Immupharma Regulatory News (IMM)

1 Aug 2006 07:01

Immupharma PLC01 August 2006 For Immediate Release 1 August 2006 IMMUPHARMA PLC PRELIMINARY RESULTS for the period ended 31 March 2006 ImmuPharma plc (LSE:IMM), the specialist pharmaceutical discovery anddevelopment company is pleased to announce its preliminary results for theperiod ended 31 March 2006. Key Highlights: • Successful placing and admission to AIM through reverse take over in February 2006 • Received €1m in European Grant Funding from prestigious French innovation agency in April 2006 • Successful completion of Phase I trial of our lead compound IPP-201101, for the treatment of Lupus • Phase II trials commenced in June 2006 Richard Warr, Executive Chairman, said: "We have had a very busy and productive year at ImmuPharma. Our successfullisting on AIM and fundraising has enabled us to progress our innovative leadcompound IPP-201101 for the treatment of Lupus into Phase II trials, and webelieve the company is well placed to continue advancing its pipeline anddeliver shareholder value." For further information please contact: ImmuPharma plc: TelephoneRichard Warr, Executive Chairman: +44 20 7152 4080 Dimitri Dimitriou, Chief Executive Officer: +44 20 7152 4080 Buchanan Communications:Lisa Baderoon/ Rebecca Skye Dietrich + 44 20 7466 5000 IMMUPHARMA PLC The consolidated results for ImmuPharma plc (the "Company") and its subsidiaries(collectively the "Group") cover the period ended 31 March 2006. The Group'sfinancial statements incorporate the financial statements of ImmuPharma plc from16 February 2006, ImmuPharma UK Limited from the date of incorporation on 13January 2005, and other entities controlled by the Company comprising ImmuPharmaAG from the date of acquisition on 22 February 2005 and ImmuPharma (France) SAfrom the date of acquisition on 24 March 2005. CHAIRMAN'S STATEMENT In my first review as Executive Chairman of ImmuPharma plc, I am delighted topresent the Group's preliminary results for the period to 31 March 2006. During the period under review the most significant milestones included thecompletion of a successful Phase I trial on our lead compound IPP-201101 for thetreatment of Systemic Lupus and subsequent to the period end the commencement ofa Phase II trial in Lupus patients. While our core strategy is to progress our Lupus compound into Phase III, we arealso progressing our other lead drug candidates. The funding for thesedevelopment programmes has come from a variety of sources including the equitycapital raised on our admission to AIM on 17 February 2006. ImmuPharma (France) S.A., our French subsidiary, has been awarded grants duringthe period of approximately €1m from ANVAR (the French innovation agency) andANR (the French National Research Agency), two highly regarded scientificresearch funding organisations in France. The Board continues to make focused use of its funds. While discussions withpharmaceutical companies are ongoing the Board believes its assets can also becommercialised on a stand alone basis. FINANCIAL REVIEW The Group has adopted International Financial Reporting Standards (IFRS) as itsaccounting basis for the period ended 31 March 2006. Results The loss of the Group for the period after taxation was £2,483,000. Basic anddiluted loss per share were 4.16p. No dividend is proposed. The loss includes an exceptional item of £971,000, being a write-off of goodwillresulting from the treatment of the acquisition of the ImmuPharma business. Itrepresents the difference between the market value of the acquiror company'sshares in issue at the date of the acquisition and its underlying net assetvalue (principally cash) at that time, as well as fees related to thetransaction. The Directors believe that this 'premium to cash' was justified atthe time in order to enable the acquisition and subsequent fund-raising and thatit is appropriate to write it off now. Operating Loss The Operating loss of £1,534,000 represents principally the employment cost andoverheads of maintaining the Group and expenditure on research carried out byContract Research Organisations. The timing and extent of the research anddevelopment programme remains on track, whilst, at the same time, overallexpenditure is below internal company estimates made at the time of acquisition/fund-raising. Net Funds At 31 March 2006, the Group had Cash and cash equivalents of £2,693,000. This is partly the result of the funds raised from shares issued on 17 February2006 of £2,205,000, before expenses, which added to cash of £976,000 already inthe Company at that time. Since then, normal operating expenses have beenincurred, although partially offset by European grants made to the Group. OUTLOOK The focus for the year ahead will be on the Phase II trials for our Lupuscompound IPP-201101, which we started in June, and to make progress advancingour analgesic and antibiotic compounds. With a coherent strategy in place and a strong team to execute it we believe weare strategically positioned to take ImmuPharma plc to its next stage ofdevelopment. Richard WarrExecutive Chairman1 August 2006 CONSOLIDATED INCOME STATEMENTFOR THE PERIOD ENDED 31 MARCH 2006 Notes 13 January 2005 to 31 March 2006 £Continuing operationsRevenue 25,409Research and development expenses (679,091)Administrative expenses (880,074) --------- Operating loss (1,533,756) Exceptional charge arising from reverse acquisition (970,524)Finance costs (8,045)Investment revenues 28,759 --------- Loss before taxation (2,483,566) Tax 788 --------- Loss for the period (2,482,778) ========= (Loss) per ordinary share Basic and diluted 2 (4.16)p ========= CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEFOR THE PERIOD ENDED 31 MARCH 2006 13 January 2005 to 31 March 2006 £ Exchange differences on translation of foreign operations 8(Loss) for the financial period (2,482,778) ---------- Total recognised income and expense for the period (2,482,770) ========== Attributable to:Equity holders of the parent company (2,482,770) ========== CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2006 Notes £ Non-current assetsProperty, plant and equipment 12,020Intangible assets - goodwill -Intangible assets - other 765,004 --------- Total non-current assets 777,024 ---------Current assetsTrade and other receivables 157,572Cash and cash equivalents 2,692,900 --------- Total current assets 2,850,472 --------- Current liabilitiesFinancial liabilities - borrowings 277,898Trade and other payables 845,618 --------- Total current liabilities 1,123,516 --------- Net current assets 1,726,956 --------- Net assets 2,503,980 ========= EQUITYOrdinary shares 3 6,813,815Share premium 3 1,607,990Merger reserve 3 106,148Other reserves 3 (3,541,195)Retained earnings 3 (2,482,778) --------- Total equity 2,503,980 ========= CONSOLIDATED CASH FLOW STATEMENTFOR THE PERIOD ENDED 31 MARCH 2006 13 January 2005 to 31 March 2006 £ Cash flows from operating activitiesCash used in operations (871,552)Interest paid (8,045) --------- Net cash used in operating activities (879,597) --------- Investing activitiesPurchase of property, plant and equipment (17,130)Acquisition of intangibles assets (337,274)Cash on reverse acquisition 975,961Cash on acquisition of subsidiaries 17,773Reverse acquisition expense (59,561)Subsidiary acquisition expense (2,342)Interest received 28,759Tax received 788 --------- Net cash from investing activities 606,974 --------- Financing activitiesNet proceeds from share issues - ImmuPharma UKLimited 1,397,976Net proceeds from share issue - Company 1,569,802Net loan repayments (2,267)Increase in bank overdraft 12 --------- Net cash from financing activities 2,965,523 --------- Net increase in cash and cash equivalents 2,692,900 --------- Cash and cash equivalents at end of period 2,692,900 ========= NOTES 1 BASIS OF PREPARATION The financial information set out above does not constitute the Company'sstatutory accounts within the meaning of section 240 of the Companies Act 1985.The information has been extracted from the Group's audited financial statementsfor the period ended 31 March 2006. These financial statements will bedistributed to the shareholders and delivered to the Registrar in due course. The accounting policies are consistent with those applied in the preparation ofthe statutory audited accounts for the period ended 31 March 2006, which havebeen prepared in accordance with International Financial Reporting Standards. On 16 February 2006, the Company acquired the whole issued share capital ofImmuPharma UK Limited, a company registered in England and Wales. Theconsideration was satisfied through the issue of shares. This transaction hasbeen accounted as a reverse acquisition by ImmuPharma UK Limited. The goodwillarising from the combination was written off during the period. The consolidated financial statements have been prepared using reverseacquisition accounting principles and therefore represent a continuation of thefinancial statements of ImmuPharma UK Limited, the legal subsidiary acquired. AsImmuPharma UK Limited was incorporated on 13 January 2005, the consolidatedfinancial statements are for the period from 13 January 2005 to 31 March 2006and no comparatives have been presented. 2 EARNINGS PER SHARE Period ended 31 March 2006 £ Earnings Earnings for the purposes of basic earnings per share being (2,482,778) net loss attributable to equity shareholders ========== Number of shares Weighted average number of ordinary shares for the purposes 59,663,827 of basic earnings per share ========== Basic and diluted loss per share (4.16)p ========== As at 31 March 2006 the Group had no potential dilutive shares. 3 STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Group 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 - - - 8 (2,482,778) (2,482,770) recognised 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 2006 6,813,815 1,607,990 106,148 (3,541,195) (2,482,778) 2,503,980 ======== ======= ======= ======= ======= ========= * other reserves as at 31 March 2006 comprises reverse acquisition reserve £(3,541,203) and translation reserve £8. 4 DIRECTORS' REPORT AND ACCOUNTS Copies of the report and accounts will be posted to shareholders in early August 2006. 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