Physiomics Regulatory News (PYC)

21 Mar 2005 07:00

Physiomics plc Interim Results Announcement for the 6 months ended 31st December 2004 Oxford, UK 21 March 2005 - Physiomics plc (`Physiomics', AIM: PYC), a Europeansystems biology simulation company, today publishes its interim results for thesix months ended 31st December 2004. The majority of the financial informationpresented in this report relates to the period before the Company's AIM listingon 20 December 2004.The business of Physiomics is the development and sale of services aimed atreducing the high cost of drug development for pharmaceutical and biotechnologycompanies, principally by optimising the design of their clinical trialsthrough the application of computer-based simulation tools. The services have aparticular focus on cancer therapies.Highlights of the period: * Physiomics raises ‚£750,000 before expenses in its AIM listing on 20 December 2004 * Turnover (ex grants) rose from ‚£30,000 in the corresponding period last year to ‚£96,000, an increase of over 200% * Cancer drug development partnership with Cronos Therapeutics signed * Major systems biology project initiated at Barcelona University * Systems Biology expert Professor David Fell joins Board * Formal notification from the UK Patent Office of registration to Physiomics in the UK of European Patent 0 937 286, which covers its SystemCell¢â€ž¢ simulation technology Dr Stephen Parker, Chairman of Physiomics, commented:"I am delighted to present our first set of results since Physiomics was listedon AIM on 20 December 2004. We made significant progress in the business overthe period, culminating in the listing. The Directors recognise the invaluablesupport of staff, shareholders and advisors in achieving this important goalfor the business and thank everyone for their hard work over the period. Goingforward, we believe Physiomics is well placed to develop a strong businessbased on systems biology."For further information please contact:Physiomics plcDr Stephen Parker (Chairman) Tel: 07771 526 785Dr John Savin (CEO) Tel: 01865 784 980Northbank Communications Tel: 020 7886 8150Emma PalmerFiona BrownRowan MinnionNotes to EditorsPhysiomics plcPhysiomics plc, founded in 2001, develops and sells services aimed at reducingthe high cost of drug development for pharmaceutical and biotechnologycompanies by optimising the design of cancer clinical trials through theapplication of computer-based simulations. Physiomics is also applying itstechnologies to develop proprietary cancer therapy products for out-licensingand, to this end, it has secured an option to license two innovative molecules.Chairman's StatementBusiness developmentThe interim results show strong progress in the development of the business,with a major collaborative agreement with Bayer Technology Services GmbH signedin July 2004 and a drug development partnership, focused on cancer, initiatedwith Cronos Therapeutics Limited in August. Clinical Response Prediction bringstogether two unique strengths in systems biology - Bayer Technology Services'PK-Sim‚® physiology-based pharmacokinetic (PBPK) modelling and Physiomics'SystemCell technology which can determine and predict optimum drug levels. Inthe collaboration with Cronos, Physiomics will use its novel in silicotechnology to select optimal targets for the highly-selective GeneICEtechnology from Cronos. The partners will then co-develop the lead GeneICEconstructs.Physiomics gained assignment of the UK patent to its SystemCell simulationtechnology in December. Formal registration of the UK patent is expected tostrengthen the Company's commercial position, and allow Physiomics to exploitthe full potential of SystemCell.Financial resultsDue to the Bayer collaboration, which includes an upfront technology access feespread over the contract period, sales rose from ‚£30,000 in the correspondingperiod last year to ‚£96,000, an increase of over 200%. Turnover of ‚£37,000 inthe prior year period included ‚£7,000 of grants.Before one-off costs, loss at the operating level was ‚£236,000. This lowoperating loss shows the potential profit gearing inherent in the businessmodel of a low fixed cost base with outsourcing on specific projects. TheCompany ended the period with net assets (mainly IPO proceeds) of ‚£540,000.Research and development costs increased in the second quarter as a majorscience project was initiated at Barcelona University with a leading systemsbiology group under Professor Marta Cascante, a member of the PhysiomicsScientific Advisory Board. This has already yielded significant data on thebiochemistry of cancer cell growth which will be invaluable in the Company'scurrent research programme and also in marketing activities.Board developmentsThe Company welcomed three new Board members in the period: Professor DavidFell, who has been associated with the Company since 2001, as Science Directorand two non executive Directors, Dr Paul Harper and Mr John Pool. Mr Pool isChairman of EiRx Pharma Limited, the parent company of Physiomics, andrepresents EiRx Pharma Limited on the Physiomics Board. Post period events and outlook for the second halfThe Board believes that the business is well placed to benefit from theincreasing interest in systems biology and in silico approaches topharmaceutical drug development. The AIM listing provides an excellent basisfor further business development and expansion.The Company is now actively, but carefully, utilising the IPO proceeds toinvest in product development and has retained a specialist pharmaceuticalbusiness development consultancy to drive marketing in the USA and Europe. Afurther highly experienced simulation scientist, expert in modelling cellgrowth and division, joined the development team from a leading Germanlaboratory in January. Physiomics is also fortunate to have recently recruiteda senior software expert in systems biology to further develop its SystemCelltechnology. This technology is being developed to grow populations of virtualcancer cells in order to optimise clinical trial design.In the second half, it is expected that revenues will be broadly in line withthe first half whilst ongoing operating expenses will rise due to listedcompany costs, external science contracts and additional product development.However, apart from controlled outsourced and marketing investment, the costbase should then stabilise from the last quarter of the current financial yearonwards to give a solid platform for growth.Dr. Stephen B. ParkerChairman 18th March 2005Unaudited Profit and Loss Account for the six months ended 31 December 2004 Notes 6 months to 6 months to 31.12.2004 31.12.2003 ‚£ 000 ‚£ 000 Turnover (sales and grants) 96 37 Operating loss (236) (15) Loss on ordinary activities before (236) (15)financing costs Net finance income - - Loss on ordinary activities before (236) (15)taxation Taxation - - Loss on ordinary activities after taxation (236) (15) Dividends - - Retained loss (236) (15) Earnings (loss) per 1 (0.132) (0.009)share, p Unaudited Balance Sheet as at 31 December 2004 Notes 31.12.04 31.12.03 30.06.04 ‚£ 000 ‚£ 000 ‚£ 000 Fixed assets Tangible fixed assets 12 3 13 Intangible fixed assets 56 70 58 Current assets Debtors 2 384 76 13 Cash at bank 3 437 - 9 821 76 22 Current liabilities Creditors falling due within one year (349) (286) (447) Net current assets/(liabilities) 472 (210) (425) Net assets/(liabilities) 540 (137) (354) Capital and reserves Called up share 4 97 67 67capital Share premium 5 1,305 205 205account Profit and loss account (862) (409) (626) Total shareholders funds 540 (137) (354) Unaudited Cash Flow Statement for the six months ended 31 December 2004 Notes 6 months to 6 months to 31.12.04 31.12.03 ‚£ 000 ‚£ 000 Cash outflow from operating activities (700) (5) Taxation - - Purchase of tangible fixed assets (1) - Management of liquid resources Cash held on short term deposit (400) - Cash outflow before financing (1,101) (5) Financing Net proceeds of share issues including IPO 1,129 - Increase/(decrease) in cash in the period 28 (5)Notes to the financial information1) The calculation of (loss) per ordinary share is based on 2004 loss peraccounts of ‚£236,000 and weighted average number of shares of 178,306,717. 2003loss per accounts was ‚£15,000 and the weighted average number of shares inissue was 167,850,900. At the time of the IPO, the existing share capital wassub-divided and each ordinary share of 1 pence was divided into 25 ordinaryshares of 0.04p. The EPS calculations show the 2003 loss per share on acomparable basis, as though the shares had been sub-divided in 20032) The company achieved an AIM listing in December 2004 and raised ‚£750,000gross. As at 31 December 2004, ‚£445,000 had been received. The remaining ‚£305,000 was included under debtors, and has subsequently been received.3) Cash at bank as at 31 December 2004 includes ‚£400,000 held on short termdeposit4) In addition to the new money raised, inter-company charges, creditors andloans amounting to ‚£618,000 were converted into equity in the period5) Adviser fees and other costs of the IPO process amounted to ‚£239,000 and thewhole of this amount has been charged to the Share Premium accountThe comparative figures for the year to 30 June 2004 are abridged from theaccounts for that year and do not constitute full accounts within the meaningof Section 240 of the Companies Act 1985 (as amended). Statutory accounts forthat period, on which the auditors gave an unqualified opinion, have beendelivered to the Registrar of Companies.This interim report has been prepared in accordance with accounting policiesadopted in the most recent published accounts. The report has been neitheraudited nor reviewed by Grant Thornton, our auditors.ENDPHYSIOMICS PLC