PAION AG / Key word(s): Quarter Results
10.11.2010 07:30
---------------------------------------------------------------------------
EARNINGS
PAION AG REPORTS RESULTS FOR THE FIRST NINE MONTHS 2010
- PAION completes Phase IIb study with Remimazolam/CNS 7056 (September
2010)
- PAION expands Desmoteplase agreement with Lundbeck (October 2010)
- Revenues more than doubled
- Net loss reduced by 27%
Aachen (Germany), 10 November 2010 - The biopharmaceutical company PAION AG
(ISIN DE000A0B65S3; Frankfurt Stock Exchange, Prime Standard: PA8) today
reports its consolidated financial results according to International
Financial Reporting Standards (IFRS) for the first nine months 2010.
Compared to the prior-year period, revenues increased by EUR 1.4 million to
EUR 2.6 million, mainly due to the milestone payments from Ono and Acorda.
Research and development expenses decreased by EUR 1.7 million compared to
the prior-year period. The loss for the first nine months of 2010 of EUR
-7.3 million was EUR 2.7 million lower than the corresponding prior-year
period (EUR -10.0 million).
'The focus of the third quarter was on continuing our partnering activities
and the completion of the Phase IIb study with Remimazolam' commented
Wolfgang Söhngen, CEO of PAION. 'In particular, through the expanded
agreement with Lundbeck, we were able to secure further significant
potential for revenues.'
Overview First Nine Month 2010
The first nine months of 2010 were marked by the conduct of the Phase IIb
study with Remimazolam; the last patient was enrolled in September.
Furthermore important milestones were reached such as the initiation of the
first Phase I trial of Remimazolam in Japan by PAION's development partner
Ono Pharmaceutical in April 2010, which triggered the first milestone
payment of USD 1 million and the IND (Investigational New Drug application)
filed by our licencee Acorda Therapeutics for the substance GGF2, which
triggered milestone payments of a total of USD 1 million.
On 27 September 2010 the completion of the Phase IIb clinical trial,
assessing the new short-acting intravenous anaesthetic/sedative Remimazolam
in patients undergoing colonoscopy was announced. No drug-related Serious
Adverse Event has been reported. The recruitment for the Phase IIb trial
was completed in only four months. Headline data are expected by the end of
November 2010.
On 15 October 2010 PAION announced the expansion of the Desmoteplase
agreement with Lundbeck. Lundbeck now gets access to potential follow-up
compounds and receives research rights. In return, PAION receives payments
of up to EUR 31.5 million, thereof:
- An upfront payment of EUR 1.5 million, which was received in October
and will be recognised as revenue in the fourth quarter 2010.
- EUR 5 million increase of Desmoteplase milestone payments to a total of
up to EUR 68 million.
- Up to EUR 25 million milestone payments for development and
commercialisation of the second generation molecules (follow-up
compounds).
Consolidated financial results for the first nine month 2010
Revenues in the first nine months 2010 include EUR 1.4 million (USD 2
million) which relate to milestone payments from Ono for the start of the
Phase I study with Remimazolam in Japan and from Acorda for the submission
and subsequent approval of the IND for the compound GGF2. Furthermore the
revenues include the systematic release of deferred income in connection
with the licence agreement concluded with Lundbeck (EUR 1.1 million) as
well as the refund of development expenses by Lundbeck.
Research and development expenses of EUR 6.6 million in the first nine
months 2010 decreased by EUR 1.7 million compared with the corresponding
prior-year period of EUR 8.3 million. The main research and development
focus was on Remimazolam.
General and administrative expenses remained at the prior-year period level
in the first nine months 2010, amounting to EUR 3.3 million (prior-year
period: EUR 3.4 million).
The financial result for the first nine months 2010 decreased year on year
by EUR 0.1 million to EUR -0.4 million. The main reasons for the decrease
are significantly lower money market interest rates as well as the
reduction in cash and cash equivalents compared to the prior-year period.
The total assets as of 30 September 2010 decreased by EUR 8.2 million
compared to 31 December 2009 and amounted to EUR 27.4 million. The decrease
was mainly due to a lower equity through the loss of the period and lower
cash and cash equivalents. As of 30 September 2010 the equity ratio is
45.9%, which means a decline compared to 31 December 2009 (54.3%). If the
subordinate loan and the deferred non-refundable upfront payment from
Lundbeck were recognised as economic equity, the equity ratio would be
85.7%.
On average, PAION employed 29 employees in the first nine months of 2010
(fiscal year 2009: 30 employees).
Outlook
PAION completed the clinical Phase IIb study with Remimazolam in September
2010 and expects headline data by the end of November 2010. PAION expects
that the Phase IIb study results will enhance the value of Remimazolam for
potential partners.
After the availability of the Phase IIb data PAION will continue the
Remimazolam partnering discussions with vigour. In parallel, PAION will
continue the ongoing talks with several potential partners regarding M6G.
Milestone payments from the existing licence agreements with Lundbeck, Ono
and Acorda lead to an increase in revenues. After deduction of the expenses
PAION will show a significant net loss for the year.
As of 30 September 2010 PAION's cash and cash equivalents amounted to EUR
15 million. In October 2010 PAION received EUR 1.5 million from Lundbeck
and in November a total of EUR 0.8 million from a capital increase. The
cash and cash equivalents and the expected cash inflows from a partial use
of the equity facility, secure a cash reach until the middle of 2012. This
does not account for further upfront payments, milestone payments and cost
reimbursements from existing and future partners or an extensive or total
use of the equity facility, which could expand the cash reach.
###
Key Consolidated Financial Figures, IFRS
(all figures in KEUR unless
otherwise noted) Q32010 Q3 2009 Q1-Q3 2010 Q1-Q3 2009
Revenues 368 377 2,604 1,164
Research and development expenses -2,226 -2,783 -6,579 -8,275
General administrative and selling
expenses -1,082 -1,121 -3,312 -3,388
Net result for the period -2,992 -3,152 -7,319 -10,043
Earnings per share in EUR for the
period (basic) -0.12 -0.13 -0.30 -0.41
Earnings per share in EUR for the
period (diluted) -0.12 -0.13 -0.30 -0.41
Q1-Q3 2010 Q1-Q3 2009
Cash flows from operating
activities -7,390 -8,828
Cash flows from investing
activities -21 -53
Cash flows from financing
activities -442 -498
Average number of group employees 29 30
30 Sept. 31 Dec.
2010 2009
Intangible assets 10,999 11,380
Cash and cash equivalents 15,033 22,871
Equity 12,579 19,304
Non-current liabilities 10,826 12,033
Balance sheet total 27,390 35,550
Equity ratio 45.9% 54.3%
The full report will be available as from 10 November 2010 on our corporate
website at http://www.paion.com/en/berichte-2010.
Earnings call and webcast
In addition to the publication of the results, the Management Board of
PAION will host a public conference call (conducted in English) on
Wednesday, 10 November 2010 at 2 p.m. CET (1 p.m. GMT, 8 a.m. ET) to
present the financial results of the third quarter of 2010, highlight the
most important events of this period and provide further details on the
company's latest developments.
To access the call, participants from Germany may dial +49-69-201744210,
from the UK +44-20-71539154 and from the US +1-877-4230830 (other
countries: please choose from D/UK/US numbers). The participant PIN code is
642602, followed by the hash key (#). To allow for smooth processing we
suggest that you dial in ten minutes before the beginning of the call.
The conference call will be supplemented by a webcast presentation which
can be accessed during the call under the following link:
https://www.anywhereconference.com. In the field 'Web Login' please enter
107325685 and in the field 'PIN Code' 642602. After entering your name in
the specified field please click on 'Go'. The dial-in details for the
conference call and the webcast link will also be available on our website
http://www.paion.com.
The conference call will be recorded. Details on how to access the replay
will be posted on the same web page after the call.
About PAION
PAION is a biopharmaceutical company headquartered in Aachen, Germany and
has a second site in Cambridge, UK. The company is specialized in
developing and commercializing innovative drugs for the hospital-based
treatment in indications for which there is a substantial unmet medical
need. PAION has a 'Search & Develop' business model, which is based on its
core expertise in drug development. Where appropriate, particularly during
the late stages of the clinical development, PAION seeks to collaborate
with experienced partners.
Contact
Ralf Penner
Director Investor Relations & Public Relations
PAION AG
Martinstrasse 10-12, 52062 Aachen - Germany
Phone +49 241 4453-152
E-mail r.penner@paion.com
http://www.paion.com
Disclaimer:
This release contains certain forward-looking statements concerning the
future business of PAION AG. These forward-looking statements contained
herein are based on the current expectations, estimates and projections of
PAION AG's management as of the date of this release. They are subject to a
number of assumptions and involve known and unknown risks, uncertainties
and other factors. Should actual conditions differ from the Company's
assumptions, actual results and actions may differ materially from any
future results and developments expressed or implied by such
forward-looking statements. Considering the risks, uncertainties and other
factors involved, recipients should not rely unreasonably upon these
forward-looking statements. PAION AG has no obligation to periodically
update any such forward-looking statements to reflect future events or
developments.
10.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: PAION AG
Martinstr. 10-12
52062 Aachen
Deutschland
Phone: +49 (0)241-4453-0
Fax: +49 (0)241-4453-100
E-mail: info@paion.com
Internet: www.paion.com
ISIN: DE000A0B65S3
WKN: A0B65S
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Berlin, Düsseldorf, Stuttgart
End of Announcement DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: PAION AG REPORTS RESULTS FOR THE FIRST NINE MONTHS 2010
| Source: EQS Group AG