029 Group SE

Earnings Release • Mar 26, 2002

News Details

Ad-hoc | 26 March 2002 07:00

Rhein Biotech N.V. english

Rhein Biotech – Annual Results 2001 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Rhein Biotech concludes the year 2001 with a 36.4% increase in revenues and a net income of 6.8 million Euro Rhein Biotech N.V., a vaccine oriented biotechnology company, reports a growth in revenues of 36.4 percent to 82.3 (60.4) million Euro in the year 2001. This growth was driven by a strong increase in product sales of 40.2 percent to 76.9 (54.8) million Euro. As in 2000, the hepatitis B vaccine Hepavax-Gene was the strongest performer. The gross profit increased at a rate of 21.7 percent to 48.0 (39.4) million Euro. The EBIT decreased to 7.5 (10.7) million Euro due to higher depreciation and amortization, a decision to make a one time write off of inventories in the fourth quarter and margin pressure on non-hepatitis B vaccines. Net income reached a level of 6.8 (8.0) million Euro. Substantial investments of 12.4 million Euro were made mainly in the extension of production and R&D facilities, financed from the companys own funds. Rhein Biotech remained a debt free company with a healthy cash position of 24.2 (27.3) million Euro at the end of 2001. For Rhein Biotech, 2001 was the year of preparation for further growth. In addition to the investments in production and R&D facilities, Rhein Biotech intensified its focus on R&D and marketing and sales. Total operating expenses therefore increased by 40.9 percent to 40.5 million Euro. Despite a one time write off of inventories of 1.4 million Euro in 2001, income before taxes, interest and depreciation (EBITDA) reached a level of 15.2 (16.2) million Euro. Management Team Changes Harry Relouw former Chief Financial Officer of GreenCross Vaccine Corp. will be appointed as Chief Financial Officer of Rhein Biotech from 1st April 2002. Frank Ubags will step down as CFO at his own request, and will remain at Rhein Biotech, responsible for Corporate Affairs (M&A and structured finance). Additionally, Ton Kuiper, CEO of GreenCross Vaccine will join Rhein Biotechs management team as Chief Operating Officer. He will remain CEO of GreenCross Vaccine. end of ad-hoc-announcement (c)DGAP 26.03.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Hepavax-Gene: Sales increased / positioned for further growth: Rhein Biotechs lead product Hepavax-Gene, was positioned for further growth and launched in 13 new countries including Poland. This launch in Eastern Europe is a significant milestone and a step forward towards entry into the Western European market. Furthermore, a substantial three-year supply arrangement with UNICEF was obtained in February 2001. In September Rhein Biotech opened the extended hepatitis B vaccine manufacturing facility, with a capacity of 100 million doses. The expansion according to European pharmaceutical manufacturing requirements (EMEA) was completed within the planned time period and budget. This investment supports further growth for the lead product Hepavax-Gene and combination vaccines. R&D: Rhein Biotechs driver for mid and long term growth: The development of improved and innovative products forms the basis for Rhein Biotechs mid term leap forward. One promising product in the pipeline is Rhein Biotechs innovative two-dose hepatitis B vaccine. Phase III clinical trials in collaboration with the US company Corixa began in the first quarter of 2001. Preliminary data have confirmed the expectation that protection against hepatitis B can be achieved after two doses instead of the three normally required. Rhein Biotech is also developing combination vaccines in collaboration with Chiron Vaccines. The new combination vaccine will protect against five different diseases and is targeted at mass vaccination markets worldwide. It is expected to have a market potential of 300 million doses per year representing a value of approximately 1 billion Euro. Long-term growth will be driven by therapeutic vaccines. In this respect Rhein Biotech has developed the Particle Presentation Technology for therapeutic hepatitis B vaccine which will be the cornerstone of a new technology platform for further vaccine developments. Outlook 2002: The current year 2002 can be characterised as the year of building on the organic growth achieved during the past year and optimising efficacy within the Rhein Biotech group. The company will focus on high margin vaccines and plans to increase its market shares in existing markets and to enter a number of new markets in Eastern Europe and the rest of the world. For expansion into Western Europe Rhein Biotech will seek the support of partners with an established position. Research and development will be focused on Rhein Biotechs core vaccine projects. R&D activities will be further extended and intensified. Introduction of the first monovalent two-dose hepatitis B vaccine in a first pilot market is expected at the end of 2002. The development of combination vaccines in collaboration with Chiron Vaccines will enter the clinical phase in 2002. Rhein Biotech expects to be able to reach its earlier forecasted revenue growth of 15%-20% in 2002, whereby the first quarter will be traditionally weak and the fourth quarter is expected to be the strongest. The net income is expected to remain stable in 2002. The mid and long term outlook is very positive as a consequence of the scheduled introduction of new products such as the two-dose hepatitis B vaccine and the combination vaccines. Further growth will come from market entry into Western Europe. These events are expected to boost turnover and profit considerably from 2005 onwards. Dr. Daan Ellens, CEO Rhein Biotech: The financial results clearly demonstrate that Rhein Biotech is a sustainable and profitable cash generating vaccine oriented biotechnology company. On top of the growth already realised during the year, 2001 can be seen as the year of preparation for further growth. We made substantial investments in manufacturing, R&D and marketing and are confident that we can capitalize on the investments in the mid and long term. Further information about Rhein Biotech is available from the contacts below: Marcel Jacobs Communication Manager Rhein Biotech N.V., Maastricht (NL) T: +31 (0)43 / 3 56 78 94 F: +31 (0)43 / 3 56 78 99 E: m.jacobs@rheinbiotech.com Claudia Hagedorn vom Hoff Kommunikation GmbH, Düsseldorf T: +49 (0)211 / 515 805 14 F: +49 (0)211 / 515 805 55 e: c.hagedorn@vomhoff.de ——————————————————————————– WKN: 919544; ISIN: NL0000230324; Index: NEMAX 50 Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München, Stuttgart, Hannover 260700 Mär 02