029 Group SE

Earnings Release • May 14, 2002

News Details

Ad-hoc | 14 May 2002 07:02

Rhein Biotech N.V. english

Rhein Biotech Three Months Results 2002 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Rhein Biotech N.V., a vaccine oriented biotechnology company, reports total sales of 17.8 million Euro in the first quarter of 2002 compared to 17.4 million Euro in the first quarter of last year. In line with the company’s strategy to move away from the technology licensing business towards development and sales of its own products, product sales increased by 7.5 percent to 17.3 million Euro. Gross profit in the first quarter was 9.8 million Euro compared to 10.7 million Euro in 2001. This decrease compared to the previous year is for the main part attributable to the absence of high margin technology transfer in total sales in the first quarter of 2002 compared to an amount of 1.2 million Euro in 2001. In comparison to the fourth quarter of 2001, the average gross margin on sales has increased by 3.4 percent to 55.0 percent. This improvement is due to the company’s efforts to increase efficiency, whereby even better results are projected for the remaining quarters. Operating costs developed as planned: a substantial increase of 0.7 million to 2.5 million Euro was recorded in relation to increased efforts in R&D, while the selling and distribution costs increased only moderately to 3.9 (3.8) million Euro and the general and administrative costs decreased from 1.5 to 1.4 million Euro. As a result of the implementation of the new US GAAP regulations, amortisation on intangible assets was reduced to 1.0 (1.4) million Euro. EBITDA was 2.7 (4.0) million Euro and EBIT reached a level of 1.1 (2.2) million Euro. The net income increased from 2.1 to 2.7 million Euro. This includes other income of 1.8 million Euro resulting from the restructuring of the joint venture with Wockhardt Limited in India, which gives Rhein Biotech additional marketing rights in exchange for the shares in the joint venture company Wockhardt Rhein Biopharm. end of ad-hoc-announcement (c)DGAP 14.05.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Capital expenditure rose to 3.6 (2.3) million Euro. The additional funds were used in the on-going upgrade of existing filling lines to European pharmaceutical production (EMEA) standards and initial investments in a new filling line. Rhein Biotech’s cash position at the end of the first quarter was 22.9 million Euro. First Quarter Highlights The preliminary results of the phase III study with Rhein Biotech’s novel two- dose vaccine against hepatitis B, published in January, confirm that the new vaccine provides full protection against the virus after only two injections, where three injections are necessary with most conventional hepatitis B vaccines. A research collaboration agreement was signed with the US biotechnology company Epimmune to evaluate their PADRE technology in connection with technology from Rhein biotech for the development of certain vaccines. Rhein Biotech has restructured its partnership with Wockhardt Ltd. in India whereby Wockhardt Ltd. has bought out Rhein Biotech’s 50% share in their joint venture company Wockhardt Rhein Biopharm. Wockhardt Rhein Biopharm holds a co- exclusive licence for the use of Rhein Biotech’s Hansenula polymorpha technology and will continue to produce the hepatitis B vaccine in India. In exchange, Rhein Biotech has received marketing rights for its hepatitis B and combination vaccines in India, where experts expect great demand, particularly for combination vaccines. Additionally Rhein Biotech will receive royalties on sales of the hepatitis B vaccine and the future insulin business of Wockhardt Ltd. Changes in the management team Harry Relouw, former Chief Financial Officer (CFO) of the Rhein Biotech subsidiary GreenCross Vaccine, was appointed as CFO of Rhein Biotech N.V. on the 1st of April 2002. He has replaced Frank Ubags who will now fully concentrate on M&A activities and structured finance (Corporate Affairs). Additionally Ton Kuiper, the CEO of GreenCross Vaccine, has joined the Rhein Biotech NV management team as Chief Operating Officer. Outlook For 2002, Rhein Biotech has set itself the target of optimising efficacy. Its strategy to achieve this includes a wide range of activities, such as concentration on products with high margins, increased sales in existing markets and expansion into new markets by establishing strategic partnerships within Europe. Rhein Biotech forecasts a growth in sales of 15 to 20 percent for 2002 with a net income at the level of 2001. Expenditure on R&D will increase further in 2002 as more products enter the clinical development stage. Among Rhein Biotech’s priorities are the registration and the launch of its new two- dose hepatitis B vaccine and the commencement of the clinical trials for the combination vaccines scheduled for the fourth quarter 2002. For further information about Rhein Biotech and the complete Three Months Report please visit our website www.rheinbiotech.com or contact one of the following people: Rhein Biotech N.V. Unternehmenskontakt: Marcel Jacobs Communication Manager T: +31 (0)43 / 35 67 894 F: +31 (0)43 / 35 67 899 E: m.jacobs@rheinbiotech.com ——————————————————————————– WKN: 919544; ISIN: NL0000230324; Index: NEMAX 50 Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München, Stuttgart, Hannover 140702 Mai 02