DGAP-News: PAION AG / Key word(s): Final Results
PAION AG REPORTS FINANCIAL RESULTS FOR THE FULL YEAR 2011
14.03.2012 / 07:30
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PAION AG REPORTS FINANCIAL RESULTS FOR THE FULL YEAR 2011
- Sale of Desmoteplase secures cash reach into 2014
- Implementation of the restructuring completed by June 2012
- Partnering of lead compound Remimazolam remains highest priority
- Focus on the strategic realignment of PAION as a specialised provider
of anaesthesia products
Aachen (Germany), 14 March 2012 - 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 2011.
Total revenues in 2011 decreased by EUR 1.2 million (27.4%) to EUR 3.2
million compared to the previous year. The largest item was the milestone
payment of USD 3 million received from Ono Pharmaceutical during the second
quarter of 2011. The net loss for 2011 amounted to EUR 13.7 million, an
increase of EUR 4.4 million (47.9%) over the previous year. This includes a
non-cash impairment charge of EUR 6.1 million for the compound M6G related
to lowered out-licensing expectations.
Dr Wolfgang Söhngen, CEO of PAION commented, 'We are optimistic for 2012.
After the sale of Desmoteplase we are now in a solid financial position to
strategically establish and expand our anaesthesia portfolio. This includes
primarily partnering regional marketing rights for Remimazolam and also
exploring the acquisition of rights of marketed anaesthesia product
opportunities.'
Strategic Realignment - risk reduced portfolio
To eliminate the known market and development risks and the high exposure
of PAION in the indication stroke, all remaining rights of Desmoteplase
have been sold to H. Lundbeck A/S in February 2012. The amount of EUR 20.1
million, which was obtained from the sale of Desmoteplase will partly be
used to implement PAION's new strategic orientation and focus on
anaesthesia. The key element of a viable strategy for this market is
PAION's lead compound Remimazolam. Intensive partnering efforts will
continue, with the aim of participating in the active commercialisation in
selected central EU countries. Furthermore, in order to successfully
establish a new platform in the anaesthesia market, PAION is aiming to
purchase marketing rights for suitable anaesthetic products and to market
these in selected European markets. For this purpose PAION has allocated an
investment budget in the mid-single digit million range. These
complementary products will be used to enter the anaesthesia market and as
such prepare the ground for the commercialisation of Remimazolam. Based on
the results of the market research and market access study conducted in
2011, PAION believes that Remimazolam is an excellent drug candidate to
serve as a focal point for the planned commercial anaesthesia platform.
Review 2011 and Portfolio Update
Remimazolam
In 2011, PAION was focussing on the development and partnering of
Remimazolam. Based on the excellent results of the Phase IIb trial with
Remimazolam in colonoscopy, PAION was and is currently in discussion with
interested parties. In preparation of the further clinical development
PAION has completed the API and clinical trial material production for
Phase III. The partnering of Remimazolam, as a lead compound of the
emerging anaesthesia portfolio, will remain the key priority for PAION.
For the Japanese market Remimazolam is currently being developed in the
anaesthesia indication by Ono Pharmaceutical. In May 2011, Ono initiated
the first Phase II study with Remimazolam in Japan, triggering a milestone
payment of USD 3 million.
M6G
No partner for M6G could be identified in 2011, which led to an impairment
charge of EUR 6.1 million. Currently there are no development activities
ongoing with this compound. However, the IP rights for M6G are being
maintained in order to be able to reactivate the programme. M6G has the
potential to be a good fit in PAION's anaesthesia portfolio.
Solulin
In August 2011 PAION started a Phase Ib study for the treatment of
haemophilia with Solulin, an improved variant of the human protein
thrombomodulin. As a result of the improved financial position of the
company PAION will now continue the study without third party funding.
First results of the study are expected in 2012.
Cost reduction plan
In December 2011 PAION started with the implementation of a comprehensive
restructuring to effect a significant cost reduction. In this context, the
number of employees is being reduced in H1 2012 to eleven employees and two
management board members. The reduced headcount will decrease the running
costs of PAION by the second half of 2012.
Finances
Revenues
Total Revenues in 2011 decreased by EUR 1.2 million (27.4%) to EUR 3.2
million compared to the previous year. The largest item was the milestone
payment of USD 3 million received from Ono Pharmaceutical during the second
quarter of 2011.
Development costs
Research and development expenses in 2011 amounted to EUR 11.8 million and
increased by EUR 2.8 million (31.2%) over the previous year. The research
and development expenses include a non-cash EUR 6.1 million impairment
charge on the compound M6G. Without this non-cash and one-time effect the
research and development expenses amounted to EUR 5.7 million, a decrease
of EUR 3.3 million (36.5%) compared to the previous year. The decrease is
due to reduced development activities. The main research and development
focus in 2011 was on Remimazolam and Solulin.
General administrative and selling expenses in 2011 amounted to EUR 4.8
million and increased by EUR 0.3 million (6.0%) compared to the previous
year. The increase results from higher selling expenses in connection with
partnering activities and extensive market research and market access
analysis as well as the restructuring announced in December 2011.
Liquidity
Cash and cash equivalents on 31 December 2011 have decreased compared to 31
December 2010 by EUR 7.4 million to EUR 7.5 million. The sale of the
Desmoteplase rights for EUR 20.1 million in the first quarter 2012 improves
the liquidity of the group and secures a cash reach into 2014 including the
repayment of a subordinated loan of EUR 7 million, due in April 2013. The
cash balance after the sale of Desmoteplase amounted to EUR 22.5 million.
Business and Financial Outlook 2012
PAION's major goals for 2012 are the out-licensing of Remimazolam outside
Japan, the completion of the ongoing Phase Ib study with Solulin, as well
as the implementation of its strategic realignment and focus on
anaesthesia. Furthermore, PAION expects the continuation of the development
activities by its cooperation partners Ono (Remimazolam) and Acorda (GGF2).
In 2012 PAION expects revenues of approximately EUR 23 million. These
include the sale of the Desmoteplase rights to Lundbeck for EUR 20.1
million and the complete release of the deferred income of EUR 2.5 million
(resulting from the non-refundable milestone payment of EUR 8 million
received from Lundbeck in 2008). Upfront payments from the potential
partnering of Remimazolam are not included in this outlook.
The restructuring of PAION, which was announced and implemented in December
2011, will, due to redundancy payments, result in higher expenses for
administration and development in H1 of 2012 but will also substantially
reduce the cost structure from mid-2012 onwards. External research and
development expenses will also be considerably lower than in the previous
year. Selling and marketing costs may increase in 2012 due to the strategic
realignment and positioning of PAION in the area of anaesthesia.
Furthermore, one-off expenses for consulting services and success-based
payments are anticipated for 2012, which are related to the out-licensing
activities with Remimazolam and the sale of Desmoteplase. The revenues from
the sale of Desmoteplase will lead to a significant profit in 2012.
As of 31 December 2011 PAION's cash and cash equivalents amounted to EUR
7.5 million. The sale of the Desmoteplase rights for EUR 20.1 million in
February 2012 improves the liquidity of the group sustainably and secures a
cash reach into 2014.
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Key Consolidated Financial Figures, IFRS
|[![CDATA[|[pre|]]]|]
(all figures in KEUR unless otherwise noted) 2011 2010
Revenues 3,249 4,474
Research and development expenses -11,825 -9,016
General administrative and selling expenses -4,815 -4,540
Net result for the period -13,684 -9,254
Earnings per share in EUR for the period
(basic) -0.54 -0.38
Earnings per share in EUR for the period
(diluted) -0.54 -0.38
2011 2010
Cash flows from operating activities -7,358 -8,143
Cash flows from investing activities -42 -44
Cash flows from financing activities 30 170
Average number of group employees 26 28
31 Dec. 2011 31 Dec. 2010
Intangible assets 4,013 10,571
Cash and cash equivalents 7,516 14,882
Equity -464 11,968
Non-current liabilities 9,955 10,482
Balance sheet total 12,606 26,836
|[![CDATA[|[/pre|]]]|]
The full annual financial report will be available as from 14 March 2012 on
our corporate website at http://www.paion.com/en/berichte-2012.
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, 14 March 2012 at 2 p.m. CET (1 p.m. GMT, 9 a.m. EDT) to present
the financial results of 2011, highlight the most important events and
provide a pipeline and strategy update and financial outlook.
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 479378#. 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 137342882 in
the field 'Weblogin' and 479378 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 headquartered in Aachen, Germany and has a second site in
Cambridge, UK. The company is specialised in developing innovative drugs
for the hospital-based treatment in indications for which there is a
substantial unmet medical need. PAION is extending its 'Search & Develop'
business model, by transforming into a 'Specialty Pharma Company', with a
focus on anaesthesia products.
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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160419 14.03.2012
DGAP-News: PAION AG REPORTS FINANCIAL RESULTS FOR THE FULL YEAR 2011
| Source: EQS Group AG