Interim report January - September 2000

Interim report January - September 2000 * Break through för RescueFlow® in Europe * Distribution agreements in France, Germany and Israel * RescueFlow® increases survival at sepsis * Promising results from RescueFlow® surgery study * BioPhausia has acquired distribution rights to Haemopressin® * BioPhausia subsidiary GlycoVisc has acquired exclusive license rights to patent * The Board has decided on a new share issue * The net result for the period amounted to a loss of SEK 17.693.000 (loss 19.280.000); SEK 8.821.000 (14.368.000) of which were research and development costs. Break through for RescueFlow® in Europe Karolinska Hospital and South Hospital in Stockholm have included RescueFlow® in their guidelines for prehospital use, e.g the emergency care which is administered in ambulances and helicopters before the patients receive hospital care. Karolinska Hospital and South Hospital have thus become important reference centra for a wider international use of RescueFlow®, and this is considered an important break through for BioPhausia. Distribution agreements for RescueFlow® signed in France, Germany and Israel BioPhausia has in France signed an agreement with Laboratoires Belamont, regarding sales of RescueFlow®. Laboratoires Belamont is part of the Cider Santé Group, which is one of the leading pharmaceutical organisations in France and the French speaking countries in Africa. Agreements have also been signed with two sub-contractors in Germany; BioQuest GmbH and InnoPharm GmbH. These companies work in different segments of the market. In Israel, which is a strategically important market for BioPhausia, an agreement has been signed with Genmedix Limited, which is part of the Merck-group. RescueFlow® improves survival in early stages of sepsis The results from two independent RescueFlow® studies on shock caused by sepsis, have recently been made public by two groups of Swedish researchers. The results indicate further progress in BioPhausia´s program for further development of RescueFlow®. The conclusion from the two studies is that volume replacement with HSD (Hypertonic Saline Dextran) effectively improves central as well as regional circulation. Improved perfusion of vital organs also contributes to the probable reasons for increased survival. BioPhausia presents positive results from RescueFlow® surgery study BioPhausia has concluded a surgery study in Germany, where RescueFlow® has been compared with standard of care on abdominal aortic aneurysm surgery. The initial results from the study indicate that RescueFlow®, when administered during surgery, maintains the circulation of the patient with less volume than with standard of care. These results, in combination with other available documentation, indicate that RescueFlow® may provide more efficient volume substitution during surgery. This suggests that the indication area for RescueFlow® could be extended. The project is running on time. BioPhausia has acquired the rights to a hospitalspecialist product BioPhausia has signed an exclusive agreement with Curatis GmbH regarding the distribution rights to Haemopressin®, a hospital product. The target group is emergency care and hospital specialists, which is the same target area as for RescueFlow®. The agreement covers Germany, Sweden and Norway, with an option to further markets. Sales will commence during the fourth quarter of 2000. The acquisition of the distribution rights to this product is the start of the market orientation, which BioPhausia has announced in connection with the establishment of the marketing company Medisan. BioPhausia presently evaluates further products to acquire or to license. GlycoVisc Biotech AB has acquired exclusive license rights GlycoVisc Biotech AB has acquired the exclusive license rights to a patent which covers treatment of certain types of reumatic diseases. The exclusive license rights cover 22 countries. The patent covers injection into the joints of polysaccharide solution, alternatively a mixture of hyaluronane och polysaccharide. The patented solution is expected to alleviate pain and increase mobility. A pilot study including 30 people and 50 treatments has been concluded in England. The results from the case study will be verified in further scientific studies. Decision on new share issue In accordance with the authorisation by the Annual General Meeting on May 4, 2000, the Board of Directors on September 19 decided to increase the share capital through a new share issue, with preferential rights for the shareholders. The Board of Directors plan to use the funds from the share issue to develop new applications for RescueFlow®, and to concentrate on developing the market company Medisan, through further acquisition of new products. The company will also concentrate upon its new development projects. Group results Net sales for the period cover sales in Europe. Net sales during the previous year mainly covered sales of license rights. The period produced a loss of SEK16.546.000 (loss 19.280.000). Total depreciation, SEK1.421.000 (2.428.000) has been distributed among the various functions. Research and development expenses amounted to SEK 8.821.000 (14.36.000). Financial position and investments The Group´s liquid funds at the end of the period amounted to till 9.869.000 (4.810.000). The equity/assets ratio was 45.2% (52. 6%). No investments in fixed assets were made during the period Uppsala November 2, 2000 Soili Longsén Managing Director ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/11/02/20001102BIT00920/bit0001.doc The full report http://www.bit.se/bitonline/2000/11/02/20001102BIT00920/bit0002.pdf The full report