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FOR IMMEDIATE RELEASE                                                                                                     23 December 2008

Reliance GeneMedix plc

Results for the 6 month period ended 30 September 2008

Reliance GeneMedix plc (the 'Company'), the AIM listed biopharmaceutical company, which is part of the Reliance Life Sciences Group ('RLS'), announces its unaudited interim results for the 6 month period ended 30 September 2008.

Highlights

• Progress of EPO clinical trials in the EU on track 

• EPO marketed and launched in India 

• Receipt of G-CSF clinical manufacturing licence in the EU

• Change of name to Reliance GeneMedix plc

• Results in line with budget

Vinay Ranade, CEO of Reliance GeneMedix plc, commented:

'The commercial benefits of the relationship with RLS are already apparent.  EPO has been successfully launched in India and G-CSF, a product originally developed by RLS, is being developed for the European market.'  

ENQUIRIES:

Reliance GeneMedix plc                        Tel: +353 57 932 3572

Vinay Ranade, Chief Executive Officer

Deloitte Corporate Finance                    Tel: +44 (0)20 7936 3000

Jonathan Hinton, John Ball 

Lothbury Financial                                   Tel: +44 (0)20 7011 9411

Michael Padley, Louise Davis

  Chief Executive Officer's Report

We are pleased to present the results for the six month period ended 30 September 2008 during which the Company has advanced the development programmes of both of its biosimilar products in the EU, namely Erythropoietin (EPO) and Granulocyte Colony Stimulating Factor (G-CSF). 

Business overview

EPO clinical studies in the EU are progressing according to plan and timetable. The Company is continuing to work on various validation studies to meet regulatory requirements in the EU and to develop further and strengthen its production techniques and processes.

During the period, the Company obtained a manufacturing licence from the Irish Medicines Board for clinical lots of G-CSF. The Company has also finalised its strategy for the development programme of G-CSF in order to manufacture clinical lots and initiate clinical development in the EU in the coming year.  G-CSF would be our second biosimilar product.

The commercial benefits of the relationship with RLS are already becoming apparent:  EPO has been launched in the Indian market and has received a positive response and the Company has already started to develop G-CSF in the EU. G-CSF was originally developed by RLS.

Financial review

Operating losses of Euro 2.05 million for the period are in line with the Company's expectations and reflect the planned levels of expenditure.  The Company recorded, though on a modest scale, its first revenues through the sale of EPO in the Indian market.

The Company has capitalised development expenditure of Euro 3.51 million, which was incurred during the period on the EPO development programme.  The level of current assets and liabilities is in line with our expectation and the current activities of the Company.

The entire operational expenditure during the period continued to be financed through the investment from RLS.  

  Consolidated Income Statement

For the six months ended 30 September 2008

	Notes	6 months ended 30 September 2008	6 months ended 30 September 2007	Year ended 31 March 2008
		Unaudited €’000	Unaudited €’000	Audited €’000
Revenue	5	235	-	-
Cost of sales		(235)	-	-
		__________	__________	__________
Gross profit		-	-	-
		__________	__________	__________
Research and development	6	(16)	(3,241)	(3,298)
Administrative expenses		(2,004)	(1,844)	(4,221)
		__________	__________	__________
Total operating expenses		(2,020)	(5,085)	(7,519)
		__________	__________	__________
Operating loss		(2,020)	(5,085)	(7,519)
Finance income		31	284	477
Finance costs		(64)	(42)	(142)
Other income		-	-	58
		__________	__________	__________
Loss before taxation		(2,053)	(4,843)	(7,126)
Taxation		-	-	-
		__________	__________	__________
Loss for the period		(2,053)	(4,843)	(7,126)
		__________	__________	__________
Loss per share – basic and diluted	8	(1.3c)	(3.1c)	(4.6c)
		__________	__________	__________

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheet

As at 30 September 2008

	Notes	30 September  2008	30 September 2007	31 March 2008
		Unaudited €’000	Unaudited €’000	Audited €’000
ASSETS
Non-current assets
Intangible assets		6,351	563	2,840
Property, plant and equipment		3,921	4,493	4,202
Investment at cost		10	-	10
		________	________	________
		10,282	5,056	7,052
		________	________	________
Current assets
Inventories		666	325	520
Other receivables		827	1,287	1,253
Restricted cash		204	179	203
Cash and cash equivalents		285	9,038	3,303
		________	________	________
		1,982	10,829	5,279
		________	________	________
LIABILITIES
Current liabilities
Trade and other payables		(2,163)	(2,642)	(2,106)
Borrowings		(1,453)	-	(1,329)
		________	________	________
		(3,616)	(2,642)	(3,435)
		________	________	________
Net current (liabilities)/assets		(1,634)	8,187	1,844
		________	________	________
Total assets less current liabilities		8,648	13,243	8,896
		________	________	________
Non-current liabilities
Borrowings		-	(1,394)	-
		________	________	________
		-	(1,394)	-
		________	________	________
Net assets		8,648	11,849	8,896
		________	________	________
Shareholders’ equity
Share capital		22,305	22,305	22,305
Shares to be issued	9	1,798	-	-
Share premium		39,538	39,538	39,538
Other reserves		3,963	4,620	3,957
Retained losses		(58,956)	(54,614)	(56,904)
		________	________	________
Total shareholders’ equity		8,648	11,849	8,896
		________	________	________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Cash Flow Statement

For the six months ended 30 September 2008

	Notes	6 months to 30 September  2008	6 months to 30 September 2007	Year to 31 March 2008
		Unaudited €’000	Unaudited €’000	Audited €’000
Cash flows from operating activities
Cash used in operations	7	(1,138)	(4,716)	(7,407)
Interest paid		(36)	(3)	(4)
		________	________	________
Net cash flows used in operating activities		(1,174)	(4,719)	(7,411)
		________	________	________
Cash flows from investing activities
Purchase of plant and equipment		(214)	(238)	(431)
Purchase of intangible assets		(3,511)	(530)	(2,809)
Interest received		64	294	493
Proceeds from disposal of subsidiary		-	1,114	1,114
Payments for investments		-	-	(10)
Increase in restricted cash		(1)	-	(23)
		________	________	________
Net cash flows (used in)/generated from investing activities		(3,662)	640	(1,666)
		________	________	________
Cash flows from financing activities
Proceeds from share warrant		1,798	-	-
		________	________	________
Cash flows generated from financing activities		1,798	-	-
		________	________	________
Net decrease in cash and cash equivalents		(3,038)	(4,079)	(9,077)
Cash and cash equivalent at start of period		3,303	13,115	13,115
Exchange gain/(loss)		20	2	(735)
		________	________	________
Cash and cash equivalents		285	9,038	3,303
		________	________	________

  Consolidated Statement of Changes in Equity

For the six months ended 30 September 2008

				Other reserves
	Share capital	Share premium	Shares to be issued	Warranty reserve	Capital reserve	Cumulative translation reserve	Retained loss	Total
	€’000	€’000	€’000	€’000	€’000	€’000	€’000	€’000
Balance at 1 Apr 2007	22,305	39,538	-	4,183	437	-	(49,785)	16,678
Loss for the period	-	-	-	-	-	-	(4,843)	(4,843)
Share option charge	-	-	-	-	-	-	14	14
	______	______	______	______	______	______	______	______
Balance at 30 Sep 2007	22,305	39,538	-	4,183	437	-	(54,614)	11,849
	______	______	______	______	______	______	______	______
Loss for the period	-	-	-	-	-	-	(2,283)	(2,283)
Currency translation difference	-	-	-	-	-	(663)	-	(663)
Share option charge	-	-	-	-	-	-	(7)	(7)
	______	______	______	______	______	______	______	______
Balance at 31 Mar 2008	22,305	39,538	-	4,183	437	(663)	(56,904)	8,896
	______	______	______	______	______	______	______	______
Loss for the period	-	-	-	-	-	-	(2,053)	(2,053)
Currency translation difference	-	-	-	-	-	6	-	6
Shares in respect of share warrant	-	-	1,798	-	-	-	-	1,798
Share-based payment	-	-	-	-	-	-	1	1
	______	______	______	______	________	______	______	______
Balance at 30 Sep 2008	22,305	39,538	1,798	4,183	437	(657)	(58,956)	8,648
	______	______	______	______	________	______	______	______

 

	UK			Ireland			Total
	_________________________			________________________			________________________
	6 months to 30 Sep 2008	6 months to 30 Sep 2007	Year to   31 Mar 2008	6 months to 30 Sep 2008	6 months to 30 Sep 2007	Year to 31 Mar 2008	6 months to 30 Sep 2008	6 months to 30 Sep 2007	Year  to 31 Mar 2008
	€’000	€’000	€’000	€’000	€’000	€’000	€’000	€’000	€’000
Revenue	-	-	-	235	-	-	235	-	-
Cost of sales	-	-	-	(235)	-	-	(235)	-	-
	______	______	______	______	______	________	______	______	______
Gross profit	-	-	-	-	-	-	-	-	-
Research & Development costs	(16)	(1,419)	(1,476)	-	(1,822)	(1,822)	(16)	(3,241)	(3,298)
Administrative expenses	(188)	(750)	(1,545)	(1,816)	(1,094)	(2,676)	(2,004)	(1,844)	(4,221)
	______	______	______	______	______	________	______	______	______
Total operating loss	(204)	(2,169)	(3,021)	(1,816)	(2,916)	(4,498)	(2,020)	(5,085)	(7,519)
Finance income	31	284	477	-	-	-	31	284	477
Finance costs	(64)	(45)	(145)	-	3	3	(64)	(42)	(142)
Other income	-	-	58	-	-	-	-	-	58
	______	______	______	______	______	________	______	______	______
Segment loss before & after tax	(237)	(1,930)	(2,631)	(1,816)	(2,913)	(4,495)	(2,053)	(4,843)	(7,126)
	______	______	______	______	______	________	______	______	______
Other information
Depreciation	35	53	120	460	431	859	495	484	979
Amortisation	-	2	3	-	-	-	-	2	3
Impairment	-	69	69	-	-	-	-	69	69
	______	______	______	______	______	________	______	______	______
Balance Sheet
Total assets	1,273	10,917	4,999	10,991	4,968	7,332	12,264	15,885	12,331
Total liabilities	1,175	3,150	1,940	2,441	886	1,495	3,616	4,036	3,435
Capital Expenditure	-	113	232	3,725	655	3,008	3,725	768	3,240
	______	______	______	______	______	________	______	______	______

		6 months to 30 September  2008	6 months to 30 September 2007	Year to 31 March 2008
		Unaudited €’000	Unaudited €’000	Audited €’000
Gross research and development spend		3,527	3,771	6,107
Deduct: capitalised development costs		(3,511)	(530)	(2,809)
		________	________	________
Research and development costs expensed		16	3,241	3,298
		________	________	________

		6 months to 30 September  2008	6 months to 30 September 2007	Year to 31 March 2008
		Unaudited €’000	Unaudited €’000	Audited €’000
Loss for the period		(2,053)	(4,843)	(7,126)
Adjustments for:
- Finance income		(31)	(284)	(477)
- Finance costs		64	42	142
- Other income		-	-	(58)
- Depreciation of property, plant and equipment		495	484	979
- Impairment of acquired intellectual property rights		-	69	69
- Amortisation of intangible assets		-	2	3
- Share option charges		1	14	7
		________	________	________
Operating cash flows before movement in working capital		(1,524)	(4,516)	(6,461)
Increase in inventories		(145)	(139)	(335)
Decrease/(increase) in debtors		378	(138)	12
Increase/(decrease) in creditors		153	77	(623)
		________	________	________
Cash used in operations		(1,138)	(4,716)	(7,407)
		________	________	________

		6 months to 30 September 2008	6 months to 30 September 2007	Year to 31 March 2008
Loss for the period (€’000)		(2,053)	(4,843)	(7,126)
Weighted average number of shares (‘000)		155,718	155,718	155,718
		__________	__________	__________
Loss per share – basic and diluted		(1.3c)	(3.1c)	(4.6c)
		__________	__________	__________

 

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