DGAP-News: PAION AG / Key word(s): Quarter Results
PAION AG REPORTS FINANCIAL RESULTS FOR THE FIRST NINE MONTHS OF 2011
09.11.2011 / 07:30
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PAION AG REPORTS FINANCIAL RESULTS FOR THE FIRST NINE MONTHS OF 2011
- Reduced net loss for the period of EUR 5.1 million, down 30.9% compared
to the prior year period
- Updated financial plan ensures cash reach into the third quarter 2012
(without additional cash inflows and based on current structure)
- Delay of out-licensing of Remimazolam and M6G due to difficult capital
market conditions and restrained investments of the pharma industry
- Production of Remimazolam API for Phase III completed
- Start of a Phase Ib study with Solulin in the indication haemophilia
Aachen (Germany), 09 November 2011 - The biopharmaceutical company PAION AG
(ISIN DE000A0B65S3; Frankfurt Stock Exchange, Prime Standard: PA8) today
reports its consolidated financial result according to International
Financial Reporting Standards (IFRS) for the first nine months of 2011.
Revenues in the first nine months of 2011 increased by EUR 0.5 million
(17.7%) to EUR 3.1 million compared to the prior-year period due to USD 3
million milestone payment received in the second quarter 2011 from Ono
Pharmaceutical. The loss for the first nine months 2011 amounted to EUR 5.1
million decreasing by EUR 2.3 million (30.9%) compared to the prior-year
period.
Dr Wolfgang Söhngen, CEO of PAION commented, '2011 so far has been a
challenging year for the biotech-industry as the financial environment and
market sentiment has been unfavourable towards the sector. This affected
particularly our partnering efforts for Remimazolam. However, given the
impressive data from the Phase IIb study in colonoscopy, we remain
convinced of the potential of Remimazolam as the new gold standard and as
such confident in closing a deal.'
Overview Q1-Q3 2011
Development & Commercialisation Activities
In the first nine months of 2011 the efforts to find partners for
Remimazolam and M6G were continued on an intensive basis.
Based on the excellent results of the Phase IIb trial with Remimazolam in
colonoscopy, PAION is currently in discussion with interested parties.
Findings from a marketing study conducted early 2011 confirm the market
potential of Remimazolam and the current significant need for
anaesthetics/sedatives with a high safety profile and a fast onset and
offset.
Regarding the substance M6G for the treatment of peri-operative pain there
are also discussions ongoing on continuing the development together with
several partners in regional deal structures.
Due to difficult capital market conditions and restrained investments of
the pharma industry negotiations with partners pose a greater challenge to
the company than expected. Therefore it is unlikely that the licensing
agreements for Remimazolam and M6G will be closed in 2011. Presently the
company is unable to predict a clear time frame for the out-licensing of
these compounds. The partnering of Remimazolam is being pursued with
highest priority.
For the Japanese market Remimazolam is currently being developed in
anaesthesia by PAION's partner Ono Pharmaceutical. In May 2011 Ono
initiated the first Phase II trial of Remimazolam in Japan, which triggered
a milestone payment to PAION of USD 3 million.
Following the announcement of positive preclinical data in the indication
haemophilia in December 2010, PAION has selected haemophilia as the new
lead indication for Solulin. Solulin has the potential to significantly
improve the existing treatment modalities for the patients. In the first
half year of 2011 a number of activities were undertaken to substantiate
the safety and efficacy profile of Solulin in preclinical and ex vivo
studies. On the basis of these data a clinical Phase Ib study was initiated
in the indication haemophilia.
Finance
Revenues in the first nine months of 2011 increased by EUR 0.5 million
(17.7%) to EUR 3.1 million compared to the prior-year period. Research and
development expenses of EUR 4.4 million in the first nine months of 2011
decreased by EUR 2.2 million (33.4%) compared to the prior-year period. The
decrease is due to reduced development activities. The main research and
development focus in the first nine months of 2011 was on Remimazolam and
Solulin. General administrative and selling expenses increased in the first
nine months of 2011 by EUR 0.2 million (6.6 %) to EUR 3.5 million. The
increase results from higher selling expenses in connection with partnering
activities and market research.
The loss for the first nine months of 2011 amounted to EUR 5.1 million
decreasing by EUR 2.3 million (30.9%) compared to the prior-year period.
Cash and cash equivalents decreased by EUR 4.9 million in the first nine
months of 2011 and amounted to EUR 10 million. As of 30 September 2011
PAION's equity facility amounted to EUR 13.2 million.
Development and Commercialisation Activities
PAION's major goals for 2011 and 2012 are the out-licensing of Remimazolam
and M6G as well as further development of Solulin. Furthermore, PAION
expects extensive development activities by the cooperation partners
Lundbeck (Desmoteplase), Ono (Remimazolam) and Acorda (GGF2).
Financial Forecast
Revenues in 2011 will include the milestone payment of EUR 2.1 million
received from Ono for the development progress with Remimazolam and the
systematic release of deferred income in the amount of EUR 1.1 million.
This results from the non-refundable milestone payment of EUR 8 million
received in 2008 from Lundbeck; the monthly release was reduced from August
2011 onwards.
Research and development expenses will be considerably lower than the
previous year. The out-licensing activities will lead to increased selling
expenses compared to previous years, especially in connection with
consulting services and success fees. The budgeted expenses will lead to a
significant net loss in 2011.
From the existing cooperations with Lundbeck, Ono and Acorda PAION expects
the next cash inflows from 2012 onwards. Some of the milestone payments,
which are expected in the future, are linked to milestone obligations for
PAION, which would accordingly reduce the result. In case of a successful
out-licensing PAION expects further cash inflows, in a substantial amount
for Remimazolam and in a small amount for M6G from 2012 onwards.
As of 30 September 2011 PAION's cash and cash equivalents amounted to EUR
10 million and the equity facility amounted to EUR 13,2 million. The cash
and cash equivalents alone secure a cash reach into the third quarter 2012.
This does not account for further cash inflows from existing and future
partners or from the equity facility and implies an unchanged structure.
Further upfront payments, milestone payments, cost reimbursements or cost
cutting measures as well as the use of the equity facility could expand the
cash reach. Cash inflows may also be used fully or in part for funding of
additional development activities within the existing portfolio or new
strategic investments.
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Key Consolidated Financial Figures, IFRS
|[![CDATA[|[pre|]]]|]
(all figures in KEUR unless Q3 Q3 Q1-Q3 2011 Q1-Q3
otherwise noted) 2011 2010 2010
Revenues 243 368 3,066 2,604
Research and development expenses -1,347 -2,226 -4,380 -6,579
General administrative and selling
expenses -979 -1,082 -3,529 -3,312
Net result for the period -2,164 -2,992 -5,056 -7,319
Earnings per share in EUR for the
period (basic) -0.09 -0.12 -0.20 -0.30
Earnings per share in EUR for the
period (diluted) -0.09 -0.12 -0.20 -0.30
Q1-Q3 2011 Q1-Q3
2010
Cash flows from operating
activities -5,043 -7,390
Cash flows from investing
activities -41 -21
Cash flows from financing
activities 179 -442
Change in cash and cash equivalents -4,917 -7,838
Average number of group employees 25 29
30 Sept. 31 Dec.
2011 2010
Intangible assets 10,022 10,571
Cash and cash equivalents 9,965 14,882
Equity 7,740 11,968
Non-current liabilities 10,132 10,483
Balance sheet total 21,093 26,836
Equity ratio 36.7% 44.6%
|[![CDATA[|[/pre|]]]|]
The full annual financial report will be available as from 09 November 2011
on our corporate website at http://www.paion.com/en/berichte-2011.
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, 9 November 2011 at 2 p.m. CET (1 p.m. GMT, 8 a.m. EST) to
present the financial results of the third quarter 2011, 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 20 17 44 210,
from the UK +44 207 153 9154 and from the US +1 877 423 0830 (other
countries: please choose from D/UK/US numbers). When prompted, please enter
the PIN 700966#. 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/. To connect, please enter 137341834 in
the field 'Weblogin' and 700966 in the field 'PIN Code'.
The dial-in details for the conference call and the webcast link will also
available on our website http://www.paion.com on the date of the call. 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.
End of Corporate News
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Language: English
Company: PAION AG
Martinstr. 10-12
52062 Aachen
Germany
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 Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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145240 09.11.2011
DGAP-News: PAION AG REPORTS FINANCIAL RESULTS FOR THE FIRST NINE MONTHS OF 2011
| Source: EQS Group AG