DGAP-News: PAION AG PUBLISHES GROUP QUARTERLY STATEMENT FOR THE FIRST QUARTER 2016


DGAP-News: PAION AG / Key word(s): Quarterly / Interim Statement
PAION AG PUBLISHES GROUP QUARTERLY STATEMENT FOR THE FIRST QUARTER 2016

11.05.2016 / 07:30
The issuer is solely responsible for the content of this announcement.

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PAION AG PUBLISHES GROUP QUARTERLY STATEMENT FOR THE FIRST QUARTER 2016 

  - Financial results in line with plan

  - Cash and cash equivalents of EUR 25.5 million; cash reach until the end

    of the first quarter of 2017

  - Positive pre-NDA meeting with Japanese authority PMDA

  - European Phase III study (Remimazolam in general anesthesia in patients

    undergoing cardiac surgery) discontinued due to insufficient patient 
    recruitment

  - Completion of patient recruitment of U.S. Phase III colonoscopy study 
    with no drug-related serious adverse event 

  - Conference call (in English) today at 2:00 pm CET (1:00 pm GMT/8:00 am 
    EDT)

Aachen (Germany), 11 May 2016 - The specialty pharmaceutical 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 the first quarter 2016.

"The discontinuation of our EU study at the beginning of this year was a 
difficult but necessary decision. With the completion of recruitment of the

first U.S. Phase III study, we have achieved an important step. The 
positive feedback of the Japanese authority PMDA during the pre-NDA meeting

is a reward for diligently working towards the ultimate goal of a first 
approval, which could potentially also be used in certain other 
jurisdictions. We are looking forward to a landmark year 2016 with the 
Phase III colonoscopy study data being a major upcoming value inflection 
point", Dr. Wolfgang Söhngen, CEO of PAION AG, commented. 

Important events in the period covered

Development and commercial activities

After the decision to stop the EU Phase III trial in the first quarter 
2016, PAION is now focusing on the development of Remimazolam in procedural

sedation for a U.S. approval. The patient recruitment in the first U.S. 
Phase III study was completed in April 2016 (after the period covered). 
This prospective, double-blind placebo-controlled, randomized, multi-center

open label vs. midazolam trial was performed in the indication procedural 
sedation with 460 patients undergoing colonoscopies. No drug-related 
serious adverse event has been reported. Headline data are expected mid 
2016.

The U.S. Phase III program also includes a second confirmatory, 
prospective, double-blind placebo-controlled, randomized, multi-center open

label vs. midazolam trial in 420 patients undergoing bronchoscopies which 
started in June 2015, a smaller safety trial in 75 high-risk patients 
(double blind vs. placebo and open label vs. midazolam) undergoing 
colonoscopies, and in addition four ongoing Phase I trials for the purpose 
of further supporting Remimazolam's safety profile. 

Patient recruitment in the Phase III bronchoscopy trial remains moderate; 
therefore, completion of patient recruitment could potentially be delayed 
into 2017. In consultation with the FDA, meanwhile, the total study size 
was reduced from 460 to 420 patients. The decrease by 40 patients relates 
to the midazolam treatment group and is not relevant for the approval as 
the primary endpoint of the study is defined versus placebo. In addition, 
certain co-medications are now allowed, as this was the major hurdle to the

study's patient recruitment so far. Assuming successful implementation of 
these and other ongoing counter measures such as the opening of additional 
study centers and a further intensified support of the study centers, PAION

expects filing for approval end of 2017 at the earliest.

Several safety reviews have been conducted by an independent data 
monitoring committee (DMC) since the start of the U.S. Phase III program. 
All safety reviews led to a positive DMC recommendation to continue the 
trials as scheduled.

In August 2015, the start of the multi-national, multi-center, randomized, 
single-blind, propofol-controlled, confirmatory EU Phase III study in 
patients undergoing major cardiac surgery was announced. Due to the complex

study design, the trial faced recruitment challenges. Despite intensive 
efforts to enhance patient recruitment, the trial proved to be difficult to

implement in practice. Therefore, in February 2016, PAION decided to 
discontinue the trial in order to avoid a long and expensive study with the

existing design. Subject to partnering and/or additional funding, we are 
planning to develop a new Phase III clinical study for the EU in the 
indication general anesthesia in general surgery. 

A pre-NDA (New Drug Application) meeting with the Japanese Pharmaceuticals 
and Medical Devices Agency (PMDA) took place in January 2016. The PMDA 
stated that the non-clinical and the clinical data package of Remimazolam 
were regarded as complete for filing in the indication "Induction and 
maintenance of general anesthesia". In October 2015, PAION already reported

that the PMDA had confirmed that both the raw materials produced by PAION 
in Europe as well as the finished formulation of Remimazolam fulfill the 
requirements for filing in Japan. 

Results of operations, financial position and net assets

As expected, no significant revenues were realized in the first quarter 
2016. 

Research and development expenses amounted to KEUR 6,502 in the first 
quarter 2016 and relate to Remimazolam. The increase of KEUR 739 compared 
to the prior-year period is due to the conduct of the Phase III program in 
the U.S. and the EU (discontinued), particularly the finalization of the 
U.S. Phase III colonoscopy trial.

General administrative and selling expenses decreased by KEUR 157 to KEUR 
1,180 in the first quarter 2016. General administrative expenses decreased 
by KEUR 89 to KEUR 781 and selling expenses decreased by KEUR 68 to KEUR 
399. 

Income taxes amounted to KEUR 1,330 in the first quarter 2016 (prior-year 
period: KEUR 1,274) and relate to tax claims for reimbursement of parts of 
the research and development costs from the British tax authorities.

The net loss for the first quarter 2016 amounted to KEUR 6,729. In the 
prior-year period, a net loss of KEUR 4,703 was reported. This means an 
increase of the net loss in the amount of KEUR 2,026 compared to the prior-
year period.

Cash and cash equivalents decreased by KEUR 7,218 in the first quarter 
2016. As of 31 March 2016, PAION's cash and cash equivalents amounted to 
KEUR 25,462. Including the receipt of tax credits expected in the middle of

2016, this secures a cash reach until the end of the first quarter of 2017 
under current planning. 

Outlook 2016
PAION confirms its outlook for 2016 made on 22 March 2016 with the 
publication of the annual financial results for 2015. PAION's major goals 
for 2016 are the further conduct of the Phase III development program with 
Remimazolam in the U.S. and the production development for Remimazolam, in 
particular the validation of the production at market scale. PAION expects 
filing for approval in the U.S. end of 2017 at the earliest and accordingly

market approval end of 2018 at the earliest. 

###

Key consolidated financial figures, IFRS 

<pre>

(all figures in KEUR unless                  Q1 2016                Q1 2015
otherwise noted)
Revenues                                           3                     33
Research and development                      -6,502                 -5,763
expenses
General administrative and                    -1,180                 -1,337
selling expenses
Income taxes                                   1,330                  1,274
Net result for the period                     -6,729                 -4,703
Earnings per share in EUR for                  -0.13                  -0.09
the period (basic)
Earnings per share in EUR for                  -0.13                  -0.09
the period (diluted)

Cash flows from operating                     -7,055                 -5,761
activities
Cash flows from investing                       -137                     -4
activities
Cash flows from financing                          0                      3
activities
Change in cash and cash                       -7,218                 -5,717
equivalents (incl. exchange
rate differences)
Average number of group                           39                     26
employees

                                        31 Mar. 2016           31 Dec. 2015
Intangible assets                              3,053                  3,362
Prepaid expenses and other                     7,942                  7,371
assets
Cash and cash equivalents                     25,462                 32,680
Equity                                        28,533                 35,562
Non-current liabilities                           40                      6
Current liabilities                            8,100                  7,900
Balance sheet total                           36,673                 43,468


</pre>

Conference call and webcast
In addition to the publication of the results, the Management Board of 
PAION AG will host a public conference call (conducted in English) on 11 
May 2016 at 2 p.m. CEST (1 p.m. BST, 8 a.m. EDT) to present the financial 
results of the first quarter 2016, highlight the most important events and 
provide a pipeline and strategy update and financial outlook.

To access the English call starting at 2 p.m., participants may dial from 

* Germany +49 (0) 69 7104 45598,

* UK +44 (0) 20 3003 2666 and 

* U.S. +1 212 999 6659 

* Other countries: please use the UK number 

When prompted, you will be asked to give the password "PAION". The 
conference call will be supplemented by a webcast presentation which can be

accessed during the call under the following link: https://paion-
events.webex.com/paion-events/j.php?MTID=m7016163b2d2de2105c2891f8721aa208.

About PAION
PAION AG is a publicly listed Specialty Pharmaceutical Company 
headquartered in Aachen (Germany) with further sites in Cambridge (United 
Kingdom) and New Jersey (USA).


PAION's lead substance, Remimazolam, is an intravenous ultra-short-acting 
anesthetic that is currently in Phase III clinical development for 
procedural sedation and general anesthesia. Remimazolam is designed to 
complement and improve currently available treatment options for patients 
requiring sedation and anesthesia.

 

PAION is focusing its clinical development activities on Remimazolam and 
has initiated pre-commercial activities according to PAION's vision to 
become an acknowledged "PAIONeer" in sedation and anesthesia.

 
For more information please visit www.paion.com 

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
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.


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11.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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:      Regulated Market in Frankfurt (Prime Standard); Regulated  
                Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
                Stuttgart                                                  
 
 
   End of News    DGAP News Service  
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