up-front payment LCP received from Cowen Healthcare Royalty Partners, L.P. in connection with the sale of the future royalty stream from FenoglideTM in North America. Additional revenue consists of payments under LCP's collaboration agreements. For the first nine months of 2008, LCP's research and development costs amounted to DKK 192.2 million compared to DKK 120.6 million during the same period in 2007. The higher research and development costs reflect increased activity in the company's pipeline, primarily costs related to the clinical trials being carried out, including Phase 2 clinical studies for LCP-Tacro (kidney and liver) and LCP-AtorFen as well as preparations for Phase 3 clinical studies for both product candidates. On September 30, 2008, LCP had cash and cash equivalents of DKK 666.9 million. During the third quarter of 2008, LCP continued the positive development from the previous quarters of 2008 and achieved the following major business and scientific milestones: LCP announced positive top-line results from a completed Phase 2 clinical study of LCP-Tacro tablets in stable liver transplant patients. Results are in line with earlier data announced for stable kidney transplant patients and healthy volunteer studies. These new data for LCP-Tacro, a once daily immunosuppressive drug for the prevention of organ rejection following solid organ transplantation, confirms the potentially best-in-class pharmacokinetic profile of LCP-Tacro tablets when compared to the currently marketed twice daily capsule formulation of tacrolimus, Prograf® LCP announced that the royalty stream in North America related to its first commercialized product, Fenoglide™, the cholesterol lowering drug (formerly known as LCP-FenoChol) for the treatment of hyperlipidemia and hypertriglyceridemia, has been sold to Cowen Healthcare Royalty Partners, L.P. for a total payment of up to USD 105 million based on certain sales milestones including an up-front payment of USD 29 million Further LCP announced that Dr. Michael Beckert has decided to resign as EVP and CMO of LCP in order to pursue other opportunities outside LCP effective December 31, 2008. Dr. Karin Hamberg, who is currently EVP of Drug Delivery Research and Alliance & Project Management, will assume responsibility for Clinical, Regulatory, and Medical Affairs undertaking Dr. Beckert's responsibilities. Subsequent Events On October 17, 2008, LCP announced that Dr. Jim New was appointed as President and CEO with immediate effect. Dr. New is an internationally recognized senior executive with extensive experience in global business development within the pharmaceutical industry and was CEO of Abrika Pharmaceuticals. Dr. Jim New was granted 500,000 warrants at a strike price of DKK 14.5. In addition, LCP announced that Hans Christian Teisen has decided to resign as EVP and CFO of LCP in order to take up a position as CFO and partner in PricewaterhouseCoopers, Denmark, effective December 1, 2008. A search for a new CFO is ongoing. Expectations for 2008 LCP retains its 2008 guidance with an operating loss of DKK 220 - 250 million and a net loss of DKK 210 - 240 million. As of December 31, 2007, the Company's cash position equaled DKK 331.7 million and the Company's December 31, 2008 cash position is expected to be in the range of DKK 500 - 540 million. Research & Development Update LCP-Tacro Transplant After having demonstrated positive Phase 2 Pharmacokinetic (PK) data in stable transplant patients earlier this year, LCP had successful discussions with the U.S. Food and Drug Administration (FDA) regarding the further development of LCP-Tacro once-daily tablets. The FDA acknowledged the Company's strategy of submitting a §505(b)2 application for LCP-Tacro, thereby making use of existing literature data to support the application for prevention of organ rejection in kidney and liver transplant patients. To further support the safety database and potentially best in class pharmacokinetic profile for LCP-Tacro, LCP agreed with the FDA to perform PK-studies in de novo kidney and liver transplants. These ongoing studies are expected to confirm the superior pharmacokinetic profile of LCP-Tacro over existing tacrolimus formulations (Prograf®) in de novo transplant patients, for which Phase3 pivotal clinical studies for liver and kidney are expected to begin in 2009. As previously announced, LCP expects to initiate a Phase 3 clinical study in approximately 300 stable kidney transplant patients in the second half of 2008, converting patients from Prograf® twice-daily to LCP-Tacro once-daily with a 30% reduced daily dosage. The pivotal clinical program in liver patients awaits discussions with FDA in the first half of 2009. LCP-Siro Formulation activities with LCP-Siro are ongoing with the aim of testing the product in Phase 1 clinical trials. Clinical Phase 1 data are expected to become available in 2009. LCP-3301 First clinical Phase 1 results have been received for LCP-3301. The clinical data confirms the extended release profile of the product. Further optimization of the formulation continues with the objective of selecting a final formulation based on Phase 1 studies, planned to be conducted in 2009. LCP-Tacro Autoimmune Hepatitis The enrolment of patients in the ongoing Phase 2 trial for LCP-Tacro in Autoimmune Hepatitis is behind the expected schedule as fewer patients than expected are available for treatment by referral centers. Patients enrolled continue in the trial while LCP is evaluating potential actions. LCP-AtorFen LCP recently presented positive Phase 2 data on LCP-AtorFen, its combination of atorvastatin and low-dose fenofibrate for the treatment of mixed dyslipidemia, at the 2008 American Heart Association Scientific Sessions. The open-label extension study for one year of the Phase 2 program is ongoing, and results from this study are expected in the first half of 2009. Based on this positive outcome of Phase 2, LCP has initiated discussions with the FDA to prepare for the pivotal Phase 3 development program. LCP is presently exploring various strategies for LCP-AtorFen, aiming to find a partner in the first half of 2009. Meanwhile LCP continues its preparations for the pivotal Phase 3 program as planned. LCP-AtorFen is targeted to address all three angles of the atherogenic triad, decreasing significantly LDL-cholesterol (the “bad” cholesterol) and triglycerides while increasing significantly HDL-cholesterol (the “good” cholesterol). -------------------------------------------------------------------------------- | Key Figures | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | Q3 | Q3 | YTD | YTD | Year | -------------------------------------------------------------------------------- | | | 2008 | 2007 | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | | DKK'000 | DKK'000 | DKK'000 | DKK'000 | DKK'000 | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Income Statement | | | | | | -------------------------------------------------------------------------------- | Revenue | 154,433 | 53,668 | 165,313 | 60,702 | 64,705 | -------------------------------------------------------------------------------- | Research and development | (69,738 | (46,464 | (192,19 | (120,60 | (183,60 | | costs | ) | ) | 1) | 1) | 8) | -------------------------------------------------------------------------------- | Administrative expenses | (18,626 | (12,662 | (55,025 | (38,087 | (54,033 | | | ) | ) | ) | ) | ) | -------------------------------------------------------------------------------- | Operating loss | 66,069 | (5,458) | (81,903 | (97,986 | (172,93 | | | | | ) | ) | 6) | -------------------------------------------------------------------------------- | Net financial income / | 5,150 | 3,221 | 12,778 | 10,068 | 12,697 | | (expenses) | | | | | | -------------------------------------------------------------------------------- | Net loss for the period | 71,219 | (2,237) | (69,125 | (87,918 | (160,23 | | | | | ) | ) | 9) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance Sheet | | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | 666,895 | 397,369 | 666,895 | 397,369 | 331,740 | -------------------------------------------------------------------------------- | Total assets | 708,915 | 448,184 | 708,915 | 448,184 | 381,912 | -------------------------------------------------------------------------------- | Share capital | 56,288 | 31,771 | 56,288 | 31,771 | 31,771 | -------------------------------------------------------------------------------- | Total equity | 648,456 | 393,176 | 648,456 | 393,176 | 325,689 | -------------------------------------------------------------------------------- | Investment in property, | 1,205 | 513 | 5,212 | 2,570 | 5,900 | | plant and equipment | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow Statement | | | | | | -------------------------------------------------------------------------------- | Cash flow from operating | 79,503 | (26,231 | (34,973 | (69,191 | (130,72 | | activities | | ) | ) | ) | 7) | -------------------------------------------------------------------------------- | Cash flow from investing | (1,205) | (1,851) | (5,212) | (3,908) | (7,298) | | activities | | | | | | -------------------------------------------------------------------------------- | Cash flow from financing | 463 | 6,972 | 375,290 | 4,472 | 3,769 | | activities | | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | 666,895 | 397,369 | 666,895 | 397,369 | 331,740 | | at period end | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial Ratios | | | | | | -------------------------------------------------------------------------------- | Basic and diluted EPS | 1.27 | (0.07) | (1.48) | (2.88) | (5.19) | -------------------------------------------------------------------------------- | Weighted average number of | 56,135, | 30,800, | 46,561, | 30,573, | 30,875, | | shares | 241 | 894 | 782 | 731 | 434 | -------------------------------------------------------------------------------- | Average number of | 113 | 69 | 105 | 58 | 64 | | employees (FTEs) | | | | | | -------------------------------------------------------------------------------- | Assets/equity | 1.09 | 1.14 | 1.09 | 1.14 | 1.17 | -------------------------------------------------------------------------------- The interim report is unaudited. Revenues LCP recognized DKK 165.3 million in revenue compared to DKK 60.7 million during the same period of 2007. Revenue mainly consists of the USD 29 million (equivalent to DKK 152 million) up-front payment LCP received from Cowen Healthcare Royalty Partners, L.P. in connection with sales of the future royalty stream from FenoglideTM in North America. Additional revenue consists of payments under LCP's collaboration agreements. Research and Development Costs For the first nine months of 2008, LCP's research and development costs amounted to DKK 192.2 million compared to DKK 120.6 million during the same period in 2007. The higher research and development costs reflect increased activity in the company's pipeline, primarily costs related to the clinical trials being carried out, including Phase 2 clinical studies for LCP-Tacro (kidney and liver) and LCP-AtorFen as well as preparations for Phase 3 clinical studies for both product candidates. Research and development costs in the third quarter of 2008 were realized at the same level as the previous quarter with DKK 69.7 million compared to 69.5 million in the second quarter of 2008. Administrative Expenses Administrative expenses increased from DKK 38.1 million in the first nine months of 2007 to DKK 55.0 million in the first nine months of 2008. This increase is attributable to the general strengthening of administrative functions following the company's IPO in November 2006, and the follow-on offering completed in April 2008, along with the overall increase in activity. Administrative expenses in the third quarter of 2008 were realized at the same level as the previous quarter with DKK 18.6 million compared to 18.9 million in the second quarter of 2008. Share-based Compensation Costs For the first nine months of 2008, a total of DKK 12.5 million were recognized as share-based compensation. The comparable number for 2007 was DKK 13.6 million. In the third quarter of 2008, a total of 80,000 warrants were granted to members of the Executive Management at an average strike price of DKK 25.5, while other employees were granted a total of 152,000 warrants at an average strike price of DKK 25.5. Additionally up to 177,000 warrants were granted to a consultant at an average strike price of DKK 25.5. In the third quarter of 2008, a total of 818,281 warrants have been cancelled, and a total of 194,563 warrants have been exercised at an average exercise price of DKK 9.40. As per September 30, 2008, there were a total of 5,220,779 warrants were outstanding at an average strike price of DKK 28.5. Members of the Board of Directors held 237,842 warrants at an average strike price of DKK 30.2. Members of the Executive Management held 664,003 warrants at an average strike price of DKK 30.2, while other current and former employees held 4,318,934 warrants at an average strike price of DKK 28.1. Please refer to LCP's latest annual report for additional details on the company's warrant programs. Operating Loss LCP's operating loss for the first nine months of 2008 was DKK 81.9 million compared to DKK 98.0 million in the corresponding period of 2007. Financial Income During the first nine months of 2008, the company recognized net financial income of DKK 12.8 million compared to DKK 10.1 million in the first nine months of 2007. Net Loss LCP's net loss for the first nine months of 2008 was DKK 69.1 million compared to DKK 87.9 million in the corresponding period of 2007. Cash Flow As per September 30, 2008, the balance sheet reflects cash and cash equivalents to DKK 666.9 million compared to DKK 331.7 million as per December 31, 2007. The net increase reflects the proceeds from the follow-on offering in April 2008 and the operating activities for the period, including the up-front payment from the sale of the future royalty stream from FenoglideTM to Cowen Healthcare Royalty Partners, L.P. Balance Sheet As per September 30, 2008, total assets were DKK 708.9 million compared to DKK 381.9 million at the end of 2007. Shareholders' equity equalled DKK 648.5 million as of September 30, 2008, compared to DKK 325.7 million at the end of 2007. Accounting Policies The interim report is prepared in compliance with International Accounting Standard No. 34 (IAS 34), “Interim Financial Reporting” and in accordance with the OMX Nordic Exchange Copenhagen's financial reporting requirements for listed companies. The accounting policies used for the interim report are consistent with the accounting policies used in the company's latest annual report. The interim report is unaudited. Financial Review LCP publishes its financial statements in Danish Kroner (DKK), which is the functional currency of the company and the group. Solely for the convenience of the reader, this Interim Report contains a conversion of certain DKK amounts into Euro (EUR) at a specified rate. These converted amounts should not be construed as representations that the DKK amounts actually represent such EUR amounts or could be converted into EUR at the rate indicated or at any other rate. Unless otherwise indicated, conversion herein of financial information into EUR has been made using the Danish Central Bank's spot rate on September 30, 2008, which was EUR 1.00 = DKK 7.4611. Grant of Warrants At a board meeting held on November 27, 2008, the Board of Directors decided to issue 196,500 warrants to new employees of the Company and the Company's US subsidiary. 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 November 27, 2008, thus ensuring that the exercise price reflects the fair market price per share following the disclosure of the interim report for the first nine months of 2008. By application of the Black-Scholes formula, the market value of the warrant program can be calculated as DKK 4.1 per warrant assuming an exercise price of DKK 12.0, equal to the closing price of the Company's share at the OMX Nordic Exchange on November 26, 2008, based on an interest rate of 3.98% and a volatility of the Company's shares set to 35%. Conference Call On November 27, 2008, at 3.00 PM (CET), LCP will be hosting a conference call. To access the call, please dial one of the following numbers: +1 866 966 5335 (US), +44 2030 032 666 (UK), +45 8088 8649 (DK). Subsequently, a recording will be available on the company's website www.lcpharma.com. Additional information: Jim New President & CEO Telephone +45 70 33 33 00 The forward looking statements and targets contained herein are based on LifeCycle Pharma A/S's management's current view and assumptions. Such statements involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from those anticipated herein. LifeCycle Pharma A/S expressly disclaim any obligation or undertaking to update or revise any forward looking statements, targets or estimates contained in this interim report to reflect any change in events, conditions, assumptions, or circulations on which any such statements are based unless required by applicable law. Executive Management's and the Board of Directors' Statement on the Interim Report The Executive Management and the Board of Directors have considered and adopted the Interim Report of LifeCycle Pharma A/S. The Interim Report is prepared in accordance with International Accounting Standard No. 34 (IAS 34), “Interim Financial Reporting” and additional Danish disclosure requirements for financial reporting of listed companies. We consider the applied accounting policies to be appropriate and, in our opinion, the Interim Report gives a true and fair view of the assets and liabilities, financial position, results of the operation and cash flow of the group for the period under review. Furthermore, in our opinion the management review includes a fair review of the development and performance of the business and the financial position of the group, together with a description of the material risks and uncertainties the group faces. The group does not face any material risks or uncertainties relating to the financial statements. Hørsholm, November 27, 2008 Executive Management Jim New Hans Christian Teisen Peter G. Nielsen President & CEO Executive Vice President & CFO Executive Vice President Karin Jexner Hamberg Michael Beckert Executive Vice President Executive Vice President Board of Directors Claus Braestrup Kurt Anker Nielsen Thomas Dyrberg (Chairman) Jean Deleage Gérard Soula Paul Edick Anders Götzsche -------------------------------------------------------------------------------- | Quarterly Numbers | | | | | | | | | | in DKK | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | Q3 | Q2 | Q1 | | Q4 | Q3 | Q2 | Q1 | -------------------------------------------------------------------------------- | | | 2008 | 2008 | 2008 | | 2007 | 2007 | 2007 | 2007 | -------------------------------------------------------------------------------- | | | DKK' | DKK' | DKK'0 | | DKK'0 | DKK'0 | DKK'0 | DKK'0 | | | | 000 | 000 | 00 | | 00 | 00 | 00 | 00 | -------------------------------------------------------------------------------- | | | | | | | | | | | -------------------------------------------------------------------------------- | Income Statement | | | | | | | | | -------------------------------------------------------------------------------- | Revenue | 154, | 7,95 | 2,928 | | 4,003 | 53,66 | 3,245 | 3,789 | | | 433 | 2 | | | | 8 | | | -------------------------------------------------------------------------------- | Research and | (69, | (69, | (52,9 | | (63,0 | (46,4 | (42,0 | (32,0 | | development costs | 738) | 537) | 16) | | 07) | 64) | 41) | 96) | -------------------------------------------------------------------------------- | Administrative | (18, | (18, | (17,5 | | (15,9 | (12,6 | (15,0 | (10,4 | | expenses | 626) | 854) | 45) | | 46) | 62) | 25) | 00) | -------------------------------------------------------------------------------- | Operating loss | 66,0 | (80, | (67,5 | | (74,9 | (5,45 | (53,8 | (38,7 | | | 69 | 439) | 33) | | 50) | 8) | 21) | 07) | -------------------------------------------------------------------------------- | Net financial | 5,15 | 5,30 | 2,323 | | 2,630 | 3,221 | 3,241 | 3,605 | | income / | 0 | 5 | | | | | | | | (expenses) | | | | | | | | | -------------------------------------------------------------------------------- | Net loss for the | 71,2 | (75, | (65,2 | | (72,3 | (2,23 | (50,5 | (35,1 | | period | 19 | 134) | 10) | | 20) | 7) | 80) | 02) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance Sheet | | | | | | | | | -------------------------------------------------------------------------------- | Cash and cash | 666, | 588, | 265,5 | | 331,7 | 397,3 | 417,1 | 432,5 | | equivalents | 895 | 001 | 01 | | 40 | 69 | 41 | 68 | -------------------------------------------------------------------------------- | Total assets | 708, | 634, | 311,8 | | 381,9 | 448,1 | 464,5 | 475,8 | | | 915 | 100 | 92 | | 12 | 84 | 71 | 29 | -------------------------------------------------------------------------------- | Share capital | 56,2 | 56,0 | 32,10 | | 31,77 | 31,77 | 30,51 | 30,51 | | | 88 | 93 | 5 | | 1 | 1 | 4 | 4 | -------------------------------------------------------------------------------- | Total equity | 648, | 571, | 266,2 | | 325,6 | 393,1 | 381,7 | 427,8 | | | 456 | 863 | 77 | | 89 | 76 | 58 | 04 | -------------------------------------------------------------------------------- | Investment in | 1,20 | 3,20 | 801 | | 5,900 | 513 | 1,917 | 140 | | property, plant | 5 | 7 | | | | | | | | and equipment | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow | | | | | | | | | | Statement | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow from | 79,5 | (48, | (66,2 | | (61,5 | (26,2 | (11,8 | (31,0 | | operating | 03 | 231) | 44) | | 36) | 31) | 69) | 91) | | activities | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow from | (1,2 | (3,2 | (801) | | (3,28 | (513) | (3,36 | (140) | | investing | 05) | 07) | | | 5) | | 0) | | | activities | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow from | 463 | 373, | 897 | | (703) | 6,973 | (1,64 | (859) | | financing | | 930 | | | | | 2) | | | activities | | | | | | | | | -------------------------------------------------------------------------------- | Cash and cash | 666, | 588, | 265,5 | | 331,7 | 397,3 | 417,1 | 432,5 | | equivalents at | 895 | 001 | 01 | | 40 | 69 | 41 | 68 | | period end | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial Ratios | | | | | | | | | -------------------------------------------------------------------------------- | Basic and diluted | 1.27 | (1.4 | (2.05 | | (2.28 | (0.07 | (1.66 | (1.15 | | EPS | | 6) | ) | | ) | ) | ) | ) | -------------------------------------------------------------------------------- | Weighted average | 56,1 | 51,6 | 31,83 | | 31,77 | 30,80 | 30,51 | 30,40 | | number of shares | 35,2 | 11,7 | 3,188 | | 0,705 | 0,894 | 4,048 | 1,868 | | | 41 | 13 | | | | | | | -------------------------------------------------------------------------------- | Average number of | 113 | 101 | 93 | | 64 | 69 | 59 | 45 | | employees (FTEs) | | | | | | | | | -------------------------------------------------------------------------------- | Assets/equity | 1.09 | 1.11 | 1.17 | | 1.17 | 1.14 | 1.22 | 1.11 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Quarterly Numbers | | | | | | | | | | in Euro | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | Q3 | Q2 | Q1 | | Q4 | Q3 | Q2 | Q1 | -------------------------------------------------------------------------------- | | | 2008 | 2008 | 2008 | | 2007 | 2007 | 2007 | 2007 | -------------------------------------------------------------------------------- | | | EUR' | EUR' | EUR'0 | | EUR'0 | EUR'0 | EUR'0 | EUR'0 | | | | 000 | 000 | 00 | | 00 | 00 | 00 | 00 | -------------------------------------------------------------------------------- | | | | | | | | | | | -------------------------------------------------------------------------------- | Income Statement | | | | | | | | | -------------------------------------------------------------------------------- | Revenue | 20,6 | 1,06 | 392 | | 537 | 7,193 | 435 | 508 | | | 98 | 6 | | | | | | | -------------------------------------------------------------------------------- | Research and | (9,3 | (9,3 | (7,09 | | (8,44 | (6,22 | (5,63 | (4,30 | | development costs | 47) | 20) | 2) | | 5) | 7) | 5) | 2) | -------------------------------------------------------------------------------- | Administrative | (2,4 | (2,5 | (2,35 | | (2,13 | (1,69 | (2,01 | (1,39 | | expenses | 96) | 27) | 2) | | 7) | 7) | 4) | 4) | -------------------------------------------------------------------------------- | Operating loss | 8,85 | (10, | (9,05 | | (10,0 | (732) | (7,21 | (5,18 | | | 5 | 781) | 1) | | 45) | | 4) | 8) | -------------------------------------------------------------------------------- | Net financial | 690 | 711 | 311 | | 352 | 432 | 434 | 483 | | income / | | | | | | | | | | (expenses) | | | | | | | | | -------------------------------------------------------------------------------- | Net loss for the | 9,54 | (10, | (8,74 | | (9,69 | (300) | (6,77 | (4,70 | | period | 5 | 070) | 0) | | 3) | | 9) | 5) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance Sheet | | | | | | | | | -------------------------------------------------------------------------------- | Cash and cash | 89,3 | 78,8 | 35,58 | | 44,46 | 53,25 | 55,90 | 57,97 | | equivalents | 83 | 09 | 5 | | 3 | 9 | 9 | 6 | -------------------------------------------------------------------------------- | Total assets | 95,0 | 84,9 | 41,80 | | 51,18 | 60,06 | 62,26 | 63,77 | | | 15 | 87 | 2 | | 7 | 9 | 6 | 5 | -------------------------------------------------------------------------------- | Share capital | 7,54 | 7,51 | 4,303 | | 4,258 | 4,258 | 4,090 | 4,090 | | | 4 | 8 | | | | | | | -------------------------------------------------------------------------------- | Total equity | 86,9 | 76,6 | 35,68 | | 43,65 | 52,69 | 51,16 | 57,33 | | | 12 | 46 | 9 | | 2 | 7 | 6 | 8 | -------------------------------------------------------------------------------- | Investment in | 161 | 430 | 107 | | 791 | 69 | 257 | 19 | | property, plant | | | | | | | | | | and equipment | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow | | | | | | | | | | Statement | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow from | 10,6 | (6,4 | (8,87 | | (8,24 | (3,51 | (1,59 | (4,16 | | operating | 56 | 64) | 9) | | 8) | 6) | 1) | 7) | | activities | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow from | (161 | (430 | (107) | | (440) | (69) | (450) | (19) | | investing | ) | ) | | | | | | | | activities | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow from | 62 | 50,1 | 120 | | (94) | 935 | (220) | (115) | | financing | | 17 | | | | | | | | activities | | | | | | | | | -------------------------------------------------------------------------------- | Cash and cash | 89,3 | 78,8 | 35,58 | | 44,46 | 53,25 | 55,90 | 57,97 | | equivalents at | 83 | 09 | 5 | | 3 | 9 | 9 | 6 | | period end | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial Ratios | | | | | | | | | -------------------------------------------------------------------------------- | Basic and diluted | 0.17 | (0.2 | (0.27 | | (0.31 | (0.01 | (0.22 | (0.15 | | EPS | | 0) | ) | | ) | ) | ) | ) | -------------------------------------------------------------------------------- | Weighted average | 56,1 | 51,6 | 31,83 | | 31,77 | 30,80 | 30,51 | 30,40 | | number of shares | 35,2 | 11,7 | 3,188 | | 0,705 | 0,894 | 4,048 | 1,868 | | | 41 | 13 | | | | | | | -------------------------------------------------------------------------------- | Average number of | 113 | 101 | 93 | | 64 | 69 | 59 | 45 | | employees (FTEs) | | | | | | | | | -------------------------------------------------------------------------------- | Assets/equity | 1.09 | 1.11 | 1.17 | | 1.17 | 1.14 | 1.22 | 1.11 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income Statement | | | Consolid | | | | | | | ated | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (DKK'000) | Q3 | Q3 | YTD | YTD | Year | -------------------------------------------------------------------------------- | | | 2008 | 2007 | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Revenue | 154,433 | 53,668 | 165,313 | 60,702 | 64,705 | -------------------------------------------------------------------------------- | Research and | (69,738) | (46,464) | (192,191 | (120,601 | (183,608 | | development costs | | | ) | ) | ) | -------------------------------------------------------------------------------- | Administrative | (18,626) | (12,662) | (55,025) | (38,087) | (54,033) | | expenses | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating loss | 66,069 | (5,458) | (81,903) | (97,986) | (172,936 | | | | | | | ) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income | 7,714 | 5,421 | 18,422 | 14,018 | 18,553 | -------------------------------------------------------------------------------- | Financial expenses | (2,564) | (2,200) | (5,644) | (3,950) | (5,856) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Loss before tax | 71,219 | (2,237) | (69,125) | (87,918) | (160,239 | | | | | | | ) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Tax for the period | - | - | - | - | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net loss for the | 71,219 | (2,237) | (69,125) | (87,918) | (160,239 | | period | | | | | ) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Basic and diluted EPS | 1.27 | (0.07) | (1.48) | (2.88) | (5.19) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Weighted average | 56,135,2 | 30,800,8 | 46,561,7 | 30,573,7 | 30,875,4 | | number of shares | 41 | 94 | 82 | 31 | 34 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | | | Consolid | | | | | | | | ated | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (DKK'000) | | Sep. 30 | | Sep. 30 | | Dec. 31 | -------------------------------------------------------------------------------- | | | | 2008 | | 2007 | | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Licenses and rights | | 692 | | 742 | | 729 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Intangible assets | | 692 | | 742 | | 729 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Property, plant and equipment | | 21,420 | | 21,300 | | 21,837 | -------------------------------------------------------------------------------- | Leasehold improvements | | 5,395 | | 5,288 | | 6,220 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Property, plant and equipment | | 26,815 | | 26,588 | | 28,057 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | 27,507 | | 27,330 | | 28,786 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Trade receivables | | 6,854 | | 4,022 | | 3,842 | -------------------------------------------------------------------------------- | Other receivables | | 6,722 | | 18,018 | | 14,379 | -------------------------------------------------------------------------------- | Prepayments | | 937 | | 1,445 | | 3,165 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Receivables | | 14,513 | | 23,485 | | 21,386 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents | | 666,895 | | 397,369 | | 331,740 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | 681,408 | | 420,854 | | 353,126 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | 708,915 | | 448,184 | | 381,912 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity & Liabilities | | | | Consolid | | | | | | | | ated | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (DKK'000) | | Sep. 30 | | Sep. 30 | | Dec. 31 | -------------------------------------------------------------------------------- | | | | 2008 | | 2007 | | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share capital | | 56,288 | | 31,771 | | 31,771 | -------------------------------------------------------------------------------- | Share premium | | 1,079,2 | | 724,645 | | 724,645 | | | | 14 | | | | | -------------------------------------------------------------------------------- | Translation reserves | | 1,162 | | 431 | | 821 | -------------------------------------------------------------------------------- | Retained earnings/loss | | (488,20 | | (363,671 | | (431,548 | | | | 8) | | ) | | ) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | 648,456 | | 393,176 | | 325,689 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Provisions | | 10,492 | | - | | - | -------------------------------------------------------------------------------- | Finance lease | | 17,094 | | 20,859 | | 20,416 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | 27,586 | | 20,859 | | 20,416 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance lease | | 4,619 | | 5,352 | | 5,092 | -------------------------------------------------------------------------------- | Trade payables | | 13,669 | | 17,720 | | 15,066 | -------------------------------------------------------------------------------- | Deferred revenue | | - | | - | | 1,716 | -------------------------------------------------------------------------------- | Other payables | | 14,585 | | 11,077 | | 13,933 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | 32,873 | | 34,149 | | 35,807 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | 60,459 | | 55,008 | | 56,223 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity and liabilities | | 708,915 | | 448,184 | | 381,912 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash Flow Statement | | | Consolid | | | | | | | ated | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | (DKK'000) | Q3 | Q3 | YTD | YTD | Year | -------------------------------------------------------------------------------- | | | 2008 | 2007 | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating loss | 66,069 | (5,458 | (81,902) | (97,986 | (172,93 | | | | ) | | ) | 6) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share-based payment | 3,905 | 4,715 | 12,465 | 13,573 | 18,017 | -------------------------------------------------------------------------------- | Depreciation and | 2,283 | 1,804 | 6,497 | 5,130 | 7,004 | | amortization | | | | | | -------------------------------------------------------------------------------- | Net loss on sale of fixed | - | - | - | - | 60 | | assets | | | | | | -------------------------------------------------------------------------------- | Changes in working capital | 2,187 | (31,12 | 15,392 | (138) | 3,558 | | | | 1) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from operating | 74,444 | (30,06 | (47,548) | (79,421 | (144,29 | | activities before interest | | 0) | | ) | 7) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest received | 7,649 | 5,095 | 18,146 | 13,245 | 17,914 | -------------------------------------------------------------------------------- | Interest paid | (2,590 | (1,266 | (5,571) | (3,015) | (4,344) | | | ) | ) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from operating | 79,503 | (26,23 | (34,973) | (69,191 | (130,72 | | activities | | 1) | | ) | 7) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Purchase of property, plant | (1,205 | (513) | (5,212) | (2,570) | (5,900) | | and equipment | ) | | | | | -------------------------------------------------------------------------------- | Net loss on sale of | - | - | - | - | (60) | | property, plant and | | | | | | | equipment | | | | | | -------------------------------------------------------------------------------- | Cash transfer to restricted | - | (1,338 | - | (1,338) | (1,338) | | security deposit | | ) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from investing | (1,205 | (1,851 | (5,212) | (3,908) | (7,298) | | activities | ) | ) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Proceeds from bank | - | - | - | - | 1,118 | | borrowings and finance | | | | | | | lease | | | | | | -------------------------------------------------------------------------------- | Installments on bank | (1,281 | (1,535 | (3,795) | (4,535) | (6,356) | | borrowings and finance | ) | ) | | | | | lease | | | | | | -------------------------------------------------------------------------------- | Proceeds from issuance of | 1,744 | 8,507 | 379,085 | 9,007 | 9,007 | | shares, net | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing | 463 | 6,972 | 375,290 | 4,472 | 3,769 | | activities | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Increase/(decrease) in cash | 78,762 | (21,11 | 335,105 | (68,627 | (134,25 | | and cash equivalents | | 0) | | ) | 6) | -------------------------------------------------------------------------------- | Cash and cash equivalents | 586,74 | 417,14 | 330,402 | 464,658 | 464,658 | | at beginning of period | 6 | 1 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents | 665,50 | 396,03 | 665,507 | 396,031 | 330,402 | | at end of period | 7 | 1 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents | | | | | | | at end of period comprise: | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Restricted bank deposit | 1,388 | 1,338 | 1,388 | 1,338 | 1,338 | -------------------------------------------------------------------------------- | Deposit on demand and cash | 665,50 | 396,03 | 665,507 | 396,031 | 330,402 | | | 7 | 1 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 666,89 | 397,36 | 666,895 | 397,369 | 331,740 | | | | 5 | 9 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Consolidated | | | | | | | | | Equity | | | | | | | | -------------------------------------------------------------------------------- | | | Number of | Share | Share | Transl | Retain | Total | | | | Shares | Capita | Premiu | ation | ed | | | | | | l | m | Reserv | Earnin | | | | | | | | es | gs | | -------------------------------------------------------------------------------- | | | | | DKK'00 | DKK'00 | DKK'00 | DKK'00 | DKK'00 | | | | | | 0 | 0 | 0 | 0 | 0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as of 1 | 30,369 | | 30,370 | 717,03 | - | (289,3 | 458,08 | | January 2007 | ,816 | | | 9 | | 26) | 3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Comprehensive | | | | | | | | | income: | | | | | | | | -------------------------------------------------------------------------------- | | Net loss for | | | | | | (87,91 | (87,91 | | | the period | | | | | | 8) | 8) | -------------------------------------------------------------------------------- | | Exchange rate | | | | | | | | | | adjustment of | | | | | | | | -------------------------------------------------------------------------------- | | investments | | | | | 431 | | 431 | | | in | | | | | | | | | | subsidiaries | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | | | | | | | (87,48 | | comprehensive | | | | | | | 7) | | income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Warrant exercises | 1,400, | | 1,401 | 7,663 | | | 9,064 | | | 889 | | | | | | | -------------------------------------------------------------------------------- | Share-based | | | | | | 13,573 | 13,573 | | payment | | | | | | | | -------------------------------------------------------------------------------- | Costs related to | | | | (57) | | | (57) | | capital increases | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as of | 31,770 | | 31,771 | 724,64 | 431 | (363,6 | 393,17 | | September 30, 2007 | ,705 | | | 5 | | 71) | 6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Net loss for | | | | | | (72,32 | (72,32 | | | the period | | | | | | 1) | 1) | -------------------------------------------------------------------------------- | | Exchange rate | | | | | | | | | | adjustment of | | | | | | | | -------------------------------------------------------------------------------- | | investments | | | | | 390 | | 390 | | | in | | | | | | | | | | subsidiaries | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | | | | | | | (71,93 | | comprehensive | | | | | | | 1) | | income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share-based | | | | | | 4,444 | 4,444 | | payment | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as of | 31,770 | | 31,771 | 724,64 | 821 | (431,5 | 325,68 | | December 31, 2007 | ,705 | | | 5 | | 48) | 9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Comprehensive | | | | | | | | | income: | | | | | | | | -------------------------------------------------------------------------------- | | Net loss for | | | | | | (69,12 | (69,12 | | | the period | | | | | | 5) | 5) | -------------------------------------------------------------------------------- | | Exchange rate | | | | | | | | | | adjustment of | | | | | | | | -------------------------------------------------------------------------------- | | investments | | | | | 341 | | 341 | | | in | | | | | | | | | | subsidiaries | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total | | | | | | | (68,78 | | comprehensive | | | | | | | 4) | | income | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Issuance of shares | 24,322 | | 24,322 | 385,73 | | | 410,05 | | | ,240 | | | 1 | | | 3 | -------------------------------------------------------------------------------- | Warrant exercises | 194,56 | | 195 | 1,633 | | | 1,828 | | | 2 | | | | | | | -------------------------------------------------------------------------------- | Share-based | | | | | | 12,465 | 12,465 | | payment | | | | | | | | -------------------------------------------------------------------------------- | Costs related to | | | | (32,79 | | | (32,79 | | capital increases | | | | 5) | | | 5) | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity as of | 56,287 | | 56,288 | 1,079, | 1,162 | (488,2 | 648,45 | | September 30, 2008 | ,507 | | | 214 | | 08) | 6 | -------------------------------------------------------------------------------- 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.
LifeCycle Pharma Announces Interim Report For the 9 Months Ended September 30, 2008
| Source: Veloxis Pharmaceuticals A/S