Chiroscience Group plc Reports Half Year Results.LONDON--(BW HealthWire)--Oct. 1, 1997--Chiroscience Group plc today announced its interim results for the six months ended August 31, 1997: Highlights: - Revenues increase by 96% to 9.2 million pounds ($14.9 million(a)), (1996: 4.7 million pounds). - ChiroTech contributes first half sales of 5.9 million pounds ($9.6 million), (1996: 3.9 million pounds) and an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of 2.3 million pounds ($3.7 million), (1996: 0.2 million pounds); excellent outlook for full year. - Investment in research and development increases to 19.0 million pounds ($30.8 million), (1996: 7.1 million pounds); net loss contained to 14.4 million pounds ($23.3 million), (1996: 7.6 million pounds). - Levobupivacaine (Chirocaine(tm)) successfully completes seven Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA trials, with published results in major surgery and post-operative pain management; drug on course for European regulatory filing in December 1997, US filing in April 1998. - Two MMP MMP Matrix Metalloproteinase (enzymes related to tissue healing/remodeling and cancer cell metastasis) MMP Mixed Member Proportional (New Zealand electoral system) MMP Multi-man Publishing inhibitors (D1927 and D2163), potential treatments for cancer, completing pre-clinical studies for Phase I studies to begin by year end. - Collaboration agreed in June with Schering-Plough Corporation to develop oral treatments for asthma and other inflammatory diseases; leading candidate D4418 successfully completes Phase I study, confirming no emesis emesis /em·e·sis/ (em´e-sis) vomiting. em·e·sis n. pl. em·e·ses The act or process of vomiting. Emesis The medical term for vomiting. . - Further four collaborations agreed to exploit R & D capabilities; opportunities to commercialize genomics technologies being negotiated. (a) US dollar equivalents are provided for reader convenience only at the exchange rate of 1 pound = US $1.62. Dr. John Dr. John (also Dr. John Creaux) is the stage name of Malcolm John Rebennack Jr. (born November 21, 1940), a colorful pianist, singer, and songwriter, whose music spans, and often combines, blues, boogie woogie, and rock and roll. Padfield, chief executive of Chiroscience, commented: "The product pipeline we have created is leading to significant value for the Group. Phase III development of Chirocaine(tm) has continued on track, creating broad clinical uses and a product of significant commercial opportunity. Our approach to evaluating new drug discoverieribute to the control of the Group's cash at the year end." CHAIRMAN'S STATEMENT The first half year has seen considerable technical and commercial achievements throughout the Group. Good progress has been made in the integration of Darwin Discovery's activities, which brings together operations in Cambridge, Seattle and Corporation, PowderJect Pharmaceuticals plc, Tinuing to build its reputation amongst the pha Much work has been undertaken in exploring the most effective way to commercialize levobupivacaine (Chiplanned for December 1997. The area of paready brought in a new development opportunity t focus; rather they see it as an additional revenue source associated with sales in another product area. One of the options under review by the Board is to access the pain-management market further through an alliance with one or m company on a global basis. The Board has cur cur a derogatory term for a mongrel dog. our management teams through the recruitment of key members of staff ensuring our skill-base complements th responsibility for Research and Development ws opportunity to thank Dr. Jon Dickens for thend profitability are expected to increase subsvant commercialization strategies. New research targets are expected to be created from both our Cambridge and Seattle operations, with opportunities to feed and maintain our development pipeline. Commercialization of our proprietary genomic technologies will continue to be explored. Revenues for the second half of the year are thus anticipated to exceed those of the first half. Combining this with a reduction in expenditure levels as Chirocaine(tm) clinical trials are completed, there should be a significantly smaller loss in the second half of the year. I look forward to reporting on many exciting developments in sion) and 5.9 million pounds from ChiroTech. r total investment in R & D increased to 19.0 million pounds compared to 7.1 million pounds in the first half of 1996 and 18.8 million pounds for the full year to Feb.7 million pounds. However, the increase in reer month, resulting in cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. at August 31, 1997 of 37.4 million pounds. Capital expenditure in the period was 0.9 million pounds(6 months to August 31, 1997: 0OPERATING REVIEW During the first half nches during 1998. The Group has invested considerable resources in the continuing development of this important drug which, while having an excellent long-actindominal surgery and its expanded use in post-opa In June, the Group secured an extremely important collaboration with Schering-Plough Corporation for the development of an oral treatment for asthma using the Group's proprietary inhibitors of the phosphodiesterase phosphodiesterase /phos·pho·di·es·ter·ase/ (-di-es´ter-as) any of a group of enzymes that catalyze the hydrolytic cleavage of an ester linkage in a phosphoric acid compound containing two such ester linkages. IV (PDE PDE Pennsylvania Department of Education PDE Plug-In Development Environment PDE Partial Differential Equation PDE Phosphodiesterases PDE Personal Digital Entertainment PDE Pulse Detonation Engine PDE Product Data Exchange PDE Present-Day English IVchering-Plough access to our development candihibitor programmes - cancer and inflammatory disease Noun 1. inflammatory disease - a disease characterized by inflammation disease - an impairment of health or a condition of abnormal functioning NEC, necrotizing enterocolitis - an acute inflammatory disease occurring in the intestines of premature infants; D1927 and D2163 are completing their pre-clinical evaluation and Phase I trials in human volunteers are planned to begin by the year end. These candidate drugs are very well absorbed and have not shown any evidence of musculoskeletal musculoskeletal /mus·cu·lo·skel·e·tal/ (-skel´e-t'l) pertaining to or comprising the skeleton and muscles. mus·cu·lo·skel·e·tal adj. Relating to or involving the muscles and the skeleton. effects in extensive pre-clinical testing and their selectivity selectivity /se·lec·tiv·i·ty/ (se-lek-tiv´i-te) in pharmacology, the degree to which a dose of a drug produces the desired effect in relation to adverse effects. selectivity 1. profile should enable this to be confirmed in man. D5410 is insufficiently well absorbed to make it an attractive commercial candidate to treat arthritis. However, this compound inhibits a range of MMPs and patient trials with D5410 in inflammatory bowel disease inflammatory bowel disease n. Abbr. IBD Any of several incurable and debilitating diseases of the gastrointestinal tract characterized by inflammation and obstruction of parts of the intestine. are planned to begin in mid-1998, underlining un·der·lin·ing n. 1. The act of drawing a line under; underscoring. 2. Emphasis or stress, as in instruction or argument. our strategy of investigating multiple end points for these inhibitors. Collaborative Alliances The alliances with Medeva plc on D2785 (d-threo-methylphenidate) and Knoll/BASF on D2024 (Verapamil verapamil /ve·rap·a·mil/ (ve-rap´ah-mil) a calcium channel blocker that dilates coronary arteries and decreases myocardial oxygen demand, used as the hydrochloride salt in the treatment of angina pectoris and of hypertension and the isomers isomers (ī´sōmurz), n.pl 1. organic compounds having the same empirical formula–i.e. ) have both progressed during the period. Five of the ten patents applied for internationally on D2785 have been published. We are unaware of any competitive filings and are confident of our priority position. Three new alliances have been established exploiting the Group's capabilities in inhibitor research (with Alcon Laboratories Inc. in ophthalmics), in combinatorial chemistry Combinatorial chemistry involves the rapid synthesis or the computer simulation of a large number of different but structurally related molecules. Introduction Synthesis of molecules in a combinatorial fashion can quickly lead to large numbers of molecules. (with Trega Biosciences Inc. in inflammation) and in genomics (with Geron Corporation, in aging diseases related to the Werner's Syndrome Wer·ner's syndrome n. A hereditary disease of young adults characterized by short stature, early graying, cataracts, vascular disorders, and generally premature aging and death. gene, discovered by Darwin Molecular in 1996). Discovery Research Our development pipeline will be fueled by the gene-based discovery work undertaken in Seattle. The most advanced projects under way are those on a bone-density related gene - which could result in a drug to treat osteoporosis offering immense commercial opportunity - and on auto-immune diseases - focused on psoriasis psoriasis (sôrī`əsĭs), occasionally acute but usually chronic and recurrent inflammation of the skin. The exact cause is unknown, but the disease appears to be an inherited, possibly autoimmune disorder that causes the , but also encompassing a number of inflammatory diseases such as arthritis. The genomics technologies available in Seattle have been applied to identify a number of further opportunities in the MMP field and are being used pipeline have required us to focus our resources on those of greatest commercial potential. As a consequence, the single isomer isomer (ī`səmər), in chemistry, one of two or more compounds having the same molecular formula but different structures (arrangements of atoms in the molecule). Isomerism is the occurrence of such compounds. cancer programs D3967, D4809 and D7991 wroTech ChiroTech has had an excellent first half with sales of 5.9 million pounds generating an oper for which we have significant orders in hand for the second half of the year. Gross margins for this product are consistently greater than 50%, which reflects the earlier technology investments by the Group to establish this opportunity. Accordingly, the business should have an excellent second half and full year. Chiroscience Group plc Chiroscience is an emerging pharmaceutical company operating in the UK and USA, which uses its diverse technology plary and development of innovative small molecule drugs and related diagnostics with a therapeutic focus on autoimmune disease autoimmune disease, any of a number of abnormal conditions caused when the body produces antibodies to its own substances. In rheumatoid arthritis, a group of antibody molecules called collectively RF, or rheumatoid factor, is complexed to the individual's own gamma , cancer, inflammation, pain and osteoporos Revenues 9.2 4.7 11.5 Cost of sales(b) (3.3) (3.8) (8.8) _______ _______ _______ Gross profit 5.9 0.9 2. 1.4 1.0 2.3 _______ _______ _______ Loss on ordinary activities before taxation ======= ======= Loss per share - b months to 8/31/97 8/31/96 2/28/97 (in millions) pounds pounds pounds Fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → Tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. 8.5 6.8 _______ __ _____ 50.7 56.0 Creditors: amounts due within one year (9.1) (4.8) (9.6) _____.0 23.5 Profit and loss account 8/31/97 8/31/96 2/28/97 (in millions) pounds pounds pounds Cashflow from operating activities (note 4) (15.0) (6.9) (16.3) Returns on investments and servicing of finance Interest received 1.4 1.1 2.3 Capital expenditure and financial investments Fixed assets acquired (net) (0.9) (0.4) (1.0) Acquisiti 0.0 0.0 0.3 _______ _______ _______ Cash outflow before management of liquid resources acing Shares issued, net of expenses 0.4 _______ _______ Movement in net fundsen cash and investments (14.1) 30.2 20.0 _______ _______ out in this report is u naudited and does not c accounts, which carry an unqualified report and have been delivered to the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . The Interim Report will be posted to shareholders on Octobe's registered office: 283 Cambridge Science Pa 3.9 9.2 Operating profit/(loss) by division Darwin Discovery (16.4) (7.5) (20.4) ChiroTech 2.3 0.2 oup operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. (15.8) (8.6) (21.6) ======= ======= ======== 3. LOSS PER SHARE The loss per share is based on losses of 14.4 million pounds (August 31, 1996: loss of 7.6 million pounds and year to February 28, 1997: loss of 19.3 million pounds), and on 106.4 million Ordinary Shares (August 31, 1996: 77.8 million Ordinary Shares, and February 28, 1997: 85.4 million Ordinary SES 6 months to 6 months to 12 months to 8/31/97 8/31/96 2/28/97 (in millions) pounds pounds pounds Operating loss (15.8) (8.6) (21.6) Depreciation 1.5 0.8 2.2 Provision of free of charge services (0.3) 0.0 (0.5) Discount on share options (note 6) 0.2=== ======= 5. FIXED ASSET INVESTMENTS Represents the 2.6 million shares held by the Chiroscience Employee Share Ownership Plan at cost. The market value of the shares at August 31, 1997 was 7.5 million pounds. ge. The charges and adjustments are as follows: 0.6 ====== ====== ====== 7. RECOGNIZED GAINS Recognized Gain The amount of gain reported for income tax purposes. Notes: You can defer recognizing some gains until the following year(s). See also: Capital Gain, Capital Loss, Deferred Income Tax, Drought Sale, Exempt Income, Exemption, Gain, Recognized Loss AND LOSSES The only recognized gains or losses 997: 0.3 million pounds). CONTACT: Chiroscience Andrew Burrows, Media Relations 011-44-1223-428-626 Rebecca Iveson, Investor Relations Investor relations The process by which the corporation communicates with its investors. 011-44-1223-428-645 or Taylor Rafferty Associates James Prout 212-889-4350 |
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