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Biotec Pharmacon ASA (OSL:BIOTEC) (Tromsø/Oslo 30 October 2008) The bio-pharmaceutical company Biotec Pharmacon has now included more than 75 percent of the patients in the first of two phase III-studies with SBG for diabetic ulcers, and in October included the first patients in the first of two phase III-studies with SBG for oral mucositis. The company expects to commence patient enrolments in two further phase III-studies in the fourth quarter, and maintains its objective to apply for marketing authorizations in Europe mid-2010.
Increased clinical activity generated R&D costs of NOK 15.5 million including depreciation in the third quarter 2008 (5.5), and a further cost increase is expected in the fourth quarter. Overall, the company expects R&D costs of approximately NOK 75 million in 2008, which is in the low end of the previously announced cost range. The company's pharmaceutical activities are not yet in a commercial phase, and do not generate any sales revenue.
Biotec Pharmacon in the third quarter divested its activities within Animal Health, which was one of three non-pharmaceutical business areas. The divestment generated net cash proceeds of NOK 34.6 million and a divestment gain of NOK 32.6 million before tax.
The company achieved revenue of NOK 13.1 million in the continuing non-pharmaceutical operation within Consumer Health and Marine Biochemicals in the third quarter (11.2). Further revenue increase is expected for the continuing non-pharmaceutical operation also in the fourth quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) was NOK 1.2 million (-0.2) in the non-pharmaceutical operations, and the EBIT NOK 0.7 million (-0.7).
Overall, the continuing operation in Biotec Pharmacon had an EBIT of NOK -19.0 million in the third quarter (-9.1), and a result before tax of NOK 17.4 million (-7.1).
Result after tax was NOK -13.2 million in the continuing operation in the third quarter (-5.5), whereas result after tax in the divested operation was NOK 26.8 million (1.2). The net result for the Group was thus NOK 13.6 million (-4.3).
Biotec Pharmacon had holding of cash and cash equivalents of NOK 152.1 million at the end of the third quarter, up from NOK 129.2 million at the end of the first half year. The increase reflects the divestment of the Animal Health activities, which more than compensated for negative cash flow related to the R&D activities.
Please find attached the full interim report for the third quarter 2008.
For further information, please contact: CEO Lars Viksmoen, mobile: +47 40 62 08 70 Acting CFO Jørn Lunde, mobile: +47 90 73 34 86
The full interim report for the third quarter 2008 is also available on www.newsweb.no and on www.biotec.no. The company also hosts a presentation of the interim results at 09:00 at Vika Atrium Konferansesenter (Thon Conference Vika Atrium), Munkedamsveien 45, Oslo. The presentation will also be available on www.newsweb.no and on www.biotec.no.
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