BERLIN, Aug. 14, 2008 (PRIME NEWSWIRE) -- Jerini AG (FSE:JI4) reported financial results for the first six months ended June 30, 2008. Under International Financial Reporting Standards (IFRS), total revenues for this period decreased by 23.2 percent to EUR 5.3 million (compared to EUR 6.9 million in the prior year period). Revenues from collaboration agreements decreased to EUR 2.3 million (prior year period: EUR 4.8 million). Cash and cash-equivalents as of June 30, 2008 amounted to EUR 17.8 million.
Research and development expenses increased to EUR 13.2 million in this six-month period (compared to EUR 11.6 million in the prior year period), due to expenses for the Phase I trial of JSM 6427 in the treatment of age-related macular degeneration (AMD), regulatory expenses relating to the submission of US and EU marketing authorization applications for Firazyr(r) (Icatibant) in the treatment of hereditary angioedema (HAE), and the advancement of other projects. Marketing and sales costs increased to EUR 5.6 million (prior year period: EUR 3.0 million) due to intensified preparations for Firazyr(r)'s product launch, including the hiring of additional personnel and travel expenses. The increase in general and administrative expenses (EUR 6.5 million compared to EUR 4.7 million in the prior year period) is attributable primarily to higher legal and consulting fees as well as higher subcontracting costs. Losses from operations before tax and finance costs (EBIT) amounted to EUR 21.3 million (compared to EUR 13.3 million in the prior year period). The net loss for this period amounted to EUR 20.5 million (prior year period: EUR 12.1 million) and loss per share amounted to EUR 0.39 (prior year period: EUR 0.23).
Net cash burn for the first six months of 2008 amounted to EUR 20.1 million (prior year period: EUR 12.5 million). Net cash burn is calculated by the addition of cash used in operating activities (EUR 19.4 million) and cash used in investing activities (EUR 0.7 million), as disclosed in the unaudited consolidated cash-flow statements for the six-month period ended June 30, 2008.
Outlook
As of early August 2008, Jerini has been a subsidiary of Shire Limited and its German wholly-owned indirect subsidiary Shire Deutschland Investments GmbH ("Shire"). As set out in a business combination agreement between Jerini and Shire, Firazyr(r) (Icatibant) will be commercialized in Europe for the treatment of HAE, and Shire will support Jerini in obtaining marketing approval in the United States. The companies have further agreed that they will undertake a strategic evaluation of Jerini's assets (in particular its subsidiaries and development projects) that are not related to Firazyr(r), and then decide whether or not these programs should be integrated into Shire's portfolio.
After a transition phase, which is currently expected to end on November 30, 2008, the members of Jerini's current Management Board plan to step down from their positions. Jerini's current management team, along with some of the company's employees, may consider establishing a new company, which would make an offer to acquire Jerini programs that are not integrated into Shire's portfolio and focus on their further development.
Jerini's sales and marketing teams are prepared for Firazyr(r)'s product launch, which is planned for September in Germany and the UK. In various other EU countries, reimbursement activities are underway and subsequent product launches are expected once reimbursement is finalized.
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. Jerini's lead compound, Firazyr(r), is a first-in-class compound developed for the treatment of hereditary angioedema (HAE), whose European product launch is planned in the third quarter of 2008. Jerini has also established several in-house development programs, which address indications within the therapeutic areas of ophthalmology, oncology, and inflammatory disease. On July 3, 2008, Jerini and Shire Limited's German wholly-owned indirect subsidiary Shire Deutschland Investments GmbH ("Shire") entered into a business combination agreement regarding a strategic partnership. As of early August 2008, Jerini has been a subsidiary of Shire. On August 13, 2008, Shire published an offer document for Jerini shareholders relating to its voluntary public takeover offer in which Jerini shareholders were offered EUR 6.25 per share in cash to acquire their shares. The Management Board and the Supervisory Board of Jerini will publish a reasoned opinion on the offer within the next two weeks. Jerini expects the public takeover process to be completed by the end of September or early October. For more information, please see www.jerini.com.
ISIN: DE0006787476