Physiomics Regulatory News (PYC)

31 Mar 2006 07:00

Interim Results Statement for the 6 Month Period Ended 31 December 2005Oxford, UK 31 March 2006: The Board of Physiomics plc (AIM:PYC), a Europeansystems biology simulation company, today announces the financial results forthe six months ending 31st December 2005. Physiomicsplc is a computationalsystems biology services company, developing computer simulations aimedat reducing the high cost and attrition rates of clinical trials, particularlyfor cancer therapies.Highlights of the periodTurnover of ‚£91,000Losses after tax of ‚£188,000, a reduction of 20% over the comparable periodCash at 31st December was ‚£137,000Significant technical progress made in developing virtual tumour modelsAppointment of Mr David Evans as ChairmanMr David Evans, Chairman of Physiomics commented:Turnover for the six month period was ‚£91,000 (2004: ‚£96,000). The operatingloss for the period was reduced to ‚£188,000 (2004: ‚£236,000) and the loss bothbefore and after taxation was ‚£184,000 (2004: ‚£236,000). The loss per OrdinaryShare was 0.08 p (2004: 0.13p).The cash position on 31st December was ‚£137,000 (‚£437,000 in December 2004immediately post IPO and ‚£294,908 as of 30th June 2005 ). The Company isnegotiating with both Billam plc and Billam AG funding to enable theBoard to continue to develop the business both organically and via potentialexternal opportunities identified through a strategic review process. Thesefunding arrangements will replace the Put and Call Option based financingarrangements put in place at time of flotation. This funding started in March2006, although legal documents have still to be finalised.The Company maintains an active dialog with a variety of major pharmaceuticaland leading biotechnology companies about fee-for-service consultancy. In anextension of its business activities, the company is also exploring options topartner with or acquire cancer projects.In this area, the integrated systems approach developed with Bayer TechnologyServices GmbH can deliver added value to drug development. Some 25% of allpharmaceutical projects entering the clinic are cancer related yet 95% of thesefail to complete development. The revaluation and revitalisationof projects offers a major commercial opportunity for the integrated technologiesand services being developed by Physiomics.As part of the marketing process, Physiomics obtained a trade mark for itsSystemCell‚®softwareand applied for a trademark on Clinicophore‚®as a brand forintegrated systems biology services targeted at clinical development. Thistrademark was subsequently granted in February 2006. The Company's website wasalso redesigned to provide a more informed interface for investors, customersand to promote the Company's public image .Physiomics operates in the area of systems biology which is a technicallydemanding and research intensive new area of post-genomic science. On 25thOctober the Company announced the achievement of an important technicalmile stone in developing a sophisticated addition to its core cell growth model.The technical innovation shows, using Physiomics' SystemCell‚® software, complexvirtual cells "growing" in the computer to mimic the experimental behaviour ofmany cancer cells and their responses to drugs. This important developmentpaves the way for realistic and predictive models of tumour drugresponses. After the year end, Physiomics filed a patent to protect thisinvention.OutlookThe interim financing made available to the Company by Billam plc and Billam AGis very welcome but the Board needs to secure a long term future for theCompany on a basis different from the current business model which isgenerating insufficient revenues for its overhead base.Whilst the Board has evaluated a number of opportunities the ability to pursuethese to a conclusion is wholly dependent upon shareholder support and alliedfuture fund-raising. This by definition has a limiting effect on theopportunities that are likely to gain shareholders' support given thecontinuing 75% EiRx Pharma Ltd shareholding .Physiomics Plc Unaudited Profit and Loss Account for the six months ended 31 December 2005 6 mos to 6 mos to 12 mos to 31.12.2005 31.12.2004 30.6.2005 (audited) ‚£ 000 ‚£ 000 ‚£ 000 Turnover 91 96 205 Operating loss (188) (236) (440) Loss on ordinary activities before finance costs (188) (236) (440) Net finance income 4 - 9 Loss on ordinary activities before taxation (184) (236) (432) Taxation - - 50 Loss on ordinary activities after taxation (184) (236) (382) Dividends - - - Retained loss (184) (236) (382) Earnings (loss) per share in pence (0.08) (0.13) (0.19) Copies of these interim statements will be posted to shareholders in due course and are available from the company's offices at The Magdalen Centre, Robert Robinson Avenue,Oxford Science Park, Oxford OX4 4GA. Physiomics Plc Unaudited Balance Sheet as at 31 December 2005 31.12.05 31.12.04 30.06.05 (audited) ‚£ 000 ‚£ 000 ‚£ 000 Fixed assets Tangible fixed assets 19 12 25 Intangible fixed assets 51 56 53 Current assets Debtors 78 384 154 Cash at bank 137 437 295 215 821 449 Current liabilities Creditors falling due within one year (56) (349) (114) Net current assets/(liabilities) 159 472 335 Net assets/(liabilities) 229 540 413 Capital and reserves Called up share capital 93 92 93 Share premium account 1,329 1,310 1,329 Profit and loss account (1,193) (862) (1,009) Total shareholders' funds/(deficit) 229 540 413 Physiomics Plc Unaudited Cash Flow Statement for the six months ended 31 December 2005 31.12.05 31.12.04 31.12.03 ‚£ 000 ‚£ 000 ‚£ 000 Cash outflow from operating activities (198) (700) (5) Return on investments and servicing of finance Interest received 4 Taxation 36 - - Purchase of tangible fixed assets (0) (1) - Management of liquid resources Cash held on short term deposit - (400) - Cash outflow before financing (158) (1,101) (5) Financing Net proceeds of IPO - 1,129 - Increase/(decrease) in cash in the period (158) 28 (5) - ENDS - Notes to EditorsPhysiomics plcPhysiomics plc (AIM:PYC) is a computational systems biology services companyapplying simulations of cell behaviour to drug development to reduce the highattrition rates of clinical trials. As 80-90 per cent of all clinical drugcandidates fail to reach the market, estimates show that an overall ten percent. improvement in success rates could reduce the cost of one drug'sdevelopment by as much as $242 million, from the current estimate of around$800 million. Physiomics is currently focused on optimising the design of cancer clinicaltrials as a service to major pharmaceutical companies. In addition, it hassecured an option to in-license two innovative molecules in the cancer areafrom Cronos Therapeutics. Physiomics has a major collaboration with BayerTechnology Services GmbH to develop globally clinical response predictionservices using both companies' proprietary technologies and mathematical cellmodels, including the SystemCell‚® technology developed by Physiomics. In June2005, Physiomics became a distributor of Bayer's PK-Sim‚® product forunderstanding the way pharmaceuticals are distributed round the body.Physiomics, based in Oxford, UK, was founded in 2001, and floated on AIM in2004. For further information, please visit www.physiomics-plc.com SystemCell and Clinicophore a re registered trademark s of Physiomics plc .For further information please contact:Physiomics plc Tel:+ 44 1865 784 980Mr David Evans(Chairman) Dr John Savin (CEO)Northbank Communications Tel: + 44 207 886 8150 City/Financial Enquiries Emma Palmer, Scientific/Trade P ress Enquiries Fiona Brown /Rowan MinnionENDPHYSIOMICS PLC