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 CAMBRIDGE, England, Nov. 29 /PRNewswire/ -- Cantab Pharmaceuticals plc (NASDAQ: CNTBY) today announced financial results for the third quarter ended Sept. 30, 1993.
 Revenues for the third quarter totaled 219,000 pounds, compared to 280,000 pounds for the same period in 1992. For both periods, revenues were earned under the company's collaborative agreement with Baxter Healthcare Corporation (NYSE: BAX) relating to Cantab's LM-CD45 product development program for the prevention of organ transplant rejection.
 Operating expenses increased by 25 percent to 1,069,000 pounds for the three months ended Sept. 30, 1993, from 854,000 pounds for the year-ago quarter. This increase reflects continued investment in advancing Cantab's portfolio of product development programs. The company reported general and administrative expenses of 181,000 pounds, up 14 percent from the third quarter of 1992.
 Net loss for the third quarter of 1993 was 762,000 pounds or 0.13 pounds per share compared to 359,000 pounds or 0.07 pounds per share for the same period in 1992. As of Sept. 30, 1993, the closing cash position was 7.2 million pounds.
 In October 1993, Cantab completed an equity offering in the UK and began trading on the London Stock Exchange, which has broadened the company's investor base in its home market. Following completion of this financing, Cantab had net cash of approximately 21 million pounds ($31.5 million). The net proceeds from the financing, estimated at 13.8 million pounds ($20.7 million), were received after the end of the third quarter accounting period. The proceeds will be used to continue the development of products for the treatment of genital herpes, cervical cancer, genital warts and inflammatory bowel disease.
 A physician-initiated clinical trial commenced at the University of Wales College of Medicine during the quarter for the treatment of cervical cancer using Cantab's TA-HPV immunotherapy. The trial will involve a small number of patients with advanced disease and aims to confirm proof of principle of the therapeutic approach of TA-HPV. Cantab will supply TA-HPV but will not otherwise participate in the clinical trial.
 Cantab successfully prepared a parallel DISC construct for HSV type 2, to be developed as a product candidate for treatment of the recurrent disease characteristic of genital herpes. The DISC HSV type 2 construct is expected to be more effective than a DISC HSV type 1 in preventing the recurrence of genital herpes.
 The company's LM-CD45 product candidate for the prevention of organ transplant rejection is in Phase II clinical trials in the UK. In addition, Cantab and Baxter have agreed to continue investigating the use of anti-CD45 antibodies in heart and liver transplantation. Cantab is collaborating with a research group at the University of Glasgow in preclinical heart transplantation studies using anti-CD45 antibodies and intends to commence a preclinical liver transplantation program with the University of Newcastle.
 "We are pleased with the current progress of our research and development programs," said Paul Haycock, M.D., president and chief executive officer of Cantab. "Our UK flotation, together with the recent financing in the U.S., gives Cantab the financial strength to further the commercial potential of these programs and to investigate new areas in therapeutic immunology."
 Cantab is engaged in the research and development of biopharmaceuticals that use the highly selective properties of the immune system to treat disease. The company has research and development programs in two principal areas: Leucocyte Modulators, which regulate or block immune system function, and Therapeutic Antigens, which activate specific immune responses. Cantab's initial therapeutic focus includes research and development programs in the prevention of organ transplant rejection, the treatment of cervical cancer, the prevention of the recurrence of genital herpes, the treatment of genital warts and research into the management of inflammatory bowel diseases.
 Selected Financial Information
 Consolidated Statements of Income
 (In thousands, except per share data)
 Three months Nine months
 to Sept. 30 to Sept. 30
 1993 1993(A) 1992 1993 1993(A) 1992
 (pounds) (US$) (pounds) (pounds) (US$) (pounds)
 Amounts in accordance with UK GAAP:
 License and milestone
 fees --- --- --- 300 450 500
 development 218 327 277 535 802 944
 Other 1 1 3 2 3 10
 Total revenues 219 328 280 837 1,255 1,454
 Operating expenses:
 R&D 888 1,332 695 2,400 3,600 1,882
 General & admin. 181 271 159 683 1,025 804
 Total operating
 expenses 1,069 1,603 854 3,083 4,625 2,686
 Interest income,
 net 88 132 216 245 368 407
 Net (loss)/
 profit (762) (1,143) (359) (2,001) (3,002) (825)
 Net (loss)/profit
 per ordinary
 share (0.13) (0.19) (0.07) (0.03) (0.49) (0.16)
 Weighted average
 outstanding 6,091 6,091 5,258 6,091 6,091 5,258
 Amounts in accordance with US GAAP:
 Net (loss)/
 profit (836) (1,254) (445) (2,244) (3,366) (1,043)
 Net (loss)/profit
 per ordinary
 share (0.14) (0.21) (0.08) (0.37) (0.55) (0.20)
 Weighted average
 outstanding 6,091 6,091 5,258 6,091 6,091 5,258
 (A) US dollar amounts have been translated from or into sterling at the rate on Sept. 30, 1993 of 1.00 pounds equals $1.50, for information purposes.
 Selected Financial Information
 Consolidated Balance Sheet
 (In thousands)
 As at
 Dec. 31, Sept. 30, Sept. 30, Sept. 30,
 1992 1993 1993 1992
 (Audited) (Unaudited) (Unaudited)(A) (Unaudited)
 (pounds) (pounds) (US$) (pounds)
 Amounts in accordance
 with UK and US GAAP:
 Cash and cash
 equivalents 6,853 7,239 10,858 7,225
 Other current
 assets 310 573 860 611
 Property, plant
 and equipment,
 net 1,825 1,766 2,649 1,836
 Deferred offering
 expenses --- 164 246 ---
 Total assets 8,988 9,742 14,613 9,672
 Current liabilities
 and accruals 821 674 1,011 937
 liabilities 217 93 140 234
 liabilities 1,038 767 1,151 1,171
 equity(B) 7,950 8,975 13,462 8,501
 Total liabilities
 and shareholders'
 equity 8,988 9,742 14,613 9,672
 (A) US dollar amounts have been translated from or into sterling at the rate on Sept. 30, 1993 of 1.00 pounds equals $1.50, for information purposes.
 (B) Shareholders' equity as at Sept. 30, 1993 does not include the net proceeds of the company's placement on the London Stock Exchange, completed during October 1993.
 (C) The figures for the financial year ended Dec. 31, 1992 are extracted from the statutory accounts for that year on which an unqualified report was made by the Auditors and which have been delivered to the Registrar of Companies for England and Wales. The summarized results for the nine months to Sept. 30, 1993 and the comparative results for the nine months to Sept. 30, 1992 are non-statutory accounts within the meaning of Section 240 of the Companies Act 1985.
 (D) The comparative figures for the nine months to Sept. 30, 1992 and for the year to Dec. 31, 1992 (with respect to the balance sheet) have been restated in accordance with Financial Reporting Standard No 3.
 (E) Copies of the interim results are being posted to shareholders and are available to the public from the company's Registered Office at 184 Cambridge Science Park, Milton Road, Cambridge CB4 4GN.
 -0- 11/29/93
 /CONTACT: Paul Haycock, M.D., or Nick Hart of Cantab Pharmaceuticals plc, in the United Kingdom, 011-44-223-423413; or Anthony J. Russo, Ph.D., of Noonan/Russo Communications, in New York, 212-979-9180/

CO: Cantab Pharmaceuticals plc ST: IN: MTC SU: ERN

MP-JG -- NY038 -- 8305 11/29/93 12:47 EST
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Date:Nov 29, 1993

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