TIDMGMX
RNS Number : 3799S
Reliance GeneMedix PLC
09 September 2010
FOR IMMEDIATE RELEASE
9th September 2010
Reliance GeneMedix plc
Results for the 12 month period ended 31 March 2010
Reliance GeneMedix plc ("Reliance GeneMedix" or the "Company"), the AIM listed
biopharmaceutical company, which is a subsidiary of Reliance Life Sciences Pvt.
Ltd. ("Reliance Life Sciences"), announces its results for the year ended 31
March 2010.
In accordance with AIM Rule 26, a copy of this announcement and the Annual
Report and accounts are available on the Company's website at www.genemedix.com.
ENQUIRIES:
+-----------------------------------+-----------------------------------+
| Reliance GeneMedix plc | Tel: +353 57 932 3572 |
+-----------------------------------+-----------------------------------+
| Vinay Ranade, Chief Executive | |
| Officer | |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
| Deloitte Corporate Finance | Tel: 020 7936 3000 |
+-----------------------------------+-----------------------------------+
| Jonathan Hinton, John Ball | |
+-----------------------------------+-----------------------------------+
| | |
+-----------------------------------+-----------------------------------+
| Lothbury Financial Services | Tel: 020 7868 2567 |
| Limited | |
+-----------------------------------+-----------------------------------+
| Michael Padley | |
+-----------------------------------+-----------------------------------+
Chief Executive Officer's statement
Background
Reliance GeneMedix is a globally-focused biopharmaceutical company, specialising
in the development and manufacture of high-quality, cost-effective treatments
for some of the world's most serious diseases. Since February 2007, the Company
has been a subsidiary of Reliance Life Sciences. The Company is working towards
the development, manufacture and marketing of a portfolio of biosimilar
recombinant therapeutic proteins for global markets.
Business overview
I am pleased to present the results for the financial year 2009-2010, during
which the Company reached the final phase of its development programme for its
lead product, Erythropoietin (EPO). The Company is close to completion of
clinical development and is applying to the European Medicine Agency for market
authorisation for EPO in the EU. Reliance Life Sciences continues to market EPO
in India. The Company has also obtained regulatory approval in the EU to
commence clinical trials on its second product, Granulocyte Colony Stimulating
Factor (G-CSF). The Company also continues its efforts to obtain approval for
launching EPO in other markets outside the EU.
Financial review
Operating losses of EUR2.225 million (2009: EUR4.014 million) for the period are in
line with the Company's budgets and reflect planned expenditure. The Company
continues to exercise a strict control on costs in order to conserve cash. The
Company has also been successful in containing operational costs.
During the year the Company capitalised development expenditure of EUR4.376
million (2009: EUR5.409 million) incurred on the EPO development programme.
Current assets and current liabilities are in line with the level of operations
of the Company. An amount of the development expenditure totalling EUR528,176 was
in relation to services received from related parties, namely Reliance Life
Sciences totalling EUR408,418 and Reliance Clinical Research Services Sp. z o.o.,
Poland, a subsidiary of Reliance Life Sciences, totalling EUR119,758. These
transactions have had no financial effect on the consolidated or Company
statement of comprehensive income
The independent directors of the Company, namely Dr. R. A. Mashelkar, Mr Dileep
Choksi and Mr Atul Dayal consider, having consulted with the Company's Nominated
Adviser, that the terms of the above transactions are fair and reasonable
insofar as the Company's shareholders are concerned.
In this time of difficult external financial and economic conditions, the
Company has been able to sustain its product development programmes based on the
financial support received from Reliance Life Sciences. The expenditure during
the year was financed through a loan from Reliance Life Sciences, as disclosed
in the announcement made by the Company on 24 December 2009. It is envisaged
that the future funding requirements of the Company up until the launch of EPO
in the EU will also be met through an additional loan from Reliance Life
Sciences, details of which will be announced when agreed.
I am pleased to announce that the Company is in the process of agreeing a
Controlling Shareholder Agreement with Reliance Life Sciences for the benefit of
all the Company's shareholders. An announcement will be made when this
agreement has been finalised.
Employee commitment
I would like to thank the staff of Reliance GeneMedix for their contribution to
the Company's development and manufacturing programmes and look forward to their
ongoing commitment to achieving new milestones in the coming year. The Board is
committed to talent and skill development through internal and external training
initiatives and also to rewarding employees for excellent performance.
Corporate governance
The Board has an Audit Committee, a Remuneration Committee and a Nominations
Committee with formally delegated duties and responsibilities.
The Audit Committee consists of all the independent Non-Executive Directors and
is chaired by Mr. Dileep Choksi. The Audit Committee normally meets twice a year
and has responsibility for, among other things, planning and reviewing the
annual report and accounts and interim statements and involving, where
appropriate, the auditors. The Committee also approves auditors' fees, reviews
auditor independence and focuses on compliance with legal requirements and
accounting standards. It is also responsible for ensuring that an effective
system of internal controls is maintained. The ultimate responsibility for
reviewing and approving the annual accounts and interim statement remains with
the Board.
The Remuneration Committee is made up of all the independent Non-Executive
Directors and is chaired by Dr R. A. Mashelkar. The Remuneration Committee,
which meets as required, but at least once a year, has responsibility for making
recommendations to the Board on the compensation of senior executives and
determining, within agreed terms of reference, the specific remuneration
packages for each of the Executive Directors.
The Nominations Committee comprises the Chairman and all of the independent
Non-Executive Directors and is chaired by Dr R. A. Mashelkar. The Nominations
Committee has responsibility for reviewing the size and composition of the Board
and the appointment of replacement and or additional directors and making
appropriate recommendations to the Board.
Vinay Ranade
Chief Executive Officer
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2010
+-----------------------------------------------+----------+----------+
| | Year | Year |
| | ended | ended |
| | 31 Mar | 31 Mar |
| | 2010 | 2009 |
+-----------------------------------------------+----------+----------+
| | EUR'000 | EUR'000 |
+-----------------------------------------------+----------+----------+
| | | |
| Continuing operations | | |
+-----------------------------------------------+----------+----------+
| Revenue | 410 | 608 |
+-----------------------------------------------+----------+----------+
| Cost of sales | (410) | (608) |
+-----------------------------------------------+----------+----------+
| Gross profit | - | - |
+-----------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------+----------+----------+
| Research and development costs | (170) | (423) |
+-----------------------------------------------+----------+----------+
| Administrative expenses | (2,055) | (3,591) |
+-----------------------------------------------+----------+----------+
| Operating loss | (2,225) | (4,014) |
+-----------------------------------------------+----------+----------+
| Finance income | 1 | 34 |
+-----------------------------------------------+----------+----------+
| Finance costs | (283) | (85) |
+-----------------------------------------------+----------+----------+
| Other income | 3 | - |
+-----------------------------------------------+----------+----------+
| Loss before taxation | (2,504) | (4,065) |
+-----------------------------------------------+----------+----------+
| Taxation | 960 | 1,297 |
+-----------------------------------------------+----------+----------+
| Loss for the year attributable to equity | (1,544) | (2,768) |
| holders of the parent | | |
+-----------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------+----------+----------+
| Other comprehensive income | | |
+-----------------------------------------------+----------+----------+
| Other comprehensive income for the year, net | - | - |
| of tax | | |
+-----------------------------------------------+----------+----------+
| Total comprehensive income for the year, net | (1,544) | (2,768) |
| of tax | | |
+-----------------------------------------------+----------+----------+
| | | |
+-----------------------------------------------+----------+----------+
| Loss per ordinary share | | |
+-----------------------------------------------+----------+----------+
| Basic | (0.9c) | (1.8c) |
+-----------------------------------------------+----------+----------+
| Diluted | (0.9c) | (1.8c) |
+-----------------------------------------------+----------+----------+
Consolidated Statement of Financial Position
As at 31 March 2010
+---------------------------------------------+----------+----------+
| | 31 Mar | 31 Mar |
| | 2010 | 2009 |
+---------------------------------------------+----------+----------+
| | EUR'000 | EUR'000 |
+---------------------------------------------+----------+----------+
| ASSETS | | |
+---------------------------------------------+----------+----------+
| Non-current assets | | |
+---------------------------------------------+----------+----------+
| Intangible assets | 12,620 | 8,246 |
+---------------------------------------------+----------+----------+
| Property, plant and equipment | 2,571 | 3,521 |
+---------------------------------------------+----------+----------+
| Investment at cost | 10 | 10 |
+---------------------------------------------+----------+----------+
| Deferred tax asset | 2,690 | 1,730 |
+---------------------------------------------+----------+----------+
| | 17,891 | 13,507 |
+---------------------------------------------+----------+----------+
| Current assets | | |
+---------------------------------------------+----------+----------+
| Inventories | 345 | 647 |
+---------------------------------------------+----------+----------+
| Trade and other receivables | 238 | 768 |
+---------------------------------------------+----------+----------+
| Restricted cash | 184 | 176 |
+---------------------------------------------+----------+----------+
| Cash and cash equivalents | 134 | 169 |
+---------------------------------------------+----------+----------+
| | 901 | 1,760 |
+---------------------------------------------+----------+----------+
| LIABILITIES | | |
+---------------------------------------------+----------+----------+
| Current liabilities | | |
+---------------------------------------------+----------+----------+
| Trade and other payables | (1,819) | (2,512) |
+---------------------------------------------+----------+----------+
| Borrowings | (1,080) | (1,032) |
+---------------------------------------------+----------+----------+
| | (2,899) | (3,544) |
+---------------------------------------------+----------+----------+
| Net current liabilities | (1,998) | (1,784) |
+---------------------------------------------+----------+----------+
| Total assets less current liabilities | 15,893 | 11,723 |
+---------------------------------------------+----------+----------+
| Non-current liabilities | | |
+---------------------------------------------+----------+----------+
| Trade and other payables | (229) | - |
+---------------------------------------------+----------+----------+
| Borrowings | (5,485) | - |
+---------------------------------------------+----------+----------+
| | (5,714) | - |
+---------------------------------------------+----------+----------+
| Net assets | 10,179 | 11,723 |
+---------------------------------------------+----------+----------+
| Shareholders' equity | | |
+---------------------------------------------+----------+----------+
| Share capital | 26,412 | 22,305 |
+---------------------------------------------+----------+----------+
| Share premium | 41,601 | 39,538 |
+---------------------------------------------+----------+----------+
| Shares to be issued | - | 5,134 |
+---------------------------------------------+----------+----------+
| Other reserves | 2,941 | 3,977 |
+---------------------------------------------+----------+----------+
| Retained losses | (60,775) | (59,231) |
+---------------------------------------------+----------+----------+
| Total equity attributable to equity holders | 10,179 | 11,723 |
| of the parent | | |
+---------------------------------------------+----------+----------+
Company Statement of Financial Position
As at 31 March 2010
+---------------------------------------------+----------+----------+
| | 31 Mar | 31 Mar |
| | 2010 | 2009 |
+---------------------------------------------+----------+----------+
| | EUR'000 | EUR'000 |
+---------------------------------------------+----------+----------+
| ASSETS | | |
+---------------------------------------------+----------+----------+
| Non-current assets | | |
+---------------------------------------------+----------+----------+
| Intangible assets | 12,620 | 8,246 |
+---------------------------------------------+----------+----------+
| Property, plant and equipment | 2,571 | 3,521 |
+---------------------------------------------+----------+----------+
| Investment at cost | 10 | 10 |
+---------------------------------------------+----------+----------+
| Deferred tax assets | 2,690 | 1,730 |
+---------------------------------------------+----------+----------+
| | 17,891 | 13,507 |
+---------------------------------------------+----------+----------+
| Current assets | | |
+---------------------------------------------+----------+----------+
| Inventories | 345 | 647 |
+---------------------------------------------+----------+----------+
| Trade and other receivables | 238 | 768 |
+---------------------------------------------+----------+----------+
| Restricted cash | 184 | 176 |
+---------------------------------------------+----------+----------+
| Cash and cash equivalents | 134 | 169 |
+---------------------------------------------+----------+----------+
| | 901 | 1,760 |
+---------------------------------------------+----------+----------+
| LIABILITIES | | |
+---------------------------------------------+----------+----------+
| Current liabilities | | |
+---------------------------------------------+----------+----------+
| Trade and other payables | (1,819) | (2,327) |
+---------------------------------------------+----------+----------+
| Borrowings | (1,080) | (1,217) |
+---------------------------------------------+----------+----------+
| | (2,899) | (3,544) |
+---------------------------------------------+----------+----------+
| Net current liabilities | (1,998) | (1,784) |
+---------------------------------------------+----------+----------+
| Total assets less current liabilities | 15,893 | 11,723 |
+---------------------------------------------+----------+----------+
| Non-current liabilities | | |
+---------------------------------------------+----------+----------+
| Trade and other payables | (229) | - |
+---------------------------------------------+----------+----------+
| Borrowings | (5,485) | - |
+---------------------------------------------+----------+----------+
| | (5,714) | - |
+---------------------------------------------+----------+----------+
| Net assets | 10,179 | 11,723 |
+---------------------------------------------+----------+----------+
| Shareholders' equity | | |
+---------------------------------------------+----------+----------+
| Share capital | 26,412 | 22,305 |
+---------------------------------------------+----------+----------+
| Share premium | 41,601 | 39,538 |
+---------------------------------------------+----------+----------+
| Shares to be issued | - | 5,134 |
+---------------------------------------------+----------+----------+
| Other reserves | 2,941 | 3,977 |
+---------------------------------------------+----------+----------+
| Retained losses | (60,775) | (59,231) |
+---------------------------------------------+----------+----------+
| Total equity attributable to equity holders | 10,179 | 11,723 |
| of the parent | | |
+---------------------------------------------+----------+----------+
Consolidated Statement of Changes in Equity
For the year ended 31 March 2010
+------------------------+---------+---------+---------+----------+----------+---------+
| | Share | Share | Shares | Other | Retained | |
| | capital | premium | to be | reserves | losses | Total |
| | | | issued | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | |
| | | | | | | EUR'000 |
+------------------------+---------+---------+---------+----------+----------+---------+
| Balance at 01 Apr 2008 | 22,305 | 39,538 | - | 3,977 | (56,464) | 9,356 |
+------------------------+---------+---------+---------+----------+----------+---------+
| Loss for the year | - | - | - | - | (2,768) | (2,768) |
+------------------------+---------+---------+---------+----------+----------+---------+
| Receipts for new | - | - | 5,134 | - | - | 5,134 |
| shares to be issued | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| Share-based payment | - | - | - | - | 1 | 1 |
+------------------------+---------+---------+---------+----------+----------+---------+
| | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| Balance at 31 Mar 2009 | 22,305 | 39,538 | 5,134 | 3,977 | (59,231) | 11,723 |
+------------------------+---------+---------+---------+----------+----------+---------+
| Loss for the year | - | - | - | - | (1,544) | (1,544) |
+------------------------+---------+---------+---------+----------+----------+---------+
| Shares issued for cash | 4,107 | 1,027 | (5,134) | - | - | - |
| consideration | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| Warrant reserve | | | | | | |
| transfer on shares | - | 1,036 | - | (1,036) | - | - |
| issued | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| Balance at 31 Mar 2010 | 26,412 | 41,601 | - | 2,941 | (60,775) | 10,179 |
+------------------------+---------+---------+---------+----------+----------+---------+
| | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
Company Statement of Changes in Equity
For the year ended 31 March 2010
+------------------------+---------+---------+---------+----------+----------+---------+
| | Share | Share | Shares | Other | Retained | |
| | capital | premium | to be | reserves | losses | Total |
| | | | issued | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+------------------------+---------+---------+---------+----------+----------+---------+
| Balance at 01 Apr 2008 | 22,305 | 39,538 | - | 3,977 | (56,464) | 9,356 |
+------------------------+---------+---------+---------+----------+----------+---------+
| Loss for the year | - | - | - | - | (2,768) | (2,768) |
+------------------------+---------+---------+---------+----------+----------+---------+
| Receipts for new | - | - | 5,134 | - | - | 5,134 |
| shares to be issued | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| Share-based payment | - | - | - | - | 1 | 1 |
+------------------------+---------+---------+---------+----------+----------+---------+
| | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| Balance at 31 Mar 2009 | 22,305 | 39,538 | 5,134 | 3,977 | (59,231) | 11,723 |
+------------------------+---------+---------+---------+----------+----------+---------+
| Loss for the year | - | - | - | - | (1,544) | (1,544) |
+------------------------+---------+---------+---------+----------+----------+---------+
| Shares issued for cash | 4,107 | 1,027 | (5,134) | - | - | - |
| consideration | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| Warrant reserve | | | | | | |
| transfer on shares | - | 1,036 | - | (1,036) | - | - |
| issued | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
| Balance at 31 Mar 2010 | 26,412 | 41,601 | - | 2,941 | (60,775) | 10,179 |
+------------------------+---------+---------+---------+----------+----------+---------+
| | | | | | | |
+------------------------+---------+---------+---------+----------+----------+---------+
Consolidated Cash Flow Statement
For the year ended 31 March 2010
+---------------------------------------------+----------+----------+
| | Year | Year |
| | ended | ended |
| | 31 Mar | 31 Mar |
| | 2010 | 2009 |
+---------------------------------------------+----------+----------+
| | EUR'000 | EUR'000 |
+---------------------------------------------+----------+----------+
| Cash flow from operating activities | | |
+---------------------------------------------+----------+----------+
| Cash used in operating activities | (1,292) | (2,506) |
+---------------------------------------------+----------+----------+
| Interest paid | - | (1) |
+---------------------------------------------+----------+----------+
| Net cash used in operations | (1,292) | (2,507) |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Cash flows from investing activities: | | |
+---------------------------------------------+----------+----------+
| Payments for plant and equipment | (62) | (319) |
+---------------------------------------------+----------+----------+
| Receipt for plant and equipment | 24 | - |
+---------------------------------------------+----------+----------+
| Payments for intangible assets | (4,376) | (5,409) |
+---------------------------------------------+----------+----------+
| Interest received | 1 | 70 |
+---------------------------------------------+----------+----------+
| Proceeds from disposal of subsidiary | 191 | - |
+---------------------------------------------+----------+----------+
| (increase)/decrease in restricted cash | (8) | 27 |
+---------------------------------------------+----------+----------+
| Net cash flows used in from investing | (4,230) | (5,631) |
| activities | | |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Cash flows from financing activities: | | |
+---------------------------------------------+----------+----------+
| Proceeds from exercising share warrants | - | 5,134 |
| (shares to be issued) | | |
+---------------------------------------------+----------+----------+
| Proceeds for borrowings | 5,485 | - |
+---------------------------------------------+----------+----------+
| | 5,485 | 5,134 |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Net decrease in cash and cash equivalents | (37) | (3,004) |
+---------------------------------------------+----------+----------+
| Cash and cash equivalents at the beginning | 169 | 3,309 |
| of year | | |
+---------------------------------------------+----------+----------+
| Net currency translation effect | 2 | (136) |
+---------------------------------------------+----------+----------+
| Cash and cash equivalents | 134 | 169 |
+---------------------------------------------+----------+----------+
Company Cash Flow Statement
For the year ended 31 March 2010
+---------------------------------------------+----------+----------+
| | Year | Year |
| | ended | ended |
| | 31 Mar | 31 Mar |
| | 2010 | 2009 |
+---------------------------------------------+----------+----------+
| | EUR'000 | EUR'000 |
+---------------------------------------------+----------+----------+
| Cash flow from operating activities | | |
+---------------------------------------------+----------+----------+
| Cash used in operating activities | (1,292) | (2,506) |
+---------------------------------------------+----------+----------+
| Interest paid | - | (1) |
+---------------------------------------------+----------+----------+
| Net cash used in operations | (1,292) | (2,507) |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Cash flows from investing activities: | | |
+---------------------------------------------+----------+----------+
| Payments for plant and equipment | (62) | (319) |
+---------------------------------------------+----------+----------+
| Receipt for plant and equipment | 24 | - |
+---------------------------------------------+----------+----------+
| Payments for intangible assets | (4,376) | (5,409) |
+---------------------------------------------+----------+----------+
| Interest received | 1 | 70 |
+---------------------------------------------+----------+----------+
| Proceeds from disposal of subsidiary | 191 | - |
+---------------------------------------------+----------+----------+
| (Increase)/decrease in restricted cash | (8) | 27 |
+---------------------------------------------+----------+----------+
| Net cash flows used in from investing | (4,230) | (5,631) |
| activities | | |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Cash flows from financing activities: | | |
+---------------------------------------------+----------+----------+
| Proceeds from exercising share warrants | - | 5,134 |
| (shares to be issued) | | |
+---------------------------------------------+----------+----------+
| Proceeds for borrowings | 5,485 | - |
+---------------------------------------------+----------+----------+
| | 5,485 | 5,134 |
+---------------------------------------------+----------+----------+
| | | |
+---------------------------------------------+----------+----------+
| Net decrease in cash and cash equivalents | (37) | (3,004) |
+---------------------------------------------+----------+----------+
| Cash and cash equivalents at the beginning | 169 | 3,309 |
| of year | | |
+---------------------------------------------+----------+----------+
| Net currency translation effect | 2 | (136) |
+---------------------------------------------+----------+----------+
| Cash and cash equivalents | 134 | 169 |
+---------------------------------------------+----------+----------+
The Company announces that it is posting to shareholders a letter informing them
about the Annual General Meeting. AGM Notice and Form of Proxy are available on
the Company's website at: www.genemedix.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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