Berlin, August 14, 2006 - Jerini AG (FSE:JI4) reported financial results according to International Financial Reporting Standards (IFRS) for the first six months ended June 30, 2006.
Total revenues for this period increased by 39.0 percent to ¤ 6.3 million (compared to ¤ 4.5 million in the prior year period). Revenues from collaboration agreements increased by 77.5 percent to ¤ 4.8 million (prior year period: ¤ 2.7 million), which was primarily attributable to revenues from the partnership agreement with Kos Life Sciences, Inc. Cash and cash-equivalents as of June 30, 2006 amounted to ¤ 81.5 million. "Having recently completed patient randomization of our Phase III trials of Icatibant for hereditary angioedema (HAE), we remain on track to report top line data in the third quarter," said Jens Schneider-Mergener, CEO of Jerini. "We intend to continue to expand the number of indications treatable with Icatibant and are planning additional clinical testing for other forms of angioedema next year."
Research and development expenses increased in this six-month period to ¤ 11.5 million (compared to ¤ 7.0 million in the prior year period), the result of higher spending for clinical studies, including the current Phase III HAE study and the advancement of other projects. General and administrative expenses increased in this six-month period by ¤ 0.5 million to ¤ 3.6 million (compared to ¤ 3.1 million in the prior year period); the increase is mainly related to personnel expenditures, consulting services received, increased reporting requirements of the company, and investor relations activities. Selling and distribution costs increased in this six-month period to ¤ 2.5 million (prior year period: ¤ 0.5 million), mainly due to preparation costs for the market launch of Icatibant. Therefore, loss from operations before tax and finance cost (EBIT) increased, as anticipated, to ¤ 12.1 million (compared to ¤ 7.6 million in the prior year period). Net loss for the six-month period ended June 30, 2006 amounted to ¤ 11.0 million (compared to ¤ 7.0 million in 2005); loss per share for this period amounted to ¤ 0.21 (prior year period: ¤ 1.14).
Net cash burn for the first six months of 2006 amounted to ¤ 14.4 million. Net cash burn is calculated by the addition of cash used in operating activities (¤ 13.5 million) and cash used in investing activities (¤ 0.9 million), as disclosed in the unaudited consolidated cash-flow statements for the six-month period ended June 30, 2006.
Outlook Based on the progress of Icatibant's HAE clinical trials to date and the progress of its other drug candidates, Jerini will continue to concentrate on developing its own drug candidates. For 2006, the company forecasts an increase in operating expenses. Higher research and development expenses are anticipated as a result of the further development of Icatibant for treating HAE and at least one additional indication, along with the start of clinical trials using Jerini's Integrin-antagonist for the treatment of age-related macular degeneration (AMD) in the first quarter of 2007. Further expansion in the area of sales and marketing for the planned market launch of Icatibant in 2007 will also add expenses in 2006. These increases are likely to be offset, in part, by an increase in revenues in 2006, principally related to business activities in conjunction with Jerini's collaboration agreement with Kos Pharmaceuticals, Inc. The overall rise in losses from operations anticipated for 2006 reflects Jerini's strategy to bring its first product independently to the market in 2007.
About Jerini AG Jerini AG is a pharmaceutical company based in Berlin, Germany focusing on the discovery and development of peptide-based drugs. Having recognized the potential of peptides as natural starting molecules for drug discovery, the company has developed state-of-the-art technologies to identify and transform peptides into drugs. The company's lead product, Icatibant, is currently in Phase III clinical trials for the treatment of hereditary angioedema (HAE). It is estimated that between 1:10,000 and 1:50,000 people worldwide are affected with this disease. Based on its technology platform, Jerini has established several in-house development programs, which address indications within ophthalmology, oncology, and inflammatory therapeutic areas. The most advanced of these programs targets age-related macular degeneration (AMD), the leading cause of vision loss and blindness in people over the age of 55 in developed countries.
ISIN: DE0006787476 For questions, please contact: Stacy Wiedenmann Director Investor Relations & Corporate Communications Jerini AG Invalidenstr. 130 10115 Berlin T + 49 - 30 - 97893 - 285 X + 49 - 30 - 97893 - 105 firstname.lastname@example.org
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