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Vivesto — Interim / Quarterly Report 2012
Mar 8, 2012
3124_10-q_2012-03-08_a2713541-ea76-473e-adab-71c06d94c1c8.pdf
Interim / Quarterly Report
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Oasmia Pharmaceutical AB (publ)
Interim report for the period May 2011- January 2012 €
Pages 1-9 is a service to shareholders in the euro zone. It is not the official report in the functional currency of Oasmia, which is SEK, but the first nine pages of that report converted to EUR. The full official report will be found on pages 10-21. The conversion of currency has been made by use of a convenience rate for all figures including those from previous periods. This rate is the closing rate as per January 31, 2012 which was 8.8975 SEK per one EUR. Some figures are in SEK because these are very firmly denominated in SEK.
THE PERIOD May 1, 2011 – January 31, 2012
- Consolidated net sales amounted to € 100 thousand (12) 1
- Operating income amounted to € -5,183 thousand (-4,787)
- Net income after tax amounted to € -5,162 thousand (-4,995)
- Earnings per share was € -0.10 (-0.12)
- Comprehensive income amounted to € -5,162 thousand (-4,995)
THIRD QUARTER November 1, 2011 – January 31, 2012
- Consolidated net sales amounted to € 0 thousand (7)
- Operating income amounted to € -1,952 thousand (-1,747)
- Net income after tax amounted to € -1,937 thousand (-1,756)
- Earnings per share was € -0.03 (-0.04)
- Comprehensive income amounted to € -1,937 thousand (-1,756)
- On-going extension of patent protection
- Paccal® Vet was granted MUMS-designation by the FDA for the indication mammary carcinoma (breast cancer in dogs)
1 The numbers in parentheses concerns results for the corresponding period previous year
BUSINESS ACTIVTIES IN THE PERIOD
Oasmia develops pharmaceuticals which require market authorizations in order to be available on the market. This means that the company must submit an application of registration with pharmaceutical authorities. After submission of the application for registration, Oasmia is dependent on the pharmaceutical authorities' handling of the file and cannot expedite the process in any other way than to submit answers to the authorities' questions as quickly as possible, which may be asked at various times during the registration process.
Oasmia has two product candidates in late final clinical stages and are proceeding with utmost diligence in order to launch these in their respective markets as soon as practically possible.
HUMAN HEALTH
Within Human Health, Oasmia has three product candidates in development all of which are novel formulations of current cytostatics for treatment of cancer, with an improved safety and/or effect, which leads to an improved quality of life for the patient.
Paclical®
The Phase III study with Paclical® for ovarian cancer reached full enrolment of 650 patients in September 2011. The treatment of the last enrolled patients has been on-going during the last quarter. Analysis of results has continued internally in the last quarter concerning the results from the first 400 patients in the study. The documentation for applications for market approvals to authorities is currently being compiled.
In August 2011, the results were reported of an interim analysis comprising 400 patients. The results met the clinical criteria stated by the EMA for submitting an application for market approval for Paclical®.
In August 2011, Oasmia and Orion terminated the collaboration for Paclical® and all rights returned to Oasmia.
In May 2011, a license- and distribution agreement was signed with Medison Pharma for Paclical® in Israel and Turkey.
Paclical® is designated as an orphan drug by the EMA (EU) and FDA (USA) for the indication ovarian cancer. Orphan drug status is granted for minor indications and entails seven (USA) and ten (EU) years market exclusivity respectively on the indication, when a market approval is granted.
Doxophos®
Doxophos® is a novel patented formulation of doxorubicin, one of the most effective and used substances for treatment of cancer. Currently, doxorubicin is used for treatment of about 20 different types of cancer. Oasmia has performed pre-clinical studies with Doxophos® and preparations are being made to start a clinical Phase I study.
Docecal®
Docecal® is a new patented formulation of docetaxel (Taxotere®). Oasmia intends to focus on the same indications as Taxotere®, i.e. breast cancer, prostate cancer and non-small cell lung cancer. Preparations are underway to begin a clinical Phase I study with the product candidate.
ANIMAL HEALTH
Oasmia has two product candidates in development within Animal Health for treatment of the two most common cancers in dogs.
Paccal® Vet
Oasmia's application of market approval for Paccal® Vet for treatment of mastocytoma in dogs is currently being processed by the FDA. Oasmia has in the last quarter had a meeting with FDA and consulted them regarding the CMC (Chemical Manufacturing and Controls) questions. The company will make some complements and then the company considers the documentation complete.
Oasmia's application of market approval for Paccal® Vet for treatment of mastocytoma in dogs is currently being processed by the EMA.
It has been Oasmia's ambition to expand the indications for Paccal® Vet in the USA to include more than mastocytoma and this has been successful.
In January 2012, Paccal® Vet was granted MUMS designation for the indication mammary carcinoma by the FDA.
In June 2011, Paccal® Vet was granted MUMS designation by the FDA for the indication squamous cell carcinoma.
Paccal® Vet has previously been granted the same designation for the indication mastocytoma.
MUMS (minor use/minor species) is granted by the FDA either for a small area of use within a common species such as dogs, or for treatment of a less common species. The most interesting aspect of MUMS is the eligibility to apply for conditional approval with seven years market exclusivity.
Doxophos® Vet
Doxophos® Vet is intended for treatment of lymphoma, the most common cancer indication in dogs. Oasmia is currently conducting a Phase I study for this product candidate.
THE COMPANY
On-going extension of patent protection
Oasmia's technology has patent protection on all important world markets. Previously the patent protection lasted to 2022/2023. The company has submitted new patent applications which gradually extends the patent protection; presently to the end of 2028.
Private placement performed
In October 2011, a private placement was made to a limited number of investors. The share issue provided the company with MSEK 48 before issue expenses.
The largest block, MSEK 30, was subscribed by the company nxt2b with principal owner Bengt Ågerup. In connection to the share issue, nxt2b also acquired shares from Oasmia's largest owner Alceco and thereby became the second largest shareholder in Oasmia with about 10 % of the shares and votes. Alceco held about 46 % of the shares and votes after the share issue and sales. Nxt2b is a strategic long-term owner who shares the same vision as Oasmia's principal owner and management.
EVENTS AFTER THE CLOSING DAY
In February 2012, Oasmia raised a MSEK 25 loan from nxt2b, the second largest shareholder in the company. The interest rate is 5 %. At the same time, a reduction in the credit facility from Alceco, the largest shareholder in the company, was made from MSEK 40 to MSEK 25. When used, the interest rate is 5 %.
Oasmia has two wholly owned subsidiaries. They are now undergoing name changes to Oasmia Animal Health AB and Oasmia Global Supplies AB.
FINANCAL INFORMATION
Consolidated Income Statement in brief
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | |
|---|---|---|---|---|---|
| € thousands | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Net sales | - | 7 | 100 | 12 | 12 |
| Capitalized development cost | 1,633 | 3,017 | 5,501 | 7,391 | 9,671 |
| Operating income | -1,952 | -1,747 | -5,183 | -4,787 | -7,233 |
| Net income after tax | -1,937 | -1,756 | -5,162 | -4,995 | -7,413 |
| Earnings per share (€), before and after dilution* | -0.03 | -0.04 | -0.10 | -0.12 | -0.17 |
| Comprehensive income for the period | -1,937 | -1,756 | -5,162 | -4,995 | -7,413 |
*Recalculation of historical figures has been performed with regards to capitalization issue components in the preferential rights share issue carried out in the third quarter 2010/2011.
Net sales
Net sales for the period amounted to € 100 thousand (12) and consisted of license revenue in connection to closing an agreement with Medison Pharma.
Capitalized development cost
Capitalized development cost consists of the company's investments in clinical Phase III trials. The capitalization means that such costs are capitalized as an intangible asset. They amounted to € 5,501 thousand (7,391) for the period and concerned Paclical® only. The reduction compared to the same period previous year is due to that no capitalization is made for Paccal® Vet this year.
Operating expenses
The total operating expenses excluding depreciation and impairment decreased with 12 % and amounted to € 10,365 thousand (11,819). The decrease in expenses is attributable to expenses for Paccal® Vet in Phase III had all but ended at the start of the period and that expenses for Paclical® in Phase III are no longer increasing.
Of these operating expenses, 53 % (63) were capitalized as Capitalized development cost. The share of capitalized operating expenses is decreasing successively.
The number of employees was 80 (72) at the end of the period.
Income for the period
Net income for the period was € -5,162 thousand (-4,995). The decrease in income is due to a lower degree of capitalized development cost, in spite of the fact if the operating expenses actually decreased.
The business activities of the Group have not been affected by seasonal variations or cyclic effects.
Financial position
The consolidated liquid assets at the end of the period amounted to € 554 thousand (10,232). Equity at the same time amounted to € 32,954 thousand (35,480). At the end of the period, the equity/assets ratio was 91 % (93) and the debt/equity ratio 0 % (0). On January 31, the company had unutilized credits amounting to TSEK 45 000 and an unutilized SEDA-agreement (standby equity distribution agreement) amounting to TSEK 75 000.
Cash flow and Capital expenditures
Cash flow from operating activities in the period amounted to € -4,457 thousand (-4,555).
Capital expenditures for the period amounted to € 5,976 thousand (8,608).
Investments in intangible assets amounted to € 5,762 thousand (7,593), consisting of capitalized development costs € 5,501 thousand and patents and other intangible assets € 261 thousand.
Investments in property, plant and equipment amounted to € 214 thousand (1,015) concerning production equipment. The reason to the large decrease compared to previous year, is that the production facility in Uppsala was then subject to a large upgrade.
Financing
Financing in the period was performed by use of liquid assets. In October, a private placement provided the company with € 5,055 thousand after issue expenses.
The parent company
The parent company net sales in the period amounted to € 100 thousand (12) and net income before tax amounted to € -5,174 thousand (-4,992). The poorer result is attributed to the decrease in capitalized development cost, even if the development costs themselves decreased. The parent company liquid assets at the end of the period amounted to € 553 thousand (10,231).
Key ratios and other information
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | |
|---|---|---|---|---|---|
| Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April | |
| Number of shares at the close of the period (in thousands), before and | |||||
| after dilution* Weighted average number of shares (in thousands) before and after |
57,241 | 52,079 | 57,241 | 52,079 | 52,079 |
| dilution* | 57,241 | 47,620 | 53,818 | 41,475 | 44,061 |
| Earnings per share in €, before and after dilution* | -0.03 | -0.04 | -0.10 | -0.12 | -0.17 |
| Equity per share, €* | 0.58 | 0.68 | 0.58 | 0.68 | 0.63 |
| Equity/Assets ratio, % | 91 | 93 | 91 | 93 | 92 |
| Net liability, € thousand | -554 | -10,232 | -554 | -10,232 | -5,833 |
| Debt/Equity ratio, % | - | - | - | - | - |
| Return on total assets, % | neg | neg | neg | neg | neg |
| Return on equity, % | neg | neg | neg | neg | neg |
| Number of employees at the end of the period | 80 | 72 | 80 | 72 | 68 |
*Recalculation of historical values has been made with respect to capitalization issue elements in the preferential rights share issue carried out in the third quarter 2010/11.
Definitions
Earnings per share: The income for the period attributable to the equity holders of the parent company divided by a weighted average number of shares, before and after dilution.
Equity per share: Equity in comparison with the number of shares at the end of the period
Equity/assets ratio: Equity pertaining to the balance sheet total.
Net liability: Total borrowing (containing the balance sheet items Short-term and Long-term borrowings and liabilities to credit institutions) with deductions for liquid funds
Debt/Equity ratio: Net liability with respect to equity.
Return on total assets: Income for interest expenses pertaining to the average balance sheet total.
Return on equity: Income after financial items in relation to the average equity.
Consolidated Income statement
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | |
|---|---|---|---|---|---|
| € thousands | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Net sales | - | 7 | 100 | 12 | 12 |
| Capitalized development cost | 1,633 | 3,017 | 5,501 | 7,391 | 9,671 |
| Other operating income | 2 | 3 | 6 | 14 | 30 |
| Raw materials, consumables and goods for resale | -245 | -204 | -882 | -1,065 | -1,812 |
| Other external expenses | -1,925 | -3,380 | -6,136 | -7,682 | -10,394 |
| Employee benefit expenses | -1,275 | -1,056 | -3,348 | -3,073 | -4,200 |
| Depreciation/amortization and impairment | -142 | -134 | -426 | -384 | -525 |
| Other operating expenses | - | - | - | 0 | -15 |
| Operating income | -1,952 | -1,747 | -5,183 | -4,787 | -7,233 |
| Financial income | 23 | 24 | 38 | 26 | 54 |
| Financial expenses | -9 | -33 | -18 | -235 | -236 |
| Financial items, net | 14 | -10 | 21 | -209 | -181 |
| Income before taxes | -1,937 | -1,756 | -5,162 | -4,995 | -7,414 |
| Taxes | - | 0 | - | 0 | 1 |
| Income for the period | -1,937 | -1,756 | -5,162 | -4,995 | -7,413 |
| Income for the period attributable to: | |||||
| Equity holders of the Parent company | -1,937 | -1,756 | -5,162 | -4,995 | -7,413 |
| Non-controlling interest | - | 0 | - | -1 | - |
| Earnings per share | |||||
| Before dilution, € | -0.03 | -0.04 | -0.10 | -0.12 | -0.17 |
| After dilution, € | -0.03 | -0.04 | -0.10 | -0.12 | -0.17 |
Consolidated Statement of Comprehensive income
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | |
|---|---|---|---|---|---|
| € thousands | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Income for the period | -1,937 | -1,756 | -5,162 | -4,995 | -7,413 |
| Comprehensive income for the period | -1,937 | -1,756 | -5,162 | -4,995 | -7,413 |
| Income for the period attributable to: | |||||
| Equity holders of the Parent company | -1,937 | -1,756 | -5,162 | -4,995 | -7,413 |
| Non-controlling interest | - | 0 | - | -1 | - |
| Comprehensive Earnings per share | |||||
| Before dilution, € | -0.03 | -0.04 | -0.10 | -0.12 | -0.17 |
| After dilution, € | -0.03 | -0.04 | -0.10 | -0.12 | -0.17 |
Consolidated statement of financial position
| € thousands | 2012-01-31 | 2011-01-31 | 2011-04-30 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 2,926 | 3,029 | 3,062 |
| Capitalized development cost | 31,004 | 23,222 | 25,503 |
| Other intangible assets | 1,228 | 1,031 | 1,043 |
| Financial assets | 0 | 0 | 0 |
| Total Non-current assets | 35,158 | 27,282 | 29,607 |
| Current assets | |||
| Inventories | 33 | 11 | - |
| Other current receivables | 181 | 346 | 241 |
| Prepaid expenses and accrued income | 236 | 455 | 321 |
| Liquid assets | 554 | 10,232 | 5,833 |
| Total Current assets | 1,004 | 11,043 | 6,394 |
| TOTAL ASSETS | 36,162 | 38,326 | 36,001 |
| EQUITY | |||
| Equity attributed to equity holders in the Parent Company | |||
| Share capital | 643 | 585 | 585 |
| Other capital provided | 51,456 | 46,460 | 46,460 |
| Retained earnings | -19,145 | -11,571 | -13,983 |
| Total | 32,954 | 35,474 | 33,062 |
| Non-controlling interest | - | 6 | - |
| Total equity | 32,954 | 35,480 | 33,062 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Other non-current liabilities | 1,828 | 1,730 | 1,728 |
| Deferred tax liabilities | - | 1 | - |
| Total Non-current liabilities | 1,828 | 1,731 | 1,728 |
| Current liabilities | |||
| Trade payables | 622 | 438 | 431 |
| Other current liabilities | 175 | 164 | 157 |
| Accrued expenses and prepaid income | 582 | 513 | 623 |
| Total Current liabilities | 1,379 | 1,114 | 1,211 |
| Total Liabilities | 3,207 | 2,846 | 2,939 |
| TOTAL EQUITY AND LIABILITIES | 36,162 | 38,326 | 36,001 |
Consolidated statement of changes in equity
| Attributable to equity holders in Parent company | |||||
|---|---|---|---|---|---|
| Other | Non | ||||
| capital | Retained | controlling | |||
| € thousands | Share capital | provided | earnings | interest | Total equity |
| Opening balance as of May 1, 2010 | 423 | 22,084 | -6,576 | 6 | 15,937 |
| Comprehensive income for the period | - | - | -4,995 | -1 | -4,995 |
| New share issue | 163 | 26,665 | - | - | 26,827 |
| Issue expenses | - | -2,289 | - | - | -2,289 |
| Closing balance as of January 31, 2011 | 585 | 46,460 | -11,571 | 6 | 35,480 |
| Opening balance as of May 1, 2010 | 423 | 22,084 | -6,576 | 6 | 15,937 |
| Comprehensive income for the period | - | - | -7,413 | - | -7,413 |
| Acquired non-controlling interest | - | - | 6 | -6 | 0 |
| New share issue | 163 | 26,665 | - | - | 26,827 |
| Issue expenses | - | -2,289 | - | - | -2,289 |
| Closing balance as of April 30, 2011 | 585 | 46,460 | -13,983 | 0 | 33,062 |
| Opening balance as of May 1, 2011 | 585 | 46,460 | -13,983 | 0 | 33,062 |
| Comprehensive income for the period | - | - | -5,162 | - | -5,162 |
| New share issue | 58 | 5,337 | - | - | 5,395 |
| Issue expenses | - | -340 | - | - | -340 |
| Closing balance as of January 31, 2012 | 643 | 51,456 | -19,145 | 0 | 32,954 |
Consolidated Cash flow statement
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | |
|---|---|---|---|---|---|
| € thousands | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Operating activities | |||||
| Operating income before financial items | -1,952 | -1,747 | -5,183 | -4,787 | -7,233 |
| Depreciation/amortization | 142 | 134 | 426 | 384 | 523 |
| Impairment of inventory | - | - | - | - | 11 |
| Disposals of intangible assets | - | - | - | 0 | 15 |
| Interest received | 23 | 24 | 38 | 26 | 54 |
| Interest paid | -9 | 46 | -18 | -156 | -156 |
| Cash flow from operating activities before working | |||||
| capital changes | -1,796 | -1,543 | -4,737 | -4,532 | -6,787 |
| Change in working capital | |||||
| Change in inventories | - | - | -33 | - | - |
| Change in trade receivables | - | - | - | 7 | 7 |
| Change in other current receivables | 13 | -429 | 144 | -289 | -50 |
| Change in trade payables | -184 | -512 | 191 | 205 | 197 |
| Change in other current liabilities | 80 | -121 | -23 | 55 | 159 |
| Cash flow from operating activities | -1,887 | -2,605 | -4,457 | -4,555 | -6,474 |
| Investing activities | |||||
| Investments in intangible fixed assets | -1,876 | -3,017 | -5,762 | -7,593 | -9,929 |
| Investments in property, plant and equipment | -29 | -264 | -214 | -1,015 | -1,160 |
| Cash flow from investing activities | -1,905 | -3,281 | -5,976 | -8,608 | -11,089 |
| Financing activities | |||||
| Decrease in liabilities to credit institutions | - | -557 | - | -482 | -482 |
| Increase in long-term liabilities | - | - | 100 | - | - |
| New share issue | - | 18,960 | 5,395 | 18,960 | 18,960 |
| Issue expenses | -340 | -2,289 | -340 | -2,289 | -2,289 |
| New loans | - | - | - | 6,602 | 6,602 |
| Cash flow from financing activities | -340 | 16,114 | 5,155 | 22,791 | 22,791 |
| Cash flow for the period | -4,132 | 10,227 | -5,279 | 9,628 | 5,229 |
| Cash and cash equivalents at the beginning of the period | 4,686 | 5 | 5,833 | 604 | 604 |
| Cash and cash equivalents at the end of the period | 554 | 10,232 | 554 | 10,232 | 5,833 |
Oasmia Pharmaceutical AB (publ)
Interim report for the period May 2011- January 2012
THE PERIOD May 1, 2011 – January 31, 2012
- Consolidated net sales amounted to TSEK 891 (106) 2
- Operating income amounted to TSEK 46 117 (-42 589)
- Net income after tax amounted to TSEK 45 933 (-44 447)
- Earnings per share was SEK -0,85 (-1,07)
- Comprehensive income amounted to TSEK -45 933 (-44 447)
THIRD QUARTER November 1, 2011 – January 31, 2012
- Consolidated net sales amounted to TSEK 0 (64)
- Operating income amounted to TSEK 17 365 (-15 542)
- Net income after tax amounted to TSEK 17 238 (-15 628)
- Earnings per share was SEK -0,30 (-0,33)
- Comprehensive income amounted to TSEK 17 238 (-15 628)
- On-going extension of patent protection
- Paccal® Vet was granted MUMS-designation by the FDA for the indication mammary carcinoma (breast cancer in dogs)
2 The numbers in parentheses concerns results for the corresponding period previous year
BUSINESS ACTIVTIES IN THE PERIOD
Oasmia develops pharmaceuticals which require market authorizations in order to be available on the market. This means that the company must submit an application of registration with pharmaceutical authorities. After submission of the application for registration, Oasmia is dependent on the pharmaceutical authorities' handling of the file and cannot expedite the process in any other way than to submit answers to the authorities' questions as quickly as possible, which may be asked at various times during the registration process.
Oasmia has two product candidates in late final clinical stages and are proceeding with utmost diligence in order to launch these in their respective markets as soon as practically possible.
HUMAN HEALTH
Within Human Health, Oasmia has three product candidates in development all of which are novel formulations of current cytostatics for treatment of cancer, with an improved safety and/or effect, which leads to an improved quality of life for the patient.
Paclical®
The Phase III study with Paclical® for ovarian cancer reached full enrolment of 650 patients in September 2011. The treatment of the last enrolled patients has been on-going during the last quarter. Analysis of results has continued internally in the last quarter concerning the results from the first 400 patients in the study. The documentation for applications for market approvals to authorities is currently being compiled.
In August 2011, the results were reported of an interim analysis comprising 400 patients. The results met the clinical criteria stated by the EMA for submitting an application for market approval for Paclical®.
In August 2011, Oasmia and Orion terminated the collaboration for Paclical® and all rights returned to Oasmia.
In May 2011, a license- and distribution agreement was signed with Medison Pharma for Paclical® in Israel and Turkey.
Paclical® is designated as an orphan drug by the EMA (EU) and FDA (USA) for the indication ovarian cancer. Orphan drug status is granted for minor indications and entails seven (USA) and ten (EU) years market exclusivity respectively on the indication, when a market approval is granted.
Doxophos®
Doxophos® is a novel patented formulation of doxorubicin, one of the most effective and used substances for treatment of cancer. Currently, doxorubicin is used for treatment of about 20 different types of cancer. Oasmia has performed pre-clinical studies with Doxophos® and preparations are being made to start a clinical Phase I study.
Docecal®
Docecal® is a new patented formulation of docetaxel (Taxotere®). Oasmia intends to focus on the same indications as Taxotere®, i.e. breast cancer, prostate cancer and non-small cell lung cancer. Preparations are underway to begin a clinical Phase I study with the product candidate.
ANIMAL HEALTH
Oasmia has two product candidates in development within Animal Health for treatment of the two most common cancers in dogs.
Paccal® Vet
Oasmia's application of market approval for Paccal® Vet for treatment of mastocytoma in dogs is currently being processed by the FDA. Oasmia has in the last quarter had a meeting with FDA and consulted them regarding the CMC (Chemical Manufacturing and Controls) questions. The company will make some complements and then the company considers the documentation complete.
Oasmia's application of market approval for Paccal® Vet for treatment of mastocytoma in dogs is currently being processed by the EMA.
It has been Oasmia's ambition to expand the indications for Paccal® Vet in the USA to include more than mastocytoma and this has been successful.
In January 2012, Paccal® Vet was granted MUMS designation for the indication mammary carcinoma by the FDA.
In June 2011, Paccal® Vet was granted MUMS designation by the FDA for the indication squamous cell carcinoma.
Paccal® Vet has previously been granted the same designation for the indication mastocytoma.
MUMS (minor use/minor species) is granted by the FDA either for a small area of use within a common species such as dogs, or for treatment of a less common species. The most interesting aspect of MUMS is the eligibility to apply for conditional approval with seven years market exclusivity.
Doxophos® Vet
Doxophos® Vet is intended for treatment of lymphoma, the most common cancer indication in dogs. Oasmia is currently conducting a Phase I study for this product candidate.
THE COMPANY
On-going extension of patent protection
Oasmia's technology has patent protection on all important world markets. Previously the patent protection lasted to 2022/2023. The company has submitted new patent applications which gradually extends the patent protection; presently to the end of 2028.
Private placement performed
In October 2011, a private placement was made to a limited number of investors. The share issue provided the company with MSEK 48 before issue expenses.
The largest block, MSEK 30, was subscribed by the company nxt2b with principal owner Bengt Ågerup. In connection to the share issue, nxt2b also acquired shares from Oasmia's largest owner Alceco and thereby became the second largest shareholder in Oasmia with about 10 % of the shares and votes. Alceco held about 46 % of the shares and votes after the share issue and sales. Nxt2b is a strategic long-term owner who shares the same vision as Oasmia's principal owner and management.
EVENTS AFTER THE CLOSING DAY
In February 2012, Oasmia raised a MSEK 25 loan from nxt2b, the second largest shareholder in the company. The interest rate is 5 %. At the same time, a reduction in the credit facility from Alceco, the largest shareholder in the company, was made from MSEK 40 to MSEK 25. When used, the interest rate is 5 %.
Oasmia has two wholly owned subsidiaries. They are now undergoing name changes to Oasmia Animal Health AB and Oasmia Global Supplies AB.
FINANCAL INFORMATION
Consolidated Income Statement in brief
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | |
|---|---|---|---|---|---|
| TSEK | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Net sales | - | 64 | 891 | 106 | 106 |
| Capitalized development cost | 14 529 | 26 846 | 48 949 | 65 759 | 86 049 |
| Operating income | -17 365 | -15 542 | -46 117 | -42 589 | -64 353 |
| Net income after tax | -17 238 | -15 628 | -45 933 | -44 447 | -65 960 |
| Earnings per share (SEK), before and after dilution* | -0,30 | -0,33 | -0,85 | -1,07 | -1,50 |
| Comprehensive income for the period | -17 238 | -15 628 | -45 933 | -44 447 | -65 960 |
*Recalculation of historical figures has been performed with regards to capitalization issue components in the preferential rights share issue carried out in the third quarter 2010/2011.
Net sales
Net sales for the period amounted to TSEK 891 (42) and consisted of license revenue in connection to closing an agreement with Medison Pharma.
Capitalized development cost
Capitalized development cost consists of the company's investments in clinical Phase III trials. The capitalization means that such costs are capitalized as an intangible asset. They amounted to TSEK 48 949 (65 759) for the period and concerned Paclical® only. The reduction compared to the same period previous year is due to that no capitalization is made for Paccal® Vet this year.
Operating expenses
The total operating expenses excluding depreciation and impairment decreased with 12 % and amounted to TSEK 92 227 (105 160). The decrease in expenses is attributable to expenses for Paccal® Vet in Phase III had all but ended at the start of the period and that expenses for Paclical® in Phase III are no longer increasing.
Of these operating expenses, 53 % (63) were capitalized as Capitalized development cost. The share of capitalized operating expenses is decreasing successively.
The number of employees was 80 (72) at the end of the period.
Income for the period
Net income for the period was TSEK -45 933 (-44 447). The decrease in income is due to a lower degree of capitalized development cost, in spite of the fact if the operating expenses actually decreased.
The business activities of the Group have not been affected by seasonal variations or cyclic effects.
Financial position
The consolidated liquid assets at the end of the period amounted to TSEK 4 930 (91 041). Equity at the same time amounted to TSEK 293 211 (315 684). At the end of the period, the equity/assets ratio was 91 % (93) and the debt/equity ratio 0 % (0). On January 31, the company had unutilized credits amounting to TSEK 45 000 and an unutilized SEDA-agreement (standby equity distribution agreement) amounting to TSEK 75 000.
Cash flow and Capital expenditures
Cash flow from operating activities in the period amounted to TSEK -39 657 (-40 527).
Capital expenditures for the period amounted to TSEK 53 173 (76 589).
Investments in intangible assets amounted to TSEK 51 270 (67 559), consisting of capitalized development costs TSEK 48 949 and patents and other intangible assets TSEK 2 321.
Investments in property, plant and equipment amounted to TSEK 1 903 (9 030) concerning production equipment. The reason to the large decrease compared to previous year, is that the production facility in Uppsala was then subject to a large upgrade.
Financing
Financing in the period was performed by use of liquid assets. In October, a private placement provided the company with TSEK 44 973 after issue expenses.
The parent company
The parent company net sales in the period amounted to TSEK 891 (106) and net income before tax amounted to TSEK -46 032 (-44 416). The poorer result is attributed to the decrease in capitalized development cost, even if the development costs themselves decreased. The parent company liquid assets at the end of the period amounted to TSEK 4 921 (91 032).
Key ratios and other information
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | |
|---|---|---|---|---|---|
| Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April | |
| Number of shares at the close of the period (in thousands), before and | |||||
| after dilution* | 57 241 | 52 079 | 57 241 | 52 079 | 52 079 |
| Weighted average number of shares (in thousands) before and after | |||||
| dilution* | 57 241 | 47 620 | 53 818 | 41 475 | 44 061 |
| Earnings per share in SEK, before and after dilution* | -0,30 | -0,33 | -0,85 | -1,07 | -1,50 |
| Equity per share, SEK* | 5,12 | 6,06 | 5,12 | 6,06 | 5,65 |
| Equity/Assets ratio, % | 91 | 93 | 91 | 93 | 92 |
| Net liability, TSEK | -4 930 | -91 041 | -4 930 | -91 041 | -51 895 |
| Debt/Equity ratio, % | - | - | - | - | - |
| Return on total assets, % | neg | neg | neg | neg | neg |
| Return on equity, % | neg | neg | neg | neg | neg |
| Number of employees at the end of the period | 80 | 72 | 80 | 72 | 68 |
*Recalculation of historical values has been made with respect to capitalization issue elements in the preferential rights share issue carried out in the third quarter 2010/11.
Definitions
Earnings per share: The income for the period attributable to the equity holders of the parent company divided by a weighted average number of shares, before and after dilution.
Equity per share: Equity in comparison with the number of shares at the end of the period
Equity/assets ratio: Equity pertaining to the balance sheet total.
Net liability: Total borrowing (containing the balance sheet items Short-term and Long-term borrowings and liabilities to credit institutions) with deductions for liquid funds
Debt/Equity ratio: Net liability with respect to equity.
Return on total assets: Income for interest expenses pertaining to the average balance sheet total.
Return on equity: Income after financial items in relation to the average equity.
Consolidated Income statement
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | ||
|---|---|---|---|---|---|---|
| TSEK | Note | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Net sales | - | 64 | 891 | 106 | 106 | |
| Capitalized development cost | 14 529 | 26 846 | 48 949 | 65 759 | 86 049 | |
| Other operating income | 16 | 24 | 58 | 123 | 269 | |
| Raw materials, consumables and goods for resale | -2 182 | -1 815 | -7 846 | -9 474 | -16 120 | |
| Other external expenses | -17 125 | -30 070 | -54 594 | -68 348 | -92 479 | |
| Employee benefit expenses | -11 342 | -9 400 | -29 787 | -27 338 | -37 370 | |
| Depreciation/amortization and impairment | -1 261 | -1 192 | -3 788 | -3 416 | -4 674 | |
| Other operating expenses | - | - | - | -1 | -133 | |
| Operating income | -17 365 | -15 542 | -46 117 | -42 589 | -64 353 | |
| Financial income | 207 | 211 | 340 | 231 | 484 | |
| Financial expenses | -79 | -297 | -156 | -2 089 | -2 097 | |
| Financial items, net | 128 | -86 | 184 | -1 858 | -1 613 | |
| Income before taxes | -17 238 | -15 628 | -45 933 | -44 447 | -65 967 | |
| Taxes | 2 | - | 0 | - | 0 | 7 |
| Income for the period | -17 238 | -15 628 | -45 933 | -44 447 | -65 960 | |
| Income for the period attributable to: | ||||||
| Equity holders of the Parent company | -17 238 | -15 626 | -45 933 | -44 442 | -65 960 | |
| Non-controlling interest | - | -2 | - | -5 | - | |
| Earnings per share | ||||||
| Before dilution, SEK | -0,30 | -0,33 | -0,85 | -1,07 | -1,50 | |
| After dilution, SEK | -0,30 | -0,33 | -0,85 | -1,07 | -1,50 | |
Consolidated Statement of Comprehensive income
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | ||
|---|---|---|---|---|---|---|
| TSEK | Note | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Income for the period | -17 238 | -15 628 | -45 933 | -44 447 | -65 960 | |
| Comprehensive income for the period | -17 238 | -15 628 | -45 933 | -44 447 | -65 960 | |
| Comprehensive income for the period attributable to: | ||||||
| Equity holders of the Parent company | -17 238 | -15 626 | -45 933 | -44 442 | -65 960 | |
| Non-controlling interest | - | -2 | - | -5 | - | |
| Comprehensive Earnings per share | ||||||
| Before dilution, SEK | -0,30 | -0,33 | -0,85 | -1,07 | -1,50 | |
| After dilution, SEK | -0,30 | -0,33 | -0,85 | -1,07 | -1,50 |
Consolidated statement of financial position
Pledged assets 4
| TSEK | Note | 2012-01-31 | 2011-01-31 | 2011-04-30 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 26 031 | 26 954 | 27 243 | |
| Capitalized development cost | 3 | 275 858 | 206 619 | 226 909 |
| Other intangible assets | 10 923 | 9 171 | 9 276 | |
| Financial assets | 2 | 2 | 2 | |
| Total Non-current assets | 312 814 | 242 745 | 263 430 | |
| Current assets | ||||
| Inventories | 290 | 94 | - | |
| Other current receivables | 1 611 | 3 075 | 2 141 | |
| Prepaid expenses and accrued income | 2 102 | 4 047 | 2 853 | |
| Liquid assets | 4 930 | 91 041 | 51 895 | |
| Total Current assets | 8 933 | 98 257 | 56 889 | |
| TOTAL ASSETS | 321 747 | 341 003 | 320 319 | |
| EQUITY | ||||
| Equity attributed to equity holders in the Parent Company | ||||
| Share capital | 5 724 | 5 208 | 5 208 | |
| Other capital provided | 457 832 | 413 375 | 413 375 | |
| Retained earnings | -170 345 | -102 951 | -124 411 | |
| Total | 293 211 | 315 632 | 294 171 | |
| Non-controlling interest | - | 52 | - | |
| Total equity | 293 211 | 315 684 | 294 171 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Other non-current liabilities | 16 264 | 15 397 | 15 373 | |
| Deferred tax liabilities | - | 7 | - | |
| Total Non-current liabilities | 16 264 | 15 404 | 15 373 | |
| Current liabilities | ||||
| Trade payables | 5 533 | 3 896 | 3 831 | |
| Other current liabilities | 1 556 | 1 457 | 1 399 | |
| Accrued expenses and prepaid income | 5 183 | 4 562 | 5 545 | |
| Total Current liabilities | 12 272 | 9 915 | 10 775 | |
| Total Liabilities | 28 536 | 25 318 | 26 148 | |
| TOTAL EQUITY AND LIABILITIES | 321 747 | 341 003 | 320 319 | |
| Contingent liabilities | 4 |
Consolidated statement of changes in equity
| Attributable to equity holders in Parent company |
|||||
|---|---|---|---|---|---|
| Other | Non | ||||
| capital | Retained | controlling | |||
| TSEK | Share capital | provided | earnings | interest | Total equity |
| Opening balance as of May 1, 2010 | 3 761 | 196 493 | -58 509 | 57 | 141 803 |
| Comprehensive income for the period | - | - | -44 442 | -5 | -44 447 |
| New share issue | 1 447 | 237 250 | - | - | 238 697 |
| Issue expenses | - | -20 369 | - | - | -20 369 |
| Closing balance as of January 31, 2011 | 5 208 | 413 375 | -102 951 | 52 | 315 684 |
| Opening balance as of May 1, 2010 | 3 761 | 196 493 | -58 509 | 57 | 141 803 |
| Comprehensive income for the period | - | - | -65 960 | - | -65 960 |
| Acquired non-controlling interest | - | - | 57 | -57 | 0 |
| New share issue | 1 447 | 237 250 | - | - | 238 697 |
| Issue expenses | - | -20 369 | - | - | -20 369 |
| Closing balance as of April 30, 2011 | 5 208 | 413 375 | -124 411 | 0 | 294 171 |
| Opening balance as of May 1, 2011 | 5 208 | 413 375 | -124 411 | 0 | 294 171 |
| Comprehensive income for the period | - | - | -45 933 | - | -45 933 |
| New share issue | 516 | 47 484 | - | - | 48 000 |
| Issue expenses | - | -3 027 | - | - | -3 027 |
| Closing balance as of January 31, 2012 | 5 724 | 457 832 | -170 345 | 0 | 293 211 |
Consolidated Cash flow statement
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | ||
|---|---|---|---|---|---|---|
| TSEK | Note | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Operating activities | ||||||
| Operating income before financial items | -17 365 | -15 542 | -46 117 | -42 589 | -64 353 | |
| Depreciation/amortization | 1 261 | 1 192 | 3 788 | 3 416 | 4 650 | |
| Impairment of inventory | - | - | - | - | 94 | |
| Disposals of intangible assets | - | - | - | 1 | 133 | |
| Interest received | 207 | 211 | 340 | 231 | 484 | |
| Interest paid | -79 | 408 | -156 | -1 384 | -1 392 | |
| Cash flow from operating activities before working | ||||||
| capital changes | -15 977 | -13 731 | -42 145 | -40 325 | -60 385 | |
| Change in working capital | ||||||
| Change in inventories | - | - | -290 | - | - | |
| Change in trade receivables | - | - | - | 60 | 60 | |
| Change in other current receivables | 119 | -3 817 | 1 281 | -2 573 | -445 | |
| Change in trade payables | -1 637 | -4 559 | 1 702 | 1 821 | 1 756 | |
| Change in other current liabilities | 708 | -1 073 | -205 | 490 | 1 415 | |
| Cash flow from operating activities | -16 788 | -23 181 | -39 657 | -40 527 | -57 598 | |
| Investing activities | ||||||
| Investments in intangible fixed assets | -16 695 | -26 846 | -51 270 | -67 559 | -88 342 | |
| Investments in property, plant and equipment | -257 | -2 346 | -1 903 | -9 030 | -10 321 | |
| Cash flow from investing activities | -16 952 | -29 192 | -53 173 | -76 589 | -98 663 | |
| Financing activities | ||||||
| Decrease in liabilities to credit institutions | - | -4 956 | - | -4 289 | -4 289 | |
| Increase in long-term liabilities | - | - | 891 | - | - | |
| New share issue | - | 168 697 | 48 000 | 168 697 | 168 697 | |
| Issue expenses | -3 027 | -20 369 | -3 027 | -20 369 | -20 369 | |
| New loans | - | - | - | 58 745 | 58 745 | |
| Cash flow from financing activities | -3 027 | 143 372 | 45 864 | 202 784 | 202 784 | |
| Cash flow for the period | -36 767 | 90 999 | -46 966 | 85 669 | 46 523 | |
| Cash and cash equivalents at the beginning of the period |
41 696 | 42 | 51 895 | 5 372 | 5 372 |
| Cash and cash equivalents at the end of the period | 4 930 | 91 041 | 4 930 | 91 041 | 51 895 | |
|---|---|---|---|---|---|---|
| Parent Company Income statement | ||||||
| 2011/12 | 2010/11 | 2011/12 | 2010/11 | 2010/11 | ||
| TSEK | Note | Nov-Jan | Nov-Jan | May-Jan | May-Jan | May-April |
| Net sales | - | 64 | 891 | 106 | 106 | |
| Capitalized development cost | 14 529 | 26 846 | 48 949 | 65 759 | 86 049 | |
| Other operating income | 16 | 24 | 58 | 123 | 245 | |
| Raw materials, consumables and goods for resale | -2 179 | -1 814 | -7 842 | -9 434 | -16 080 | |
| Other external expenses | -17 084 | -30 023 | -54 477 | -68 198 | -92 271 | |
| Employee benefit expenses | -11 342 | -9 400 | -29 787 | -27 338 | -37 370 | |
| Depreciation/amortization and impairment of property, plant, equipment and intangible assets |
-1 244 | -1 151 | -3 722 | -3 287 | -4 486 | |
| Operating income | -17 305 | -15 454 | -45 931 | -42 268 | -63 806 | |
| Result from participations in Group companies | 5 | -185 | -80 | -285 | -290 | -578 |
| Other interest revenues and similar revenues | 207 | 210 | 339 | 231 | 483 | |
| Interest cost and similar costs | -79 | -297 | -156 | -2 089 | -2 097 | |
| Financial items, net | -57 | -167 | -101 | -2 148 | -2 192 | |
| Income after financial items | -17 362 | -15 620 | -46 032 | -44 416 | -65 998 | |
| Taxes | 2 | - | - | - | - | - |
| Income for the period | -17 362 | -15 620 | -46 032 | -44 416 | -65 998 |
Parent Company Balance Sheet
| TSEK | Note | 2012-01-31 | 2011-01-31 | 2011-04-30 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Intangible fixed assets | ||||
| Capitalized development cost | 3 | 275 858 | 206 619 | 226 909 |
| Concessions, patents, licenses, trademarks and similar rights |
10 893 | 8 884 | 9 180 | |
| Property, plant and equipment | ||||
| Equipment, tools, fixtures and fittings | 24 677 | 26 954 | 27 243 | |
| Advance payments for property, plant and equipment | 1 355 | - | - | |
| Financial assets | ||||
| Participations in group companies | 110 | 298 | 110 | |
| Receivables from group companies | - | 5 | 5 | |
| Other securities held as non-current assets | 1 | 1 | 1 | |
| Total Non-current assets | 312 894 | 242 761 | 263 448 | |
| Current assets | ||||
| Inventories | ||||
| Raw materials and consumables | 290 | 94 | - | |
| Current receivables | 290 | 94 | 0 | |
| Receivables from group companies | 5 | - | 37 | 89 |
| Other current receivables | 1 609 | 3 074 | 2 140 | |
| Prepaid expenses and accrued income | 2 102 | 4 047 | 2 748 | |
| 3 712 | 7 158 | 4 977 | ||
| Cash and bank balances | 4 921 | 91 032 | 51 884 | |
| Total current assets | 8 923 | 98 284 | 56 861 | |
| TOTAL ASSETS | 321 816 | 341 045 | 320 309 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Restricted equity | ||||
| Share capital | 5 724 | 5 208 | 5 208 | |
| Statutory reserve | 4 620 | 4 620 | 4 620 | |
| 10 344 | 9 828 | 9 828 | ||
| Non-restricted equity | ||||
| Share premium reserve | 457 832 | 413 375 | 413 375 | |
| Retained earnings | -129 028 | -63 030 | -63 030 | |
| Income for the period | -46 032 | -44 416 | -65 998 | |
| 282 772 | 305 929 | 284 347 | ||
| Total equity | 293 116 | 315 757 | 294 175 | |
| Non-current liabilities | ||||
| Other non-current liabilities | 16 264 | 15 373 | 15 373 | |
| Total non-current liabilities | 16 264 | 15 373 | 15 373 | |
| Current liabilities | ||||
| Trade payables | 5 531 | 3 896 | 3 818 | |
| Liabilities to group companies | 5 | 166 | - | - |
| Other current liabilities | 1 556 | 1 457 | 1 399 | |
| Accrued expenses and prepaid income | 5 183 | 4 562 | 5 545 | |
| Total Current liabilities | 12 436 | 9 915 | 10 761 | |
| TOTAL EQUITY AND LIABILITIES | 321 816 | 341 045 | 320 309 | |
| Contingent liabilities and pledged assets | ||||
| Contingent liabilities | 4 | - | - | - |
| Pledged assets | 4 | 8 000 | 8 000 | 8 000 |
Parent Company changes in equity
| Restricted equity | ||||
|---|---|---|---|---|
| Statutory | Non-restricted | |||
| TSEK | Share capital | reserve | equity | Total equity |
| Opening balance as of May 1, 2010 | 3 761 | 4 620 | 133 464 | 141 845 |
| New share issue | 1 447 | - | 237 250 | 238 697 |
| Issue expenses | - | - | -20 369 | -20 369 |
| Income for the period | - | - | -44 416 | -44 416 |
| Closing balance as of January 31, 2011 | 5 208 | 4 620 | 305 929 | 315 757 |
| Opening balance as of May 1, 2010 | 3 761 | 4 620 | 133 464 | 141 845 |
| New share issue | 1 447 | - | 237 250 | 238 697 |
| Issue expenses | - | - | -20 369 | -20 369 |
| Income for the period | - | - | -65 998 | -65 998 |
| Closing balance as of April 30, 2011 | 5 208 | 4 620 | 284 347 | 294 175 |
| Opening balance as of May 1, 2011 | 5 208 | 4 620 | 284 347 | 294 175 |
| New share issue | 516 | - | 47 484 | 48 000 |
| Issue expenses | - | - | -3 027 | -3 027 |
| Income for the period | - | - | -46 032 | -46 032 |
| Closing balance as of January 31, 2012 | 5 724 | 4 620 | 282 772 | 293 116 |
Note 1 Accounting policies
This interim report is established in accordance with IAS 34, Interim Financial Reporting and the Securities market Act. The consolidated accounts have been established in accordance with the International Financial Reporting Standards (IFRS) such as they have been adopted by the EU and interpretations by the International Financial Reporting Interpretations Committee (IFRIC) RFR 1, Complementary accounting regulations for Groups and the Annual Accounts Act. The Parent Company accounts are established in accordance with RFR 2, Accounting for legal entities and the Annual Accounts Act. The Group and Parent company accounting policies and calculation methods are unchanged compared to the ones described in the Annual Report for the fiscal year May 1 2010 – April 30 2011. The new and revised accounting policies applied by Oasmia since May 1, 2011, has not had any effect on Oasmia's financial reports. The Group currently only has one operating segment and does therefore not disclose any segment information.
Note 2 Taxes
The Group has accumulated losses carried forward amounting to TSEK 208 608 (141 302) and the Parent Company has similar amounting to TSEK 199 223 (132 337). Of the total losses carried forward for the Group, TSEK 17 881 (17 881) are restricted for use through group contributions. This limitation will end by the 2014 tax assessment. The future tax effect of these losses carried forward has not been marked with a value and no deferred tax asset has been considered in the Balance Sheet.
Note 3 Capitalized development cost
| TSEK | 2012-01-31 | 2011-01-31 | 2011-04-30 |
|---|---|---|---|
| Paclical® | 194 807 | 127 363 | 145 858 |
| Paccal® Vet | 81 051 | 79 255 | 81 051 |
| Total | 275 858 | 206 619 | 226 909 |
Note 4 Contingent liabilities and Pledged assets
The parent company has made a floating charge of MSEK 8 to a bank as security for a MSEK 5 bank overdraft and limit for a MSEK 3 exchange derivative.
Note 5 Transactions with related parties
On January 31, a credit facility of MSEK 40 was provided to Oasmia by the principal owner of the company, Alceco International SA. The interest rate on utilized credits was 6 %. See also events after closing day. As of January 31, 2012, the company had no liabilities to Alceco International S.A. No liabilities were present as of January 31, 2011.
Oasmia has made a TSEK 175 (290) group contribution to Qdoxx Pharma AB, of which TSEK 75 (80) in the third quarter. Oasmia has made a TSEK 110 (-) group contribution to GlucoGene Pharma AB, of which TSEK 110 (-) in the third quarter.
Impairments of shares in the subsidiaries has been made in the period corresponding to the group contribution, TSEK 285 (290) as the purpose of the group contributions was to cover losses in the subsidiary. The impairments are accounted for in the Parent company income statement in the item Result from participation in group companies.
Note 6 Risk factors
The Group is subjected to a number of different risks through its business. By creating awareness of the risks involved in the activities these risks can be limited, controlled and managed and at the same time as business opportunities can be utilized to increase earnings. The risks to Oasmia's business activities are described in the Annual report for the fiscal year May 1 2010 – April 30 2011. No additional risks beyond those described therein have been judged significant.
The Board of Directors and CEO of Oasmia Pharmaceutical AB ensures that this Interim report gives a correct overview of the Parent Company and Group activities, position and result and describes essential risks and uncertainty factors that the Parent Comp any and the companies that are part of the Group face.
| Uppsala March 8, 2012 | |
|---|---|
| Joel Citron, Chairman | Martin Nicklasson, Member |
| Jan Lundberg, Member | Prof. Dr. Horst Domdey, Member |
| Bo Cederstrand, Member | Julian Aleksov, Member and Chief Executive Officer |
The information in this Interim report is such that Oasmia Pharmaceutical (publ) must publish according to the code of trade in financial instruments. The information was delivered for publication on March 8, 2012 at 09.00.
This report has been prepared in both Swedish and English. In the event of any discrepancy in the content of the two versions, the Swedish version shall take precedence.
This report has not been reviewed by the company auditors.
COMPANY INFORMATION
Oasmia Pharmaceutical AB (publ) VAT-number: SE556332-667601 Seat:Stockholm
Address and telephone number to the Main Office Vallongatan 1 752 28 UPPSALA, SWEDEN +46 18 50 54 40 www.oasmia.com [email protected]
Questions concerning the report are answered by: Weine Nejdemo, CFO, +46 18 50 54 40
UPCOMING REPORT DATES
| Year-end Report May 2011 – April 2012 | 2012-06-14 |
|---|---|
| Annual Report May 2011 – April 2012 | 2012-08-23 |
| Interim Report May – July 2012 | 2012-09-06 |
About Oasmia Pharmaceutical AB
OasmiaPharmaceutical AB develops a new generation of drugs within human and veterinary oncology. The product development aims to manufacture novel formulations based on well -established cytostatics which, in comparison with current alternatives, show improved p roperties, a reduced side -effect profile and an expanded therapeutic area. The product development is based on in -house research within nanotechnology and company patents. The company share is listed at NASDAQ OMX in Stockholm and at Frankfurt Stock Exchan ge.