029 Group SE

Earnings Release • Mar 27, 2001

News Details

Ad-hoc | 27 March 2001 08:55

Ad hoc-Service: Rhein Biotech N.V. engl.

Ad hoc-announcement edited and sent by DGAP. The sender is responsible for the contents of this announcement. —————————————————————————— Rhein Biotech Results 2000: Successful transformation to a profitable vaccine-oriented biotech company Tenfold increase in sales; 8 million Euro net income – GreenCross Vaccine Corporation integration successful – Co-operation with Aventis Pasteur completed – Technology platform extended through agreement with Hoffmann-La Roche Maastricht, 27th March 2001 – Rhein Biotech N.V., specialised in vaccines, therapeutics and expression technologies, successfully developed into a fully integrated profitable biotech company during the year 2000. Compared to the previous year, the Group posted a tenfold increase in sales from 6.0 to 60.4 million Euro, carried both by organic growth (45 percent) and the successful integration of GreenCross Vaccine Corp. Rhein Biotech concluded the year 2000 with a net income of 8.0 million Euro compared to a loss of 0.6 million Euro in 1999. This amount includes extraordinary income of 3.7 million Euro – mainly resulting from the sale of Rhein Americana to Aventis Pasteur. Income from operations (EBIT) increased from minus 1.3 to 10.7 million Euro. Earnings before interest, tax and depreciation (EBITDA) rose to 16.2 compared to minus 0.6 million Euro. Investments rose – above all as a result of the acquisition of GreenCross Vaccine- from 8.8 million Euro in 1999 to 83.5 million Euro in 2000. With an average employee number of 263, Rhein Biotech employed almost 4 times as many people as in 1999 (67) at locations in Maastricht, Düsseldorf, Buenos Aires and Seoul. Explanatory Text Product sales main growth carriers The main growth carrier was product sales, which increased to 54.8 million Euro compared to 1.2 million Euro in the previous year. The product with the highest sales is Hepavax-Gene, the Group’s hepatitis B vaccine, which is produced using Rhein Biotech technology and marketed world-wide from Seoul. Furthermore, sales of interferon and interleukin by Group member PC Gen in South America also grew significantly. Earnings from contract development decreased according to strategy by 58% to 0.5(1.1) million Euro. Technology transfer brought 4.9 (3.0) million Euro. Royalties decreased to 0.2 (0.8) million Euro following the consolidation of GreenCross Vaccine, which was a former licensee. Other income of 3.7 million Euro results mainly from the sale of Rhein Americana to Aventis Pasteur. Under the terms of this agreement, Rhein Biotech will receive royalties on future vaccine sales by Aventis Pasteur. Successful Integration of GreenCross Vaccine The most notable project in 2000, the acquisition of 80 percent of GreenCross Vaccine Corp. for 700.000 Rhein Biotech shares and 40 million US Dollars in cash, gave the Group an immense growth impulse. The integration of the new Group member has been successful in every respect. The European/Asian management team ensures both local continuity and linkage to the Group. The synergy potential in the area of R&D has already been tapped into. This acquisition was a logical step for Rhein Biotech, as GreenCross Vaccine fits perfectly with the Rhein Biotech portfolio with respect to technology, products and market presence. Rhein Biotech has advanced to the world’s third largest manufacturer of Hepatitis B vaccine and has become a global player. The Group now markets a portfolio of 10 vaccines and 3 immune modulators in 50 countries world-wide. Rhein Biotech products reach 75 percent of the world’s population. Thanks to its high quality, efficiency, production capacity and flexibility, GreenCross Vaccine belongs to a selected group of suppliers for international mass vaccination programmes. Capital increase placed successfully In order to re-finance the acquisition of GreenCross Vaccine. Rhein Biotech placed 372,832 shares from a capital increase, 225,592 shares from existing shareholders and 62,567 shares from the Greenshoe option in May. The issue price was 107 Euro, almost four times higher than the IPO price of 30 Euro in 1999. The free float increased to approx, 54 percent after the secondary offering. Research and Development extended Rhein Biotech invested 6.3 million Euro in research and development, 78 percent more than in the previous year. Promising development projects include the following: – 2 dose hepatitis B vaccine, – hepatitis B combination vaccine (DTP-HBV), – therapeutic hepatitis C vaccine and – rotavirus vaccine against life-threatening diarrhoea. Rhein Biotech extended its technology platform by licensing-in an additional expression technology from Hoffmann-La Roche. Hoffmann-La Roche acquired a non-exclusive license on Rhein Biotech’s patented Hansenula polymorpha technology for the development and production of industrial enzymes and diagnostics. Outlook 2001 GreenCross Vaccine is a significant and sustainable growth driver. In the mid term, Rhein Biotech expects considerable impulses from the launch of new products, the increase in international vaccination programmes and opening European markets. Rhein Biotech remains on growth course. The company is constantly in exploratory discussions with potential partners. Rhein Biotech’ s M&A strategy is focused on the extension of the product and technology portfolio and access to premium markets in Europe and the USA. In the area of R&D Rhein Biotech aims to strengthen its position as a leading vaccine company by means of rapid development of improved products and potential “blockbusters”. Following its strategy of providing high quality affordable products against mass diseases, Rhein Biotech aims to belong to the top 5 European biotech companies. Dr. Daan Ellens, CEO Rhein Biotech “Rhein Biotech has concluded its most eventful and most successful year so far. In 2000 we successfully completed our forward integration and focused our strategy towards vaccines. We re-shaped the company from a loss-making technology-oriented company to a vaccine-oriented, fully integrated, profitable biotech company. We feel very comfortable about future growth in product sales as we have a well-filled order portfolio for the coming years. We are very proud of the fact that every two seconds three people are vaccinated world wide with Rhein Biotech products.” Further information about Rhein Biotech is available from the contacts below: Frank Ubags, CFO Rhein Biotech N.V., Maastricht (NL) T;+31(0)43/3 56 78 98 F;+31(0)43/3 56 78 99 e: investor@rheinbiotech. com Stephanie Krone vom Hoff Kominunikation GmbH, Düsseldorf T:+49 (0)211/515 805 16 F:+49 (0)211/515 805 55 e: s.krone@vomhoff.de End of Message