27th January 2004. Vernalis plc (LSE: VER, Nasdaq: VNLS) today announces its interim results for the six months ended 31 October 2003.

 

Vernalis has been transformed during 2003 through two substantial business combinations, and the Company is continuing to achieve further advances through important pipeline progress with four products in clinical development and one in pre-clinical development. Extensive post-merger restructuring is continuing to take place to reduce the cost base of the business.

 

Highlights

 

Financial

·    Revenue: £7.0 million (2002: £5.2 million)

·    Total operating loss: £20.5 million. Operating loss before acquisitions reduced to £12.3 million (2002: £18.2 million).

·    Cash and short term investments of £39.7 million at 31 October 2003 reduced to £27.0 million at 30 November 2003 after repayment of Roche loan, outstanding merger expenses and certain restructuring costs

·    Substantial progress in the integration of Vernalis Group, British Biotech and RiboTargets with combined headcount reduced so far from 271 to 145 and anticipated full-year cost savings of £12.9 million

·    Placing and open offer by Vernalis Group plc in May 2003 raised £14.4 million, net of expenses

 

Frovatriptan

·    Continued growth of frovatriptan prescriptions in North America and Europe

·    Initiation of a second Phase IIIb study with frovatriptan for short-term prophylaxis of menstrually-associated migraine

 

Product Portfolio

·    Stringent review completed of the Company's R&D portfolio

·    Continuing advances with priority pipeline products

·    BB-10153 Phase II dose escalation study in acute myocardial infarction patients ongoing

·    Single and multiple dose elements of Phase I programme with R-140, a new treatment for cancer pain, successfully completed

·    Initiation of Phase I clinical studies with VR-2006, a potential new treatment for Parkinson’s disease

 

Research

·    Roche selects development candidate to treat obesity from 5HT_2C receptor agonist research programme

·    Cancer research collaboration initiated with Novartis Institutes for Biomedical Research Inc.

 

Commenting on the results, Vernalis Chief Executive Officer Simon Sturge said: “Following the mergers of 2003 we have streamlined the company's product pipeline to focus on our most promising opportunities and have cut costs significantly. Looking ahead, in 2004 we will reach a number of important R&D milestones. I am confident that passing these will enable us to progress our strategy of building a sustainable, self-funding biotech business.”

 

2004 anticipated newsflow

 

·    Preliminary financial results for 2003                                                              March 04

·    Frovatriptan: complete enrolment for MAM phase III safety study                      Q2 04

·    Frovatriptan: initiate confirmatory MAM Phase III efficacy study                        H1 04

·    BB-10153: Phase II results                                                                           Q2 04

·    R-140: Phase I results                                                                                  Q2 04

·    VR-2006: Phase Ia results                                                                            Q2 04

·    Product collaboration                                                                                    Q2 04

·    Novartis: update on research collaboration                                                      H2 04

 

For the interim results for the six months ended 31 October 2003 please click here

 

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Enquiries:

 

Vernalis plc

Simon Sturge, Chief Executive Officer

Tony Weir, Chief Financial Officer

+44 (0)118 977 3133

 

Brunswick Group (for analyst, financial media enquiries)

Jon Coles; Wendel Carson

+44 (0)20 7404 5959

 

Northbank Communications (for trade media enquiries)

Peter Colley

+44 (0)1260 296500