6th Apr 2011 07:00
6 April 2011
Oxford Nutrascience Group plc
("Oxford Nutrascience" or "the Company")
Year End results to 31 December 2010
Oxford Nutrascience is a speciality pharmaceutical company using pharmaceutic and drug delivery science to develop advanced medicines that add value to generic and soon to be off patent Active Pharmaceutical Ingredients (API's).
PERIOD HIGHLIGHTS
Successful admission of Oxford Nutrascience to AIM
Validation of platform technology for chewable tablets (Chewitabs™) and liquid suspensions and initiation of commercialization activities.
Establishment of manufacturing capability for Chewitabs™
Launch of chewable supplements using proprietary technology.
Development of "no burn" Ibuprofen
Targeting of higher margin pharmaceutical sector
Patent and technology portfolio expanded
CURRENT PERIOD
Exclusive licensing agreement with University of Oxford
Nigel Theobald, Chief Executive, Oxford Nutrascience Group plc said:
"The successful IPO of Oxford Nutrascience has allowed us to accelerate the development of our technology portfolio refocusing on valuable opportunities in the pharmaceutical sector.
"As the drug development companies continue to seek ways to differentiate their products Oxford Nutrascience provides solutions to innovate and add value. Our technology platforms in delivery formats and drug delivery are already attracting significant attention from major pharma companies, and in particular, the development of a more pleasant "no burn" Ibuprofen product has been very well received.
"The pharmaceutical sector offers many exciting opportunities and Oxford Nutrascience's strategy will now be focused on this sector."
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.oxfordnutrascience.com
Contacts:
Oxford Nutrascience Group Plc
Nigel Theobald, Chief Executive +44 1865 854874
Mark Way, Investor Relations +44 7786 116991
ZAI Corporate Finance (Nominated Adviser)
John Depasquale / Sarang Shah +44 20 7060 2220
CHAIRMAN'S STATEMENT
I would like to welcome all shareholders to Oxford Nutrascience's first year end results following the IPO of the Company in February of 2010.
During the year much of the Company's activity was geared towards initialising the commercialisation of its supplement and medicine delivery technologies as well as expanding its technology base to allow the development of high value applications in the Over the Counter ("OTC") and Prescription ("Rx") markets.
Strategy
The company's strategy has evolved dramatically in the last 12 months as the company has expanded its technology base and expertise. Oxford Nutrascience is developing a strong portfolio of pharmaceutical and drug delivery technologies and is using these to develop novel applications of generic or soon to be off patent active pharmaceutical ingredients. Specifically, the company specialises in formulating products that are easier or more pleasant to take for geriatric or pediatric markets as well as modified release formulations for various clinical benefits.
The Company's strategy is now primarily focused on the pharmaceutical sector where a significant number of drugs are now generic and where it is becoming increasingly difficult and expensive to bring new drugs to market. As drugs come off patent or face generic competition, pharmaceutical companies are under pressure to maximise their return on investment in the drug and to find ways to extend their lifecycle. This is often achieved through format differentiation which is where our expertise and technologies come in.
Oxford Nutrascience with its ability to innovate provides pharmaceutical companies with solutions to retain differentiation and add value.
As part of the evolving strategy it is proposed that the name of the Company be changed to Oxford Pharmascience Group Plc as set out in Resolution 7 of the notice of Annual General Meeting.
Financial highlights
During the year revenues increased by 128 per cent to £0.12 million reflecting the increased sales of the Company's own branded calcium supplement, particularly in the Middle East. While own brand supplement sales is not the future direction for the Company, it has been an important step in validating our technology platform.
The loss of £0.81 million was in line with forecasts and reflects the technology development and scale up of commercial activities achieved during the year.
Successful IPO and listing of the Company
The IPO of Oxford Nutrascience has allowed the Company to accelerate both the development of its technology base and their commercialisation and also to increase the profile of the company amongst pharmaceutical companies worldwide.
As a consequence Oxford Nutrascience is in discussions with a number of major brand owners in the OTC and prescription pharmaceutical sectors for the possible licensing of our intellectual property.
The Company raised £1.1 million, before expenses, via a placing of 62,857,148 ordinary shares of 0.1p each at a price of 1.75p per share.
Ibuprofen
Oxford Nutrascience has established proof of concept for the taste masking of Ibuprofen, a popular pain relief drug that is available OTC, importantly also removing the typical burning sensation the drug can cause in the throat.
In February 2011 Oxford Nutrascience signed a worldwide exclusive licensing agreement with Isis Innovation Limited, the technology transfer company of the University of Oxford to develop and commercialise products utilising a novel drug delivery/taste masking technology developed at Oxford. The University's technology provides for outstanding taste masking, enhanced drug stability and potential for tuneable drug release properties.
By combining this technology with Oxford Nutrascience's delivery formats technologies, the company is proceeding to develop "no burn" chewable and liquid ibuprofen products which it intends to commercialise via the OTC and Rx markets. This is a significant market opportunity for Oxford Nutrascience and the interest being shown from the major companies currently selling ibuprofen products confirms this.
Importantly the University's technology is also applicable to a broad range of pharmaceuticals including major drug categories such as NSAIDS (Non-steroidal Anti-inflammatory drugs) and statins. Oxford Nutrascience plans to use the University's technology to develop and launch additional products in these areas.
Outlook
Oxford Nutrascience has made good progress in the development of its pharmaceutic and drug delivery techniques during the period and now has an ability to provide genuine product innovation in this market.
As part of the next phase of the Company's development we will look to enter commercial agreements with both pharmaceutical companies and also other academic institutions from where the Company may source complimentary novel technologies.
We view the future with confidence and are currently in discussion stages with a number of potential commercial partners. The Board expects to be able to announce the signing of one or more of such commercial agreements in the current year and looks forward to updating shareholders as these arise.
Marcelo Bravo, Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year to 31 December 2010 | Year to 31 December 2009 | |||
£'000 | £'000 | |||
Revenues | 123 | 54 | ||
Cost of sales | (88) | (32) | ||
Gross profit | 35 | 22 | ||
Administrative expenses | (638) | (262) | ||
Cost of AIM listing | (227) | - | ||
Total administration costs | (865) | (262) | ||
Operating loss | (830) | (240) | ||
Finance income | - | 11 | ||
Loss before tax | (830) | (229) | ||
Taxation | 18 | - | ||
Loss after tax attributable to equity holders of the parent | (812) | (229) | ||
Loss per share | ||||
Basic on loss for the period (pence) | (0.18) | (0.06) | ||
Diluted on loss for the period (pence) | (0.18) | (0.06) | ||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 December 2010 | 31 December 2009 | ||
£'000 | £'000 | ||
Assets | |||
Non-current assets | |||
Intangible assets | 80 | 7 | |
Property, plant and equipment | 5 | 1 | |
- | |||
Total non-current assets | 85 | 8 | |
Current assets | |||
Inventories | 104 | 39 | |
Trade and other receivables | 72 | 169 | |
Cash and cash equivalents | 896 | 638 | |
Total current assets | 1,072 | 846 | |
Total Assets | 1,157 | 854 | |
Liabilities | |||
Current liabilities | |||
Trade and other payables | (62) | (59) | |
Total current liabilities | (62) | (59) | |
Net Assets | 1,095 | 795 | |
Equity | |||
Share capital | 464 | 160 | |
Share premium | 1,037 | 955 | |
Merger reserve | 714 | - | |
Share based payment reserve | 28 | 16 | |
Revenue deficit reserve | (1,148) | (336) | |
Total Equity | 1,095 | 795 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Year to 31 December 2010 | Year to 31 December 2009 | ||
£'000 | £'000 | ||
Operating Activities | |||
Loss before interest and tax | (830) | (240) | |
Adjustment for non- cash items: | |||
Depreciation of property, plant and equipment | 2 | - | |
Amortisation of intangible assets | 6 | 1 | |
Share based payment | 12 | 16 | |
Increase in inventories | (65) | (20) | |
Decrease/(increase) in trade and other receivables | 97 | (129) | |
Increase in trade and other payables | 3 | 18 | |
Operating cash outflow | (775) | (354) | |
Taxation refunded | 18 | - | |
Net cash outflow from operations | (757) | (354) | |
Investing Activities | |||
Interest received | - | 11 | |
Purchases of property, plant and equipment | (6) | (1) | |
Additions of intangible assets | (79) | (7) | |
Net cash (outflow)/inflow from investing activities | (85) | 3 | |
Financing Activities | |||
Proceeds from issue of share capital | 1,100 | - | |
Net cash inflow from financing activities | 1,100 | - | |
Increase/(decrease) in cash and cash equivalents | 258 | (351) | |
Cash and cash equivalents at start of period | 638 | 989 | |
Cash and cash equivalents at end of period | 896 | 638 |
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