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Speedel Holding AG (SWF:SPPN) Quarterly operating loss further reduced
Basel/Switzerland and Bridgewater NJ/USA, 12 August 2008 Speedel Holding Ltd. (SWX: SPPN) today announced financial results for the second quarter and the first six months ending 30 June 2008.
Financial Highlights
* CHF 5.7 million recognised as revenues for H1 2008 from sales of SPP100/Aliskiren (Rasilez/Tekturna®) [5] by Novartis * Reduced operating expenses: CHF 27.8 million in H1 2008 * Liquid assets of CHF 82.7 million as of 30 June 2008
Konrad P. Wirz, Chief Financial Officer, commented: "It is important to note that Speedel's financial performance continues to be in line with our guidance - in particular due to reduced operating expenses as a result of focussing R&D expenses on the most promising projects."
Footnotes [1]-[4] can be found on last page of this press release. Consolidation is based on IFRS, but these results for the period are unaudited. Complete financial statements and notes for the 3 and 6 months ending 30 June 2008 can be accessed at http://www.speedel.com/section/6/subsections/4.
Revenues The reported revenues of CHF 5.7 million for the first half year 2008 relate to royalties paid by Novartis on worldwide sales of SPP100/Aliskiren (Rasilez/Tekturna®) 5 and payments equivalent to a portion of the savings resulting from a reduction in the cost-of-goods below a predetermined threshold, using the production method developed by Speedel for the commercial supply of SPP100.
Research & Development Expenses R&D expenses decreased by CHF 11.2 million for the first half year 2008 compared to the corres-ponding period in 2007. This is for the most part due to significantly decreased expenses for SPP301.
General & Administration Expenses G&A expenses were down by CHF 0.5 million for the first half year 2008 compared to the first half year in 2007 mainly due to lower business development and licensing expenses.
Finance Costs, net Net finance costs increased by CHF 1.2 million for the first half year 2008 compared to the same period of 2007. The most important factors for this increase are exchange losses on U.S. Dollar positions and lower financial income from invested funds.
Balance Sheet As of 30 June 2008, liquid assets were CHF 82.7 million compared to CHF 107.9 million at 31 December 2007.
Share Capital On 30 June 2008, Speedel Holding Ltd. had 7,813,992 registered shares with a nominal value of CHF 2 per share listed on the SWX Swiss Exchange. In addition, the company had outstanding conditional share capital of 506,603 shares with a nominal value of CHF 2 per share to cover the convertible bond and the company's employee share option plan, as well as authorised share capital of 150,000 shares with a nominal value of CHF 2 per share created for a new employee participation programme.
Cash-burn For the first half of 2008 the cash-burn was 29.6 million. The company confirms the previous cash-burn guidance of CHF 57-60 million for the full year 2008.
Recent event On 9 July 2008 five major shareholders informed the Board of Directors of Speedel that they agreed to sell all their registered shares to Novartis at a price of CHF 130.00 per registered share. After acquiring these shares Novartis held a 61.4% stake in Speedel and announced plans to buy the remaining shares in a mandatory public tender offer at the same price. This public tender offer started 11 August 2008.
Please note - there will be no conference call today.
Financial Calendar 2008 Extraordinary General Meeting 14 August 2008
About Speedel
Speedel is a public biopharmaceutical company that seeks to create value for patients, partners and investors by developing innovative therapies for cardiovascular and metabolic diseases. Speedel is a world leader in renin inhibition, a promising new approach with significant potential for treating cardiovascular diseases. Our lead ompound SPP100, Aliskiren (Rasilez/Tekturna[5]) the first-in-class direct renin inhibitor, was in-licensed from Novartis in 1999 and licensed-back to Novartis Pharma in 2002 for further development and commercialisation; SPP100 was approved by the FDA in the US in March 2007, and by the EMEA in the EU in August 2007. Our pipeline covers four different modes of action, and in addition to SPP100, includes SPP301 (an endothelin receptor A antagonist) in Phase II, SPP200 (a direct thrombin inhibitor) in Phase II, the next generation renin inhibitors SPP635 (in Phase Il), SPP1148 and SPP676 (both in Phase I) and several pre-clinical projects, including SPP2745 (aldosterone synthase inhibitor). Speedel develops novel product candidates through focused innovation and smart drug development from lead identification to the end of Phase II. We either partner with big pharma for Phase III and commercialisation in primary-care indications, or we may ourselves complete Phase III development in specialist indications. Candidate compounds for development and the company's intellectual property come from our late-stage research unit Speedel Experimenta and from in-licensing. Our team of approximately 80 employees, including over 30 experienced pharmaceutical scientists, is located at our headquarters and laboratories in Basel, Switzerland and at offices in New Jersey, USA and Tokyo, Japan. Speedel was founded in 1998 as a private company. In September 2005 the company's shares were listed on the SWX Swiss Exchange under the symbol SPPN. Further information is available at www.speedel.com.
Forward looking statements This press release includes forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are based on our current expectations and projections about future events. All statements, other than statements of historical facts, regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The word "may" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations described in these forward-looking statements and you should not place undue reliance on them. There can be no assurance that actual results of our research and development activities and our results of operations will not differ materially from these expectations. Factors that could cause actual results to differ from expectations include, among others: our or our partners' ability to develop safe and efficacious products; our or our partners' ability to achieve positive results in clinical trials; our or our partners' ability to obtain marketing approval and market acceptance for our product candidates; our ability to enter into future collaboration and licensing agreements; the impact of competition and technological change; existing and future regulations affecting our business; changes in governmental oversight of pharmaceutical product development; the future scope of our patent coverage or that of third parties; the effects of any future litigation; general economic and business conditions, both internationally and within our industry, including exchange rate variations; and our future financing plans.
-- Ends --
[1] Numbers may not add up due to rounding. [2] Earnings per share are calculated on the weighted average of registered shares outstanding for the periods: Q2 2008 = 7,808,646; Q2 2007 = 7,722,832; H1 2008 = 7,804,134; H1 2007 = 7,683,392. [3] Cash-burn is defined as the difference in liquid assets between the beginning and end of the period,minus any cash inflow during the period. [4] Includes cash and cash equivalents and financial assets at fair value through profit and loss. [5] Rasilez/Tekturna® are Novartis trademarks.
For further information please contact:
Dr. Harald F. Schaefer Frank LaSaracina Director Communications & Investor Managing Director Relations Speedel Pharmaceuticals Inc Speedel 1661 Route 22 West Hirschgässlein 11 P.O. Box 6532 CH - 4051 Basel Bridgewater, NJ 08807 Switzerland United States of America
T +41 (0) 61 206 40 00 T +1 732 537 2290 D +41 (0) 61 206 40 14 F +1 732 537 2292 F +41 (0) 61 206 40 01 M +1 908 338 0501 M +41 (0) 79 629 76 71 E frank.lasaracina@speedel.com E harald.schaefer@speedel.com www.speedel.com www.speedel.com
