Immupharma Regulatory News (IMM)

26 Sep 2006 07:01

Immupharma PLC26 September 2006 FOR IMMEDIATE RELEASE 26 SEPTEMBER 2006 IMMUPHARMA PLC INTERIM RESULTS ANNOUNCEMENT For the three months ended 30th June 2006 ImmuPharma plc (LSE:IMM), (the "Company" or the "Group"), the specialistpharmaceutical discovery and development Company is pleased to announce itsinterim results for the three months ended 30th June 2006. The interim figures are for three months due to the accounting reference date ofthe Company year end being changed from 31st March to 31st December, ashighlighted in the full year statement issued on 1st August 2006. KEY HIGHLIGHTS: Financial Highlights •Net loss after tax for the three month period of £324,898 •Cash, cash equivalents and money market investments of £2.4 million at 30 June 2006 Recent News Flow - 5 July 2006 •IPP-201101 treatment for Lupus enters Phase II • First patients dosed • Results from this short duration study, expected by year end, will be of great value in preparation of pivotal Phase III studies. The company has established an executive committee comprising Dr Robert Zimmer,President and CSO and Mr Dimitri Dimitriou CEO to execute the pharma strategy asagreed by the Board. Richard Warr, Chairman, said: "We are very pleased to have initiated phase II for our lead compound for thetreatment of Lupus. Our financial results are in line with expectations andImmuPharma continues to make progress in the development of its exciting assets" For further information please contact: ImmuPharma plc: TelephoneRichard Warr, Chairman: +44 20 7152 4080Dimitri Dimitriou, Chief Executive Officer: Buchanan Communications:Lisa Baderoon/ Rebecca Skye Dietrich + 44 20 7466 5000 About ImmuPharma ImmuPharma PLC is a drug discovery and development company headquartered inLondon, UK. It has its research operations in France and Switzerland. ImmuPharmais dedicated to the development of novel drugs, to treat serious medicalconditions such as autoimmune diseases characterised by: •blockbuster potential in niche markets •low promotional costs in few specialised physicians and centres and •lower risk of drug development and lower development costs Since its Admission in February, ImmuPharma has successfully completed a Phase Itrial with IPP-201102I its potential treatment for Lupus, a chronic lifethreatening autoimmune disease and initiated phase II in Lupus patients. Chairman's StatementWe are very pleased to have initiated phase II for our lead compound for thetreatment of Lupus. Our financial results are in line with expectations andImmuPharma continues to make progress in the development of its exciting assets. Financial ReviewThe Group has adopted International Financial Reporting Standards as itsaccounting basis. The interim results are for three months rather than six months due to theaccounting reference date of the Company being changed from 31st March to 31stDecember, as highlighted in the full year statement issued on 1st August 2006.Hence, the current accounting period is the 9 months to 31st December 2006, andthe interim results are for the three months to 30th June 2006. The loss of the Group for the three months was £324,898. Basic and diluted lossper share were 0.48p. No interim dividend is proposed. The operating loss was £350,937. It represents principally the employment costand overhead of maintaining the Group, together with expenditure on researchcarried out by Contract Research Organisations. Cash and cash equivalents at 30th June 2006 were £2,409,915, compared to£2,692,900 at 31st March 2006. OUTLOOK The focus of the Group continues to be on the progression of its lead drugcandidates and discovery pipeline. ImmuPharma is in discussions with a number oflarge pharmaceutical and biotech companies for potential collaborations whilstalso considering the option of further progressing the development of its assetsalone. Richard WarrChairman25 September 2006 Independent Review Report to ImmuPharma plc We have been instructed by the Company to review the financial information forthe three months ended 30 June 2006 which comprises the Consolidated IncomeStatement, the Consolidated Statement of Recognised Income and Expense, theConsolidated Balance Sheet, the Consolidated Cash Flow Statement, and therelated notes 1 to 10. We have read the other information contained in theinterim report and considered whether it contains any apparent misstatements ormaterial inconsistencies with the financial information. This report is made solely to the Company in accordance with the terms of ourengagement to assist the Company in meeting the requirements of the AIM Rules ofthe London Stock Exchange. Our review has been undertaken so that we might stateto the Company those matters we are required to state to it in this report andfor no other purpose. To the fullest extent permitted by law, we do not acceptor assume responsibility to anyone other than the Company for our review work,for this report or for the conclusions we have reached. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report in accordance with the AIMRules of the London Stock Exchange which require that the accounting policiesand presentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of Group management and applyinganalytical procedures to the financial information and underlying financial dataand based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Auditing Standards (UK and Ireland)and therefore provides a lower level of assurance than an audit. Accordingly, wedo not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the three monthsended 30 June 2006. Nexia Smith & Williamson 25 MoorgateChartered Accountants LondonRegistered Auditors EC2R 6AY 25 September 2006ImmuPharma plc CONSOLIDATED INCOME STATEMENTFOR THE PERIOD ENDED 30 JUNE 2006 Note 3 months ended 13 January 2005 13 January 2005 30 June 2006 to 31 March to 30 June 2006 2005 £ £ £Continuing operationsRevenue 1,782 25,409 10,513Research and developmentexpenses (227,371) (679,091) (47,164)Administrative expenses (125,348) (880,074) (295,277)Other income - - 2,510 -------- ---------- --------- Operating loss (350,937) (1,533,756) (329,418) Exceptional chargearising from reverseacquisition - (970,524) -Finance costs (1,738) (8,045) (3,619)Investment revenues 27,563 28,759 3,349 -------- ---------- --------- Loss before taxation (325,112) (2,483,566) (329,688) Tax 214 788 (174) -------- ---------- --------- Loss for the period (324,898) (2,482,778) (329,862) ======== ========== ========= (Loss) per ordinary share Basic and diluted 6 (0.48)p (4.16)p (11.2)p ======== ========== ========= ImmuPharma plc CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEFOR THE PERIOD ENDED 30 JUNE 2006 3 months ended 13 January 2005 13 January 2005 30 June to 31 March to 30 June 2006 2006 2005 £ £ £ Exchange differences ontranslation of foreign operations (9,770) 8 (2,280)(Loss) for the financial period (324,898) (2,482,778) (329,862) --------- --------- --------- Total recognised income andexpense for the period (334,668) (2,482,770) (332,142) ========= ========= ========= Attributable to:Equity holders of theparent company (334,668) (2,482,770) (332,142) ========= ========= ========= CONSOLIDATED BALANCE SHEETAS AT 30 JUNE 2006 Notes 30 June 2006 31 March 30 June 2006 2005 £ £ £Non-current assetsProperty, plant and equipment 14,100 12,020 8,546Intangible assets - other 758,460 765,004 439,562 ----------- --------- -------- Total non-current assets 772,560 777,024 448,108 ----------- --------- -------- Current assetsTrade and other receivables 97,702 157,572 26,200Cash and cash equivalents 2,409,915 2,692,900 1,161,235 ----------- --------- -------- Total current assets 2,507,617 2,850,472 1,187,435 ----------- --------- -------- Current liabilitiesFinancial liabilities -borrowings and grants 528,284 277,898 269,123Trade and other payables 499,594 845,618 243,004 ----------- --------- -------- Total current liabilities 1,027,878 1,123,516 512,127 ----------- --------- -------- Net current assets 1,479,739 1,726,956 675,308 ----------- --------- -------- Non-current liabilitiesFinancial liabilities - borrowings 82,987 - - ----------- --------- -------- Net assets 2,169,312 2,503,980 1,123,416 =========== ========= ======== EQUITYOrdinary shares 7 6,813,815 6,813,815 4,064Share premium 7 1,607,990 1,607,990 1,345,346Merger reserve 7 106,148 106,148 106,148Other reserves 7 (3,550,965) (3,541,195) (2,280)Retained earnings 7 (2,807,676) (2,482,778) (329,862) ----------- --------- --------Total equity 2,169,312 2,503,980 1,123,416 =========== ========= ======== ImmuPharma plc CONSOLIDATED CASH FLOW STATEMENTFOR THE PERIOD ENDED 30 JUNE 2006 Notes 3 months ended 13 January 2005 13 January 2005 to to 30 June 2006 31 March 30 June 2006 2005 £ £ £Cash flows from operatingactivitiesCash used in operations 8 (627,510) (871,552) (214,344)Interest paid (1,738) (8,045) (3,619) --------- --------- --------- Net cash used in operatingactivities (629,248) (879,597) (217,963) --------- --------- --------- Investing activitiesPurchase of property,plant and equipment (3,642) (17,130) (4,067)Acquisition of intangiblesassets (1,514) (337,274) (6,248)Cash on reverse acquisition - 975,961 -Cash on acquisition ofsubsidiaries - 17,773 17,773Reverse acquisition expense - (59,561) -Subsidiary acquisitionexpense - (2,342) -Interest received 27,563 28,759 3,349Tax received 214 788 - --------- --------- --------- Net cash from investingactivities 22,621 606,974 10,807 --------- --------- --------- Financing activitiesNet proceeds from shareissues - ImmuPharma UK Limited - 1,397,976 1,380,260Net proceeds from shareissues - Company - 1,569,802 -Net loan advances 333,085 (2,267) (12,634)Increase in bank overdraft 327 12 765 --------- --------- --------- Net cash from financingactivities 333,412 2,965,523 1,368,391 --------- --------- --------- Net (decrease)/increase in cash and cash equivalents (273,215) 2,692,900 1,161,235 Cash and cash equivalentsat start of period 2,692,900 - -Effect of foreign exchange rate changes (9,770) - - --------- --------- ---------Cash and cash equivalents atend of period 2,409,915 2,692,900 1,161,235 ========= ========= ========= ImmuPharma plc NOTES TO THE INTERIM ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2006 1 The financial information set out in this interim statement has been preparedunder International Financial Reporting Standards (IFRS) on the basis of theaccounting policies set out in the statutory accounts of ImmuPharma plc for theperiod ended 31 March 2006. This interim statement has not been audited but hasbeen reviewed by the Company's auditors, Nexia Smith & Williamson. 2 The financial information does not constitute statutory accounts within themeaning of Section 240 of the Companies Act 1985. Statutory accounts forImmuPharma plc for the period ended 31 March 2006 reported under IFRS, on whichthe auditors gave an unqualified opinion, will be delivered to the Registrar ofCompanies after the Annual General Meeting. 3 Copies of this statement will be posted to shareholders. Further copies areavailable free of charge on request from the Company Secretary at the Company'sregistered office, 50 Broadway, London, SW1H 0BL. 4 COMPARATIVE INFORMATION The financial information in respect of the period ended 31 March 2006 isderived from the audited statutory accounts of the Group for that period. The reverse acquisition of ImmuPharma plc by ImmuPharma UK Limited did not occuruntil 16 February 2006. ImmuPharma UK Limited was incorporated on 13 January2005. The unaudited financial information for the period from 13 January 2005 to30 June 2005 is therefore in respect of the sub-group headed by ImmuPharma UKLimited (excluding ImmuPharma plc). For further details of the reverseacquisition, please refer to note 1 of the statutory accounts of the Group forthe period ended 31 March 2006. 5 SEGMENT INFORMATION Revenue by source and by destination predominantly relates to the EuropeanUnion. The Group operates as one class of business which is unaffected byseasonality.The following is an analysis of the carrying amount of the Group's netassets analysed by geographical area: 30 June 31 March 30 June 2006 2006 2005 £ £ £ Net asset book value United Kingdom 1,573,156 2,475,583 709,333France 576,410 39,788 367,976Switzerland 19,746 (11,391) 46,107 --------- -------- -------- 2,169,312 2,503,980 1,123,416 ========= ======== ======== ImmuPharma plc NOTES TO THE INTERIM ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2006(continued) 6 EARNINGS PER SHARE 13 January 2005 13 January 2005 to to 3 months ended 31 March 30 June 30 June 2006 2006 2005 £ £ £ EarningsEarnings for the purposesof basic earnings per sharebeing net loss attributableto equity shareholders (324,898) (2,482,778) (329,862) ========= ========= ======== Number of sharesWeighted average number ofordinary shares for thepurposes of basic earningsper share 68,138,149 59,663,827 2,947,615 ========= ========= ======== Basic and diluted loss pershare (0.48)p (4.16)p (11.2)p ========= ========= ======== As at 30 June 2006 the Group had no potential dilutive shares, nor during anyprior period. NOTES TO THE INTERIM ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2006 (continued) 7 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Share capital Share premium Merger Other Retained Total reserve reserves* Earnings equity £ £ £ £ £ £ At incorporation - - - - - - ------------- --------- -------- ------- -------- -------- -------- Exchange - - - 8 - 8 differences on translating foreign operations Loss for the - - - - (2,482,778) (2,482,778) period ended 31 March 2006 ------------- --------- -------- ------- -------- -------- -------- Total recognised - - - 8 (2,482,778) (2,482,770) income and expense for the period Equity share 420,000 557,003 - - - 977,003 capital of the Company prior to reverse acquisition Reverse 5,875,000 - - (3,541,203) - 2,333,797 acquisition of the Company New issue of 518,815 1,686,148 - - - 2,204,963 equity share capital Less: - (635,161) - - - (635,161) expenses of new share issue Acquisition - - 106,148 - - 106,148 of subsidiaries --------- -------- ------- -------- -------- -------- At 31 March 6,813,815 1,607,990 106,148 (3,541,195) (2,482,778) 2,503,980 2006 Exchange - - - (9,770) - (9,770) differences on translating foreign operations Loss for the - - - - (324,898) (324,898) period ended 30 June 2006 --------- -------- ------- -------- -------- -------- At 30 June 6,813,815 1,607,990 106,148 (3,550,965) (2,807,676) 2,169,312 2006 ========= ======== ======= ======== ======== ======== * Other reserves as at 30 June 2006 comprised a reverse acquisition reserve £(3,541,203) and a translation reserve totalling £(9,762) (31 March 2006: £(3,541,203) and £8 respectively). NOTES TO THE INTERIM ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2006 (continued) 8 CASH USED IN OPERATIONS 30 June 31 March 2006 30 June 2005 2006 £ £ £ Operating loss (350,937) (1,533,756) (329,418)Depreciation and amortisation 9,620 15,221 492Decrease/(increase) in debtors 59,869 (118,280) (14,771)(Decrease)/increase in creditors (346,062) 765,263 129,353 ---------- ---------- --------- Cash used in operations (627,510) (871,552) (214,344) ========== ========== ========= 9 RELATED PARTY TRANSACTIONS Included within Group other creditors as at 30 June 2006 is an amount of £3,861(31 March 2006: £3,632) due to R Zimmer and an amount of £40 (31 March 2006:£560) due to D Dimitriou. No interest or formal repayment terms apply to theseloans. Included within Group financial liabilities as at 30 June 2006 is an amount of£127,149 (31 March 2006: £138,217) due to R Zimmer. The loan is repayable ondemand. Interest is payable at 3.5% per annum. R Zimmer and D Dimitriou are all directors and shareholders of this company. 10 POST BALANCE SHEET EVENTS The unapproved share option scheme was adopted by the Board of Directors on 26July 2006 and options which were disclosed in the Annual Report have now beenformally executed. Unapproved share options totalling 2,522,000 were executedfor the executive directors on that date. The approved share option scheme wasadopted by the Board of directors after obtaining HM Revenue and Customsapproval. Approved share options totalling 93,000 were executed for theexecutive Directors on 25 September 2006. This information is provided by RNS The company news service from the London Stock Exchange