029 Group SE

Earnings Release • Aug 14, 2001

News Details

Ad-hoc | 14 August 2001 06:31

Rhein Biotech N.V. english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Rhein Biotech Half-Yearly Results 2001 Growth continues: Profit rises by 48%, sales increase by 87% Maastricht, 14th August 2001 – Rhein Biotech N.V., specialised in vaccines, therapeutics and expression technologies, increased its net income in the first six months of 2001 by around 48% to 3.7 million Euro (2.5 million Euro in 2000). EBIT rose from 4.1 to 4.8 million Euro, a gain of 17%. EBITDA grew by 21% to 8.6 (7.1) million Euro. Turnover was 38.1 million Euro compared to 20.4 million Euro in the first half of 2000, an increase of 87%. Product sales were the growth carrier, more than doubling to 36 million Euro (17.3 in the same period last year). A slight shift in the mix of products sold led to a reduction in gross profit margin from 68% to 60%. The Groups increase in sales led naturally to increased operating costs of 18.2 million Euro compared to 9.8 million Euro in the first half of 2000. This was mainly due to investments in the areas of research and development, marketing and increased spending on extending the organisation. For R&D alone, the company invested 4.1 million Euro in comparison to 2.8 million Euro in the first six months of 2000. A comparison of the individual second quarters of 2000 and 2001 shows the same trends: increased product sales (from 16.4 to 19.9 million Euro) and a decrease in gross profit margin from 65% to 59% due to a change in product mix. Rhein Biotechs strategy to increase spending on R&D (1.4 to 2.4 million Euro) and marketing (3.1 to 4.2 million Euro) were the main reasons for a lower net income of 1.6 million Euro in 2001 compared to 2.5 million Euro in the second quarter of 2001. Important events in the first half-year include the signing of a collaboration agreement with Chiron Vaccines for the co-development of combination vaccines and the extension of development capacity at Rhein Biotechs technology centre in Düsseldorf. In addition the Group reached a milestone in the development of a technology for a therapeutic vaccine against chronic hepatitis B. As a result of growth in all areas the number of employees increased to 315 (254) on 30th June 2001. end of ad hoc announcement (c) DGAP 14.08.2001 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Sales Subsidiary GreenCross Vaccine contributed most to the growth in product sales. Royalties decreased by 37.5% to 0.1 (0.16) million Euro as a result of consolidation of former licensee GreenCross Vaccine. Income from technology transfer dropped as planned by 38% to 1.6 (2.6) million Euro. Contract development brought 0.4 (0.3) million Euro. The cash which was generated during the first six months of 2001 was used for capital investments: the capacity increase at GreenCross Vaccine, extending the R&D facilities in Düsseldorf and for the acquisition of the remaining shares in PC Gen, Argentina. Collaborations Supranational health organisations recommend combination vaccines against diphtheria, tetanus, pertussis (whooping cough), hepatitis B and haemophilus influenzae b (meningitis). Rhein Biotech and Chiron Vaccines, a NASDAQ listed global biotechnology company signed an agreement in the second quarter for the co-development of combination vaccines against these diseases. Rhein Biotech agreed a further collaboration with SVM/RIVM (the latter being the Dutch National Institute for Health and the Environment) for the supply of inactivated poliomyelitis vaccine (IPV). IPV is safer than oral attenuated polio vaccine (OPV), which is still broadly used in many countries. IPV is also a possible component in future combination vaccines and therefore of strategic interest for Rhein Biotech. Basis for future sales growth at GreenCross vaccine GreenCross Vaccine achieved new product registrations in growing markets in the first half of 2001. Hepavax Gene (hepatitis B vaccine) was registered in Poland and Tunisia. Varicella vaccine (chicken pox) was registered in Indonesia. Construction work on the capacity increase at GreenCross Vaccine is running on schedule. The new production sites in Seoul will be of a standard to fulfill European pharmaceutical production requirements and will allow production of preservative-free vaccines. Extension of R&D facilities in Düsseldorf New laboratory and process development facilities were opened in May in Düsseldorf, extending the total laboratory area to 2000 square meters. Rhein Biotech also doubled the fermenter capacity and improved quality standards, thus enabling the development of several pharmaceutical standard production processes and therefore several products- at the same time. This puts Rhein Biotech Düsseldorf in a strong position as the Groups technology centre with enhanced expertise in process development and process optimalisation. Milestone in the development of a new technology Rhein Biotech, in collaboration with renowned academic institutions, has reached a breakthrough in the development of a technology for a therapeutic vaccine against chronic hepatitis B, which could lead to an effective and lasting cure of this serious disease. The technology is patented and Rhein Biotech holds an exclusive license. With this innovative research programme, Rhein Biotech has laid the foundation for a new technology platform, since other therapeutic vaccines can potentially be developed using this technology. Rhein Immuno extending the immune modulator business Rhein Immuno BV, a subsidiary of Rhein Biotech, started its activities in the first half-year 2001. The company is focused on the development, manufacture and worldwide marketing of cytokines and immune modulators, substances, which regulate the human immune system. This is a step towards intensfying Rhein Biotechs activities in the rapidly expanding immune modulator market. Thanks to the activities of its Argentinean subsidiary PC Gen, Rhein Immuno is already successful on the South American market with three products. Rhein Immuno plans to target the European market in the mid-term. Outlook-Continued growth In the second half-year Rhein Biotech aims to continue the success of the first six months. Marketing activities will focus both on increasing market share in current markets and introducing existing products in new markets. R&D efforts will be further enhanced to shorten the time to market of the products in the pipeline. Future strategic collaborations with new partners will be aimed at strenthening Rhein Biotechs product and technology portfolio. The complete Half-Yearly Report is available on our website http://www.rheinbiotech.com. Further information can be obtained from the following contacts: Valerie Ward, Investor Relations Rhein Biotech N.V., Maastricht (NL) T: +31 (0) 43 / 3 56 78 90 F: +31 (0) 43 / 3 56 78 99 e: investor@rheinbiotech.com Stephanie Krone vom Hoff Kommunikation GmbH, Düsseldorf (D) T: +49 (0) 211 / 515 805-16 F: + 49 (0)211 / 515 805-55 e: s.krone@vomhoff.de ——————————————————————————– WKN: 919544; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München, Stuttgart, Hannover 140631 Aug 01