Half-Year Accounts January - June 2000
18 Aug, 2000 18:28 CET
Half-Year Accounts
January - June 2000
* Results according to schedule, MSEK -59 (-75 previous year)
* Vaccine sales increase by 20%
* Continued positive development for Dukoral +42%
* Aventis Pasteur new business partner
* SAIK and TTS according to plan
* Major new order for SBL Cholera Vaccine worth MSEK 7.4
* New technology platforms established
* Increase in turnover 18%, results MSEK -59 (-75)
Sales of vaccines amounted to MSEK 102.7 (85.5), an increase of 20% compared
with the corresponding period last year. Continued positive development for
Dukoral in Sweden and Norway, 42% sales increase in total. SBL Cholera
Vaccine, which was launched in 1999, is showing strong growth, and sales
amounted to MSEK 9.7 (0.7).
Income from contract research was MSEK 20, a decrease of MSEK 17.5 compared
with last year. This is a result of the acquisition of Pharmacia's TTS cancer
projects (Tumor Targeted Superantigens) which were previously run as contract
research.
The period's loss amounted to MSEK 59, an improvement of MSEK 16 compared with
the corresponding period last year. This improvement in results can be
explained by the positive sales development and an improvement in net
financial income.
Continued prioritisation in the research projects and the current closure of
British subsidiary Actinova Ltd has had a positive effect on the cost outcome.
The period's results have been burdened by one-off costs affecting
comparability amounting to MSEK 6. Last year's operating results for the same
period included capital gain on disposal of property amounting to MSEK 15.
The full-year forecast of MSEK -150 previously communicated remains unchanged.
Prioritized projects
Work on the SAIK-MS project for treatment of multiple sclerosis is progressing
according to plan (Phase I). Ongoing discussions with potential business
partners indicate a very high interest in the project.
Pre-clinical and clinical dvelopment of the TTS (Tumor Targeted Superantigens)
projects are now proceeding under Active Biotech´s own direction according to
plan. Active Biotech's Board of Directors have today approved the detailed
conditions for Active Biotech taking over the project from Pharmacia.
Ongoing clinical phase III trials regarding the ETEC vaccine continue
according to plan. Alternative partnering strategies are under evaluation as
well as the future clinical trials program.
Aventis Pasteur new business partner
In accordance with the press release on 8 August 2000, Active Biotech has
signed a business agreement with Aventis Pasteur within the field of diarrhoea
illnesses. Aventis Pasteur will assume responsibility for the marketing, sale
and distribution of the oral cholera vaccine; SBL Cholera Vaccine, for
countries outside the USA and Europe. An application for registration for the
cholera indication will be submitted on several international markets. On a
limited number of markets, the application will also encompass tourist
diarrhoea caused by the ETEC bacteria.
The co-operation with SmithKline Beecham Biologicals (SB) in this field is
ceasing, and all rights pertaining to the cholera vaccine and project
regarding a specific ETEC vaccine have reverted to Active Biotech. As part of
the agreement, the vaccines for children, now sold by Active Biotech through
SBL Vaccin, revert to SB's Nordic organisation as of 1 January 2001.
Moreover, Active Biotech is being issued a licence for Sweden for a second
brand of SB's HAVRIX product, a travel vaccine which prevents hepatitis A
infections.
"Thanks to our business agreement with Aventis Pasteur, we have a highly
competent, strong partner within the field of diarrhoea illnesses. The
collaboration will begin immediately after the summer, and we are anticipating
the first results in the form of sales on new markets in 2001.
Our agreement with SB affords us the opportunity to advance our development
within cholera and ETEC internationally with a modified partnership strategy,
while continuing to work together on the Swedish market," says Sven
Andréasson.
Major new order for the SBL Cholera Vaccine for Mozambique
Active Biotech has received an order worth MSEK 7.4 from MSF - Médecins Sans
Frontiers for the SBL Cholera Vaccine intended for Mozambique.
Sale of Actigen Ltd
Active Biotech has divested its subsidiary Actigen Ltd to Norwegian Affitech.
Actigen's leading product is protein L, an affinity protein which binds
antibodies and antibody fragments with high specificity. The agreement also
gives Affitech rights to other affinity proteins and purification methods
previously owned by Actinova Ltd.
The value of this agreement amounts to just over MSEK 9 over a five-year
period, half of which comprises guarantee payments and minimum royalties.
"The sale of Actigen Ltd is a step totally in line with Active Biotech's
strategy of focusing on the development of pharmaceuticals and vaccines for
treating diseases related to the human immune system," says Sven Andréasson.
Technology platforms established
Active Biotech has established structure-based drug design (SBDD) and
combinatorial chemistry technology platforms, which are used in the pre-
clinical projects within the field of immunmodulation. SBDD is a generally
used tool for designing new pharmaceuticals, and is used in all projects in
which the target molecule's 3D structure is known. The information on the
structure is applied in order to design targeted chemical libraries of ligands
which can bind to the target protein's active site. This increases the chance
of finding substances with the desired properties and reduces the number that
need to be synthesised.
The SBDD platform has been established at Active Biotech through the
utilisation of combined expertise within the company, in the fields of
molecular modelling and Nuclear Magnetic Resonance (NMR), and through external
co-operation with researchers at various European universities including Lund
in Sweden and Oxford University.
Combinatorial chemistry is an alternative to classical medicinal chemistry.
There are two main approaches to the construction of chemical libraries,
either random or targeted. Active Biotech has focused on a strategy based on
sequential, directed libraries in order to achieve better-oriented screening.
Close co-operation between chemistry and the SBDD platforms and implementation
of a new system for information management will further strengthen this
strategy.
"Active Biotech is committed to the use and integration of new tools and
technologies in order to speed up and increase efficiency in the development
of pharmaceuticals. The constant challenge to be at the forefront, through
creative new approaches, is crucial for our future success" says Tomas
Leanderson, VP Research & Development at Active Biotech.
Hans Kolam new CFO for Active Biotech
On 1 August, Hans Kolam took up the position of Chief Financial Officer (CFO).
Hans Kolam is a graduate in economics. He has been employed within Pharmacia
since 1979, in charge of various parts of the international finance
organisation. Since 1992, he has held the position of Vice President Finance
for Europe.
Warrants
In accordance with previous announcements, Pharmacia has made an offer to
senior executives at Active Biotech regarding the acquisition of share
warrants. In total, the offer encompasses 300,000 shares and is subject to the
customary conditions.
Shares in Lifco AB
Active Biotech's Board of Directors has accepted Carl Bennet AB's official
offer regarding the acquisition of shares in Lifco AB. Active Biotech's
shareholding amounts to 1,812,103 class B Lifco shares, equivalent to 19.9% of
the capital and 12.5% of votes. The sale of shares will afford Active Biotech
a capital gain of MSEK 11(not included in the half-year accounts).
Lund, 17 August 2000
Active Biotech AB (publ.)
Sven Andréasson
President & CEO
Active Biotech AB is a Swedish biotechnology company focused on the research
and
development of pharmaceuticals and vaccines, the core competence being
knowledge of the
human immune system. Active Biotech has a high quality project portfolio and
considerable
financial resources. Important products and projects include Dukoral,
SBLCholera Vaccine, a vaccine
against traveller's diarrhoea (ETEC), innovative drugs against MS (SAIK) and
cancer (TTS). The
turnover of Active Biotech was SEK 267 million in 1999.
Active Biotech AB
Box 724, S-220 07 Lund, Sweden
Tel +46 46-19 20 00
Fax +46 46 19 20 50
E-mail
www.activebiotech.com
CONSOLIDATED INCOME STATEMENTS
(MSEK) Jan-Jun Jan-Jun Whole yr.
2000 1999* 1999*
Net operating 124.1 125.9 267.3
turnover
Cost of goods sold -81.5 -70.3 -147.9
Gross income 42.6 55.6 119.5
Sales & -13.5 -10.4 -23.8
marketing costs
Administration costs -39.0 -29.9 -74.7
Research and development -118.2 -126.5 -270.7
costs
Items affecting -0.2 15.0 139.6
comparability
Other income 2.7 -1.4 -2.2
Operating -125.6 -97.6 -112.3
results
Net financial 67.1 22.7 54.7
items
Pre-tax -58.5 -74.9 -57.6
profit/loss
Consolidated Balance Sheets
(MSEK) 30 Jun 30 Jun 31 Dec
2000 1999* 1999*
Intangible fixed assets 339.8 284.5 283.3
Tangible fixed assets 196.2 279.7 203.5
Financial fixed assets 48.9 94.7 102.3
Total fixed assets 584.9 658.9 589.1
Inventori 79.4 65.0 55.1
es
Current 147.6 85.1 248.0
receivables
Cash and bank balances 477.5 599.8 545.1
(inc. short-term
investment)
Total current assets 704.5 749.9 848.2
Total assets 1,289.4 1,408.8 1,437.3
Equity 1,006.9 1,051.0 1,064.3
Provisions* 32.5 26.9 32.5
Long-term liabilities** 90.9 167.3 141.0
Current liabilities*** 159.1 163.6 199.5
Total equity and 1,289.4 1,408.8 1,437.3
liabilities
* Interest-bearing pension
provisions on 30 June 2000 amount
to MSEK 23.4
** Interest-bearing long-term
liabilities on 30 June 2000
amount to MSEK 0
*** Interest-bearing current
liabilities on 30 June 2000
amount to MSEK 9.1
Cash flow analysis Jan-Jun Jan-Jun Whole
yr.
(MSEK) 2000 1999* 1999*
Profit/loss after financial items -58.5 -74.9 -57.6
Adjustments for items not included 19.5 -13.2 -118.2
in cash flow, etc.
Tax paid -2.0 0.0 -1.0
Cash flow from ongoing operations
before
change in working capital -41.0 -88.1 -176.7
Change in working capital 19.5 212.4 282.0
Cash flow from ongoing operations -21.5 124.3 105.3
Net investment in fixed assets -14.2 -14.1 -140.5
Cash flow from investment activity -14.2 -14.1 -140.5
Loans raised/loan amortisation -31.9 -15.0 -32.1
Cash flow from financing activity -31.9 -15.0 -32.1
Cash flow for the period -67.6 95.2 -67.3
Liquid funds, opening balance 545.1 504.6 612.4
Liquid funds, closing balance 477.5 599.8 545.1
Jun Jun Dec
Key Figures 2000 1999* 1999*
Equity per share, SEK 89.5 93.5 94.6
Unappropriated liquidity, 508 720 680
MSEK
Parent company 65.0 65.0 64.5
equity/assets ratio, %
Group equity/assets ratio, 78.1 74.6 74.0
%
Average number of 331 332 341
employees
Number of shares 11 246 11 246 11 246
(000)
*) Pro forma Bioteknik (exc. Wilh.
Sonesson)