1st Quarter Results
Cambridge Antibody Tech Group PLC
06 February 2006
FOR IMMEDIATE RELEASE
07.00 GMT, 02.00 EST Monday 6 February 2006
For further information contact:
Cambridge Antibody Technology Weber Shandwick Square Mile (Europe)
Tel: +44 (0) 1223 471 471 Tel: +44 (0) 20 7067 0700
Peter Chambre, Chief Executive Officer Kevin Smith
John Aston, Chief Financial Officer Yvonne Alexander
Rowena Gardner, Director of Corporate Communications Rachel Taylor
BMC Communications/The Trout Group (USA)
Tel: 001 212 477 9007
Brad Miles, ext 17 (media)
Brandon Lewis, ext 15 (investors)
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
Cambridge, UK... Cambridge Antibody Technology Group plc (LSE: CAT; NASDAQ:
CATG) today announces financial results for the first quarter of its financial
year, from 1 October 2005 to 31 December 2005, and an update on business since
the Preliminary Results announcement on 28 November 2005.
Highlights:
• HUMIRA(R) sales in 2005 of US$1.4 billion; forecast of more than US$1.9 billion
sales for 2006 (Abbott) - the first product from the UK biotechnology industry
to achieve blockbuster status
• Approval for commencement of further clinical trial of CAT-354
• HGSI expects to initiate Phase III development of LymphoStat-B(TM) in 2006
• Net cash and liquid resources at 31 December 2005 of £152.2 million
Paul Nicholson, CAT's Chairman, comments: "Clear progress has been made across
our substantial pipeline in the first quarter: CAT's product candidates,
CAT-354, CAT-3888 and CAT-8015 are progressing well. Our strategic alliance with
AstraZeneca is meeting our highest expectations. Abbott continues to develop
HUMIRA as a potential treatment for new indications and has reported progress
with ABT-874. HGSI has reported progress with LymphoStat-B(TM) and HGS-ETR1."
HUMIRA(R) (adalimumab) is a fully human anti-TNF alpha monoclonal antibody,
isolated and optimised by CAT in collaboration with Abbott and now approved for
marketing as a treatment for rheumatoid arthritis (RA), early RA and psoriatic
arthritis. In January 2006, Abbott announced full year 2005 sales of HUMIRA of
US$1.4 billion, making it the first product originating in the UK biotechnology
industry to achieve "blockbuster" status (sales of over US$1 billion). Abbott
also stated that it expects worldwide sales of HUMIRA in 2006 of more than
US$1.9 billion. CAT receives royalty payments based on HUMIRA sales at the rate
of 2.688%.
In October 2005, Abbott submitted a regulatory application for HUMIRA as a
potential treatment for ankylosing spondylitis and, in January 2006, stated that
it anticipates approval in the second half of 2006. In December 2005, Abbott
submitted a new drug application for HUMIRA to treat RA in Japan.
Abbott continues to develop HUMIRA as a potential treatment for a number of
additional indications: Crohn's disease, ulcerative colitis, juvenile RA and
psoriasis. In January 2006, Abbott stated that these follow-on indications
represent a US$1-2 billion incremental peak year "sales opportunity" beyond the
base RA business.
CAT Product Candidates
CAT-354 is a fully human anti-IL13 monoclonal antibody being developed by CAT,
initially as a treatment for severe asthma. Following the completion in 2005 of
a Phase I clinical trial, CAT has recently received approval from the Medicines
and Healthcare products Regulatory Agency (MHRA) to commence a repeat-dose
safety study of CAT-354 in patients with mild/moderate asthma. The trial, which
will take place in the UK, will commence in the first quarter of calendar year
2006 and will study safety, tolerability and pharmacokinetics.
The development of CAT-3888 and CAT-8015, immunotoxins which are potential
treatments for a number of B-cell malignancies, continues as planned.
GC-1008 is a pan-specific fully human anti-TGF monoclonal antibody being
developed by CAT and Genzyme. The companies anticipate that an IND application
for a Phase I clinical trial in oncology indications will be filed in the first
quarter of calendar year 2006.
The strategic alliance with AstraZeneca continues its excellent progress, with
six active discovery programmes.
Other Licensed Product Candidates
ABT-874 is a fully human anti-IL-12 monoclonal antibody, isolated and optimised
by CAT in collaboration with Abbott and licensed to Abbott. Abbott continues to
develop ABT-874 as a potential treatment for autoimmune diseases and in January
2006, Abbott stated that it is "encouraged by the early data for the class of
molecule in both psoriasis and Crohn's disease." Also in January 2006, Abbott
stated that it "anticipates publishing data from a Phase II study in multiple
sclerosis later in the year."
LymphoStat-BTM(TM) (belimumab) is a fully human anti-BLyS monoclonal antibody,
licensed by CAT to Human Genome Sciences, Inc (HGSI). HGSI is developing
LymphoStat-B as a potential treatment for systemic lupus erythematosus (SLE) for
which HGSI has a Fast Track designation from the US Food and Drug Administration
(FDA) and RA. In January 2006, HGSI stated that, with its collaborator
GlaxoSmithKline, it expects to initiate Phase III development of LymphoStat-B in
SLE in 2006.
HGS-ETR1 (mapatumumab) is a fully human anti-TRAIL Receptor-1 monoclonal
antibody licensed by CAT to HGSI. HGSI is developing HGS-ETR1 as a potential
treatment for multiple cancer indications. In January 2006, HGSI reported that
it plans to initiate Phase II development of HGS-ETR1 in combination with
chemotherapy in hematopoietic cancers.
HGS-ETR2 is a fully human anti-TRAIL Receptor-2 monoclonal antibody licensed by
CAT to HGSI. In January 2006, HGSI stated that the results of recently completed
Phase I clinical trials warrant additional Phase II trials. It also stated that
it plans to reach "go/no go decisions" in 2006 regarding Phase II development of
HGS-ETR2 as a single agent and/or in combination with chemotherapy.
ABthrax(TM) is a fully human monoclonal antibody licensed by CAT to HGSI.
ABthrax was isolated and developed by HGSI from antibody libraries licensed from
CAT and HGSI is developing it as a potential treatment for anthrax disease. In
January 2006, HGSI stated that it is working to achieve an order from the US
Government to supply ABthrax for the US Strategic National Stockpile.
Financial Reporting
A review of the financial results for the three months ended 31 December 2005 is
set out below. For financial periods commencing on or after 1 October 2005, CAT
is producing its financial results in accordance with International Financial
Reporting Standards (IFRS) and, accordingly, has restated the comparative
figures for the three months ended 31 December 2004, previously produced in
accordance with UK GAAP. The comparative figures in brackets are the restated
figures for the corresponding period in the prior financial year (see note 2 to
the financial information for further details). Results for the year ended 30
September 2005 have also been prepared in accordance with IFRS and are included
in this statement. These are as previously presented in the 2005 Annual Report
except for a subsequent amendment to revenue and direct costs (no impact on cash
or operating loss) as detailed in note 3 to the financial information.
Financial Results
Net cash used in operating activities plus capital expenditure for the period
was £8.7 million (2004: £9.7 million), excluding certain one off cash outflows.
These were the acquisition cost of CAT-3888 and CAT-8015 from Genencor of US$14
million (£7.9 million) and a net cash outflow of £15.3 million arising from the
settlement with Abbott (2004: nil). Net cash and liquid resources at 31 December
2005 amounted to £152.2 million (30 September 2005: £175.6 million). CAT made a
profit before taxation for the three months ended 31 December 2005 of £3.0
million (2004: loss of £11.3 million).
Revenue in the period was £14.0 million (2004: £2.7 million) plus the US$255
million (£144.7 million) received from Abbott in October 2005 and paid out
immediately to CAT's licensors as a part of the litigation settlement with
Abbott in respect of HUMIRA (see note 3 for further details). The remaining
royalty balance consists of accrued royalties on sales of HUMIRA for the three
months to 31 December 2005 and an accrual for the first of five annual payments
of US$9.375 million due from Abbott in January 2006 as part of the terms of the
settlement agreement, full details of which are contained in note 4. No such
sums were recorded in the three months ended 31 December 2004. Licence fees of
£1.3 million were recognised as revenue in the period having been released from
deferred income brought forward at 30 September 2005. Clinical milestone
payments of £0.3 million were received during the quarter.
Direct costs comprise the US$255 million payment referred to above and a US$2
million accrual for the payment due to CAT's licensors out of the US$9.375
million due from Abbott.
Research and development expenses for the period were £8.9 million for the three
months ended 31 December 2005 (2004: £8.9 million). External development costs
for the three month period were £2.9 million (2004: £3.6 million), decreasing
due to lower spend on the Trabio(R) programme (terminated in March 2005) and an
increase in the reimbursement of costs received from AstraZeneca in line with
the increased activities in the alliance. Staff costs increased quarter on
quarter in line with increased staff numbers, principally due to the hiring of
former Genencor staff.
General and administration expenses decreased to £2.7 million for the three
months ended 31 December 2005 (2004: £6.3 million). Litigation expenses
decreased from £1.9 million in the three months ended 31 December 2004 to £0.1
million in the three months ended 31 December 2005, with the settlement of the
litigation with Abbott in October 2005. Included in general and administration
expenses for the three months ended 31 December 2005 is a foreign exchange
credit of £0.8 million arising from the retranslation of US dollar deposits
held; a charge of £1.1 million arose in the comparative period.
On 1 November 2005, CAT announced the acquisition of product candidates GCR-3888
and GCR-8015 from Genencor. CAT paid US$14 million on closing, 4 November 2005.
Simultaneously, Genencor subscribed US$14 million for 1,170,277 new CAT ordinary
shares. The assets acquired comprise primarily an intangible asset of US$13.9
million, reflecting the intellectual property acquired.
The increase in debtors during the three month period is due to an increase in
accrued royalty income: this increase comprises accrued royalties on sales of
HUMIRA for the three months to 31 December 2005 and the accrual for the US$9.375
million due from Abbott in January 2006 as part of the terms of the settlement
agreement. One off payments of £15.3 million, arising from the settlement with
Abbott (see note 4) were made during the quarter giving rise to the significant
decrease in current liabilities.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC
RESULTS FOR THE THREE MONTHS ENDED 31 DECEMBER 2005
This financial information has been prepared in accordance with IFRS.
Preliminary results for the year ended 30 September 2005 were prepared and
presented in accordance with IFRS in the 2005 Annual Report. Results for the
three months ended 31 December 2004 have been restated for the first time in
accordance with IFRS, having previously been presented under UK GAAP. See notes
2 and 3 for further details.
CONSOLIDATED INCOME STATEMENT
(unaudited) Three Three Three
months months Months Year
ended 31 ended 31 ended 31 ended 30
December December December September
2005 2005 2004 2005
Convenience
translation
US$'000 £'000 £'000 £'000
Revenue 24,101 14,006 2,715 49,242
Royalty buy out, settlement
with Abbott (note 3) 249,037 144,722 - -
------------------------------------------------
Total revenue 273,138 158,728 2,715 49,242
------------------------------------------------
Direct costs (2,000) (1,162) - (10,503)
Royalty buy out, settlement
with Abbott (note 3) (249,036) (144,722) - -
------------------------------------------------
Total direct costs (251,036) (145,884) - (10,503)
================================================
Gross profit 22,102 12,844 2,715 38,739
Research and development
expenses (15,377) (8,936) (8,898) (37,017)
General and administration
expenses (4,641) (2,697) (6,258) (12,375)
================================================
Operating profit/(loss) 2,084 1,211 (12,441) (10,653)
Profit on sale of available
for sale investments - - - 1,461
Investment income 3,228 1,876 1,186 7,507
Finance costs (12) (7) (14) (233)
------------------------------------------------
Profit/(loss) before tax 5,300 3,080 (11,269) (1,918)
Taxation - - - (1,047)
------------------------------------------------
Profit/(loss) for the period
attributable to equity
holders of the parent 5,300 3,080 (11,269) (2,965)
================================================
Profit/(loss) per share -
basic (pence) 5.9p (26.3)p (6.0)p
Profit per share -
diluted (pence) 5.8p
The profit/losses for all periods arise from continuing operations.
The dollar translations are solely for the convenience of the reader.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC
RESULTS FOR THE THREE MONTHS ENDED 31 DECEMBER 2005
This financial information has been prepared in accordance with IFRS.
Preliminary results for the year ended 30 September 2005 were prepared and
presented in accordance with IFRS in the 2005 Annual Report. Results for the
three months ended 31 December 2004 have been restated for the first time in
accordance with IFRS, having previously been presented under UK GAAP. See notes
2 and 3 for further details.
Consolidated Balance Sheet
(unaudited) As at 31 As at 31 As at 31 As at 30
December December December September
2005 2005 2004 2005
Convenience
translation
US$'000 £'000 £'000 £'000
Fixed assets
Intangible assets 17,955 10,434 5,570 2,581
Property, plant and
equipment 20,964 12,183 11,783 11,706
Available for sale
investments 18,295 10,632 13,175 9,729
--------------------------------------------------
57,214 33,249 30,528 24,016
Current assets
Trade and other receivables 45,07 26,192 5,094 14,566
Available for sale
investments 174,936 101,660 64,983 100,037
Cash and cash equivalents 87,174 50,659 94,482 76,378
--------------------------------------------------
307,181 178,511 164,559 190,981
--------------------------------------------------
Total assets 364,395 211,760 195,087 214,997
Liabilities
Current liabilities
Obligations under
finance leases (595) (346) (383) (405)
Overdraft (122) (71) (164) (803)
Trade and other payables (11,727) (6,815) (8,719) (22,335)
Current taxation (1,802) (1,047) - (1,047)
Deferred income (8,909) (5,177) (5,401) (4,977)
--------------------------------------------------
(23,155) (13,456) (14,667) (29,567)
Non-current liabilities
Obligations under
finance leases - - (346) (40)
Deferred income (32,210) (18,718) (19,726) (18,575)
Deferred taxation (4,214) (2,449) (3,019) (2,178)
--------------------------------------------------
(36,424) (21,167) (23,091) (20,793)
--------------------------------------------------
Total liabilities (59,579) (34,623) (37,758) (50,360)
--------------------------------------------------
Net assets 304,816 177,137 157,329 164,637
==================================================
Equity
Called-up share capital 9,117 5,298 5,145 5,164
Share premium account 534,011 310,329 301,177 301,804
Other reserves 38,723 22,503 23,384 21,742
Retained losses (277,035) (160,993) (172,377) (164,073)
--------------------------------------------------
Total equity shareholders'
funds 304,816 177,137 157,329 164,637
==================================================
The dollar translations are solely for the convenience of the reader.
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP PLC
RESULTS FOR THE THREE MONTHS ENDED 31 DECEMBER 2005
This financial information has been prepared in accordance with IFRS.
Preliminary results for the year ended 30 September 2005 were prepared and
presented in accordance with IFRS in the 2005 Annual Report. Results for the
three months ended 31 December 2004 have been restated for the first time in
accordance with IFRS, having previously been presented under UK GAAP. See notes
2 and 3 for further details.
CONSOLIDATED CASH FLOW STATEMENT
(unaudited) Three Three Three
months months Months Year
ended 31 ended 31 ended 31 ended 30
December December December September
2005 2005 2004 2005
Convenience
translation
US$'000 £'000 £'000 £'000
Net cash (used in)/provided
by operating activities (39,953) (23,218) (9,415) 6,062
Net cash (from)/used in
investing activities (17,788) (10,337) 2,735 (31,892)
------------------------------------------------
(57,742) (33,555) (6,680) (25,830)
Net cash from financing
activities 14,730 8,560 75,291 75,653
------------------------------------------------
(Decrease)/increase in cash
and cash equivalents (43,012) (24,995) 68,611 49,823
================================================
Cash and cash equivalents
at beginning of year 130,049 75,575 25,737 25,737
Effect of foreign exchange
rate changes 21 12 (32) 10
Effects of fair value movements (7) (4) 2 5
------------------------------------------------
Cash and cash equivalents at
end of period 87,051 50,588 94,318 75,575
================================================
The dollar translations are solely for the convenience of the reader.
Notes to the financial information
1. Accounting policies
For financial periods commencing on or after 1 October 2005, CAT is producing
its financial results in accordance with IFRS and, accordingly, has restated the
comparative figures for the three months ended 31 December 2004, previously
produced in accordance with UK GAAP. Preliminary results were prepared in
accordance with IFRS for the year ended 30 September 2005 and presented in the
2005 Annual Report. Except for the subsequent adjustment, detailed in note 3
below, the results for the 2005 financial year have been presented in this
financial statement on the same basis. See note 2 below for further details of
the impact of the restatement of the comparative figures.
This financial information has been prepared in accordance with the IFRS
policies expected to be in place in 2006 set out in the Annual Report for the
year ended 30 September 2005. During the year ending 30 September 2006, CAT
adopted IAS 32 (International Accounting Standard) and IAS 39 and there were no
material adjustments as a result of that adoption. The Annual Report for the
year ended 30 September 2005 sets out the UK GAAP accounting policies together
with the relevant IRFS differences.
2. Restatement of the comparative figures
Preliminary results prepared in accordance with IFRS for the year ended 30
September 2005, were presented in the 2005 Annual Report with details of the key
reconciling items. The results contained in this statement for the year ended 30
September 2005 are the same as those previously presented except for the
adjustment detailed below in note 3.
The net effect of presenting the comparative figures for the three months ended
31 December 2004 under IFRS rather than UK GAAP is to decrease the loss after
tax reported from £11.7 million to £11.3 million principally due to a foreign
exchange credit regarding the translation of overseas operations, partially
offset by an IFRS 2 share option charge for the period. Net assets increased
from £150.1 million to £157.3 million principally due to the recognition of an
unrealised holding gain arising from recording available for sale investments at
fair value as opposed to cost, as previously recorded under UK GAAP, and
decreased retained losses.
Further details of the revised accounting policies adopted in accordance with
IFRS and of the key reconciling items for the year ended 30 September 2005 are
contained within the 2005 Annual Report.
3. Results for year ended 30 September 2005
The results for the three months ended 31 December 2005 have been prepared under
IFRS. These results include as revenue and as a direct cost the US$255m received
from Abbott in October 2005 and paid out immediately to CAT's licensors as a
part of the litigation settlement with Abbott in respect of HUMIRA. Previously
this receipt and subsequent payment were accounted for in the same manner as the
remainder of the litigation settlement with Abbott, as an adjusting post balance
sheet event, and therefore included in revenue and direct costs in both the 2005
UK GAAP financial statements and the preliminary IFRS reconciliations. The 2005
Annual Report was finalised on 28 November 2005 and reported on by CAT's
auditors, Deloitte & Touche LLP (Deloitte). The 2005 Annual Report also contains
the preliminary reconciliations to IFRS, which were also reported on by
Deloitte.
Since that time, there has been continuing debate within the accounting
profession as to the interpretation of IFRS and in particular its relationship
with US GAAP and, to a lesser extent, UK GAAP. As a consequence of this debate
and after reporting on the preliminary IFRS reconciliation contained in the 2005
Annual Report, Deloitte have subsequently altered their view on the
interpretation and application of IFRS to the payments of US$255 million
received and made by CAT in October 2005 as a part of the litigation settlement
with Abbott. Deloitte's revised interpretation and application of IFRS to these
payments, contrary to the treatment endorsed in the preliminary IFRS
reconciliation contained in the 2005 Annual Report, is that they should be
treated as a non-adjusting post balance sheet event.
Under this revised interpretation and application of IFRS the payments received
from Abbott and made by CAT to its licensors should not be included as 2005
revenues and direct costs but should be treated as revenue and direct costs in
the 2006 financial year. Accordingly, these amounts will be included and treated
as revenue and as a direct cost in CAT's 2006 financial statements prepared
under IFRS.
It should be emphasised that this is simply a technical accounting adjustment,
reflecting one element of the Abbott settlement as a non-adjusting rather than
an adjusting post balance sheet event, and there are no implications for cash
flow or operating loss.
4. Settlement with Abbott
In November 2003, CAT announced that it had commenced legal proceedings against
Abbott in the High Court in London regarding the royalty rate payable on sales
of HUMIRA under a licence agreement between the parties. In October 2005, CAT
announced it had reached an agreement with Abbott regarding royalties payable to
CAT under this licence agreement.
• Abbott would pay CAT royalties at 2.688% on sales of HUMIRA from 1 January
2005. CAT would retain all of these royalties.
• CAT would retain all royalties received from Abbott in respect of sales of
HUMIRA up to 31 December 2004, net of approximately £7.6 million which
was paid to its licensors, Medical Research Council, Scripps Institute and
Stratagene.
• Abbott paid CAT the sum of US$255 million, which CAT paid to its licensors in
lieu of their entitlement to royalties arising on sales of HUMIRA from 1
January 2005 onwards. This was both received from Abbott and paid to CAT's
licensors in October 2005.
• CAT refunded to Abbott approximately £9.2 million for royalties paid in respect
of sales of HUMIRA from 1 January 2005 through to 30 June 2005.
• Abbott would pay CAT five annual payments of US$9.375 million commencing
January 2006, contingent on the continued sale of HUMIRA. From each of these
payments, CAT would pay US$2 million to its licensors.
5. Convenience translation
The consolidated financial statements are presented in Sterling. The
consolidated financial statements as of and for the period ended 31 December
2005 are also presented in US Dollars as a convenience translation. The Dollar
amounts are presented solely for the convenience of the reader and have been
calculated using an exchange rate of £1:US$1.72079, the closing rate as of 31
December 2005. No representation is made that the amounts could have been or
could be converted into US Dollars at this or any other rates.
6. Profit/(loss) per share
The loss per ordinary share and diluted loss per share are equal because share
options are only included in the calculation of diluted earnings per share if
their issue would decrease the net profit per share or increase the net loss per
share. The calculation is based on information in the table shown below.
Three Three
months months Year
ended 31 ended 31 ended 30
December December September
2005 2004 2005
Profit/(losses) (£'000) 3,080 (11,269) (2,965)
Weighted average number of shares 52,427,334 42,811,23 49,381,476
The Company had ordinary shares in issue of 52,976,075 and a total of 2,395,672
ordinary shares under option as of 31 December 2005.
7. Statement of changes in equity
Share Share Other Profit and
capital premium reserves loss reserve
£'000 £'000 £'000 £'000
Balance at 1 October 2005 5,164 301,804 21,742 (164,073)
New shares issued 134 8,525 - -
Available for sale
investments (unrealised
gain) - - 632 -
Share option charge - - 471 -
Foreign exchange - - (342) -
Retained profit for the
period - - - 3,080
---------------------------------------------------
Balance at 31
December 2005 5,298 310,329 22,503 (160,993)
===================================================
8. Revenue
Three Three Three
months months Months Year
ended 31 ended 31 ended 31 ended 30
December December December September
2005 2005 2004 2005
Convenience
translation
US$'000 £'000 £'000 £'000
Royalties (excluding buy
out) 21,229 12,337 - 40,521
Licence fees 2,203 1,280 1,212 5,168
Technical milestones - - 1,099 1,099
Clinical milestones 487 283 - 1,118
Contract research fees 33 19 223 356
Other 149 87 181 980
----------------------------------------------
24,101 14,006 2,715 49,242
----------------------------------------------
Royalty buy out 249,037 144,722 - -
----------------------------------------------
Total 273,138 158,728 2,715 49,242
==============================================
9. Reconciliation of profit/(loss) from operations to net cash from operating
activities
Three Three Three
months months Months Year
ended 31 ended 31 ended 31 ended 30
December December December September
2005 2005 2004 2005
Convenience
translation
US$'000 £'000 £'000 £'000
Operating profit/(loss) 2,084 1,211 (12,441) (10,653)
Depreciation charge 1,127 655 673 2,693
Amortisation of intangible
fixed assets 160 93 262 3,251
Profit on disposal of
fixed assets - - - (2)
Fair value movements on cash
and cash equivalents and
held to maturity investments 52 30 (19) (75)
Foreign exchange movements 449 261 (679) 24
Share based payments 810 471 415 1,742
----------------------------------------------
Operating cashflow before
movements in working capital 4,682 2,721 (11,789) (3,020)
----------------------------------------------
(Increase) in debtors (20,613) (11,979) (275) (8,871)
Increase/(decrease) in
deferred income 590 343 (683) (2,258)
(Decrease)/increase in
creditors (excluding
deferred income) (28,130) (16,347) 2,520 13,988
----------------------------------------------
Cash used in operations (43,471) (25,262) (10,227) (161)
----------------------------------------------
Interest paid (333) (194) (15) (49)
Interest received 3,852 2,238 827 6,272
----------------------------------------------
Net cash (used in)/provided
by operating activities (39,952) (23,218) (9,415) 6,062
==============================================
10. Analysis of cash flows
Three Three Three
months months Months Year
ended 31 ended 31 ended 31 ended 30
December December December September
2005 2005 2004 2005
Convenience
translation
US$'000 £'000 £'000 £'000
Net investment in
available for sale
investments (2,838) (1,649) 3,001 (32,000)
Purchases of property,
plant and equipment (1,311) (762) (266) (1,998)
Purchases of intangible
assets (13,673) (7,946) - -
Proceeds on disposal of
property, plant and
equipment 34 20 - 2
Proceeds from the sale of
fixed asset investments - - - 2,104
----------------------------------------------
Net cash (from)/used in
investing activities (17,788) (10,337) 2,735 (31,892)
----------------------------------------------
Issue of ordinary share
capital 14,900 8,659 75,382 76,028
Capital lements of finance
lease rental payments (170) (99) (91) (375)
----------------------------------------------
Net cash from financing
activities 14,730 8,560 75,291 75,653
----------------------------------------------
11. Analysis and reconciliation of net funds
1 October Fair value Exchange 31 December
2005 Cash flow movements movement 2005
£'000 £'000 £'000 £'000 £'000
Cash and cash
equivalents 76,378 (25,727) (4) 12 50,659
Overdrafts (803) 732 - - (71)
-----------------------------------------------------------------------
75,575 (24,995) (4) 12 50,588
Available for sale
investments 100,037 1,649 (26) - 101,660
-----------------------------------------------------------------------
Net cash and liquid
resources 175,612 (23,346) (30) 12 152,248
Finance leases (445) 99 - - (346)
-----------------------------------------------------------------------
Net funds 175,167 (23,247) (30) 12 151,902
=======================================================================
Financial Statements
The preceding information, comprising the Consolidated Income Statement,
Consolidated Balance Sheet, Consolidated Cash Flow Statement and associated
notes, does not constitute the Company's statutory financial statements for the
year ended 30 September 2005 within the meaning of section 240 of the Companies
Act 1985. Results for the quarterly periods ending 31 December 2005 and 31
December 2004 have not been audited. The results for the year ended 30 September
2005 as set out above have been prepared in accordance with IFRS. They are based
on the statutory financial statements for the year ended 30 September 2005
prepared under UK GAAP amended by adjustments arising from the implementation of
IFRS. The statutory financial statements, upon which the auditors reported
without qualification, will be filed with the Registrar of Companies after the
Company's Annual General Meeting.
The Annual Report, containing financial statements, for the year ended 30
September 2005 is available from our registered office:
The Company Secretary
Cambridge Antibody Technology Group plc
Milstein Building
Granta Park
Cambridge
CB1 6GH, UK
Tel: +44 (0) 1223 471471
Notes to Editors
Business:
• CAT is a biopharmaceutical company aiming to bring improvements to seriously
ill patients' lives and thereby create outstanding returns for shareholders.
CAT seeks to develop products independently and in collaboration with
partners, using its capabilities and technologies in the discovery and
development of new and innovative antibody medicines in selected therapeutic
areas. CAT also seeks to licence its technologies to enable others to develop
new medicines.
Products:
• HUMIRA(R), licensed to Abbott, is the first CAT-derived antibody to be
approved for marketing. It was isolated and optimised in collaboration with
Abbott and has been approved for marketing as a treatment for rheumatoid
arthritis (RA) in 57 countries, and for psoriatic arthritis and early RA in
some European countries and the US.
• There are six further CAT-derived antibodies licensed to partners at various
stages of clinical development: ABT-874 (Abbott), LymphoStat-B(TM), HGS-ETR1,
HGS-ETR2, ABthraxTM (all Human Genome Sciences (HGSI)) and MYO-029 (Wyeth).
CAT has also licensed its proprietary technologies and patents to several
companies. CAT's licensees include Amgen, Chugai, Dyax, Genzyme, HGSI,
Merck & Co, Micromet, Pfizer and Wyeth, and three antibody drug candidates are
in clinical development at patent licensees.
• There are three further human therapeutic product candidates in clinical
development: CAT-354 and CAT-3888, proprietary CAT products, and GC-1008, in
collaboration with Genzyme.
Collaborations:
• CAT has a broad collaboration with Genzyme for the development and
commercialisation of antibodies directed against TGF beta, a family of
proteins associated with fibrosis and scarring, and with potential application
in the treatment of some cancers.
• CAT has a major strategic alliance with AstraZeneca to discover and develop
human antibody therapeutics, principally in inflammatory disorders. This
provides CAT with the opportunity to build a substantial pipeline of antibody
therapeutics with a significant pharmaceutical partner.
• CAT has a co-development collaboration with Zenyth against GM-CSF Receptor, a
potential drug target in the development of RA.
Science:
• CAT has an advanced proprietary technology for rapidly isolating human
monoclonal antibodies using Phage Display and Ribosome Display systems. CAT
has extensive phage antibody libraries, currently incorporating more than
100 billion distinct antibodies, which form the basis for the Company's
strategy to develop a portfolio of antibody-based drugs.
Business Background:
• CAT is based near Cambridge, UK and in Palo Alto, USA. CAT currently employs
around 300 people.
• CAT is listed on the London Stock Exchange (CAT) and on NASDAQ (CATG).
• More information can be found at www.cambridgeantibody.com
Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: This press release contains statements about Cambridge Antibody
Technology Group plc ("CAT") that are forward looking statements. All statements
other than statements of historical facts included in this press release may be
forward looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. These forward looking statements are based on numerous
assumptions regarding the company's present and future business strategies and
the environment in which the company will operate in the future. Certain factors
that could cause the company's actual results, performance or achievements to
differ materially from those in the forward looking statements include: market
conditions, CAT's ability to enter into and maintain collaborative arrangements,
success of product candidates in clinical trials, regulatory developments and
competition. We caution investors not to place undue reliance on the forward
looking statements contained in this press release. These statements speak only
as of the date of this press release, and we undertake no obligation to update
or revise the statements.
This information is provided by RNS
The company news service from the London Stock Exchange
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