MPM.L Regulatory News (MPM)

1 Dec 2006 07:01

Minster Pharmaceuticals PLC01 December 2006 For immediate release 1 December 2006 MINSTER PHARMACEUTICALS PLC ("Minster" or "the Company") Interim Results for the six months ended 30 September 2006 Minster Pharmaceuticals plc (AIM: MPM), the drug development companyspecialising in neurological and psychiatric disorders, is pleased to announceits interim results for the six months ended 30 September 2006. Highlights in the year to date Start of two Phase II trials in tonabersat - in prevention of migraine andprevention of migraine with aura Phase II clinical evaluation is well advanced and the results are expected tobe available Q1 2007 Collaborations on mechanistic studies in tonabersat initiated with University ofLos Angeles, California, (UCLA) and US National Institutes of Health Development and commercialisation rights to tonabersat extended byGlaxoSmithKline to include epilepsy, pain and other neurological conditions ofunmet medical need Discussions at advanced stage in progressing sabcomeline in cognitive decline inschizophrenia Net cash of £790,000 at balance sheet date; a further £600,000 (gross) raisedpost the period end Pre-tax loss of £1.56 million, compared with H1 2006: loss of £0.70 million Paul Sharpe, Minster Pharmaceuticals' Chief Executive, said: "We have madesignificant progress during the period, with the result that Phase II clinicaldata of tonabersat in the prevention of migraine will be available in early2007. We have been delighted by the interest shown by the medical and scientificcommunities in tonabersat, highlighted by our recent collaborations with UCLAand the US National Institutes of Health, which supports our view thattonabersat, as the first in a new class of compounds, has the potential to offera completely new approach to the management of migraine." - ENDS - For further information: Minster Pharmaceuticals plc Tel: +44 (0) 1799 506623Paul Sharpe, Chief Executive OfficerRobert Aubrey, Chief Financial Officer Buchanan Communications Tel: +44 (0) 20 7466 5000Mark Court/ Rebecca Skye Dietrich/ Catherine Breen Chairman and Chief Executive's Review I am pleased to announce Minster Pharmaceuticals' unaudited results for the 6months ended 30 September 2006 and report on the progress the Group has madeduring this period. Progress continues to be made with the development of tonabersat for theindication of prophylaxis (prevention) of migraine. The current Phase IIclinical evaluation is well advanced and the results are expected to beavailable Q1 2007. A further Phase II development trial, focussing on the useof tonabersat in migraine with aura, is being carried out under the direction ofProfessor Jes Olesen in Denmark. The results of this trial are expected to beavailable in the fourth quarter of 2007. Mechanistic studies are also under way with the objective of further elucidatingthe mode of action of tonabersat. The most recent of these studies was announcedon 27 September 2006, in a collaboration with the US National Institutes ofHealth ("NIH") under which the NIH will study the mechanism by which tonabersatinhibits abnormal brain function. These studies will be led by Dr MichaelRogawski MD PhD, Chief of the Epilepsy Research Section at the NationalInstitute of Neurological Diseases and Stroke (NINDS) in Bethesda, Maryland,part of the NIH. The NIH studies follow a collaboration announced in May 2006 with the Universityof Los Angeles, California. The UCLA studies are looking at tonabersat'sinfluence on brain function and the biochemical events that underlie the onsetof a migraine attack. The Principal Investigator for the studies is ProfessorAndrew Charles MD, the Director of the Headache Research and Treatment Programat the Department of Neurology, David Geffen School of Medicine at UCLA. These mechanistic studies will form a key part of our anticipated negotiationswith regulatory authorities during the ongoing development and ultimateregistration of tonabersat. The therapeutic and commercial potential of tonabersat was considerably extendedduring the period as GlaxoSmithKline extended the Company's development andcommercialisation rights to include additional indications beyond the preventionand treatment of migraine to include epilepsy, pain and other neurologicalconditions where current treatments are inadequate. Discussions are at an advanced stage with key opinion leaders in the UnitedStates with a view to progressing our second compound, sabcomeline, for themanagement of cognitive decline in schizophrenia. In the six months to 30 September 2006, the Group incurred a pre-tax loss of£1.25 million before amortisation of goodwill. The pre-tax loss for the periodwas £1.56 million. No dividend is recommended. The cash balance at 30September 2006 was £790,000. After the period end, and as announced on 17November 2006, the Company raised a further £600,000 gross by way of a placing. Paul SharpeChairman and Chief Executive30 November 2006 Consolidated Profit and Loss AccountSix months ended 30 September 2006 6 months to 6 months to 12 months to 30 Sep 30 Sep 31Mar 2006 2005 2006 £ £ £Turnover - - - Research expenses (611,287) (117,973) (720,880)Administrative expenses (974,113) (645,295) (1,186,953) Operating loss (1,585,400) (763,268) (1,907,833)Interest payable - - -Interest receivable 24,469 58,435 100,819 Loss on ordinary activitiesbefore taxation (1,560,931) (704,833) (1,807,014)Taxation on the results for the 67,597 - 125,752period Loss on ordinary activitiesafter taxation (1,493,334) (704,833) (1,681,262) Loss per shareBasic per share £0.0010 £0.0005 £0.0011Fully diluted per share £0.0007 £0.0003 £0.0007 Consolidated Balance SheetAt 30 September 2006 30 Sept 2006 30 Sept 2005 31 Mar 2006 £ £ £ Fixed assetsIntangible asset 11,410,644 12,030,107 11,720,588Tangible assets 2,956 2,308 2,058 11,413,600 12,032,415 11,722,646Current assetsDebtors 342,145 193,963 313,196Bank and cash 790,517 2,410,255 1,766,726 1,132,662 2,604,218 2,079,922Creditors: amounts falling duewithin one year (452,058) (85,802) (214,830)Net current assets 680,604 2,518,416 1,865,092 Total assets less current liabilities 12,094,204 14,550,831 13,587,738Creditors: amounts falling due after one (90,000) (90,000) (90,000)yearNet assets 12,004,204 14,460,831 13,497,738 Capital and reservesShare capital 1,563,286 1,563,286 1,563,286Share premium 10,797,155 10,797,155 10,797,155Capital reserve 4,837,500 4,837,500 4,837,500Special reserve 54,572 41,237 54,572Profit and loss account (5,248,309) (2,778,347) (3,754,775)Shareholders' funds 12,004,204 14,460,831 13,497,738 Consolidated Cash Flow StatementSix months ended 30 September 2006 6 months to 6 months to 12 months to 30 September 30 September 31 March 2006 2005 2006 £ £ £ Reconciliation of operating loss to net cashoutflow from operating activitiesOperating loss (1,585,400) (763,268) (1,907,833)Depreciation charges 675 361 872Amortisation of goodwill 309,944 309,944 619,463Potential NI on warrants and share options - - 13,335Change in debtors 30,290 51,440 57,959Change in creditors 237,228 (36,757) 92,271Net cash outflow from operating activities (1,007,263) (438,280) (1,123,933) Cash flow statementNet cash outflow from operating activities (1,007,263) (438,280) (1,123,933)Purchase of tangible fixed assets (1,573) (1,610) (1,870)Returns on investments - interest received 24,469 58,435 100,819Taxation 8,158 - -(Decrease)/Increase in cash (976,209) (381,455) (1,024,984) Reconciliation of net cashflow to movement in netdebt(Decrease)/Increase in liquid resources (976,209) (381,455) (1,024,984)Change in net debt (976,209) (381,455) (1,024,984)Net funds at 1 April 2006 1,766,726 2,791,710 2,791,710Net funds at 30 September 2006 790,517 2,410,255 1,766,726 Notes to the Interim Report 1. Publication of non-statutory accounts i) The interim financial information for the six months ended 30September 2006 includes the results of Minster Pharmaceuticals plc and itssubsidiary Minster Research Limited. The unaudited results for the period havebeen prepared on the basis of the accounting policies adopted in the auditedaccounts for the year ended 31 March 2006. ii) The unaudited profit and loss account for six month period to 30September 2006 and the unaudited balance sheet as at 30 September 2006 do notamount to full accounts within the meaning of Section 240 of the Companies Act1985 and have not been delivered to the Registrar of Companies. The InterimReport is unaudited and does not constitute Statutory Accounts. iv) No dividend is proposed to be paid in respect of the period (periodto 30 September 2005 - Nil). v) Copies of the Interim Statement are available from the Company'sRegistered Office at 56 Queen Anne Street, London W1G 8LA. 2. Loss per share The calculation of loss per share is based on the following information: 6 months to 30 6 months to 30 12 months to 31 September 2006 September 2005 March 2006 Loss attributable to shareholders £1,493,334 £704,833 £1,681,262Average number of shares (basic) 1,563,286,348 1,563,286,348 1,563,286,348Average number of shares (diluted) 2,290,473,303 2,238,958,713 2,289,774,673 The calculation of the loss per share is based on the loss after taxation andthe average number of the ordinary shares of 0.1p in issue during the period. Noshares have been issued in the six months to 30 September 2006. For the diluted loss per share, the average number of ordinary shares in issueis adjusted to assume conversion of all dilutive potential ordinary shares. TheGroup has share options, warrants, convertible loan notes and shares to beissued as secondary consideration in respect of the subsidiary acquired duringthe period ended 31 March 2005 as potentially dilutive. Independent Review Report to Minster Pharmaceuticals PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 30 September 2006, which comprises the consolidatedsummarised profit and loss account, the consolidated summarised balance sheet,the consolidated summarised cash flow statement and notes 1 and 2. We have readthe other information contained in the interim report, which comprises only thechairman's statement and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. Ourresponsibilities do not extend to any other information. This report is made solely to the company, in accordance with guidance containedin APB bulletin 1999/4 "Review of Interim Financial Information". Our reviewwork has been undertaken so that we might state to the company those matters weare required to state to it in a review report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility toanyone other than the company, for our review work, for this report or for theconclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. They areresponsible for preparing the interim report and ensuring that the accountingpolicies and presentation applied to the interim figures are consistent withthose applied in preparing the preceding annual accounts except where anychanges, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4"Review of Interim Financial Information" issued by the Auditing Practices Boardfor use in the United Kingdom. A review consists principally of making enquiriesof management and applying analytical procedures to the financial informationand underlying financial data and, based thereon, assessing whether theaccounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance with UnitedKingdom auditing standards and therefore provides a lower level of assurancethan an audit. Accordingly, we do not express an audit opinion on the financialinformation. 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 six monthsended 30 September 2006. Peters Elworthy & MooreChartered Accountants 30 November 2006 This information is provided by RNS The company news service from the London Stock Exchange