Peptech releases half-year results
Australian biotechnology company, Peptech Limited has released its results for
the half year ended 31 March 2003 with total revenues for the period of $2.9
million, compared to $3.5 million in the previous corresponding period.
The result for the half-year was an operational loss of $2.2 million plus a noncash
Domantis amortisation expense of $3.5 million resulting in a net loss of
$5.7 million. In the previous corresponding half-year, the operational loss was
$2.5 million with the non-cash Domantis amortisation expense of $1.7 million
resulting in a net loss of $4.2 million. With the tax charge ($0.5 million) and the
large foreign exchange losses ($0.9 million) of the previous corresponding halfyear
not being repeated in this half-year, the operational loss was slightly
reduced.
Managing Director, Mr Stephen Kwik said the current dispute with Centocor, a
subsidiary of Johnson and Johnson, over royalty payments as well as an
increase in the amortisation charge of research payments with antibody
company, Domantis had significantly impacted on the result.
Royalty revenues decreased from $1.4 million to $0.8 million and the
amortisation charge with Domantis was $3.5 million, an increase of
$1.8 million over the previous corresponding period.
“Peptech is committed to enforcing its intellectual property rights and is taking
all necessary steps to protect our shareholders’ interests,” Mr Kwik said.
“In addition, the amortisation charge for Peptech’s collaborative research
program with Domantis reflects the conservative policy adopted by the Board,
with all research payments being fully expensed by April 2004, well in advance
of any direct commercial benefits being received.”
In February this year Peptech made its final research ($4.8 million) and equity
($3.4 million) payments to Domantis - fulfilling all of its current obligations to the
company. Peptech now holds a 36.1% interest in Domantis or 31.4% should
all options currently issued by Domantis be exercised.
Mr Kwik said the recent announcement that a domain antibody against tumour
necrosis factor (TNF) has proven effective in an industry-accepted model by
completely preventing the onset of arthritis is a glowing endorsement of the
technology and a very significant advance in the development of a next
generation of antibody therapeutics. For Peptech it could represent a significant
step towards bringing our anti-TNF domain antibody into the clinic.
During the reporting period, health care company, Abbott Laboratories received
approval in the USA to market its product HumiraÆË and had also recently
received a positive opinion for the marketing of the product in Europe. Upon
European marketing approval, Peptech can expect to receive a second
milestone payment, as its key anti-TNF intellectual property has been nonexclusively
licensed to Abbott.
In Peptech Animal Health (PAH), sales of OvuplantÆÊ continued to be strong,
but were slightly lower than last year as the company's Canadian distributor did
not place a repeat order due to over-ordering in the prior year.
PAH also received approval in New Zealand to market SuprelorinÆÊ, a male dog
contraceptive product. Approval of a similar product from Australian authorities
is expected in the near future.
This is a key milestone in the company's development as an independent
review has found that the product is effective, safe and meets all criteria of
registration,Mr Kwik said. ¡§It also demonstrates that our Animal Health drug
delivery technology can be developed into approvable products.
Peptech is continuing discussions with global pharmaceutical companies
regarding the commercialisation and ongoing development of Peptech's series
of domestic, companion animal contraceptive products.
At 31 March 2003, the company had cash resources of $13.6 million. In
January 2003 the company undertook a successful and well-received share
placement of 6.625 million shares at $1.55 per share, raising gross proceeds of
$10.3 million.
Further information:
Mr Stephen Kwik Dr Paul Schober
Managing Director Investor Relations
Peptech Limited Peptech Limited
