RNS Number:2390L
Cambridge Antibody Tech Group PLC
19 May 2003
03/CAT/12
FOR IMMEDIATE RELEASE
07.00 BST, 02.00 EST Monday 19 May 2003
For Further Information Contact:
Cambridge Antibody Technology Weber Shandwick Square Mile (Europe)
Tel: +44 (0) 20 7067 0700
Tel: +44 (0) 1223 471 471 Kevin Smith
Peter Chambre, Chief Executive Officer Graham Herring
John Aston, Chief Financial Officer
Rowena Gardner, Director of Corporate
Communications
BMC Communications/The Trout Group (USA)
Tel: 001 212 477 9007
Brad Miles, ext 17 (media)
Brandon Lewis, ext.15 (investors)
CAMBRIDGE ANTIBODY TECHNOLOGY
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2003
* First CAT-derived human monoclonal antibody, HumiraTM, launched in US
(Abbott)
* Clinical trials of TrabioTM commenced in US
* Enrolment complete in CAT-192 Phase I/II clinical trial
* Good Phase I results for LymphoStat-BTM; awarded "fast track" status
(HGSI)
* IND for ABthraxTM to be filed in near future (HGSI)
* Principal patent litigation resolved
* Proposed merger with Oxford GlycoSciences not completed
* Level of Humira royalty disputed by Abbott
* Loss for the six months ended 31 March 2003 of #18.8 million
* Cash and liquid resources at 31 March 2003: #118.2 million
* Cash burn for year ended 30 September 2003 to be less than #40 million
Professor Peter Garland, CAT's Chairman, said: "The core value of the Company is
in the pipeline of products derived from our exceptional technology. The last
six months have been a period of good progress for CAT's product development:
Humira has been launched in the US by Abbott, Trabio has commenced clinical
trials in the US and there has been advancement in other CAT-derived products
under development. Also, important agreements have been reached in respect of
CAT's patents and licensing."
"Despite the disappointments of the Oxford GlycoSciences outcome and the
disagreement over Humira royalties with Abbott, our five-year objectives of
profitability and strengthening our pipeline to deliver rapid growth thereafter,
remain unchanged. We are focussed on developing our pipeline and our core
technologies, in particular Ribosome Display, while licensing our technology and
capabilities in areas outside our primary focus. The fundamentals on which CAT
is based remain strong and we will continue to enhance and demonstrate the value
of our pipeline. We will plan prudently for the future of the business,
including ensuring the adequacy of our cash position. We remain committed to
building a strong, product-based, profitable biopharmaceutical company."
Product development
HumiraTM
On 31 December 2002, Abbott Laboratories announced that it had received US Food
and Drug Administration (FDA) approval to market Humira (adalimumab, previously
known as D2E7), a human anti-TNFa monoclonal antibody, in the US, earlier than
anticipated, as a treatment for rheumatoid arthritis (RA). Humira was isolated
and optimised by CAT and Abbott as part of a collaboration and is the first
CAT-derived antibody to receive approval for marketing. Abbott launched Humira
in the US in January 2003 and has reported sales of $26 million in Q1 2003.
Approval for marketing in Europe from the European Agency for the Evaluation of
Medicinal Products (EMEA) is expected by the end of the first half of 2003. In
March 2003, Abbott announced that it has expanded its Humira programme by
starting a randomised, multi-centre Phase II clinical trial in patients with
chronic plaque psoriasis and a Phase III clinical trial in patients with
psoriatic arthritis. Phase III clinical trials in juvenile RA and Crohn's
disease continue.
CAT's entitlement to royalties in relation to sales of Humira is
governed by an agreement dated 1 April 1995 between Cambridge Antibody
Technology Limited and Knoll Aktiengesellschaft (now a subsidiary of Abbott
Laboratories). The agreement allows for offset, in certain circumstances, of
royalties due to third parties against royalties due to CAT, subject to a
minimum royalty level. Abbott indicated to CAT in March 2003 its wish to
initiate discussions regarding the applicability of these royalty offset
provisions for Humira. CAT believes strongly that the offset provisions do not
apply and will seek an outcome consistent with that position.
CAT Products
Following regulatory clearance from the FDA, a clinical trial of Trabio
(lerdelimumab, CAT-152), a human anti-TGFb2 monoclonal antibody, being developed
for improving outcomes in glaucoma filtration surgery, have started in the US.
The trial is a head-to-head comparison of Trabio with 5-Flurouracil (5-FU) in
patients undergoing first time glaucoma surgery. In the Phase III European
clinical trial recruitment is on schedule to be complete by the end of the first
half 2003 and in the Phase III International clinical trial recruitment is
expected to be complete by the end of 2003.
In May 2003 three-year follow-up results of the Phase I/IIa clinical trial of
Trabio in patients undergoing first time glaucoma filtration surgery were
presented at the annual meeting of the Association for Research in Vision and
Ophthalmology (ARVO). The results show a clinically significant benefit in the
outcome of surgery in patients treated with Trabio after
surgery for glaucoma. Additionally, there were no significant long-term safety
issues observed.
Discussions continue with a number of potential partners with a view to the
marketing and selling of Trabio.
Patient recruitment in the Phase I/II clinical trial of CAT-192 (metelimumab), a
human anti-TGFb1 monoclonal antibody, as a potential treatment for diffuse
systemic sclerosis being conducted by CAT's partner, Genzyme, is complete, with
patients recruited in four countries. Data are expected to be available in the
fourth quarter of 2003.
In the Phase I/II allergen challenge study of CAT-213, a human anti-Eotaxin1
monoclonal antibody, in allergic conjunctivitis, patient recruitment is
complete. Data are expected to be available in the third quarter of 2003.
Licensed Products
In April 2003, Human Genome Sciences, Inc (HGSI) announced the results of a
Phase I clinical trial of LymphoStat-B, a human anti-B-Lymphocyte Stimulator
(BLyS) antibody, and reported that these results show that it is safe, well
tolerated and biologically active in patients with systemic lupus erythematosus
(SLE). In consideration of LymphoStat-B's potential to address this serious
unmet medical need, the FDA has awarded LymphoStat-B "Fast Track Product"
designation for the treatment of SLE, which will facilitate the development and
review of the product. HGSI has reported that it is expecting to initiate Phase
II trials in patients with SLE soon and in patients with RA in the second half
of 2003.
The Phase I clinical trials of TRAIL-R1 mAb, a human anti-TRAIL-R1 monoclonal
antibody, being carried out by HGSI in the US in patients with advanced cancers
continue. HGSI expects to complete enrolment by the end of 2003 and to publish
results in 2004. A Phase I clinical trial in patients with multiple myeloma has
commenced.
Since exercising an option, in May 2002, for an exclusive licence to TRAIL-R2
mAb, a human anti-TRAIL-R2 monoclonal antibody, HGSI has stated that it expects
to initiate Phase I clinical trials for cancer in mid-2003.
In March 2003, HGSI publicised its work in developing a human anti-protective
antigen monoclonal antibody, ABthrax, and reported that it is effective in
protecting against anthrax in multiple experimental models. This antibody was
isolated and developed by HGSI from antibody libraries licensed from CAT, and an
exclusive licence to the antibody was granted to HGSI by CAT in September 2002.
HGSI is planning to submit an IND to seek clearance from the FDA to start a
Phase I clinical trial to evaluate the safety, tolerability and pharmacology of
ABthrax in healthy adults in the near future. HGSI expects to initiate the trial
in mid-2003.
J695, a human anti-IL12 monoclonal antibody, continues in two Phase II clinical
trials, conducted by Abbott.
Pre-clinical and discovery stage programmes
There are five CAT-derived human monoclonal antibodies in pre-clinical
development, both at CAT and at CAT's collaborators. Pre-clinical studies of
GC-1008, a human anti-panTGFb monoclonal antibody, being developed jointly by
CAT and Genzyme, continue and it is expected that an IND will be filed in the
fourth quarter of 2003 for clinical trials in idiopathic pulmonary fibrosis.
A further CAT human monoclonal antibody, derived from proprietary research
programmes and being developed for the treatment of asthma and chronic
obstructive pulmonary disease, has entered pre-clinical development. This
antibody has been optimised using Ribosome Display, a technology increasingly
used in CAT's drug discovery activities.
There are ongoing research programmes to 16 distinct molecular targets at CAT.
Over half of these programmes are funded or co-funded by CAT, including
programmes with Amgen, Amrad and Elan.
Activity in the last six months has reflected the weak market for research
collaborations between biotechnology and major pharmaceutical companies. Against
this background, in January 2003, CAT announced a short extension to the term of
its research collaboration with Pfizer (previously Pharmacia). Further
discussions on the future of this collaboration are underway. HGSI continues to
utilise the libraries it licensed from CAT in 2000 to identify and optimise
antibody candidates, however the research collaboration in which CAT carried out
funded research for HGSI concluded in March 2003, when its planned three year
term expired. Discussions are underway with Wyeth regarding the next phase of
that collaboration.
Intellectual property
During December 2002 and January 2003 CAT successfully resolved all principal
patent litigation. Patent disputes with MorphoSys and Crucell were settled with
agreements that demonstrate the strength of CAT's patent portfolio. CAT entered
into a cross-licensing arrangement with XOMA for antibody-related technologies
and also reached agreement with Dyax Corporation to expand access and freedom to
operate under each other's phage display patents, an agreement which also
included the removal of CAT's obligation to pay royalties to Dyax on antibody
products it develops, except in respect of Humira. CAT has options to buy out,
under a predetermined schedule, any royalty obligation which CAT may have in
respect of Humira. CAT has subsequently informed Dyax that it does not believe
royalties are due to Dyax in respect of Humira; Dyax is disputing that view.
Operations
In December 2002, CAT completed its relocation to new laboratories and offices
at Granta Park, Cambridge. One of the two vacated premises in Melbourn has been
disposed of; the other is on the market. CAT employed 299 staff at 31 March 2003
(293 at 30 September 2002).
In response to the weak market for early stage research collaborations, and to
achieve its long-term ambitions in proprietary product development, CAT is
adapting its skill base. To reflect this changing environment a limited number
of positions within the research team are being made redundant.
Oxford GlycoSciences
In January 2003, CAT and Oxford GlycoSciences Plc (OGS) announced that they had
agreed the terms of a merger between the two companies by way of a share for
share exchange. CAT shareholders subsequently approved the merger at an
Extraordinary General Meeting held in February. However, a decline in CAT's
share price, particularly after the announcement of the dispute with Abbott over
the level of Humira royalties, depressed the value of CAT's offer. A competing
cash offer made to OGS shareholders by Celltech subsequently became
unconditional.
Antibody Microarrays
In November 2002, CAT announced its intention to seek independent financing for
its development of the application of antibodies on microarrays for personalised
medicine, as this fell outside CAT's focus on therapeutic antibodies.
Discussions are currently ongoing with a potential purchaser of this business.
Board
Dr Kevin Johnson, CAT's Chief Technology Officer, whose focus since 2001 has
been on leading CAT's development of antibodies on microarrays, will leave the
Company upon conclusion of that project. Kevin has made an enormous contribution
to CAT over the last thirteen years and we wish him every success in his future
endeavours.
CAT is pleased to have welcomed two Non-Executive Directors, Dr Peter Ringrose
and Ake Stavling, to its Board during the period. Peter Ringrose is an eminent
scientist, having successfully led research and development organisations at the
pinnacle of the pharmaceutical industry, and has recently been appointed as
Chairman of the Biotechnology and Biological Sciences Research Council. Ake
Stavling has extensive senior management experience covering finance and the
pharmaceutical industry; succeeds Dr Jim Foght as chairman of the Audit
Committee.
Financial results
CAT made a loss after taxation for the six months ended 31 March 2003 of #18.8
million (six months ended 31 March 2002 (H1) #9.1 million; six months ended 30
September 2002 (H2) #19.1 million). Net cash outflow before management of liquid
resources and financing for the period was #13.2 million (H1 - #10.7 million
outflow; H2 - #17.6 million outflow). Cash and short-term investments at 31
March 2003 amounted to #118.2 million (31 March 2002 #147.3 million; 30
September 2002 #129.8 million).
Revenue in the period was #4.0 million (H1- #4.9 million; H2 - #4.6 million).
Licence fees of #0.9 million were recognised in the period, principally licence
fees released from deferred income brought forward at 30 September 2002. The
library licence granted to Merck & Co., Inc. came into effect during the second
quarter of the current financial year. Revenues of #2.5 million were generated
from contract research fees under ongoing collaborations with Pfizer, HGSI,
Wyeth Research and Merck & Co., Inc. Technical milestone payments of #0.2
million were received from Pfizer during the first quarter of the financial
year. In December 2002, CAT settled all patent disputes with Crucell and
MorphoSys. As part of these settlement agreements CAT has received, and will
continue to receive for a number of years, annual payments giving rise to the
majority of other revenue recognised in the period. A clinical milestone payment
was received from Abbott following the US FDA approval of Humira; this has not
been recognised as revenue in the period as it is creditable against future
royalties receivable.
Operating costs for the period amounted to #25.3 million (H1 - #18.3 million in
total, #17.1 million excluding the Drug Royalty Corporation of Canada (DRC)
transaction costs; H2 - #29.2 million in total, #22.5 million excluding the DRC
transaction costs). External development costs have risen significantly from
#2.8 million in the six months ended 31 March 2002 to #5.8 million in the six
months ended 31 March 2003, with increased activity on clinical trials,
particularly Trabio and the Genzyme collaboration. Staff and infrastructure
costs were higher in the current period than for the six months ended 31 March
2002 primarily as a result of the increase in staff numbers (from an average of
266 during the six month period ended 31 March 2002 to an average of 300 during
the first half of the current financial year), and the leasing of new premises
at Granta Park.
Spend in the period on patent litigation and oppositions, was #0.2 million
compared to #0.5 million for the six months ended 31 March 2002. This reduction
results from the successful resolution of all principal outstanding patent
litigation in the first quarter of the current financial year.
General and administration expenses include #1.6 million of costs incurred in
the six months ended 31 March 2003 relating to the offer made for OGS
(comparative periods - none). A break fee of #1.1 million receivable from OGS
has been offset against these costs.
During the period the Group accrued interest receivable on its cash deposits of
#2.5 million (H1 - #3.4 million; H2 - #3.0 million) reflecting the reduced level
of cash and liquid resources held in interest bearing securities and the lower
interest rates available.
Purchases of tangible fixed assets for the period were #4.3 million (H1 - #1.6
million; H2 - #2.2 million), principally due to the final costs associated with
the construction and fit out of CAT's new premises at Granta Park.
Outlook
Recurring revenues, representing contract research revenues and income from
licensing arrangements entered into as at 30 September 2002, were #2.6 million
in the current period. On the basis of contracts in place at 31 March 2003
recurring revenues are expected to be in the region of #4.5 million to #5.5
million for the full financial year.
Operating costs are expected to show only a modest increase in the second half
of the financial year. Staff numbers are expected to reduce over the remainder
of the financial year.
In November 2002 we gave guidance that net cash burn for the year was expected
to be up to #40 million. Cash outflow is expected to increase in the second half
of the year but overall cash burn for the year is now expected to be less than
#40.0 million.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
(unaudited) Convenience Sx months Six months Year ended 30
translation ended 31 ended 31 March September 2002
Six months March 2003 2002 (audited)
ended 31
March 2003
US$'000 #'000 #'000 #'000
Turnover 6,280 3,977 4,852 9,471
Direct costs (39) (25) (64) (80)
Gross profit 6,241 3,952 4,788 9,391
Research and development expenses (33,704) (21,345) (13,762) (31,307)
Drug Royalty Corporation - - (1,235) (7,913)
transaction costs
Other general and (6,193) (3,922) (3,283) (8,321)
administration expenses
General and administration expenses (6,193) (3,922) (4,518) (16,234)
Operating loss (33,656) (21,315) (13,492) (38,150)
Interest receivable (net) 3,913 2,478 3,424 6,386
Loss on ordinary activities before (29,743) (18,837) (10,068) (31,764)
taxation
Taxation on loss on ordinary - - 920 3,557
activities
Loss for the financial period (29,743) (18,837) (9,148) (28,207)
Loss per share - basic and diluted 51.9p 25.7p 78.7p
(pence)
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
(unaudited) Convenience Six months Six months Year ended
translation ended ended 31 30 September
Six months 31 March 2003 March 2002 2002
ended (audited)
31 March 2003
US$'000 #'000 #'000 #'000
Loss for the financial period (29,743) (18,837) (9,148) (28,207)
Gain (loss) on foreign exchange 129 82 (61) 96
translation
Total recognised losses relating to the (29,614) (18,755) (9,209) (28,111)
period
The losses for all periods arise from continuing operations.
This financial information has been prepared in accordance with UK GAAP. The
dollar translations are solely for the convenience of the reader.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2003
CONSOLIDATED BALANCE SHEET
(unaudited) Convenience As at 31 As at 31 As at 30
translation March 2003 March 2002 September
as at 2002
31 March 2003 (audited)
US$'000 #'000 #'000 #'000
Fixed assets
Intangible assets 11,697 7,408 8,459 7,933
Tangible fixed assets 23,027 14,583 7,589 12,429
Investments 339 215 215 215
35,063 22,206 16,263 20,577
Current assets
Debtors 6,583 4,169 5,950 6,556
Short term investments 185,215 117,299 144,222 126,694
Cash at bank and in hand 2,790 1,766 3,099 3,081
194,588 123,234 153,271 136,331
Creditors
Amounts falling due within one year (25,163) (15,936) (13,309) (12,563)
Net current assets 169,425 107,298 139,962 123,768
Total assets less current liabilities 204,488 129,504 156,225 144,345
Creditors
Amounts falling due after more than one year (18,612) (11,787) (7,787) (8,580)
Net assets 185,876 117,717 148,438 135,765
Capital and reserves
Called-up share capital 5,741 3,636 3,572 3,621
Share premium account 320,894 203,226 196,359 202,534
Other reserve 21,247 13,456 13,451 13,456
Profit and loss account (162,006) (102,601) (64,944) (83,846)
Shareholders' funds - all equity 185,876 117,717 148,438 135,765
This financial information has been prepared in accordance with UK GAAP. The
dollar translations are solely for the convenience of the reader.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2003
CONSOLIDATED CASH FLOW STATEMENT
(unaudited) Convenience Six months Six months Year ended 30
translation ended 31 ended 31 September
Six months March 2003 March 2002 2002
ended (audited)
31 March 2003
US$'000 #'000 #'000 #'000
Net cash outflow from operations (19,717) (12,487) (10,866) (26,808)
Returns on investments and servicing of
finance
Interest received 5,661 3,585 4,081 7,558
Interest paid (16) (10) - -
5,645 3,575 4,081 7,558
Taxation 4,162 2,636 - 920
Capital expenditure and financial
investment
Purchase of intangible assets (4,221) (2,673) - (2,067)
Purchase of tangible fixed assets (6,734) (4,265) (3,932) (7,894)
Sale of tangible fixed assets 5 3 - -
(10,950) (6,935) (3,932) (9,961)
Net cash outflow before management of
liquid resources and financing (20,860) (13,211) (10,717) (28,291)
Management of liquid resources 14,835 9,395 12,006 29,534
Financing
Issue of ordinary share capital 1,116 707 1,368 1,448
Proceeds from new finance lease 1,699 1,076 - -
commitments
Capital elements of finance lease rental (162) (103) - -
payments
2,653 1,680 1,368 1,448
(Decrease)/increase in cash (3,372) (2,136) 2,657 2,691
This financial information has been prepared in accordance with UK GAAP. The
dollar translations are solely for the convenience of the reader.
Notes to the financial information
Accounting policies
This financial information has been prepared in accordance with the policies set
out in the statutory financial statements for the year ended 30 September 2002.
Convenience translation
The consolidated financial statements are presented in pounds sterling. The
consolidated financial statements as of and for the period ended 31 March 2003
are also presented in United States Dollars as a convenience translation. The
Dollar amounts are presented solely for the convenience of the reader and have
been calculated using an exchange rate of #1:US$1.579, the noon buying rate as
of 31 March 2003. No representation is made that the amounts could have been or
could be converted into United States Dollars at this or any other rates.
Drug Royalty Corporation transaction costs
General and administration expenses include #7.9 million of costs incurred in
the year ended 30 September 2002 relating to the two transactions entered into
with Drug Royalty Corporation Inc. of Canada (DRC) during that year. In January
2002, CAT announced a recommended offer for the whole of DRC. A competing offer
was made by Inwest Investments Ltd of Canada which was accepted in April 2002.
Under an agreement with DRC, the Group received a payment of #1.5 million in
1994 in return for rights to a percentage of revenues (and certain other
payments) received by the Group over a period terminating in 2009. The #1.5
million was deferred and recognised over the period for which the rights were
purchased. On 2 May 2002, CAT bought out this royalty obligation to DRC for
#6.1 million (C$14 million) with the issue of 463,818 CAT shares to DRC. The
remaining balance of #0.6 million of deferred income was all released in 2002.
The professional fees incurred in the Group's bid and royalty buy-back
were #1.8 million.
Loss per share
The loss per ordinary share and diluted loss per share are equal because share
options are only included in the calculation of diluted earnings per share if
their issue would decrease the net profit per share or increase the net loss per
share. The calculation is based on the following for the six months ended 31
March 2003, the six months ended 31 March 2002 and the year ended 30 September
2002 respectively: losses of #18,837,000, #9,148,000, and #28,207,000. Weighted
average number of shares in issue of 36,307,483, 35,533,453 and 35,828,446. The
Company has ordinary shares in issue of 36,359,874 and a total of 1,748,727
ordinary shares under option as of 31 March 2003.
Reconciliation of operating loss to operating cash outflow
Convenience Six months Six months Year ended 30
translation ended 31 ended 31 September
Six months March 2003 March 2002 2002
ended 31 March
2003
US$'000 #'000 #'000 #'000
Operating loss (33,656) (21,315) (13,492) (38,150)
Depreciation charge 2,372 1,502 1,429 2,617
Amortisation of intangible fixed assets 829 525 356 882
Shares issued to buy out DRC royalty - - - 6,149
agreement
Loss on disposal of fixed assets 148 94 - -
Increase in debtors (2,125) (1,346) (747) (158)
Increase in creditors 12,715 8,053 1,588 1,852
(19,717) (12,487) (10,866) (26,808)
Analysis and reconciliation of net funds
1 October Cash flow Exchange 31
2002 movement March 2003
#'000 #'000 #'000 #'000
Cash at bank and in hand 3,081 (1,320) 5 1,766
Overdrafts - (816) - (816)
(2,136)
Finance leases - (973) - (973)
Liquid resources 126,694 (9,395) - 117,299
Net funds 129,775 (12,504) 5 117,276
Six months Year ended 30
ended 31 September
March 2003 2002
#'000 #'000
(Decrease)/increase in cash in the period (2,136) 2,691
Cash inflow from increase in lease financing (973) -
Decrease in liquid resources (9,395) (29,534)
Change in net funds resulting from cash flows (12,504) (26,843)
Exchange movement 5 (32)
Movement in net funds in period (12,499) (26,875)
Net funds at 1 October 2002 129,775 156,650
Net funds at 31 March 2003 117,276 129,775
Reconciliation of movements in group shareholders' funds
Six months Year ended 30
ended 31 September
March 2003 2002
#'000 #'000
Loss for the financial period (18,837) (28,207)
Other recognised gains and losses relating to the period 82 325
(18,755) (27,882)
New shares issued 707 7,597
Net decrease in shareholders' funds (18,048) (20,285)
Opening shareholders' funds 135,765 156,050
Closing shareholders' funds 117,717 135,765
Financial Statements
The preceding information, comprising the Consolidated Profit and Loss Account,
Consolidated Statement of Total Recognised Gains and Losses, Consolidated
Balance Street, Consolidated Cash Flow Statement and associated notes, does not
constitute the Company's statutory financial statements for the year
ended 30 September 2002 within the meaning of section 240 of the Companies Act
1985, but is derived from those financial statements. Results for the six month
periods ended 31 March 2003 and 31 March 2002 have not been audited. The
results for the year ended 30 September 2002 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.
The annual report and financial statements for the year ended 30 September 2002
are available from the Company's registered office:
The Company Secretary
Cambridge Antibody Technology Group plc
Milstein Building
Granta Park
Cambridge
CB1 6GH, UK
Tel: +44 (0) 1223 471471
Quarterly financial information
Three months Three months
ended 31 ended 31
March 2003 December 2002
#'000 #'000
Consolidated profit and loss account (unaudited):
Turnover 2,572 1,405
Direct costs (16) (9)
Gross profit 2,556 1,396
Research and development expenses (10,111) (11,234)
General and administration expenses (1,914) (2,008)
Operating loss (9,469) (11,846)
Interest receivable (net) 1,172 1,306
Loss on ordinary activities before taxation (8,297) (10,540)
Taxation on loss on ordinary activities - -
Loss for the financial period (8,297) (10,540)
Consolidated cash flow statement (unaudited):
Net cash outflow from operations (7,073) (5,414)
Returns on investments and servicing of finance
Interest received 2,537 1,048
Interest paid (10) -
2,527 1,048
Taxation - 2,636
Capital expenditure and financial investment
Purchase of intangible assets - (2,673)
Purchase of tangible fixed assets (1,439) (2,826)
Sale of tangible fixed assets 3 -
(1,436) (5,499)
Net cash outflow before management of liquid resources and financing (5,982) (7,229)
Management of liquid resources (850) 10,245
Financing
Issue of ordinary share capital 19 688
Proceeds from new finance lease commitments 572 504
Capital elements of finance lease rental payments (67) (36)
524 1,156
(Decrease) /increase in cash (6,308) 4,172
Notes to Editors:
Cambridge Antibody Technology (CAT)
* CAT is a UK-based biotechnology company using its proprietary
technologies and capabilities in human monoclonal antibodies for drug discovery
and drug development. Based near Cambridge, England, CAT currently employs
around 290 people.
* CAT is a leader in the discovery and development of human therapeutic
antibodies and has an advanced proprietary 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.
* HumiraTM is the leading CAT-derived antibody. Six other CAT-derived human
therapeutic antibodies are at various stages of clinical trials.
* CAT has alliances with a large number of pharmaceutical and biotechnology
companies to discover, develop and commercialise human monoclonal antibody-based
products. CAT has also licensed its proprietary human phage antibody libraries
to several companies for target validation and drug discovery. CAT's
collaborators include: Abbott, Amgen, Amrad, Chugai, Elan, Genzyme, Human Genome
Sciences, Merck & Co, Pfizer and Wyeth Research.
* CAT is listed on the London Stock Exchange and on NASDAQ since June 2001.
CAT raised #41m in its IPO in March 1997 and #93m in a secondary offering in
March 2000.
Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: This press release contains statements about Cambridge Antibody
Technology Group plc ("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 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
The company news service from the London Stock Exchange
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IR SFLESMSDSEII