BioPhausia - Year end report 2001

Year end report 2001 * Sales amounted to SEK 2.071.000 (SEK 975.000 ) * Rights for RescueFlow® acquired in the Nordic countries * New approvals for RescueFlow® in Europe * Distribution agreement for RescueFlow® in Asia * Positive results from pre-clinical studies within BP 04 project * Patents for BP 04 in the USA and Australia * Saving plans are implemented * The net result for the fiscal year amounted to a loss of SEK 23.818.000 (loss SEK 24.765.000); SEK 12.744.000 (SEK 12.034.000) of which were research and development costs. Important events after the close of the period * Patents in 17 European countries for BP 04 * Distribution agreement for RescueFlow® in the Netherlands * 85% subscription in the new share issue which provides the company with approximately MSEK 30 Acquisition of rights for RescueFlow® in the Nordic countries BioPhausia has signed an agreement with Pharmalink AB regarding acquisition of RescueFlow® in the Nordic countries. Pharmalink acquired in 1999 exclusive license rights for RescueFlow® in the Nordic countries, rights which are now reverted to BioPhausia. Through this acquisition BioPhausia now controls RescueFlow® on the home market, an advantage for the company when marketing RescueFlow® internationally. New approvals for RescueFlow® Subsequent to the mutual recognition procedure in Europe, and according to decision made on November 28 2001, RescueFlow® will be granted approval for marketing and sales in Italy, Spain, Portugal, Luxemburg and Iceland. The company adheres to its previously stated plan for registrations. Distribution agreement for RescueFlow® in Asia BioPhausia has signed a distribution agreement for RescueFlow® with Yungjin Pharmaceuticals Co., Ltd. in South Korea. The company has long experience from the South Korean pharmaceutical industry, and is well connected with the target group, hospital specialists. The compilation of the registration documentation for South Korea has started, and an application will be submitted by Yungjin subsequent to adaptation to local demands. Marketing will commence in 2002. Positive results from pre-clinical studies within project BP 04 Previously reported studies show that treatment with BP 04 decreases the pressure in tumours, and increases the uptake of marker substance in the tumours. Further studies have consequently shown that treatment with BP 04 induces increased uptake of cytostatics in the tumour tissue and suppressed tumour growth in comparison with a control-group. Patents in the USA and Australia for BP 04 Patents named "Enhanced anti-cancer agent delivery to solid tumours by primer compounds", have been approved in the USA and Australia. The patented principle for BP 04 implies that the internal bindings which create high pressure in solid tumours, i.e. colon cancer and breast cancer, are broken, and the uptake of cytostatics is increased. The patents amount to a breakthrough for the BP 04 project. Savings implemented From the third quarter 2001 the company implemented a savings program which on a yearly basis will lower the costs considerably. Important events after the close of the period BP 04 patents in 17 countries Patents for the cancer project BP 04 have been approved in 17 European countries. This implies that the patent now covers 19 countries in total. Distribution agreement BioPhausia has signed a distribution agreement for RescueFlow® with DeVriMed in the Netherlands. DeVriMed mainly operates within the spheres of trauma and cardiovascular diseases. The company has good connections within the military sector, which is considered a great advantage for BioPhausia. Start of sales of RescueFlow® in the Netherlands is planned for the second half of 2002. RescueFlow® will, with this agreement, be marketed in 8 countries. Share issue The completed share issue has resulted in approximately 30 MSEK, before emission costs. The share issue, which was subscribed for 85%, provides BioPhausia with financial stability and the possibility to develop and diversify the project portfolio. Group results Operating loss for the group amounted to SEK 20.641.000 (loss SEK 23.202.000). Net sales include royalties on sales and sales of RescueFlow. Total depreciation, SEK 2.573.000 (SEK 2.499.000) has been distributed among the various functions. Research and development expenses amounted to SEK 12.744.000 (SEK 12.034.000), SEK 2.434.000 (SEK 2.191.000) of which consisted of depreciation. The result during the year was also charged by financial cost of SEK 1.707.000 (0), corresponding to the planned dissolution of the capital rebate which occurred at the issue of a convertible debenture loan in 1999. Financial position and investments The Group's liquid funds at the close of the period amounted to SEK 5.539.000 (SEK 24.542.000). The equity/assets ratio was 43% (61%). Accounting policy The consolidated financial statements include BioPhausia AB, Medisan Pharmaceuticals AB, BioPhausia Support AB, Reduton AB, Glycovisc AB, Medisan Pharmaceuticals Inc. and Trauma Products Inc. The consolidated financial statements have been established according to acquisition accounting and the Swedish Financial Accounting Standards Council's recommendation RR20. Summary of Consolidated Income Statement (SEK 000´s) Oct-Dec Oct-Dec Jan-Dec Jan-Dec 2001 2000 2001 2000 Net sales 899 399 2 071 975 Cost of goods sold -89 -167 -432 -167 Gross profit 810 232 1 639 808 Selling expenses -531 -1 184 -4 606 -3 526 Administrative expenses -648 -2 494 -4 708 -8 454 Research and development expenses -2 987 -3 213 -12 988 -12 034 Exchange profit/loss -282 3 22 4 Operating loss -3 638 -6 656 -20 641 -23 202 Interest income and similar revenues 48 122 427 531 Interest expenditure and similar costs -2 162 -538 -3 560 -2 090 Loss after financial items -5 752 -7 072 -23 774 -24 761 Taxes -44 - -44 -4 Net loss for the year -5 796 -7 072 -23 818 -24 765 of which is depreciations 780 1 078 2 573 2 499 Summary of Consolidated Balance Sheet (SEK 000´s) 2001-12-31 2000-12-31 Intangible assets 17 913 16 495 Tangible assets 305 489 Financial assets 11 352 11 595 Other current assets 1 491 3 132 Inventories 98 144 Accounts receivable 689 843 Liquid assets 5 539 24 542 Total assets 37 387 57 240 Equity 16 051 34 704 Interest-bearing liability, convertible loan 16 642 16 343 Operating liability 4 694 6 193 Total equity 37 387 57 240 Change in Equity 2001-12-31 2000-12-31 Equity at the start of the period 34 704 25 300 Share issue 3 750 30 178 Conversion 1 407 4 000 Translation difference 8 -9 Net loss for the period -23 818 -24 765 Net loss at the close of the period 16 051 34 704 Key ratios 2001-12-31 2000-12-31 Number of shares at the close of the period 14 234 080 13 412 311 Average number of shares during the period 13 963 580 10 421 646 Equity per share, SEK 1.1 2.6 Equity/assets ratio, % 43 61 Earnings per share SEK -1.7 -2.3 Number of shares after dilution 18 698 379 Summary of Cash Flow Analysis, Group (SEK 000´s) Jan-Dec 2001 Jan-Dec 2000 Cash used in operating activities before change in -19 468 -22 266 working capital items Change in working capital 342 -10 513 Cash used in operating activities -19 126 -32 779 Cash provided by investing activities -3 884 -167 Cash used in financing activities 4 007 55 355 Total cash flow -19 003 22 409 Liquid assets at the start of the period 24 542 2 133 Liquid assets at the close of the period 5 539 24 542 Summary of operating profit/loss, Group (KSEK) Full Q 4 Q 3 Q 2 Q 1 Full Q 4 Q 3 Q 2 Q 1 year 2001 2001 2001 2001 year 2000 2000 2000 2000 2001 2000 Gros 1 639 810 -86 9 906 808 232 259 317 - s prof it/l oss Sell -4 606 -531 -882 -1 544 -1 649 -3 526 -1 184 -1 591 -751 - ing expe nses Admi -4 708 -649 -846 -1 446 -1 768 -8 454 -2 494 -627 -2 002 -3 333 n. cost Rese -12 988 -2 987 -4 232 -3 065 -2 594 -12 034 -3 213 -3 087 -3 235 -2 499 arch cost Exch 22 -282 11 235 58 4 3 -275 -83 359 ange loss / prof it Oper -20 641 -3 638 -6 145 -5 811 -5 047 -23 202 -6 655 -5 321 -5 754 -5 473 atin g loss The annual shareholders meeting will take place on Monday May 6th 2002 at 2 p.m. Uppsala February, 2002 Claes Thulin Managing Director ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/27/20020227BIT00930/wkr0001.doc http://www.waymaker.net/bitonline/2002/02/27/20020227BIT00930/wkr0002.pdf