RNS Number:9471R
Cambridge Antibody Tech Group PLC
25 February 2002
02/CAT/08
FOR IMMEDIATE RELEASE
07.00 GMT 02.00 EST Monday 25 February 2002
For Further Information Contact:
Cambridge Antibody Technology Weber Shandwick Square Mile (Europe)
Tel: +44 (0) 1763 263 233 Tel: +44 (0) 20 7950 2800
David Chiswell, Chief Executive Officer Kevin Smith
John Aston, Finance Director Graham Herring
Rowena Gardner, Head of Corporate
Communications
BMC Communications/The Trout Group (USA)
Tel: +1 212 477 9007
Brad Miles, ext. 17 (media)
Brandon Lewis, ext. 15 (investors)
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC ("CAT") ANNOUNCES FIRST QUARTER
FINANCIAL RESULTS
Melbourn, UK ... Cambridge Antibody Technology Group plc (LSE: CAT; NASDAQ:
CATG) today announces financial results for the first quarter of its financial
year, from 1 October 2001 to 31 December 2001.
CAT continues to make progress in all areas of its business. Its clinical
programmes continue with recruitment underway in the Phase II/III clinical trial
of CAT-152 in patients undergoing primary trabeculectomy and continuing in the
Phase I/II clinical trials of CAT-192 in patients with diffuse systemic
sclerosis and CAT-213 in patients with allergic rhinitis. In December 2001, data
from the Phase I trial of CAT-213 were presented at the British Pharmacological
Society meeting, as were pre-clinical data for CAT-192 in pulmonary fibrosis
models.
In December 2001, the Company announced a product development collaboration with
AMRAD Corporation, committed to the joint discovery and development of human
antibody-based therapeutics that neutralise the receptor for
granulocyte-macrophage colony stimulating factor (GM-CSF Receptor). Also in
December, CAT signed an agreement with Incyte Genomics that gives CAT access to
the Incyte LifeSeq(R) Gold database and options for product development rights.
There has also been progress within existing collaborations. In January 2002,
Human Genome Sciences, Inc. (HGSI) exercised an option for an exclusive licence
on a human monoclonal antibody to TRAIL Receptor 1 (TRAIL-R1), being evaluated
by HGSI as an anti-cancer drug. In addition, Immunex exercised an exclusive
licence option in respect of development and potential commercialisation of
human monoclonal antibodies to an undisclosed disease target, one of eight
granted by CAT to Immunex under an agreement signed in December 2000.
In January, CAT announced that it had entered into a definitive agreement
pursuant to which CAT would make an offer by way of a takeover bid for all of
the issued shares of Drug Royalty Corporation (DRC). DRC generates strong cash
flow from its portfolio of drug royalty interests and its acquisition would be
of incremental value to CAT as its monoclonal antibody therapies progress
through clinical development. DRC's net cash position would provide CAT with
further funding, as it continues the creation and development of its growing
pipeline of new antibody drugs. CAT would also benefit from indirectly acquiring
the benefits of its royalty-based obligations under its existing contract with
DRC, which expires in 2009. The offer will be open for acceptance until 21.00
EST on 12 March 2002.
On 21 December 2001, the District Court Judge in Washington DC issued a ruling
that he intends to rule that MorphoSys does not infringe CAT's Griffiths patent
unless persuaded that there is a genuine issue as to any material fact which
would require the matter to be retried before a jury. The Company filed further
papers as invited.
In January, CAT was granted a second European "McCafferty" phage display patent.
The patent, no. EP 0 774 511, has claims relating to a phage particle displaying
a Fab or scFv molecule on its surface and containing a phagemid genome encoding
the displayed molecule, libraries of such phage particles and their use for
selecting Fab or scFv molecules to desired antigens. It is a divisional of the
parent McCafferty patent no. EP 0 589 877, which was upheld by the European
Patent Office (EPO) opposition division in July 2000.
CAT is pleased to announce the appointment of Peter Chambre as the Company's new
Chief Executive Officer with effect from early April. He will join the CAT Board
at that time.
Financial results
CAT made a loss for the three months ended 31 December 2001 of £4.0 million
(three months ended 31 December 2000: £1.9 million; year ended 30 September
2001: £11.8 million). Net cash outflow before management of liquid resources and
financing for the period was £2.8 million (three months ended 31 December 2000:
£4.0 million; year ended 30 September 2001: £14.3 million). Cash and liquid
resources at 31 December 2001 amounted to £154.6 million (31 December 2000:
£166.2 million; 30 September 2001: £156.7 million).
Revenues in the period were £1.9 million (three months ended 31 December 2000:
£2.0 million; year ended 30 September 2001: £7.1 million). Under the Group's
accounting policy for revenue recognition, certain income (principally licence
fees) is deferred when received and recognised as revenue over the term of the
rights granted. In the three months ended 31 December 2001, turnover included
£0.4m of revenues released in accordance with this policy. The balance of
revenue recognised was generated by research and development services rendered
under ongoing collaborations. No milestone payments were received during the
period.
Operating costs for the period amounted to £7.7 million (three months ended 31
December 2000: £6.3 million; year ended 30 September 2001: £27.8 million). Staff
numbers rose over the period from 247 to 268 with resultant increases in staff
costs and related expenditures. Research and development expenditure was also
impacted by increasing product development activity, particularly in clinical
trials. Patent litigation costs were £0.2 million in the three months period
(three months ended 31 December 2000: £0.7 million; year ended 30 September
2001: £2.0 million).
During the period the Group earned interest on its cash deposits of £1.9 million
(three months ended 31 December 2000: £2.4 million; year ended 30 September
2001: £9.3 million) reflecting the level of cash and liquid resources held in
interest bearing securities and prevailing rates of return which have declined
in recent periods.
During the three months ended 31 December 2001 the Group received certain
licence fees. In accordance with the Group's accounting policy such fees have
been deferred and will be recognised over the term of the licence.
The cost of the Incyte LifeSeq(R) Gold database purchased during the period has
been capitalised as an intangible fixed asset due to the nature of the database
and the rights granted. It will be amortised over the term of the rights
granted. At 31 December 2001 the full cost of the licence was included in
creditors.
Additions to tangible fixed assets for the period were £0.8 million (three
months ended 31 December 2000:£0.4 million; year ended 30 September 2001:£3.8
million). The majority of the expenditure was on laboratory equipment. The
fitting out of CAT's new premises at Granta Park commenced in February 2002.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
Preliminary Statement of Results for the Three months ended 31 December 2001
Consolidated Profit and Loss Account
Three months Three months Year ended
ended ended 30 September
31 December 31 December
2001 2000 2001
£'000 £'000 £'000
(Unaudited)
Turnover 1,878 2,003 7,121
Direct costs (84) (63) (351)
Gross profit 1,794 1,940 6,770
Research and development expenses (6,110) (4,693) (21,393)
General and administration expenses (1,557) (1,593) (6,443)
Operating loss (5,873) (4,346) (21,066)
Interest receivable (net) 1,860 2,449 9,295
Loss on ordinary activities before taxation (4,013) (1,897) (11,771)
Taxation on loss on ordinary activities - - -
Loss for the financial period (4,013) (1,897) (11,771)
Loss per share - basic and fully diluted 11.3p 5.4p 33.3p
(pence)
Consolidated Statement of Total Recognised Gains and Losses
Three months Three months Year ended
ended 31 ended 31 30
December December September
2001 2000 2001
£'000 £'000 £'000
(Unaudited)
Loss for the financial period (4,013) (1,897) (11,771)
Loss on foreign exchange translation (28) - 1
Total recognised losses relating to the period (4,041) (1,897) (11,770)
Prior year adjustment (6,594)
Total recognised losses since last annual report (18,364)
and accounts
The losses for all years arise from continuing operations.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
Preliminary Statement of Results for the Three months ended 31 december 2001
Consolidated Balance Sheet
As at 31 As at 31 As at 30
December December September
2001 2000 2001
(Unaudited) £'000 £'000 £'000
Fixed assets
Intangible assets 8,721 4,355 4,075
Tangible fixed assets 6,749 4,982 6,642
Investments 215 - -
15,685 9,337 10,717
Current assets
Debtors 4,071 3,736 4,940
Investment in liquid resources 150,773 165,113 156,228
Cash at bank and in hand 3,847 1,091 585
158,691 169,940 161,753
Creditors
Amounts falling due within one year (12,979) (7,369) (8,335)
Net current assets 145,712 162,571 153,418
Total assets less current liabilities 161,397 171,908 164,135
Creditors
Amounts falling due after more than one year (8,374) (6,720) (8,085)
Net assets 153,023 165,188 156,050
Capital and reserves
Called-up share capital 3,553 3,524 3,546
Share premium account 195,795 194,304 195,017
Other reserve 13,451 13,451 13,451
Profit and loss account (59,776) (46,091) (55,964)
Shareholders' funds - all equity 153,023 165,188 156,050
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
Preliminary Statement of Results for the three months ended 31 december 2001
Consolidated Cash Flow Statement
Three months Three months Year ended
ended 31 ended 31 30 September
December December 2001
2001 2000
(Unaudited) £'000 £'000 £'000
Operating loss (5,875) (4,346) (21,066)
Depreciation in the period 698 463 2,146
Amortisation of patents 94 93 373
(Profit)/loss on disposal of fixed assets - (5) 1
Decrease/(increase) in debtors 344 521 (515)
Increase/(decrease) in creditors 442 (1,958) (89)
Net cash outflow from operating activities (4,297) (5,232) (19,150)
Returns on investments and servicing of
finance
Interest received 2,393 1,644 8,322
Taxation - - -
Capital expenditure and financial investment
Purchase of fixed assets (911) (437) (3,485)
Sale of fixed assets - 5 4
(911) (432) (3,481)
Net cash outflow before management of liquid (2,815) (4,020) (14,309)
resources and financing
Management of liquid resources 5,455 (8,611) 274
Financing
Issue of ordinary share capital 785 14,645 15,380
Increase in cash and cash equivalents 3,425 2,014 1,345
Notes to the financial information
Basis of preparation
Financial information for the three month periods ended 31 December 2001 and 31
December 2000 have been prepared under UK GAAP on a basis consistent with the
accounting policies set out in the annual report for the year ended 30 September
2001. The Group did not make any announcement of results for the three months
ended 31 December 2000 during the prior financial year and therefore the
comparative figures for that period in these statements are being presented for
the first time.
The preceding information does not constitute the Company's statutory financial
statements for the year ended 30 September 2001 within the meaning of section
240 of the Companies Act 1985. Results for the three month periods ended 31
December 2001 and 31 December 2000 have not been audited. The results for the
year ended 30 September 2001 have been extracted from the statutory financial
statements which have been filed with the Registrar of Companies and upon which
the auditors reported without qualification.
Loss per share
Potentially dilutive issueable shares are only included in the calculation of
fully diluted earnings per share if their issue would decrease net profit per
share or increase net loss per share. The Group's basic and fully diluted
earnings per share are therefore equal.
The calculation is based on the following, for the three months ended 31
December 2001, the three months ended 31 December 2000 and the year ended 30
September 2001 respectively. Losses of £4,013,000, £1,897,000 and £11,771,000.
Weighted average number of shares in issue of 35,481,104, 35,107,096 and
35,313,260. The Company currently has 35,533,552 ordinary shares in issue and a
total of 1,663,650 ordinary shares under option.
Other
During the period, the Group disposed of its wholly owned subsidiary, Denzyme
ApS, in return for a minority interest in another company. This transaction has
no material impact on reported results.
Included within total creditors for the Group at 31 December 2001 was
£11,991,000 representing revenue which has been deferred under the Group's
accounting policy for revenue recognition and will be recognised in future
periods. The corresponding amounts at 31 December 2000 and 30 September 2001
were £9,314,000 and £11,043,000 respectively.
-ENDS-
Notes to Editors:
Cambridge Antibody Technology (CAT)
• CAT is a UK biotechnology company using its proprietary technologies in
human monoclonal antibodies for drug discovery and drug development. Based
near Cambridge, England, CAT currently employs around 270 people.
• CAT is listed on the London Stock Exchange and has been listed on NASDAQ
since June 2001. CAT raised £41m in its IPO in March 1997 and £93m in a
secondary offering in April 2000.
• CAT has an advanced platform technology for rapidly isolating human
monoclonal antibodies using phage display systems. CAT has extensive phage
antibody libraries, currently incorporating more than 100 billion distinct
antibodies. These libraries form the basis for the Company's strategy to
develop a portfolio of antibody-based drugs and to utilise antibodies as
tools for target validation. Six human therapeutic antibodies developed by
CAT are at various stages of clinical trials.
• CAT has alliances with a large number of biotechnology and pharmaceutical
companies to discover, develop and commercialise human monoclonal
antibody-based products. CAT has also licensed its proprietary human
antibody phage display libraries to several companies for target validation
and drug discovery. CAT's collaborators include: Abbott, AMRAD, Elan, Eli
Lilly, Genetics Institute, Genzyme, Human Genome Sciences, Immunex, Incyte,
Merck & Co., Inc, Oxford GlycoSciences, Pharmacia, Pfizer, Wyeth-Ayerst,
Xerion and Zyomyx.
CAT-152 (lerdelimumab)
• A human anti-TGFss monoclonal antibody being developed by CAT as a
treatment to prevent post-operative scarring in patients undergoing surgery
for glaucoma.
CAT-192
• A human anti-TGFss monoclonal antibody being developed in collaboration
with Genzyme as a potential treatment for a range of scarring and fibrotic
conditions including scleroderma.
CAT-213
• A human anti-eotaxin monoclonal antibody which neutralises eotaxin1 and
inhibits the major stimulus that attracts a type of white blood cell known
as eosinophils into tissues
• CAT-213 may have clinical applications in the treatment of severe allergic
disorders.
Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: This press release contains statements about CAT that are forward
looking statements. All statements other than statements of historical facts
included in this press release may be forward looking statements within the
meaning of Section 21E of the US Securities Exchange Act of 1934.
These forward looking statements are based on numerous assumptions regarding
CAT's present and future business strategies and the environment in which CAT
will operate in the future. Certain factors that could cause CAT's actual
results, performance or achievements to differ materially from those in the
forward looking statements include: market conditions, CAT's ability to enter
into and maintain collaborative arrangements, success of product candidates in
clinical trials, regulatory developments and competition.
This information is provided by RNS
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