MEDIVIR, FINANCIAL STATEMENT, 1 January - 31 December 2006
• Decision to focus research activities to the Huddinge facility
• Decision on SEK 224.5 m rights issue
• Tibotec filed an application to start clinical trials on the hepatitis C project
• Phase III study on Lipsovir® (ME-609) against labial herpes started in July. Just over 50% of patients in the study were treated during the second half-year, according to plan.
• Licensing agreement for MIV-170 signed with Bristol-Myers Squibb with a total contract value of USD 104.5 m plus royalties on future sales revenue
• Licensing agreement signed with Tibotec for HIV protease inhibitor with a total contract value of EUR 64 m plus royalties on future sales revenue
• MIV-210 outlicensed to Tibotec with a total contract value of USD 30 m plus royalties on future sales revenue
• Alovudine and MIV-410 outlicensed with a total contract value of USD 75.25 m plus shares in Presidio Pharmaceuticals and royalties on future sales revenue
• MIV-606 outlicensed with total contract value of USD 24.5 m plus shares in Epiphany Biosciences and royalties on future sales revenue
• Consolidated net sales in the period 1 January - 31 December 2006 totaled SEK 126.0 (102.6) m, with SEK 67.9 (102.6) m relating to continuing operations and SEK 58.1 (0) m representing discontinued operations
• The loss after tax amounted to SEK -195.6 (-104.6) m; earnings per share were SEK -15.16 (-8.10). The profit deterioration is due to costs for the current phase III project on Lipsovir® and non-cash write-downs coincident with the relocation of research operations from the UK to Sweden
• The loss after tax includes restructuring costs of SEK 9.2 m and direct write-downs of intangible and tangible fixed assets of SEK 29.7 m, resulting from the relocation of significant parts of operations from Medivir UK to Medivir AB.
“2006 was a year of delivery, fully consistent with the strategic objectives we set ourselves in December 2005. We have now focused our research on the protease inhibitor segment, and over the past year, succeeded in bringing our first two protease projects to the start of clinical phase I studies. We’ve successfully outlicensed all the projects we decided not to assign internal resources to. We’ve been in licensing agreements on seven drug project since mid-2006—outlicensing activity that is probably unique in northern Europe’s biotechnology sector. We succeeded in starting registration studies on Lipsovir, our most mature project, earlier than planned and have become more financially resilient through our new share issue and cost-cutting by consolidating our research from two units to one,” commented Lars Adlersson, Medivir AB’s CEO.
FOR MORE INFORMATION, PLEASE CONTACT
Rein Piir, CFO and VP, Investor Relations: +46 (0)8 546 83123 or +46 (0)70 853 7292.
FORTHCOMING FINANCIAL INFORMATION
The Three-month Interim Report will be published on 24 April 2007, as well as the AGM will be held
The Six-month Interim Report will be published on 9 July 2007.
The Nine-month Interim Report will be published on 24 October 2007
Medivir’s financial reports are available on its Website, www.medivir.se from these dates under the ‘Investor/Media’ heading