ISCONOVA ACQUIRED BY US VACCINE COMPANY NOVAVAX
APRIL 1 – JUNE 30, 2013
· Consolidated net sales were SEK 5.7 M (5.3)
· Operating result amounted to a loss of SEK 11.9 M (loss: 8.2)
· Net result amounted to a loss of SEK 11.7 M (loss: 8.3)
· Result per share before and after dilution amounted to a loss of SEK 0.94
(loss: 1.99)
· Cash flow amounted to a loss of SEK 11.0 M (loss: 12.2)
JANUARY 1 – JUNE 30, 2013
· Consolidated net sales were SEK 12.8 M (11.0)
· Operating result amounted to a loss of SEK 20.1 M (loss: 18.5)
· Net result amounted to a loss of SEK 20.0 M (loss: 18.7)
· Result per share before and after dilution amounted to a loss of SEK 1.60
(loss: 4.50)
· Cash flow amounted to a loss of SEK 22.1 M (loss: 21.9)
SIGNIFICANT EVENTS DURING THE SECOND QUARTER
· Isconova’s share was listed on OMX First North Premier on April 5.
· Isconova started clinical trials with human rabies vaccine in May.
· The Annual General Meeting was held on May 16, 2013 in Uppsala, Sweden. The
Meeting resolved on the composition of the Board of Directors and its
authorization to decide on new share issues.
· The US vaccine company Novavax, Inc. directed a public tender offer to
Isconova’s shareholders in early June. Isconova’s Board of Directors recommended
unanimously acceptance of the offer.
· Isconova received EU grants for two research projects pertaining to
universal influenza vaccines.
SIGNIFICANT EVENTS AFTER THE END OF PERIOD
· On July 31, Novavax announced that 97.4% of the shares have been received in
the offer. The acceptance period was extended to August 20. On August 22,
Novavax announced that approximately 99.5% of the shares and 100% of the
warrants have been received in the offer, and that the acceptance period was
concluded. Thereafter, a compulsory redemption of the remaining Isconova shares
was initiated.
· Isconova applied for de-listing of its shares from NASDAQ OMX First North
Premier.
· On August 8, Isconova convened an Extraordinary General Meeting for
September 6 with proposals for resolution of the election of a new Board of
Directors and adoption of a new Articles of Association resulting from the
change of name to Novavax AB.
2013 2012 2013 2012 2012
Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Net sales, SEK M 5.7 5.3 12.8 11.0 18.5
Operating loss, SEK M -11.7 -8.3 -20.0 -18.7 -37.9
Loss per share, SEK -0.94 -1.99 -1.60 -4.50 -7.81
Cash flow, SEK M -11.0 -12.2 -22.1 -21.9 8.6
Cash and cash equivalents, SEK M 24.0 15.7 24.0 15.7 46.2
Equity/assets ratio, % 36% 33% 36% 33% 56%
ISCONOVA’S CEO SVEN ANDRÉASSON COMMENTS:
“In addition to continuing our progress with the clinical project portfolio
during the second quarter this year, the single most important event in the
period was the public offer from the US vaccine company Novavax for Isconova,
which will create a strong and natural basis for continued operation.”
All information pertains to the Group, unless otherwise specified. The figures
in parentheses pertain to the outcome for the corresponding year-earlier period.
CEO’S COMMENTS
The second quarter of 2013 was an eventful period for Isconova, in which the
single most important event for the company and its shareholders was the public
offer for Isconova received from the listed US vaccine company Novavax on June
4. Isconova’s Board of Directors recommended unanimously that the shareholders
accept the offer, and after a prolonged acceptance period, Novavax could
announce that approximately 99.5% of the shares and 100% of the warrants had
been traded in exchange for Novavax shares. The process is thereby concluded,
and a de-listing of the Isconova share will now take place, with the last day of
trading set at September 6. Isconova is thus a wholly-owned subsidiary of
Novavax, which is listed on NASDAQ in the US. The name of the company will
shortly be changed to Novavax AB. The high level of acceptance from Isconova’s
shareholders is a clear evidence recognition the business-related and industrial
benefits of this merger.
For the employees of Isconova, the merger with Novavax will mean greater
possibilities to work with new vaccine projects together with international
experts and colleagues.
Isconova’s well-reputed organization in Uppsala will also continue to develop
new opportunities for our patented Matrix adjuvant technology, now as an
integrated part of Novavax innovative vaccine program. Isconova’s shareholders
who decide to retain the Novavax shares represented by the offer will be
investing in an exciting vaccine company for the future.
During the second quarter of 2013, Isconova continued to increase its presence
in the human market for vaccine adjuvants. In April, the company obtained the
approval of the Hungarian pharmaceutical agency GYEMSZI to launch a clinical
phase-I study of a human rabies vaccine. The study was launched in early May and
we expect to issue a report on the first stage during the fourth quarter of
2013.
Isconova announced in June that Matrix-M will be used in two new EU-supported
projects in the “Innovation in Vaccines” program. The projects include two
different routes to prepare a universal vaccine against influenza with a much
broader protection than today’s vaccines. Our portion of the research grant will
be approximately SEK 5.6 M, and our participation confirms Isconova’s role among
today’s research-intense small and midsize companies in our sector.
Sales in the second quarter rose 7% compared with the year-earlier period to SEK
5.7. For the first half of 2013, sales totaled SEK 12.8 M, an increase of 16%.
The increases are primarily attributable to deliveries to Merck Animal
Health/Intervet. The volume trend for the rest of the year is difficult to
assess and is related to changes in our partners’ stock levels. Our expenses
during the quarter were impacted by activities caused by the public tender offer
from Novavax.
During the second of half of 2013, we expect the publication of results both
from our partner Genocea related to the phase-I/IIa study of a vaccine against
HSV-2, as well as from Jenner Institute’s vaccine project against malaria.
Sven Andréasson
President and CEO
Isconova AB (publ) Interim Report January – June 2013
| Source: Isconova AB