STRASBOURG, France, August 2 /PRNewswire-FirstCall/ -- Transgene S.A. announces today financial results for the first half of 2006:
Condensed Consolidated Statements of Operations (IAS/IFRS) (Amounts in thousands of euros) Six months ended June 30, 2006 2005 (unaudited) (audited) Total revenues 2,785 2,535 Total operating expenses (13,512) (12,027) Loss from operations (10,727) (9,492) Interest and other income, net 92 59 Income tax - (4) Net loss (10,635) (9,437)
“Financial results for the first half of 2006 are in line with our plans,” said Philippe Archinard, Chief Executive Officer of Transgene. “Additionally, last month, we strengthened our cash position to EUR 29.3 million by raising EUR 13.9 million through the exercise of more than 76 % of the warrants issued a year ago. We maintain our financial and operating objectives for 2006.”
Revenues:
For the first half of 2006, revenues increased to EUR 2.8 million from EUR 2.5 million in the same period of 2005:
(in millions of euros) First half 2006 First half 2005 Manufacturing contracts 0.9 1.3 Contract with the French Association against Muscular Dystrophy 0.8 0.6 Licensing revenues 0.2 0.2 Research tax credit and grants 0.9 0.4 Total 2.8 2.5
Revenues from manufacturing contracts are recorded after quality controls, delivery and acceptance by the client have been completed. Revenues of contracts performed in the first half of 2006 will be recorded in the second half of 2006 or the beginning of 2007. In the first half of 2005, manufacturing revenues benefited in particular from the recognition of the Eurovac contract.
However, cash from manufacturing contracts increased from EUR 0.5 million in the first half of 2005 to EUR 1.7 million in 2006.
Billings to the French Association against Muscular Dystrophy increased by EUR 0.2 million and licensing revenues remained unchanged.
Due to the change in French tax regulations regarding the rate applied to certain expenses eligible for tax credit (5% in 2005 and 10% in 2006), our research and development tax credit doubled in 2006. The contribution to revenues of the Lyon BioPole grant to finance our TG 4040 hepatitis C therapeutic vaccine programme amounted to EUR 0.1 million.
Research and Development Expenses:
Research and development expenses amounted to EUR 11.7 million in the first half of 2006 compared to EUR 9.8 million in the same period of 2005.
The increase was mainly due to clinical development expenses linked to the TG 4010 Phase IIb trial in Non Small Cell Lung Cancer and the integration into Transgene, beginning with the third quarter of 2005, of an 8-person infectious diseases research team in Lyons responsible primarily for the TG 4040 hepatitis C programme.
Increases in clinical batch production activities and additional personnel in our project management also added to the increase in expenses.
General and Administrative Expenses:
General and administrative expenses decreased by EUR 0.4 million from EUR 2.2 million in the first half of 2005 compared to EUR 1.8 million in same period 2006. The decrease was mainly due to lower costs for external services and the Company’s delisting from Nasdaq.
Interest and Other Income:
Interest and other income were unchanged at EUR 0.1 million.
Net Loss:
Transgene reported a net loss of EUR 10.6 million for the first half of 2006 compared to EUR 9.4 million for the first half of 2005. Basic loss per ordinary share for the six month period amounted to EUR 0.72 in 2006 compared to EUR 0.94 in 2005.
Liquidity and Capital Resources:
For the first six months of 2006 net cash expenditures amounted to EUR 10.4 million compared to EUR 10.2 million in 2005.
Cash, cash equivalents and short-term investments totalled EUR 16.6 million as of June 30, 2006. In July 2006, the company raised an additional EUR 13.9 million through the exercise of warrants issued as part of the capital increase in July 2005. In mid-July 2006, the company had about EUR 29.3 million in cash, cash equivalents and short-term investments.
The anticipated development of our activities should lead to an estimated net cash expenditure on the order of EUR 22 million for the full year 2006.
About Transgene:
Transgene is a France-based biopharmaceutical company dedicated to the development of therapeutic vaccines and immunotherapeutic products in oncology and infectious diseases. The company has three compounds in Phase II trials and one compound in Phase I studies. Transgene has bio-manufacturing production capacities for viral-based vectors and technologies available for out-licensing. For further information about Transgene, please visit www.transgene.fr.
This press release contains forward-looking statements referring to the Company’s net cash expenditures. These estimates are based on management’s current knowledge, belief and expectations. However, unanticipated costs may arise due to unforeseen events in connection with the Company’s clinical research programs, changes in applicable regulatory requirements, intellectual property claims or otherwise. Actual results may therefore differ from current estimates.
Press Contacts: Transgene Capital MS&L Image 7 Philippe Poncet Shaun Brown Estelle Guillot-Tantay +33-3-88-27-91-21 Mary Clark Tiphaine Hecketsweiler www.transgene.fr +44-(0)20-7307-5330 +33-1-53-70-74-93 Condensed Consolidated Statements of Operations (IAS/IFRS) (Amounts in thousands of euros except share and per share data) Six months ended June 30, 2006 2005 (unaudited) (audited) Revenues Revenues from collaborative and licensing agreements 1,893 2,178 Grants and tax credit received for research 892 357 Total revenues 2,785 2,535 Operating expenses Research and development (11,720) (9,802) General and administrative (1,803) (2,235) Other operating gains and losses 11 10 Total operating expenses (13,512) (12,027) Loss from operations (10,727) (9,492) Interest and other income, net 92 59 Income tax benefit 0 (4) Net loss (10,635) (9,437) Loss per ordinary share (0.72) (0.94) Weighted average number of shares outstanding 14,746,848 10,055,760 Condensed Consolidated Balance Sheets (IAS/IFRS) (Amounts in thousands of euros) June 30, December 31, 2006 2005 (unaudited) (audited) ASSETS Cash and cash equivalents 7,646 16,619 Short term investments 8,993 9,890 Other current assets 2,578 2,776 Total current assets 19,217 29,285 Fixed assets, net 6,365 6,608 Intangible assets, net 214 226 Financial assets, net 206 206 Other non-current assets 2,170 1,390 Total assets 28,172 37,715 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities, current 6,361 6,005 Liabilities, non-current 5,509 5,511 Shareholders’ equity 16,302 26,198 Total liabilities and shareholders’ equity 28,172 37,715
Transgene S.A.
CONTACT: Press Contacts: Transgene, Philippe Poncet, +33-3-88-27-91-21,www.transgene.fr. Capital MS&L : Shaun Brown, Mary Clark,+44-(0)20-7307-5330. Image 7: Estelle Guillot-Tantay, TiphaineHecketsweiler, +33-1-53-70-74-93.
