LEIDEN, THE NETHERLANDS--(Marketwire - February 17, 2012) -
OctoPlus N.V. ("OctoPlus" or the "Company") (Euronext: OCTO), announces
its unaudited annual results for the year ended 31 December 2011.
The economic climate has made 2011 a challenging year for us, which is
in a decrease in revenues to EUR 7.7 million (2010: EUR 8.3 million).
the last two months of 2011 we signed a significant number of new contracts.
impact on the 2011 revenues of these new signatures is limited but we
that these contracts will contribute in a material way to our 2012
enabling a substantial growth in revenues in 2012.
We have worked hard to improve the efficiency and operational excellence of
organization which resulted in a higher success rate in winning new business.
expect to see more benefits of our efforts in the area of
efficiency in the course of 2012 and thereafter.
Moving into 2012, we aim to build on all four of our strategic activities.
will focus on fulfilling our role in projects for clients such as Biolex
ESBATech, a subsidiary of Novartis. We will continue to use our
technologies to develop controlled release formulations for clients. And we
strengthen our efforts in the area of specialty generics because we see a
market opportunity there. In 2012 we aim to generate more than 20%
growth in our revenues, contributing to our medium term goal to build a
that is operationally cash balanced, while allowing for investments in
with long term upside potential for our shareholders.
Our four strategic activities and their development in 2011:
1. Difficult economic climate for formulation development and manufacturing
* 2011 revenues amounted to EUR 7.7 million (2010: EUR 8.3 million)
* 42 projects for 36 clients worked on during 2011
* Contracts signed with seven new customers during 2011, of which four in
2. Strong clinical results for Locteron
The clinically most advanced product incorporating our PolyActive technology
Locteron, a controlled release formulation of interferon alpha, which we
and manufacture for our licensee Biolex. The final results of the Phase
clinical studies with Locteron confirmed equivalent efficacy compared to
standard of care with a statistically significant reduction of the number
flu-like adverse events and a reduction in the number of depressive symptoms.
have optimized our large scale manufacturing process for Locteron in order to
ready to kick off the preparations for Phase III clinical supplies.
revenues from Locteron were in line with expectations at EUR 0.6 million
0.8 million). Biolex has been in partnering discussions with
commercial partners for Locteron. Once a partner has been secured,
for Phase III clinical studies will commence, which will result in
revenues for us.
3. Increased adoption of our proprietary drug delivery technologies:
Delivery of medicines to the eye (ophthalmology) is a compelling disease area
which we are becoming more active. Our project with ESBATech, a
company, generated significant revenues in 2011. It has progressed into
development, including additional preclinical studies.
4. First projects started in specialty generics with successful initial
Several blockbuster injectable controlled release drugs are coming off patent
the coming years, which opens the way to develop competitive products
infringing patents. Developing and manufacturing a generic version of
injectable controlled release drug is difficult and only a small number
companies in the contract service business have the expertise and
to do so. We are experts in this field, as we have proven with the
and manufacturing of Locteron and many other products. During 2011, we
performed early-stage formulation development work in this field on a
fee-for-service basis and we will expand our activities in this area during
The economic climate has made 2011 a challenging year for us, which is
in lower revenues. However, we have stabilized our revenue stream and are
towards growth for 2012.
* Total revenues decreased by 8% to EUR 7.7 million (2010: EUR 8.3
Revenues from technology evaluation contracts increased (mainly
other service revenues decreased as a result of the difficult
climate, and income from subsidies diminished as a result of
finalization of our subsidized project in 2011 (2010: EUR 0.3 million
* Total costs (including interest) for the full year reduced by 4% to EUR
million (2010: EUR 14.5 million). The average number of FTEs
temporary staff) increased from 102 FTEs in 2010 to 108 FTEs in 2011 as
result of a higher headcount in revenue generating areas such
formulation, process and analytical method development. Other
decreased mainly as a result of a continued focus on cost control.
* Net loss amounted to EUR 6.3 million (2010: net loss of EUR 6.2 million).
* In 2011 OctoPlus incurred a total cash outflow of EUR 1.1 million
0.6 million cash outflow).
* The cash outflow excluding equity issues increased to EUR 4.8 million
result of lower revenues (2010: EUR 4.0 million).
* The cash position was EUR 1.6 million on 31 December 2011 (31 December
2.7 million). We expect to strengthen our balance sheet by
additional funds in the first half of 2012.
Our prime focus is to build our business into an operationally cash
balanced company in the medium term, which allows us to fund projects with
term upside potential for our shareholders in the form of royalties,
revenue and milestone payments. The recent difficult economic climate
affected our clients, which has made both 2010 and 2011 challenging years
us: this is reflected in lower revenues. We feel that our focus during 2011
improved efficiency and effectiveness in virtually all key functions of
organization will allow us to move towards revenue growth during 2012. We
to meet the increased demand from our customers by increasing the utilization
our expanded facilities in Leiden and making some further modest
predominantly in equipment. We aim to generate more than 20% organic growth
revenues during 2012, contributing to our goal to become a
operationally cash balanced business with a large financial upside in the
of royalties, product revenue and milestones in the years thereafter.
Jan Egberts, CEO of OctoPlus comments: "After my first year as CEO, I am
back at a challenging year. Although our business has been negatively impacted
by the current economic environment, I feel that over the past year we have
great strides in strengthening and further professionalizing our organization.
We expect to see the results from these efforts in the course of 2012 and are
aiming for our revenues to grow by more than 20% in 2012. Our aim is to build
company that is operationally cash balanced, allowing a sustainable business
with a large shareholder upside in the form of royalties, milestones and
Conference call and webcast presentation
OctoPlus will hold a conference call and webcast presentation today at 10:00
CET. This event can also be followed live via OctoPlus' website
If you would like to participate in the conference call, please dial in
telephone number +31 (0) 45 6316903. After the presentation, Jan Egberts, CEO
OctoPlus and Susan Swarte, CFO of OctoPlus, will be available to
questions. After the event, the webcast will be available for replay on
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Source: OctoPlus N.V. via Thomson Reuters ONE