07: Interim financial statement, first quarter 2008
May 28 2008
Announcement no. 07
Interim Financial Report for Q1 2008 for the BioPorto Group
BioPorto has decided to publish interim financial reports on a quarterly basis starting in 2008 and hereby presents the first financial report.
Summary of Q1 2008
Developments for BioPorto have been positive in the first three months of 2008 and have met the company’s expectations within most areas: licensing negotiations, patent protection and process development. Revenue growth has been lower than expected, however. (Comparative figures for Q1 2007 are shown in parentheses.)
·Revenues generated in Q1 2008 rose by 17% to T.DKK 2,221 (T.DKK 1,898).
·The quarterly results were T.DKK -4,896 (T.DKK -3,615), of which the costs for warrants issued amounted to T.DKK 813 (computed according to the Black-Scholes model).
·BioPorto’s main goals for 2008 are to achieve the best results from the ongoing negotiations for the sale of licensing rights to the company’s NGAL patent applications. The negotiations with a number of leading companies in the diagnostics industry intensified in the first quarter. BioPorto’s estimated expectations for a great market potential for NGAL as the new renal marker are now underpinned by the initiation by both BioSite and Abbott of large-scale, multicenter US studies in connection with clinical validation and application for FDA certification of their NGAL assays.
·The development of diagnostic instruments for measuring NGAL in experimental animals has resulted in a pair of antibodies specifically for NGAL from cynomolgus monkeys.
·Since the end of the first quarter, BioPorto has launched the pair of antibodies, developed in-house, targeting Monkey NGAL and thirteen new in-licensed, partly patented antibodies relevant to cancer research.
Expectations for the 2008 fiscal year
·BioPorto still anticipates that product sales will grow in 2008 by 35% to 45%, to DKK 11–12 million, not including revenues generated by license sales. The company endeavors to obtain this growth through a campaign specifically targeting the North American market in response to stiffening competition and impaired buying power caused by the downward exchange-rate trend. Revenue targets for in-licensed products and products developed in-house are still expected to be met despite minor delays in launches scheduled for Q1 2008.
·Before licensing income, the net financial result is still expected to be a loss of DKK 13–15 million, and after licensing income the financial result for the year is expected to be a profit.
·In relation to the company’s IP rights for the NGAL assay method, BioPorto expects to obtain licensing income in the form of one or more down payments. A separate announcement will be issued once the company is able to assess with greater certainty the amount of possible licensing income and the period in which it will be generated. The company has not changed its forecast that licensing income will run into the double-digit millions of DKK from 2008 and the years ahead.