May 25, 2011 -- FIRST QUARTER, JANUARY 1 – MARCH 31, 2011
- Consolidated net sales totaled SEK 4.0 M (5.4).
- The operating result amounted to a loss of SEK 9.8 M (-6.3).
- The net result was to a loss of SEK 9.6 M (-7.9).
- The result per share before and after dilution amounted to a loss of SEK 2.40 (-5.60).
- Cash flow from operating activities amounted to a deficit of SEK 10.0 M (-9.4)
IMPORTANT EVENTS DURING THE FIRST QUARTER
- Isconova expanded its cooperation with PHARMAQ regarding the development of new salmon vaccines
- Isconovas partner Narvac submitted registration application for rabies vaccines in Russia
- Isconova initiated clinical study of influenza vaccine
IMPORTANT EVENTS AFTER CLOSE OF PERIOD
- Isconova strengthened its product and patent portfolio by acquiring the assets of Nordic Vaccine through a non-cash issue
- Annual General Meeting was held on May 5th 2011 in Uppsala. The Meeting resolved, among other things, the composition of the Board of Directors, authorization for the Board to decide about new share issues as well as the adoption of a stock option rights program aimed at certain board members.
- Isconova initiated influenza study vaccinations
All figures pertain to the Group, unless otherwise stated. Figures in parentheses pertain to the corresponding period in the preceding year.
CEO’S COMMENTS
The beginning of 2011 has been eventful with new collaborations and continued progress in existing projects. During the quarter we took another step in our increased commitment to human vaccines by initiating a new seasonal influenza study. The study will investigate whether our product Matrix M™ improves the effect of the vaccine on elderly people; a patient group that, due to a weakened immune system, often does not get sufficient protection with current influenza vaccines. The study started in May 2011 and will be reported during the first quarter of 2012. At the end of May we passed a milestone in the vaccine study by vaccination of the first study participant. A total number of 110 healthy volunteers will take part in the study.
During the first quarter we also expanded our cooperation with the Norwegian company PHARMAQ, after positive notice from EU agency Eurostars™ who will finance a large share of our mutual developmental costs. The aim of the extensive program is to develop a new, innovative generation of fish vaccines.
In March, our Russian partner Narvac submitted a registration application in Russia for two rabies vaccines containing Isconova’s Matrix M™. Launch of the products on the Russian market is expected end of 2011. For sales on the Russian market, Isconova will receive proceeds from production and from royalties.
We recently acquired the assets of Danish research and development company Nordic Vaccine A/S. The acquisition is in line with our strategy to participate in the current market consolidation and with the acquired patents we have additionally strengthened our position and patent family within iscom and Matrix™ technologies.
The lower sales during the first quarter compared to the same period last year is explained by revenues from research cooperation programs that we received during the first quarter of 2010. Revenues from research cooperation programs can vary over time. The long-term demand for our products is strong. The costs have also increased compared to the first quarter 2010 as a result from our investment in Isconova run clinical studies and the build-up of our organization.
In conclusion we have taken several steps towards fulfilling our ambition – to become a partner of choice for vaccine companies for effective vaccine development using adjuvants and to successively take a larger ownership share in the vaccine products we develop.
Lena Söderström
CEO
