BERLIN, May 15, 2007 (PRIME NEWSWIRE) -- Jerini AG (FSE:JI4) reported financial results for the first quarter ended March 31, 2007. Under International Financial Reporting Standards (IFRS), revenues for the three-month period increased by 11.1 percent to EUR 3.6 million from EUR 3.2 million for the same period in 2006, primarily attributable to revenues from a partnership agreement with Abbott. As of March 31, 2007, cash and cash equivalents amounted to EUR 61.7 million, compared to EUR 66.6 million at year end 2006. "Our financial position remains strong, and we plan to complete the U.S. and European regulatory submissions for Icatibant in the treatment of hereditary angioedema (HAE) in the third quarter of this year. We are committed to bringing Icatibant to HAE patients as quickly as possible," said Jens Schneider-Mergener, CEO of Jerini.
First quarter research and development expenses decreased to EUR 5.3 million (EUR 5.9 million in the prior year period) due to higher spending related to preclinical research for alpha5beta1 integrin compounds in the prior year. An increase in general and administrative expenses to EUR 2.1 million (compared to EUR 1.6 million in the prior year period) is mainly attributable to compensation expenses for stock options granted in the third quarter of 2006, and an increase in subcontracting. Consequently, loss from operations before tax and finance cost (EBIT) increased slightly to EUR 5.4 million (EUR 5.3 million in the prior year period). For the three-month period ended March 31, 2007, net loss amounted to EUR 4.8 million (compared to EUR 4.7 million in 2006), and loss per share amounted to EUR 0.09 (EUR 0.09 in the prior year period).
Cash used in operating activities as of March 31, 2007 totaled EUR 4.3 million (compared to EUR 6.2 million in the prior year period). Net cash burn for the first three months of 2007 amounted to EUR 4.5 million (prior year period: EUR 6.7 million). Net cash burn is calculated by the addition of cash used in operating activities (EUR 4.3 million) and cash used in investing activities (EUR 0.2 million), as disclosed in the unaudited consolidated cash flow statements for the three-month period ended March 31, 2007.
Outlook
Management expects further positive business development in the remainder of 2007. Clinical milestones planned for 2007 include the filing of U.S. and EU marketing authorization applications for Icatibant in the treatment of HAE, the start of Phase I clinical testing for JSM 6427 in the treatment of age-related macular degeneration (AMD), and the start of clinical trials for Icatibant in the treatment of drug-induced angioedema. Management forecasts a cash burn of approximately EUR 40 million for 2007 and a further increase in operating loss as compared to 2006. In addition to clinical development expenses, marketing activities related to Icatibant's expected 2008 market launch, along with ongoing development of other preclinical programs, are the main factors behind higher cash burn and spending in 2007 as compared to 2006.
Following its acquisition of Kos Pharmaceuticals in late 2006, Abbott has begun, in the first quarter of 2007, the process of integrating Kos' product portfolio. A licensing agreement between Kos and Jerini, including the North American marketing rights to Icatibant in angioedema, is part of this portfolio. Jerini is currently in discussions with Abbott to evaluate future strategic options pertaining to Icatibant and the licensing agreement.
About Jerini AG
Jerini is a pharmaceutical company based in Berlin, Germany, focusing on the discovery, development, and commercialization of novel peptide-based drugs. The company pursues disease indications that have limited or no treatment options and has built a drug pipeline composed of its own programs, as well as others in collaboration with established partners. In September 2006, Jerini reported Phase III clinical results of Icatibant in the subcutaneous treatment of hereditary angioedema. Based on its technology platform, Jerini has also established several in-house development programs, which address indications within the therapeutic areas of ophthalmology, oncology, and inflammatory disease. In addition, Jerini has established a wholly-owned US subsidiary, Jerini Ophthalmic, Inc., to focus on the development of novel therapeutics for eye diseases. The start of a Phase I clinical trial for JSM 6427 (an integrin receptor antagonist) in the treatment of age-related macular degeneration (AMD) is planned for the third quarter of 2007.
ISIN: DE0006787476