Biotie has completed its annual impairment review of intangible assets and goodwill. This has resulted in a non-cash impairment charge being recognized in the consolidated statement of comprehensive income for the year-ended 31 December 2014 in respect of nepicastat (SYN117) and SYN120. The carrying value of both tozadenant (SYN115) and goodwill was fully supported by the review.
On 30 January 2015, Biotie announced top-line results from a Phase 2 clinical study with nepicastat in cocaine-dependent patients. When compared to placebo, nepicastat did not meet the primary efficacy endpoint of an increased proportion of subjects remaining abstinent from cocaine during the last two weeks of the treatment period. As a result, the carrying value of nepicastat has been fully impaired on 31 December 2014. This has resulted in a non-cash impairment charge of EUR 11.1 million, which will be recognized in the consolidated statement of comprehensive income in Q4 2014.
The impairment review for SYN120 has been performed using Parkinson’s disease dementia as the indication, following the start of recruitment in the Phase 2 study in Q4 2014. This has resulted in an impairment charge of EUR 16.5 million being recognized in the consolidated statement of comprehensive income in Q4 2014. Should the development plans change, including for example if the previously planned Alzheimer’s disease study could be funded, then this may result in an increase in the value of the asset to a maximum of the impaired amount.
Turku, 27 February 2015
Biotie Therapies Corp.
Timo Veromaa
President and CEO
Further information:
For further information, please contact:
Virve Nurmi, Investor Relations Manager
tel. +358 2 274 8900, e-mail: virve.nurmi@biotie.com
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.biotie.com
About Biotie
Biotie is a specialized drug development company focused on products for neurodegenerative and psychiatric disorders. Biotie’s development has delivered Selincro (nalmefene) for alcohol dependence, which received European marketing authorization in 2013 and is currently being rolled out across Europe by partner Lundbeck. The current development products include tozadenant for Parkinson’s disease, which is transitioning into Phase 3 development, and two additional compounds which are in Phase 2 development for cognitive disorders including Parkinson’s disease dementia, and primary sclerosing cholangitis (PSC), a rare fibrotic disease of the liver.
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