Summary of Q3 2008
BioPorto has experienced positive developments in Q3 2008. BioPorto has
obtained certification in Europe of the Group's NGAL cut-off patent. This has
strengthened the company's position in the licensing negotiations relating to
access to the company's patent rights in the NGAL area. The ongoing
negotiations have also confirmed the company's negotiation strategy and
framework for the upcoming NGAL agreements. Revenues were slightly lower than
anticipated, but costs were similarly reduced and the forecast for the year's
financial results remains unchanged. (Comparative figures for Q3 2007 are shown
in parentheses.)
• BioPorto's NGAL cut-off patent has been certified for issue in Europe and New
Zealand. The final patent has been issued in South Africa.
• In the light of the certification of the NGAL cut-off patent in Europe,
BioPorto has entered into substantive negotiations with several parties
relating to IP rights for the NGAL assay method. The overarching contract
elements for the first licensing agreement have been determined.
• In the licensing negotiations, the company gives high priority to achieving
the greatest possible market coverage and thus also the highest possible
royalties, which is why the negotiations may result in the conclusion of
several non-exclusive agreements. This would make it possible to enter into
more agreements over a period of time that are not mutually interdependent.
• Revenues generated in Q3 2008 rose by 11% to T.DKK 2,526 (T.DKK 2,273).
• The loss for the period was T.DKK -3,087 (T.DKK -3,627).
• In November, BioPorto participated in the annual Renal Week held in the US.
Here NGAL's potential as a decisive renal marker was reinforced, and two
diagnostic companies Abbott and Biosite (Inverness) confirmed their previously
announced expectations to launch their first diagnostic NGAL test in 2009.
Expectations for the 2008 fiscal year
• The conclusion of the first licensing agreement relating to the company's IP
rights to the NGAL assay method can still be finalized in 2008. It is expected,
however, that the existence of possibly competing IP rights, which could delay
a final formation of a contract, is expected to be clarified in the near
future. As a result, the date of the first one-off payment could be postponed
until Q1 2009. The company still expects to achieve licensing income in the
double-digit millions, but this is not expected to occur until 2009 and is
expected to be dispersed over several agreements that will be concluded during
the course of 2009.
• The sales of the company's antibodies and diagnostic kits for all of 2008 are
expected to increase to around DKK 10 million, compared to the previously
expected level of DKK 11-12 million. It is still possible that BioPorto's
negotiations regarding bulk sales of antibodies could lead to sales this year
and, in this event, revenues would reach the level originally forecast.
• A net loss of DKK 13-15 million before any licensing income is still expected
for 2008.
See attached document
