RNS Number : 6922K
Reliance GeneMedix PLC
23 December 2008
FOR IMMEDIATE RELEASE 23 December
2008
Reliance GeneMedix plc
Results for the 6 month period ended 30 September 2008
Reliance GeneMedix plc (the "Company"), the AIM listed biopharmaceutical company, which is part of the Reliance Life Sciences Group
("RLS"), announces its unaudited interim results for the 6 month period ended 30 September 2008.
Highlights
* Progress of EPO clinical trials in the EU on track
* EPO marketed and launched in India
* Receipt of G-CSF clinical manufacturing licence in the EU
* Change of name to Reliance GeneMedix plc
* Results in line with budget
Vinay Ranade, CEO of Reliance GeneMedix plc, commented:
"The commercial benefits of the relationship with RLS are already apparent. EPO has been successfully launched in India and G-CSF, a
product originally developed by RLS, is being developed for the European market."
ENQUIRIES:
Reliance GeneMedix plc Tel: +353 57 932 3572
Vinay Ranade, Chief Executive Officer
Deloitte Corporate Finance Tel: +44 (0)20 7936 3000
Jonathan Hinton, John Ball
Lothbury Financial Tel: +44 (0)20 7011 9411
Michael Padley, Louise Davis
Chief Executive Officer's Report
We are pleased to present the results for the six month period ended 30 September 2008 during which the Company has advanced the
development programmes of both of its biosimilar products in the EU, namely Erythropoietin (EPO) and Granulocyte Colony Stimulating Factor
(G-CSF).
Business overview
EPO clinical studies in the EU are progressing according to plan and timetable. The Company is continuing to work on various validation
studies to meet regulatory requirements in the EU and to develop further and strengthen its production techniques and processes.
During the period, the Company obtained a manufacturing licence from the Irish Medicines Board for clinical lots of G-CSF. The Company
has also finalised its strategy for the development programme of G-CSF in order to manufacture clinical lots and initiate clinical
development in the EU in the coming year. G-CSF would be our second biosimilar product.
The commercial benefits of the relationship with RLS are already becoming apparent: EPO has been launched in the Indian market and has
received a positive response and the Company has already started to develop G-CSF in the EU. G-CSF was originally developed by RLS.
Financial review
Operating losses of Euro 2.05 million for the period are in line with the Company's expectations and reflect the planned levels of
expenditure. The Company recorded, though on a modest scale, its first revenues through the sale of EPO in the Indian market.
The Company has capitalised development expenditure of Euro 3.51 million, which was incurred during the period on the EPO development
programme. The level of current assets and liabilities is in line with our expectation and the current activities of the Company.
The entire operational expenditure during the period continued to be financed through the investment from RLS.
Consolidated Income Statement
For the six months ended 30 September 2008
Notes 6 months ended30 6 monthsended30 September Year ended31 March2008
September2008 2007
UnauditedEUR*000 UnauditedEUR*000 AuditedEUR*000
Revenue 5 235 - -
Cost of sales (235) - -
__________ __________ __________
Gross profit - - -
__________ __________ __________
Research and development 6 (16) (3,241) (3,298)
Administrative expenses (2,004) (1,844) (4,221)
__________ __________ __________
Total operating expenses (2,020) (5,085) (7,519)
__________ __________ __________
Operating loss (2,020) (5,085) (7,519)
Finance income 31 284 477
Finance costs (64) (42) (142)
Other income - - 58
__________ __________ __________
Loss before taxation (2,053) (4,843) (7,126)
Taxation - - -
__________ __________ __________
Loss for the period (2,053) (4,843) (7,126)
__________ __________ __________
Loss per share * basic and 8 (1.3c) (3.1c) (4.6c)
diluted
__________ __________ __________
Consolidated Balance Sheet
As at 30 September 2008
Notes 30 September 2008 30 September2007 31 March2008
UnauditedEUR*000 UnauditedEUR*000 AuditedEUR*000
ASSETS
Non-current assets
Intangible assets 6,351 563 2,840
Property, plant and equipment 3,921 4,493 4,202
Investment at cost 10 - 10
________ ________ ________
10,282 5,056 7,052
________ ________ ________
Current assets
Inventories 666 325 520
Other receivables 827 1,287 1,253
Restricted cash 204 179 203
Cash and cash equivalents 285 9,038 3,303
________ ________ ________
1,982 10,829 5,279
________ ________ ________
LIABILITIES
Current liabilities
Trade and other payables (2,163) (2,642) (2,106)
Borrowings (1,453) - (1,329)
________ ________ ________
(3,616) (2,642) (3,435)
________ ________ ________
Net current (1,634) 8,187 1,844
(liabilities)/assets
________ ________ ________
Total assets less current 8,648 13,243 8,896
liabilities
________ ________ ________
Non-current liabilities
Borrowings - (1,394) -
________ ________ ________
- (1,394) -
________ ________ ________
Net assets 8,648 11,849 8,896
________ ________ ________
Shareholders* equity
Share capital 22,305 22,305 22,305
Shares to be issued 9 1,798 - -
Share premium 39,538 39,538 39,538
Other reserves 3,963 4,620 3,957
Retained losses (58,956) (54,614) (56,904)
________ ________ ________
Total shareholders* equity 8,648 11,849 8,896
________ ________ ________
Consolidated Cash Flow Statement
For the six months ended 30 September 2008
Notes 6 months to30 6 months to 30 Year to31 March2008
September 2008 September2007
UnauditedEUR*000 UnauditedEUR*000 AuditedEUR*000
Cash flows from operating
activities
Cash used in operations 7 (1,138) (4,716) (7,407)
Interest paid (36) (3) (4)
________ ________ ________
Net cash flows used in (1,174) (4,719) (7,411)
operating activities
________ ________ ________
Cash flows from investing
activities
Purchase of plant and (214) (238) (431)
equipment
Purchase of intangible assets (3,511) (530) (2,809)
Interest received 64 294 493
Proceeds from disposal of - 1,114 1,114
subsidiary
Payments for investments - - (10)
Increase in restricted cash (1) - (23)
________ ________ ________
Net cash flows (used (3,662) 640 (1,666)
in)/generated from investing
activities
________ ________ ________
Cash flows from financing
activities
Proceeds from share warrant 1,798 - -
________ ________ ________
Cash flows generated from 1,798 - -
financing activities
________ ________ ________
Net decrease in cash and cash (3,038) (4,079) (9,077)
equivalents
Cash and cash equivalent at 3,303 13,115 13,115
start of period
Exchange gain/(loss) 20 2 (735)
________ ________ ________
Cash and cash equivalents 285 9,038 3,303
________ ________ ________
Consolidated Statement of Changes in Equity
For the six months ended 30 September 2008
Other
reserves
Share capital Share premium Shares to be issued Warranty reserve Capital reserve
Cumulative Retained loss Total
translation
reserve
EUR*000 EUR*000 EUR*000 EUR*000 EUR*000
EUR*000 EUR*000 EUR*000
Balance at 1 Apr 2007 22,305 39,538 - 4,183 437
- (49,785) 16,678
Loss for the period - - - - -
- (4,843) (4,843)
Share option charge - - - - -
- 14 14
______ ______ ______ ______ ______
______ ______ ______
Balance at 30 Sep 2007 22,305 39,538 - 4,183 437
- (54,614) 11,849
______ ______ ______ ______ ______
______ ______ ______
Loss for the period - - - - -
- (2,283) (2,283)
Currency translation - - - - -
(663) - (663)
difference
Share option charge - - - - -
- (7) (7)
______ ______ ______ ______ ______
______ ______ ______
Balance at 31 Mar 2008 22,305 39,538 - 4,183 437
(663) (56,904) 8,896
______ ______ ______ ______ ______
______ ______ ______
Loss for the period - - - - -
- (2,053) (2,053)
Currency translation - - - - -
6 - 6
difference
Shares in respect of share - - 1,798 - -
- - 1,798
warrant
Share-based payment - - - - -
- 1 1
______ ______ ______ ______ ________
______ ______ ______
Balance at 30 Sep 2008 22,305 39,538 1,798 4,183 437
(657) (58,956) 8,648
______ ______ ______ ______ ________
______ ______ ______
Notes to the Consolidated Interim Financial Statements
1. General information
These financial statements are the unaudited consolidated interim financial information of Reliance GeneMedix plc, a public limited company
incorporated and domiciled in the United Kingdom, with its registered office at Tower 42, 20th Floor, 25 Old Broad Street, London EC2N 1HQ ,
and its subsidiaries (together, *the Group*) for the six months ended 30 September 2008.
The Company is a subsidiary of Reliance Life Sciences Private Limited, India.
The Company has its primary listing on the Alternative Investment Market (AIM) of the London Stock Exchange.
The consolidated financial information for the six months ended 30 September 2008 has not been audited.
The condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 240 of the
Companies Act 1985. Statutory accounts for the year ended 31 March 2008 were approved by the Board of Directors on 30 August 2008 and
delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 237 of the Companies act 1985.
2. Basis of preparation
This condensed consolidated interim financial information for the six months ended 30 September 2008 has been prepared in accordance with
IAS 34, *Interim Financial Reporting* as adopted by the European Union. The condensed consolidated interim financial information should be
read in conjunction with the annual financial statements for the year ended 31 March 2008, which have been prepared in accordance with IFRSs
as adopted by the European Union.
The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 March 2008, as described
in those annual financial statements.
3. Principal risks
The principal risks and uncertainties which could impact the Group have not changed since 31 March 2008. A detailed explanation of those
risks and uncertainties can be found in the Directors* Report section of the Annual Report for the year ended 31 March 2008.
4. Segment information
The Group only has only one business segment.
Segmental geographic information is set out below:
UK
Ireland Total
_________________________
________________________ ________________________
6 months to 30 6 months to 30 Year to 31 Mar2008 6 months to 30 6 months to 30 Sep
Year to31 Mar2008 6 months to 30 6 months to 30 Year to31 Mar2008
Sep2008 Sep2007 Sep2008 2007
Sep2008 Sep2007
EUR*000 EUR*000 EUR*000 EUR*000 EUR*000
EUR*000 EUR*000 EUR*000 EUR*000
Revenue - - - 235 -
- 235 - -
Cost of sales - - - (235) -
- (235) - -
______ ______ ______ ______ ______
________ ______ ______ ______
Gross profit - - - - -
- - - -
Research & Development costs (16) (1,419) (1,476) - (1,822)
(1,822) (16) (3,241) (3,298)
Administrative expenses (188) (750) (1,545) (1,816) (1,094)
(2,676) (2,004) (1,844) (4,221)
______ ______ ______ ______ ______
________ ______ ______ ______
Total operating loss (204) (2,169) (3,021) (1,816) (2,916)
(4,498) (2,020) (5,085) (7,519)
Finance income 31 284 477 - -
- 31 284 477
Finance costs (64) (45) (145) - 3
3 (64) (42) (142)
Other income - - 58 - -
- - - 58
______ ______ ______ ______ ______
________ ______ ______ ______
Segment loss before & after (237) (1,930) (2,631) (1,816) (2,913)
(4,495) (2,053) (4,843) (7,126)
tax
______ ______ ______ ______ ______
________ ______ ______ ______
Other information
Depreciation 35 53 120 460 431
859 495 484 979
Amortisation - 2 3 - -
- - 2 3
Impairment - 69 69 - -
- - 69 69
______ ______ ______ ______ ______
________ ______ ______ ______
Balance Sheet
Total assets 1,273 10,917 4,999 10,991 4,968
7,332 12,264 15,885 12,331
Total liabilities 1,175 3,150 1,940 2,441 886
1,495 3,616 4,036 3,435
Capital Expenditure - 113 232 3,725 655
3,008 3,725 768 3,240
______ ______ ______ ______ ______
________ ______ ______ ______
5. Revenue
During the period, EPO was successfully launched in the Indian market. In order to penetrate the market quickly and build a market share,
EPO was introduced at an attractive price which reflects the current competitiveness of the Indian market.
6. Analysis of research and development costs
6 months to30 6 months to 30 September2007 Year to31 March2008
September 2008
UnauditedEUR*000 UnauditedEUR*000 AuditedEUR*000
Gross research and development 3,527 3,771 6,107
spend
Deduct: capitalised (3,511) (530) (2,809)
development costs
________ ________ ________
Research and development costs 16 3,241 3,298
expensed
________ ________ ________
7. Cash used in operations
6 months to30 6 months to 30 Year to31 March2008
September 2008 September2007
UnauditedEUR*000 UnauditedEUR*000 AuditedEUR*000
Loss for the period (2,053) (4,843) (7,126)
Adjustments for:
- Finance income (31) (284) (477)
- Finance costs 64 42 142
- Other income - - (58)
- Depreciation of property, 495 484 979
plant and equipment
- Impairment of acquired - 69 69
intellectual property rights
- Amortisation of intangible - 2 3
assets
- Share option charges 1 14 7
________ ________ ________
Operating cash flows before (1,524) (4,516) (6,461)
movement in working capital
Increase in inventories (145) (139) (335)
Decrease/(increase) in debtors 378 (138) 12
Increase/(decrease) in 153 77 (623)
creditors
________ ________ ________
Cash used in operations (1,138) (4,716) (7,407)
________ ________ ________
8. Loss per share
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary
shares outstanding during the period. For diluted loss per share, the weighted average number of ordinary shares in issue is adjusted
assuming conversion of all dilutive potential ordinary shares.
The earnings and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:
6 months to30 6 months to30 September2007 Year to31 March 2008
September2008
Loss for the period (EUR*000) (2,053) (4,843) (7,126)
Weighted average number of 155,718 155,718 155,718
shares (*000)
__________ __________ __________
Loss per share * basic and (1.3c) (3.1c) (4.6c)
diluted
__________ __________ __________
9. Related party transactions
During the period, the Company received an amount of EUR1.8 million from its parent company, Reliance Life Sciences Private Limited as
application money towards warrants.
10. Events occurring after the balance sheet date
There is no event after 30 September 2008 that requires disclosure or adjustment to these financial statements.
11. Statement of Directors* Responsibilities
The directors confirm that this condensed consolidated interim financial information has been prepared in accordance with IAS 34 as adopted
by the European Union.
A list of current directors of the Company is maintained on the Reliance GeneMedix plc website: www.genemedix.com.
By order of the Board
Vinay Ranade
Chief Executive Officer
23 December 2008
This information is provided by RNS
The company news service from the London Stock Exchange
END
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