Interim Management Statement
04/11/2009
Farnham UK, 4 November 2009: Biocompatibles International plc (LSE:BII) is pleased to publish its Interim Management Statement (“IMS”) relating to the three month period ended 30 September 2009. The IMS covers information up to 3 November 2009.
Financial update
Sales were ahead of expectations during the period and the Company now expects full year revenue to be around the upper end of the guidance that was increased, on 26 August 2009, to £24m - £26m. This revised range reflects revenue growth of 36% to 47% on the 2008 financial year.
The Company generated £2.3m of net funds during the period closing with £31.8m as of 30 September. This was as a result of receiving the £3m milestone payment from Eisai Co. Ltd. (“Eisai”), as described below. The year end guidance for closing net funds was increased to £28m on 26 August 2009 and the Company now expects to exceed this figure.
Operational update
On 28 July 2009, the Company announced that Eisai exercised its option to license Biocompatibles’ DC Bead™ and PRECISION Bead™ products in Japan. This delivered Biocompatibles an initial up-front licence fee of £3m in September 2009, and is expected to be followed by further milestone payments based on Eisai’s achievement of various commercial and regulatory targets over the next few years. If regulatory approval is obtained, Biocompatibles will supply Eisai with manufactured products at cost and will receive a double-digit royalty on net sales.
On 7 August 2009 the Company reported the announcement made by our distribution partner for China, SciClone Pharmaceuticals, Inc., (“SciClone”) that a small local trial was required for regulatory approval in China and that SciClone now expects to receive regulatory approval for DC Bead™ in the second half of 2010. The Company had originally hoped to launch the DC Bead in China in 2009.
Commenting on the third quarter of 2009, Crispin Simon, Chief Executive of Biocompatibles said: “The Company’s operational and financial progress, reported in our Interim Results has continued in the third quarter and we are positioned well for a good second half to the year.”
Contact:
Biocompatibles +44 (0) 1252 732706
Crispin Simon, Chief Executive
Ian Ardill, Finance Director
Anna Keeble +44 (0)7879 818876
Julian Walker +44 (0)20 7357 9477
Biocompatibles International plc (www.biocompatibles.com)
Biocompatibles International plc is a leading medical technology company in the field of drug-device combination products.
The Oncology Products Division supplies medical devices from facilities in Farnham, UK and Oxford, CT. These include Drug-Eluting Bead Products which are used in more than 35 countries for the treatment of primary liver cancer (HCC), liver metastases from colorectal cancer, and other cancers; and Brachytherapy products (Radiation-Delivering Seeds) which are used in the treatment of prostate cancer. Our distribution partners include AngioDynamics Inc., Terumo Corporation and Eisai Co. Ltd. We have a clinical collaboration agreement with Bayer Healthcare Pharmaceuticals Inc.
Our Licensing Division includes CellMed, in Alzenau, Germany, which is developing a Drug-Eluting Bead product for the treatment of stroke, based on proprietary stem cell technology; a GLP-1 analogue for the treatment of diabetes and obesity partnered with AstraZeneca; and a cosmetic Dermatology Bead partnered with Merz Pharmaceuticals GmbH. We also have a PC Licensing agreement with Medtronic Inc. in the field of Drug-Eluting Stents.
This news release contains forward-looking statements that reflect Biocompatibles’ current expectation regarding future events. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including the success of Biocompatibles’ research strategy, the applicability of the discoveries made therein, the successful and timely completion of clinical studies and the uncertainties related to the regulatory and commercialisation processes.