7th Jan 2005 07:00
Provalis PLC07 January 2005 For Immediate Release 7th January 2005 Provalis plc Half Year Trading Update Pharmaceutical sales advance by 5% Medical Diagnostics makes first sales of in2it(TM) A1c to the US Provalis plc (LSE: PRO; NASDAQ:PVLS), the international Medical Diagnostics andPharmaceuticals group, is pleased to announce that unaudited sales for the halfyear to 31st December 2004 were approximately £6.7 million. This is 5% ahead ofthe same period in the previous year (£6.4 million), and is in line with theBoard's expectation. During the first half of 2005 significant progress was made in both operatingbusinesses:- Strong Sales by Pharmaceuticals Business Sales by the Pharmaceuticals business were some £6.1 million, up 5% on the sameperiod last year. The second quarter sales were particularly strong, despite theimpact of wholesalers deferring purchases until after the 7% PPRS pricereduction takes effect in January 2005. Diclomax(R) continues to sell well, helped by the withdrawal of Vioxx from themarket in October 2004 and the continuing uncertainties over other COX2inhibitors, although the benefit of this has been counter-balanced by anincrease in generic competition. Calceos, our treatment to prevent or treatosteoporosis, continued to make strong progress in the first half, with salessignificantly advanced over last year. Medical Diagnostics Business Launches in2it(TM) A1c in the US Activities within the Medical Diagnostics business were concentrated onpreparing for the US launch of in2it(TM) A1c following receipt of FDA clearance in August 2004. Since then, the Company has worked with its various manufacturing partners to bring the product on stream, with the first shipment of in2it(TM) A1c to the US made in the first week of December. Sales of the product in the US are being managed directly by Provalis' own salesteam, whose members each have extensive diagnostic experience within the USdiagnostics market. This sales team has established a number of preferreddistributors and key accounts in the US, and has helped achieve early take up ofin2itTM A1c. Indeed, interest in the product continues to grow as we expand ourdistribution coverage in the US. Sales of in2it(TM) A1c will progressively increase through the second half of the year although, as previously announced, sales will be limited during that period by our current manufacturing capacity of test cartridges. However, following the successful fund raising in September 2004, we have begun the staged implementation of automated manufacture of test cartridges. This remains on track for completion during the summer of 2005, and should give a several fold increase in production capacity. Sales by the Medical Diagnostics business in the first half were some £0.6m,principally from the supply of Glycosal(R) test cartridges to our existingdistributors. The business remains on course to meet market expectations forthe full year as sales of in2it(TM) A1c increase. Phil Gould, Chief Executive Officer of Provalis plc, commented: "The first halfyear has seen increased sales by our Pharmaceuticals business and a significantachievement by our Medical Diagnostics business with the approval and launch ofin2itTMA1c in the US. In the second half of the year we will concentrate onmeeting the US demand for in2it(TM) A1c and continuing the development of twofurther tests for the in2it(TM) platform, whilst continuing to maximise theperformance of our Pharmaceuticals business." The Company's interim figures and an overview of trading expectations for thefull year will be presented in March 2005. END Provalis' Website; http://www.provalis.com "Safe Harbor" Statement under the US Private Securities Litigation Reform Act of1995: Statements in this announcement that relate to future plans, expectations,events, performances and the like are forward-looking statements as defined inthe US Private Securities Litigation Reform Act of 1995. Actual results ofevents could differ materially from those described in the forward-lookingstatements due to a variety of factors. Such factors include, among others: theviability of the Group's products, which are at various stages of development;the generation of sufficient operating cash flow by the Group's pharmaceuticaland medical diagnostic businesses to finance the ongoing development of thesebusinesses as well as the Group's research and development activities; thesuccess of the Group's research and development strategy and activities;uncertainties related to future clinical trial results and the associatedregulatory process; the execution and success of collaborative agreements withthird parties; availability and level of reimbursement for the Group's productsfrom government health administration authorities or other third-party payors;the rate of net cash utilisation within the Group and, hence, the Group'spossible need for additional capital in the short, medium and/or long term; theGroup's intellectual property position and the success of patent applicationsfor its products and technologies; the Group's dependence on key personnel;general business and economic conditions; the impact of future laws, regulationsand policies; stock market trends in the Group's sector; and other factorsbeyond the Group's control that may cause the Group's available capitalresources to be used more quickly than expected. These and other factors thatcould affect the Company's future results are more fully described in itsfilings with the US Securities and Exchange Commission, in particular the latest20-F filing, copies of which are available from the Company Secretary at theCompany's registered address. For further information:- Dr Phil Gould, Chief Executive Officer, Provalis plc Tel: 01244 833463Mr Peter Bream, Finance Director, Provalis plc Tel: 01244 833552Mr Lee Greenbury, Company Secretary, Provalis plc Tel: 01244 833402Lisa Baderoon, Buchanan Communications Tel: 020 7466 5000 Notes to Editors Provalis plc (LSE: PRO; NASDAQ: PVLS) is a diversified healthcare group with two operating businesses:- • Medical Diagnostics - develops medical diagnostic products for chronic disease management for sale to world markets. The business' principal products are in2itTM A1c and Glycosal(R), both diabetes diagnostic tests, and Osteosal (R), a diagnostic test for osteoporosis. • Pharmaceuticals - sells and markets its own, and third party, branded, prescription medicines in the UK and Ireland to GPs and hospitals through its regionally managed sales force. The business' principal product is Diclomax(R), a medicine for use in the treatment of musculo-skeletal disorders, and it also sells products in the areas of osteoporosis, migraine and dermatology. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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