27th Mar 2012 09:33
Oxford Pharmascience Group plc
("Oxford Pharmascience" or "the Company")
Oxford Pharmascience Group Plc results for the year ended 31 December 2011
Oxford Pharmascience, the specialty pharmaceutical company that uses advanced pharmaceutic technologies to reposition medicines, today announces its results for the year ended 31 December 2011.
PERIOD HIGHLIGHTS
·; Commencement of shipments of its OXP chew™ technology to Aché Pharmaceuticals in Brazil
·; Extension of OXP chew™ licensing to the Far East via Mega Lifesciences
·; Licensing of technology from University of Queensland for the production of material for its taste masking technology
·; Launch of OXP zero™ taste masking technology
·; Signing of Heads of Terms with Hermes Pharma, part of Hermes Artzneimittel GmbH for development of range of OXP zero™ Ibuprofen direct to mouth granules products
·; Commencement of OXP target™ research program for safer statins
·; Appointment of Dave Norwood as Non-executive Chairman
·; Change of name to Oxford Pharmascience Group plc
Revenue for the year ended 31 December 2011 was £292,000, which represents an increase of 237 per cent on 2010. The loss for the year was £926,000, 14% higher than 2010.
These results include the benefit of two of the first four orders from Aché Laboratórios, the Brazilian pharmaceutical company with which the Company entered into an exclusive licensing and distribution agreement earlier in the year for its OXP chew™ technology.Second half revenues showed a significant improvement on the first half reflecting the Company's focus on working with major pharmaceutical partners to commercialise its range of technologies. The loss on operations reflects the Company's investment during 2011 in advancing its technology to a state ready to commercialise, the rewards of which are expected to be seen in 2012.
Having already developed proof of concept for its OXP Zero™ taste masked ibuprofen technology and reached its first commercial agreement for products using this technology, the Company is developing proof of concept for other NSAIDs (non steroidal anti-inflammatory drugs). We are now looking for further commercial licensing deals with major pharmaceutical partners.After a successful fund raising in November the Company had cash resources available amounting to £1.1m as at 31st December 2011.
Nigel Theobald, Chief Executive, Oxford Pharmascience Group Plc, commented: "The strong second half results are a positive indication that the new strategy to focus on pharmaceutic technology licensing has been the right decision. We are very excited about the prospects for our platform technologies and are looking to continue strong revenue growth in the coming years. Further, we are actively looking to enter into more commercial licensing deals which we feel will benefit our future growth."
A copy of the Annual Report and Notice of AGM is being posted to shareholders shortly and will also be made available on the Company's website www.oxfordpharmascience.com
CHAIRMAN'S STATEMENT
2011 has been a breakthrough year for the Company which changed its name to Oxford Pharmascience to reflect a change of focus to an exciting new sector of pharmaceuticals. That change of focus is now taking shape.
Oxford Pharmascience has a portfolio of pharmaceutic technologies which allows us to effectively "re-develop" existing drugs. Specifically, the Company is using advanced drug delivery and pharmaceutic technologies to formulate products that are easier or more pleasant to consume. This is particularly relevant for the geriatric and paediatric markets. We are also developing modified release formulations that have various clinical benefits such as the safer delivery of statins.
Our technology is attracting wide interest from many pharma companies who may want to enhance and improve their existing products and 2011 has seen our first shipments of our OXP chew™ technology to our Brazilian partner Aché Laboratórios Farmacêuticos S.A., ("Aché"), one of Brazil's largest pharmaceutical companies distributing over 250 brands of prescription and generic drugs and over-the-counter products and these orders have carried through into 2012. Licensing of our calcium OXP chew™ product has also been extended to cover the Far East with sales there expected in 2013.
2011 also saw the launch of OXP zero™ the Company's taste masking technology. It has now established proof of concept for the taste masking of ibuprofen, which removes the typical burning sensation on the throat associated with developing ibuprofen products and recently appointed Partner International Incorporated as its business development parner to help with its wordlwide licensing of this technology both for ibuprofen and other Non-steroidal anti-inflammatory drugs (NSAID) products.
World leading science and intellectual property is at the core of our technology portfolio. The company continues to work closely with leading academic institutions to strengthen its intellectual property. As part of this, the company has signed a worldwide exclusive licensing agreement with the University of Adelaide to enable the commercial production of its OXP zero™ technology and is now in a position to start commercial scale work for its licensing projects.
The company has signed a Heads of Terms with Hermes Artzneimittel GmbH to license, develop and launch a range of 'Direct to mouth' granules incorporating its OXP zero™ ibuprofen technology. This is another significant step for the Company as it demonstrates it can reach commercial agreement with leading healthcare companies for OXP zero™ as well as OXP chew™. This deal will speed up the development and launch of the first OXP zero™ ibuprofen products.
During the year we also signed an exclusive option to license and research an advanced colonic drug delivery technology from The School of Pharmacy, University of London, with a specific intention to develop and commercialise a novel application for the major drug category of statins. The Company has launched this as OXP target™ and has begun early conversations looking for a co-development partner for the technology.
Revenues increased by 237 per cent to £0.3 million during the year reflecting the start of sales to Aché in Brazil and sales performance is expected to continue to grow in this area in 2012. The loss of £0.9 million reflects the technology development and scale up of commercial activities achieved during the year. The end of the year saw the company complete a further fund raising of £1.1 million and this together with ongoing growth in sales from its OXP chew™ business leaves the Directors confident that significant further progress will be made in 2012.
The challenge for the Company going forward remains twofold. First, we must continue to develop excellent science into innovative products that industry wants and requires. Second, we must continue to commercialise these products with major pharma companies to secure a profitable route to market. I believe that we have the team and technology to achieve these objectives and look forward to the future with confidence.
David Norwood, Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year to 31 December 2011 | Year to 31 December 2010 | |||
Notes | £'000 | £'000 | ||
Revenues | 4 | 282 | 123 | |
Cost of sales | (249) | (88) | ||
Gross profit | 33 | 35 | ||
Administrative expenses | (969) | (638) | ||
Cost of AIM listing | - | (227) | ||
Total administration costs | (969) | (865) | ||
Operating loss | 5 | (936) | (830) | |
Finance income | 7 | - | - | |
Loss before tax | (936) | (830) | ||
Taxation | 8 | 10 | 18 | |
Loss after tax attributable to equity holders of the parent | (926) | (812) | ||
Loss per share | 9 | |||
Basic on loss for the period (pence) | (0.19) | (0.18) | ||
Diluted on loss for the period (pence) | (0.19) | (0.18) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share | Share | Merger | Share Based Payments | Revenue Deficit | Total | |
Capital | Premium | Reserve | Reserve | Reserve | Equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
At 31 December 2009 | 160 | 955 | - | 16 | (336) | 795 |
Loss for the period | - | - | - | - | (812) | (812) |
Reallocation of reserves on reorganisation | 241 | (955) | 714 | - | - | - |
Issue of shares | 63 | 1,037 | - | - | - | 1,100 |
Share based payment | - | - | - | 12 | - | 12 |
At 31 December 2010 | 464 | 1,037 | 714 | 28 | (1,148) | 1,095 |
Loss for the period | - | - | - | - | (926) | (926) |
Issue of shares | 113 | 1,017 | - | - | - | 1,130 |
Expense of share issue | - | (56) | - | - | - | (56) |
Share based payment | - | - | - | 9 | - | 9 |
At 31 December 2011 | 577 | 1,998 | 714 | 37 | (2,074) | 1,252 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 December 2011 | 31 December 2010 | ||
Notes | £'000 | £'000 | |
Assets | |||
Non-current assets | |||
Intangible assets | 10 | 68 | 80 |
Property, plant and equipment | 11 | 5 | 5 |
73 | 85 | ||
Current assets | |||
Inventories | 12 | 44 | 104 |
Trade and other receivables | 13 | 159 | 72 |
Cash and cash equivalents | 14 | 1,105 | 896 |
1,308 | 1,072 | ||
Total Assets | 1,381 | 1,157 | |
Liabilities | |||
Current liabilities | |||
Trade and other payables | 15 | (129) | (62) |
(129) | (62) | ||
Net Assets | 1,252 | 1,095 | |
Equity | |||
Share capital | 16 | 577 | 464 |
Share premium | 16 | 1,998 | 1,037 |
Merger reserve | 16 | 714 | 714 |
Share based payment reserve | 17 | 37 | 28 |
Revenue deficit reserve | (2,074) | (1,148) | |
Total Equity | 1,252 | 1,095 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Year to 31 December 2011 | Year to 31 December 2010 | ||
Notes | £'000 | £'000 | |
Operating Activities | |||
Loss before interest and tax | (936) | (830) | |
Adjustment for non- cash items: | |||
Depreciation of property, plant and equipment | 11 | 2 | 2 |
Amortisation of intangible assets | 10 | 12 | 6 |
Share based payment | 17 | 9 | 12 |
Decrease/(increase) in inventories | 60 | (65) | |
(Increase)/decrease in trade and other receivables | (87) | 97 | |
Increase in trade and other payables | 67 | 3 | |
Operating cash outflow | (873) | (775) | |
Taxation refunded | 10 | 18 | |
Net cash outflow from operations | (863) | (757) | |
Investing Activities | |||
Purchases of property, plant and equipment | 11 | (2) | (6) |
Additions of intangible assets | 10 | - | (79) |
Net cash outflow from investing activities | (2) | (85) | |
Financing Activities | |||
Proceeds from issue of share capital | 16 | 1,130 | 1,100 |
Expenses of share issue | 16 | (56) | - |
Net cash inflow from financing activities | 1,074 | 1,100 | |
Increase in cash and cash equivalents | 209 | 258 | |
Cash and cash equivalents at start of period | 896 | 638 | |
Cash and cash equivalents at end of period | 1,105 | 896 |
For further information:
Oxford Pharmascience Group Plc
Nigel Theobald, Chief Executive +44 1865 854874
Hybridan LLP (Broker)
Claire Noyce / Deepak Reddy +44 20 7947 4350
ZAI Corporate Finance (Nominated Adviser)
John Depasquale/ John Treacy +44 20 7060 2220
About Oxford Pharmascience Group Plc
Oxford Pharmascience Group Plc develops advanced yet practical pharmaceutical technologies to enable reformulation that adds value to off patent and soon to be off patent drugs. The Company does not manufacture or sell its own pharmaceutical products but instead seeks to license its technologies to a network of partners, mainly leading pharmaceutical companies with Rx (prescription) and OTC (Over the Counter) branded portfolios. These partners use our technologies to reposition their products helping them sustain market share and profitability by delivering improved health outcomes and/or clinical profiles via reformulated versions of the same API (active pharmaceutical ingredient).
Oxford Pharmascience Group Plc develops platform technologies that have application across multiple drug categories and can be leveraged across a broad range of reformulation problems. This business model allows us to provide solutions across the industry and fund the ongoing development of cutting edge technologies to better serve the needs of our partners. The partner companies who adopt our technology pay an up-front license fee followed by development milestone payments and then royalties on finished products sold using the technology. OXP invests the upfront licence fee to optimise product development and to ensure seamless technology transfer to the pharmaceutical partner.
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