TIDMGMX
RNS Number : 0464Y
Reliance GeneMedix PLC
16 December 2010
FOR IMMEDIATE RELEASE 16 December 2010
Reliance GeneMedix plc
Results for the six months ended 30 September 2010
Reliance GeneMedix plc (the "Company"), the AIM listed
biopharmaceutical company, which is a subsidiary of Reliance Life
Sciences Pvt. Ltd. ("Reliance Life Sciences"), announces its
unaudited interim results for the six month period ended 30
September 2010.
Related party transactions
Note 9 to the interim results describes the related party
transactions that have occurred during the period. The independent
directors of the Company, namely Dr. R. A. Mashelkar, Mr Dileep
Choksi and Mr Atul Dayal consider, having consulted with the
Company's Nominated Adviser, that the terms of these related party
transactions are fair and reasonable insofar as the Company's
shareholders are concerned.
Controlling shareholder agreement
The Company also announces that it has entered into a
controlling shareholder agreement with Reliance Life Sciences. This
agreement formalises the relationship between the Company and
Reliance Life Sciences and, inter alia, emphasises the need for the
Company to deal with Reliance Life Sciences on an arm's length
basis and on normal commercial terms at all times.
In accordance with AIM Rule 26, a copy of this announcement is
available on the Company's website at www.genemedix.com.
ENQUIRIES:
Reliance GeneMedix plc Tel: +353 57 932 3572
Vinay Ranade, Chief Executive Officer
Deloitte Corporate Finance Tel: 020 7936 3000
Jonathan Hinton, John Ball
Lothbury Financial Services Limited Tel: 020 7868 2010
Michael Padley
Chief Executive Officer's statement
We are pleased to present the Company's results for the six
months ended 30 September 2010.
Background
The Company is a globally-focused biopharmaceutical company,
specialising in the development and manufacture of high-quality,
cost-effective treatments for some of the world's most serious
diseases. Since February 2007, the Company has been a subsidiary of
Reliance Life Sciences. The Company is working towards the
development, manufacture and marketing of a portfolio of biosimilar
recombinant therapeutic proteins for global markets.
Business overview
The development programme for Erythropoietin (EPO) is in its
final phase. The Company is pleased to announce that it has
submitted an application to the European Medicine Agency for
authority to market EPO in Europe. The Company has deferred its
Granulocyte Colony Stimulating Factor (G-CSF) development programme
in view of this greater focus on the EPO programme and also to
conserve its cash resources. The Company continues to supply EPO to
the Indian market and is in the process of registering EPO in a
number of other international markets.
Financial review
Operating losses of EUR1.04 million for the period (2009:
EUR1.34 million) are in line with budget and reflect planned
expenditure. The Company continues to exercise a strict control on
costs and to optimise management of its cash flow.
During the period the Company capitalised development
expenditure of EUR1.27 million (2009: EUR1.92 million) incurred on
the EPO development programme. Current assets and current
liabilities are in line with the level of operations of the
Company. Although the overall economic environment in Ireland
remains very challenging, the Company has been able to sustain its
product development programmes because of the financial support
that continues to be received from Reliance Life Sciences.
Consolidated Income Statement
For the six months ended 30 September 2010
6 months 6 months
ended ended Year ended
30 September 30 September 31 March
Notes 2010 2009 2010
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
__________ (Restated) __________
Revenue 5 110 410 410
Cost of sales (110) (410) (410)
__________ __________ __________
Gross profit - - -
__________ __________ __________
Research and development
costs 6 - (125) (170)
Administrative expenses (1,043) (1,214) (2,055)
__________ __________ __________
Operating loss (1,043) (1,339) (2,225)
Finance income - 1 1
Finance costs (256) (138) (283)
Other income - 3 3
__________ __________ __________
Loss before taxation (1,299) (1,473) (2,504)
Taxation - - 960
__________ __________ __________
Loss for the period (1,299) (1,473) (1,544)
__________ __________ __________
Loss per share - basic and
diluted 8 (0.8c) (0.9c) (0.9c)
__________ __________ __________
Consolidated Balance Sheet
As at 30 September 2010
30 September 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
________ Restated ________
ASSETS
Non-current assets
Intangible fixed assets 13,893 10,166 12,620
Property, plant and equipment 2,122 2,996 2,571
Investment at cost 10 10 10
Deferred tax assets 2,690 1,730 2,690
________ ________ ________
18,715 14,902 17,891
________ ________ ________
Current assets
Inventories 251 369 345
Trade & other receivables 790 785 238
Restricted cash 184 180 184
Cash and cash equivalents 32 290 134
________ ________ ________
1,258 1,624 901
________ ________ ________
LIABILITIES
Current liabilities
Trade and other payables (2,086) (1,394) (1,819)
Borrowings (1,080) (1,305) (1,080)
________ ________ ________
(3,166) (2,699) (2,899)
________ ________ ________
Net current liabilities (1,908) (1,075) (1,998)
________ ________ ________
Total assets less current
liabilities 16,807 13,827 15,893
________ ________ ________
Non-current liabilities
Trade and other payables (459) (229)
Borrowings (7,467) (3,577) (5485)
________ ________ ________
(7,926) (3,577) (5,714)
________ ________ ________
Net assets 8,881 10,250 10,179
________ ________ ________
Shareholders' equity
Share capital 26,412 22,305 26,412
Shares to be issued - 5,134 -
Share premium 41,601 39,538 41,601
Other reserves 2,941 3,977 2,941
Retained losses (62,074) (60,704) (60,775)
________ ________ ________
Total shareholders' equity 8,881 10,250 10,179
________ ________ ________
Consolidated Statement of Changes in Equity
For the six months ended 30 September 2010
Other reserves
-------------------------------
Shares Cumulative
Share Share to be Warranty Capital translation Retained
capital premium issued reserve reserve reserve loss Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 1
Apr 2009 as
restated 22,305 39,538 5,134 4,183 437 (643) (59,231) 11,723
Loss for the
period as
originally
stated - - - - - - (1,473) (1,473)
Currency
translation
adjustment - - - - - - - -
Receipts for
new shares to
be issued - - - - - - - -
Share based
payment - - - - - - - -
______ ______ ______ ______ ______ ______ ______ ______
Balance at 30
Sep 2009 as
restated 22,305 39,538 5,134 4,183 437 (643) (60,704) 10,250
______ ______ ______ ______ ______ ______ ______ ______
Loss for the
period - - - - - - (71) (71)
Shares issued
for cash
consideration 4,107 1,027 (5134) - - - - -
Warrant
reserve
transfer On
Shares
Issued - 1,036 - (1036) - - - -
______ ______ ______ ______ ______ ______ ______ ______
Balance at 31
Mar 2010 26,412 41,601 - 3,147 437 (643) (60,775) 10,179
______ ______ ______ ______ ______ ______ ______ ______
Loss for the
period - - - - - - (1,299) (1,299)
Share-based
payment - - - - - - - -
______ ______ ______ ______ ________ ______ ______ ______
Balance at 30
Sep 2010 26,412 41,601 - 3,147 437 (643) (62,074) 8,881
______ ______ ______ ______ ________ ______ ______ ______
Consolidated Cash Flow Statement
For the six months ended 30 September 2010
6 months to 6 months Year to
30 September to 30 September 31 March
Notes 2010 2009 2010
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
________ Restated ________
Cash flows from operating
activities
Cash used in operations 7 (812) (1,670) (1,292)
Interest paid - - -
________ ________ ________
Net cash used in operating
activities (812) (1,670) (1292)
________ ________ ________
Cash flows from investing
activities
Payment for property, plant
and equipment - (2) (62)
Receipt from property,
plant and equipment - 24 24
Payment for intangible
assets (1,274) (1,921) (4,376)
Interest received - 1 1
Proceeds from disposal of
subsidiary - 191 191
Increase in restricted cash - (4) (8)
________ ________ ________
Net cash flows used in
investing activities (1,274) (1,711) (4,230)
________ ________ ________
Cash flows from financing
activities
Proceeds from exercising
share warrants - - -
Proceeds from borrowings 1,982 3,500 5,485
________ ________ ________
Net cash flows generated
from financing activities 1,982 3,500 5,485
________ ________ ________
Net increase/(decrease) in
cash and cash equivalents (104) 119 (37)
Cash and cash equivalent at
the beginning of period 134 169 169
Net currency translation
effect 2 2 2
________ ________ ________
Cash and cash equivalents 32 290 134
________ ________ ________
Notes to the Consolidated Interim Financial Statements
1. General information
These financial statements are the unaudited consolidated
interim financial information of Reliance GeneMedix plc, a public
limited company incorporated and domiciled in the United Kingdom,
with its registered office at 8th Floor, 105 Wigmore Street,
London, W1U 1QY, UK and its subsidiaries (together, the "Group")
for the six months ended 30 September 2010.
The Company is a subsidiary of Reliance Life Sciences Private
Limited, India.
The Company has its primary listing on the Alternative
Investment Market (AIM) of the London Stock Exchange.
The condensed consolidated financial information for the six
months ended 30 September 2010 has been reviewed, not audited.
The condensed consolidated interim financial statements do not
comprise statutory accounts within the meaning of Section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
March 2010 were approved by the Board of Directors on 26 August
2010 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under Section 498 of the Companies Act 2006.
The condensed consolidated financial information for the six
months ended 30 September 2010 will be made available at the
registered office of the Company and on the Company's website:
www.genemedix.com.
2. Basis of preparation
This condensed consolidated interim financial information for
the six months ended 30 September 2010 has been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Services Authority and with IAS 34, 'Interim Financial
Reporting' as adopted by the European Union. The condensed
consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 March 2010, which have been prepared in accordance with IFRSs as
adopted by the European Union.
3. Principal risks
The principal risks and uncertainties which could impact the
Group have not changed since 31 March 2010. A detailed explanation
of those risks and uncertainties can be found in the Directors'
Report section of the Annual Report for the year ended 31 March
2010
4. Segment information
The Directors are of the opinion that under IAS 8- Operating
Segments' the Group has only one business segment, being drug
development (EPO) and there was turnover of Euro 0.110 million in
the six months to 30 September 2010 (Euro 0.410 million in
2009).
Revenue earned during the period is from the Group's only
customer, Reliance Life Sciences, a related party.
Segmental geographic information is set out below:
6 month ended 30 Sep 6 month ended 30 Sep Year ended 31 March
2010 Unaudited 2009 Unaudited 2010 Audited
_________________________ ________________________ ________________________
UK Ireland Total UK Ireland Total UK Ireland Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Revenue - 110 110 - 410 410 - 410 410
Non
Current
Assets 444 15,580 16,024 374 12,799 13173 322 14,879 15,201
Non-current assets consist of property, plant and equipment,
intangible assets and investments
5. Revenue
During the period the Company continued its sales to the Indian
market on pricing consistent with last year. The attractive pricing
offered reflects the current competitiveness of the Indian
market.
6. Analysis of research and development costs
6 months to 6 months Year to
30 September to 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
Gross research and development
spend 1,274 2,047 4,547
Deduct: capitalised development
costs (1,274) (1,922) (4,376)
________ ________ ________
Research and development costs
expensed - 125 170
________ ________ ________
7. Cash used in operations
6 months to 6 months Year to
30 September to 30 September 31 March
2010 2009 2010
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
Loss for the period (1,299) (1,473) (1,544)
Adjustments for:
- Finance costs 256 138 283
- Investment revenues - (1) (1)
- Other financial income - (3) (3)
- Depreciation of property,
plant and equipment 450 506 991
- Deferred Tax - - (960)
- Impairment of acquired
intellectual property rights - - -
- Amortisation of intangible
assets 1 1 2
- Share based payments - - -
________ ________ ________
Operating cash flows before
movement in working capital (592) (832) (1,232)
Decrease/(increase) in inventories 93 278 302
(Increase)/decrease in trade
and other receivables (553) (210) 337
(Decrease)/increase in trade
and other payables 240 (906) (699)
________ ________ ________
Cash used in operations (812) (1,670) (1,292)
________ ________ ________
8. Loss per share
The earnings and weighted average number of ordinary shares used
in the calculation of basic loss per share are as follows:
6 months 6 months
to to Year to
30 September 30 September 31 March
2010 2009 2010
Loss for the period (EUR'000) (1,299) (1,473) (1,544)
Weighted average number of shares
('000) 164,412 155,718 164,412
__________ __________ __________
Loss per share - basic and diluted (0.8c) (0.9c) (0.9c)
__________ __________ __________
In the six months ended 30 September 2010, the Group had no
dilutive potential ordinary shares in issue because it was loss
making.
9. Related party transactions
Trading transactions
During the period, the Company made sales of EPO worth
EUR110,031 to Reliance Life Sciences.
During the period, the Company made sales of packing materials
worth EUR4,333 to Reliance Life Sciences, and clinical services
worth EUR63 738 were provided to Reliance Life Sciences.
The balance due from Reliance Life Sciences in relation to these
trading activities as at 30 September 2010 was EUR349,674
(EUR502,627 in 2009)
During the period, clinical research services worth EUR4,278.36
were received from Reliance Clinical Research Services Sp. z o.o.,
Poland ("RCRSS"), a subsidiary of Reliance Life Sciences. The
balance due to RCRSS as at 30 September 2010 is EUR112,036.
(EUR104,255 in 2009).
Loans from related parties
During the period, the Company received an amount of EUR1.982
million from RLS as a loan. The outstanding balance of the loan is
EUR 7.467 million (EUR3.5 million in 2009). Interest of EUR229,814
was charged on this loan during the period.
10. Events occurring after the balance sheet date
There are no events after 30 September 2010 that require
disclosure or adjustment to these financial statements.
11. Statement of Directors' Responsibilities
The directors confirm that this condensed consolidated interim
financial information has been prepared in accordance with IAS 34
as adopted by the European Union and that the interim management
report includes a fair review of the information required by the
DTR 4.2.7 and DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
-- Material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report.
The directors of Reliance GeneMedix plc are listed in the Annual
Report for 31 March 2010. A list of current directors is maintained
on the Reliance GeneMedix plc website: www.genemedix.com.
By order of the Board
Vinay Ranade
Chief Executive Officer
16 December 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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