20th Mar 2013 07:00
Oxford Pharmascience Group plc
("Oxford Pharmascience" or "the Company")
Oxford Pharmascience Group Plc results for the year ended 31 December 2012
Oxford Pharmascience, the specialty pharmaceutical company that uses advanced pharmaceutic technologies to reposition medicines, today announces its results for the year ended 31 December 2012.
PERIOD HIGHLIGHTS
·; Strong sales growth with Aché Laboratorios in Brazil
·; Signing of first license with major pharmaceutical company, Bayer
·; Signing of Heads of Terms with Hermes Pharma for OXP zero™ Ibuprofen direct to mouth granules
·; Commencement of Safestat™ program for safer versions of Atorvastatin and Simvastatin
·; Successful scale up of OXPzero™ ibuprofen
·; £2m fund raising in November 2012
·; Feasibility and option agreement signed with major pharmaceutical company for OXPzero™
·; Successful in-vitro development of re-formulated Atorvastatin and Simvastatin
Revenue for the year ended 31 December 2012 was £466,000, which represents an increase of 65 per cent on 2011. The loss for the year was -£783,000, 15% lower than 2011.
Revenues from its underlying OXPchew™ business showed continued strong improvement reflecting the Company's successful market performance in Brazil. The loss on operations reflects the Company's investment during 2012 in developing and strengthening is platform technologies OXPzero™ and OXPtarget™.
The Company already has four agreements in place with major pharmaceutical companies demonstrating the interest in its technology platforms and is looking to accelerate these to market as quick as possible and extend to further commercial licensing deals with these and other major pharmaceutical partners.After a successful fund raising in November the Company had cash resources available amounting to £2.2m as at 31st December 2012. A further fund raising of £5m in March 2013 leaves the company well placed to accelerate its plans to commercialise its platform technologies.
Nigel Theobald, Chief Executive, Oxford Pharmascience Group Plc, commented:
"We are continuing to show strong sales growth for our technology platform already in the market (OXPchew™) and have strengthened our other technology platforms (OXPzero™ and OXPtarget™) putting them in a strong position to secure attractive licensing deals. We are very excited about the prospects for our platform technologies and are looking to continue our recent growth in the coming years."
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 was an important year for the Group having changed its focus to the higher value pharmaceutical market and 2012 has been the year in which the group has established its credentials in this market. As I have previously stated the challenge for the Group going forward is twofold: first, to continue to develop science into innovative products that industry wants and requires and second, to continue to commercialise these products with major pharma companies to secure a profitable route to market.
The Group has continued to evolve its science and has established three solid technology platforms: the soft chew technology OXPchew™, the taste-masking platform OXPzero™ and the OXPtarget™ controlled-release technology.
In 2012 the Group made significant progress with revenues from the OXPchew™ technology continuing to grow with strong sales in Brazil from Aché Laboratorios. Importantly the Group signed its first licensing deal with a major global pharmaceutical company, Bayer and also a feasibility and option agreement with another major pharmaceutical company to develop a multivitamin product. With regard to OXPzero™, co-development work has begun with Hermes Pharma for a range of ibuprofen direct to mouth granules using the OXPzero™ technology. This will lead to clinical studies in early 2013 to demonstrate the bio equivalence of our OXPzero™ ibuprofen salt, a major step towards securing the first licensed medicine using the technology.
Repeating the success of the OXPchew™ business with OXPzero™ by first commercialising a product and then extending this to deals with other highly reputable pharmaceutical companies remains a short-term goal of the Group with an initial focus on ibuprofen.
In addition, the Company announced in 2012 it had executed its option to an exclusive global licence from The School of Pharmacy, University College London, with the intention to develop and commercialise a range of formulations of Simvastatin and Atorvastatin with reduced side effects. This moves the Company into an area which the Board believes has the potential for significant growth. Cardiovascular disease is the number one cause of deaths worldwide and Statins are the leading drugs used to combat this. Continued concerns remain though about potential side effects of using statins, particularly at higher doses and this is a major issue for this sector. The OXPtarget™ technology licensed from UCL will potentially allow the formulation of lower dose statins, with the equivalent lipid reduction effect of the current higher dose statin.
The Group's challenge is now to convert the OXPzero™ and OXPtarget™ technologies into real, exciting products that industry wants and to repeat the commercial success of OXPchew™ in the more attractive and higher value areas of NSAIDs (Non-Steroidal Anti-Inflammatory Drugs) and Statins.
The Group raised £2m in November 2012 to provide cash resources to develop the proof of concept model for its NSAID and statin programs. Since then it has announced a feasibility deal with a major pharmaceutical company to develop a range of 'on the go' taste masked ibuprofen products and completed an important first milestone with its statin program by developing and optimising formulations of both atorvastatin and simvastatin and proven in-vitro release under simulated human conditions, allowing the company to proceed to manufacture of GMP products for use in proof of concept clinical trials during 2013.
In March 2013 the company raised a further £5m to allow it to develop a range of dossiers for NSAIDs and accelerate its statin program proof of concept.
These recent announcements and fund raising leaves the group excellently placed to push on and exploit its technology platforms and to convert these new potential products into real exciting products that industry wants and to repeat the commercial success of OXPchew™ by signing commercial agreements in the more attractive and higher value areas of NSAIDs and Statins.
David Norwood
Chairman
19 March 2013
OXFORD PHARMASCIENCE GROUP PLC
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2012
Year to 31 December 2012 | Year to 31 December 2011 | |
£'000 | £'000 | |
Revenue | 466 | 282 |
Cost of sales | (262) | (249) |
Gross Profit | 204 | 33 |
Administrative expenses | (1,024) | (969) |
Total administration costs | (1,024) | (969) |
Operating loss | (820) | (936) |
Finance income | 2 | - |
Loss before tax | (818) | (936) |
Taxation | 35 | 10 |
Loss after tax attributable to equity holders of the parent | (783) | (926) |
Loss per share | ||
Basic on loss for the period (pence) | (0.13) | (0.19) |
Diluted on loss for the period (pence) | (0.13) | (0.19) |
The loss for the year arises from the Group's continuing operations.
OXFORD PHARMASCIENCE GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2012
Share | Share | Merger | Share Based Payments | Revenue Deficit | Total | |
Capital | Premium | Reserve | Reserve | Reserve | Equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
At 31 December 2010 | 464 | 1,037 | 714 | 28 | (1,148) | 1,095 |
Loss for the year | - | - | - | - | (926) | (926) |
Issue of shares | 113 | 1,017 | - | - | - | 1,130 |
Expenses of share issue | - | (56) | - | - | - | (56) |
Share based payment | - | - | - | 9 | - | 9 |
At 31 December 2011 | 577 | 1,998 | 714 | 37 | (2,074) | 1,252 |
Loss for the year | - | - | - | - | (783) | (783) |
Issue of shares | 154 | 1,846 | - | - | - | 2,000 |
Expenses of share issue | - | (86) | - | - | - | (86) |
Share based payment | - | - | - | 3 | - | 3 |
At 31 December 2012 | 731 | 3,758 | 714 | 40 | (2,857) | 2,386 |
OXFORD PHARMASCIENCE GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2012
31 December 2012 | 31 December 2011 | |
£'000 | £'000 | |
Assets | ||
Non-current assets | ||
Intangible assets | 59 | 68 |
Property, plant and equipment | 5 | 5 |
64 | 73 | |
Current assets | ||
Inventories | 42 | 44 |
Trade and other receivables | 200 | 159 |
Cash and cash equivalents | 2,218 | 1,105 |
2,460 | 1,308 | |
Total Assets | 2,524 | 1,381 |
Liabilities | ||
Current liabilities | ||
Trade and other payables | (138) | (129) |
Net Assets | 2,386 | 1,252 |
Equity | ||
Share capital | 731 | 577 |
Share premium | 3,758 | 1,998 |
Merger reserve | 714 | 714 |
Share based payment reserve | 40 | 37 |
Revenue deficit reserve | (2,857) | (2,074) |
Total Equity | 2,386 | 1,252 |
OXFORD PHARMASCIENCE GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2012
Year to 31 December 2012 | Year to 31 December 2011 | |
£'000 | £'000 | |
Operating Activities | ||
Loss before interest and tax | (820) | (936) |
Adjustment for non- cash items: | ||
Amortisation of intangible assets | 9 | 12 |
Depreciation of property, plant and equipment | 2 | 2 |
Share based payment | 3 | 9 |
Decrease in inventories | 2 | 60 |
Increase in trade and other receivables | (6) | (87) |
Increase in trade and other payables | 9 | 67 |
Operating cash outflow | (801) | (873) |
Finance income | 2 | - |
Taxation received | - | 10 |
Net cash outflow from operating activities | (799) | (863) |
Investing Activities | ||
Purchases of property, plant and equipment | (2) | (2) |
Net cash outflow from investing activities | (2) | (2) |
Financing Activities | ||
Proceeds from issue of share capital | 2,000 | 1,130 |
Expense of issue of share capital | (86) | (56) |
Net cash inflow from financing activities | 1,914 | 1,074 |
Increase in cash and cash equivalents | 1,113 | 209 |
Cash and cash equivalents at start of period | 1,105 | 896 |
Cash and cash equivalents at end of period | 2,218 | 1,105 |
For further information:
Oxford Pharmascience Group Plc
Nigel Theobald, Chief Executive +44 1865 854874
N+1 Singer
Shaun Dobson/Jenny Wyllie +44 20 7496 3000
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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