Transgene Announces First Half 2005 Financial Results
03 Agosto 2005 - 12:01AM
PR Newswire (US)
STRASBOURG, France, Aug. 3 /PRNewswire-FirstCall/ -- Transgene
(Eurolist Paris: FR0005175080; Nasdaq: TRGNY) announced today
financial results for the first half of 2005: Condensed
Consolidated Statements of Operations US GAAP (Amounts in thousands
except per share data) Six month ended June 30, 2005 2004 euro euro
(unaudited) (unaudited) Total revenues 2,178 987 Total operating
expenses (12,037) (11,962) Loss from operations (9,859) (10,975)
Interest and other income, net 95 341 Income tax benefit 353 (17)
Net loss (9,411) (10,651) Basic loss per ordinary share (0.94)
(1.06) Transgene had total revenues of euro 2.2 million (US$ 2.6
million) in the first half of 2005, a significant increase compared
to euro 1.0 million (US$ 1.21 million) for the same period of 2004.
This increase reflects the development of third-party manufacturing
and the recording in the first half of 2005, after completion of
quality controls and client acceptance, of revenues from the
EUROVAC (European Vaccine Effort against HIV/AIDS) manufacturing
work which Transgene performed in the second quarter of 2004. For
the first six months of 2005, operating expenses were unchanged at
euro 12.0 million (US$ 14.6 million). Research and development
expenses slightly decreased by 3%, from euro 10.1 million (US$ 12.2
million) last year to euro 9.8 million (US$ 11.9 million) in first
half 2005. General and administrative costs amounted to euro 2.2
million (US$ 2.7 million) in the first half of 2005 compared to
euro 1.9 million (US$ 2.3 million) in the first half of 2004.
Interest and other income was euro 0.1 million (US$ 0.1 million) in
first half 2005 compared to euro 0.3 million (US$ 0.4 million) in
the same period of 2004, due to lower cash and cash equivalent held
(euro 4.5 million or US$ 5.4 million on June 30, 2005 - euro 24.8
million or US$ 30.0 million on June 30, 2004). Net cash
expenditures in the first half of 2005 was unchanged compared to
last year, at euro 10.2 million (US$ 12.3 million). Through the
successful follow-on offering of July 2005, the Company raised euro
32.6 million (US$ 39.4 million), 85% of which was subscribed by new
investors. An additional amount of euro 18.7 million would be
raised, by July 2006, in the event all warrants issued in the
follow-on are exercised. The refinancing should enable the Company
to continue its R&D activities through the beginning of 2008,
and in particular to consolidate its Phase II trials results and
seek partnerships within the pharmaceutical sector necessary for
the later development of its product candidates. The net loss for
the first six months ended June 30, 2005 was euro 9.4 million (US$
11.4 million) or euro 0.94 (US$ 1.13) per share, compared to euro
10.7 million (US$ 12.9 million), or euro 1.06 (US$ 1.28) per share
for the same period of 2004. First Half 2005 Highlights: February:
Jean-Yves Bonnefoy was appointed Chief Scientific Officer.
February: The strategy was redefined based on a narrowed product
portfolio and the expansion into the field of infectious diseases
(hepatitis C). February: Objectives achieved (phase II development)
for the MVA-MUC1-IL2 vaccine against non small-cell lung cancer,
which allows us to plan the initiation of a controlled phase IIb
study in the last quarter of 2005, with randomization of patients,
in combination with standard chemotherapy. May: presentation of
clinical results obtained with MVA-MUC1-IL2 at the annual
conference of the American Society of Clinical Oncology. Highlights
since June 30, 2005: July: successful capital increase through an
offering of shares with warrants (actions a bon de souscription
d'actions or ABSA). Net proceeds of euro 32.6 million (US$ 39.4
million) were raised to continue Phase II programs. July: Transgene
announces achievement of clinical milestone by Merck & Co.,
Inc. using Transgene's proprietary technology. Transgene, based in
Strasbourg, France is a biopharmaceutical company dedicated to the
discovery and development of therapeutic vaccines and
immunotherapeutic products in oncology and infectious diseases.
Transgene has a broadportfolio of clinical stage immunotherapy
drugs, technologies available for out-licensing and viral vectors
bio-manufacturing capacities. This press release contains
forward-looking statements referring to the establishment of
development partnerships and the further testing and development of
Transgene's products. However, as is the case with all
biopharmaceutical products and technology under development,
results from clinical testing may not show favourable outcomes, and
there is no certainty that appropriate partnerships will be
established. As a result, the successful development and eventual
commercialization of Transgene's products is uncertain. For a
description of the principal risks facing the development of
Transgene's products and technology, see Transgene's Annual Report
on Form 20-F and its other reports on file with the U.S. Securities
and Exchange Commission. Condensed Consolidated Balance Sheets (US
GAAP) (Amounts in thousands) June 30, December 31, 2005 2005 2004
US$ euro euro (unaudited) (Audited) ASSETS Cash and cash
equivalents 5,419 4,479 14,650 Other current assets 2,966 2,452
2,632 Total current assets 8,385 6,931 17,282 Property, plant and
equipment, net 8,109 6,703 7,095 Other assets 1,836 1,518 1,125
Total assets 18,331 15,152 25,502 LIABILITIES AND SHAREHOLDERS'
EQUITY Total current liabilities 5,301 4,382 5,501 Total long-term
liabilities 6,970 5,761 5,768 Total shareholders' equity 6,060
5,009 14,233 Total liabilities and shareholders' equity 18,331
15,152 25,502 Condensed Consolidated Statements of Operations US
GAAP (Amounts in thousands except share and per share data) Six
month ended June 30, 2005 2005 2004 US$ euro euro (unaudited)
(unaudited) (audited) Revenues Revenues from collaborative and
licensing agreements 2,635 2,178 987 Grants received for research
and development 0 0 0 Total revenues 2,635 2,178 987 Operating
expenses Research and development (11,858) (9,802) (10,082) General
& administrative (2,704) (2,235) (1,880) Total operating
expenses (14,562) (12,037) (11,962) Loss from operations (11,927)
(9,859) (10,975) Interest and other income, net 115 95 341 Income
tax benefit 427 353 (17) Net loss (11,385) (9,411) (10,651) Loss
per ordinary share (1.13) (0.94) (1.06) Weighted average number of
shares outstanding 10,055,760 10,055,760 10,055,760 Loss per ADS
(American Depositary Share) (0.38) (0.31) (0.35) Weighted average
number of ADSs outstanding 30,167,280 30,167,280 30,167,280 Note:
The official financial information of Transgene is stated in Euros.
The financial information expressed in US$ is translated solely for
the convenience of the reader at euro 1.00 = $ 1.2098, the noon
buying rate of the Federal Reserve Bank of New York on June 30,
2005. DATASOURCE: Transgene CONTACT: Philippe Poncet, C.F.O. and
Investors Relations of Transgene, +33-3-88-27-91-21; or Estelle
Guillot-Tantay or Tiphaine Hecketsweiler, both of Image 7,
+33-1-53-70-74-93, for Transgene Web site: http://www.transgene.fr/
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