TIDMGMX
RNS Number : 3953N
Reliance GeneMedix PLC
01 September 2011
FOR IMMEDIATE RELEASE 1 September 2011
Reliance GeneMedix plc
Results for the 12 month period ended 31 March 2011
Results
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 2011.
Related party transactions
Note 1 to the results describes the related party transactions
that have occurred during the year. 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 these related party transactions are
fair and reasonable insofar as the Company's shareholders are
concerned.
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 Limited Tel: 020 7868 2567
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
part of the Reliance Life Sciences Group of companies. Reliance
GeneMedix 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 2010
- 2011, during which the Company applied to the European Medicines
Agency ('EMA') for market authorisation for its lead product
Erythropoietin ('EPO') in the EU. The Company withdrew its
application based on initial feedback and additional data
requirement indicated by EMA. The Company has sought scientific
advice from EMA to validate its revised EPO development programme,
which it expects to receive later in 2011. Based on the scientific
advice from EMA, the Company intends to complete the development
programme and reapply for market authorisation in the EU. The
Company expects to be in a position to re-apply to EMA in the
financial year 2012-2013.
The Company concurrently is working on aspects of its
manufacturing and clinical development programme. The Company
continues to market EPO in India through Reliance Life Sciences and
is continuing its efforts to obtain approval for launching EPO in
other markets.
Financial review
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 which has confirmed its continuing financial
support of the Company's development programme. The Company has
also been successful in containing operational costs.
Operating losses of EUR 2.137 million (2010: EUR 2.225 million)
for the year are in line with the budget and indicates planned
expenditure. The Company is exercising strict financial discipline
and cost control in order to run its operations and development
programmes efficiently.
The Company has capitalised development expenditure of EUR 2.615
million (2010: EUR 4.376 million) incurred on the EPO development
programme, post the receipt of clinical trial approval. The board
has concluded that capitalisation of EPO development costs remains
appropriate and in accordance with the criteria of IAS 38 despite
the need to revise the content of the EPO development programme as
referred to above. Current assets and current liabilities are in
line with the level of operations of the Company.
The expenditure during the year was financed through a loan from
Reliance Life Sciences and this will also cover 2011-2012 funding
requirements.
Employee commitment
I would like to thank the staff of the Company for their
dedication and commitment to the development and manufacturing
programmes and look forward to their ongoing commitment for the
coming year. The Board is committed to talent and skill development
through internal and external training initiatives and also to
reward employees for excellent performance.
Corporate governance
The Board has established an Audit Committee, Remuneration
Committee and 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 2011
Year Year
ended ended
31 Mar 2011 31 Mar 2010
EUR'000 EUR'000
Continuing operations
Revenue 578 410
Cost of sales (578) (410)
------------ ------------
Gross profit - -
Research and development costs (34) (170)
Administrative expenses (2,103) (2,055)
------------ ------------
Operating loss (2,137) (2,225)
Finance income 0 1
Finance costs (591) (283)
Other income - 3
------------ ------------
Loss before taxation (2,728) (2,504)
Taxation (203) 960
Loss for the year attributable to equity holders
of the parent (2,931) (1,544)
------------ ------------
Other comprehensive income
Other comprehensive income for the year, net
of tax - -
------------ ------------
Total comprehensive income for the year, net
of tax (2,931) (1,544)
------------ ------------
Loss per ordinary share
Basic (1.5c) (0.9c)
------------ ------------
Diluted (1.5c) (0.9c)
------------ ------------
Consolidated Statement of Financial Position
As at 31 March 2011
31 Mar 2011 31 Mar 2010
EUR'000 EUR'000
ASSETS
Non-current assets
Intangible assets 15,233 12,620
Property, plant and equipment 1,678 2,571
Investment at cost 10 10
Deferred tax asset 2,487 2,690
----------- -----------
19,408 17,891
----------- -----------
Current assets
Inventories 299 345
Trade and other receivables 829 238
Restricted cash 186 184
Cash and cash equivalents 5 134
----------- -----------
1,319 901
----------- -----------
LIABILITIES
Current liabilities
Trade and other payables (2,047) (1,819)
Borrowings (4,365) (1,080)
----------- -----------
(6,412) (2,899)
----------- -----------
Net current liabilities (5,093) (1,998)
----------- -----------
Total assets less current liabilities 14,315 15,893
----------- -----------
Non-current liabilities
Trade and other payables (511) (229)
Borrowings (6,556) (5,485)
----------- -----------
(7,067) (5,714)
----------- -----------
Net assets 7,248 10,179
----------- -----------
Shareholders' equity
Share capital 26,412 26,412
Share premium 41,601 41,601
Shares to be issued - -
Other reserves 2,941 2,941
Retained losses (63,706) (60,775)
----------- -----------
Total equity attributable to equity holders
of the parent 7,248 10,179
----------- -----------
Company Statement of Financial Position
As at 31 March 2011
31 Mar 2011 31 Mar 2010
EUR'000 EUR'000
ASSETS
Non-current assets
Intangible assets 15,233 12,620
Property, plant and equipment 1,678 2,571
Investment at cost 10 10
Deferred tax assets 2,487 2,690
----------- -----------
19,408 17,891
----------- -----------
Current assets
Inventories 299 345
Trade and other receivables 829 238
Restricted cash 186 184
Cash and cash equivalents 5 134
----------- -----------
1,319 901
----------- -----------
LIABILITIES
Current liabilities
Trade and other payables (2,047) (1,819)
Borrowings (4,365) (1,080)
----------- -----------
(6,412) (2,899)
----------- -----------
Net current liabilities (5,093) (1,998)
----------- -----------
Total assets less current liabilities 14,315 15,893
----------- -----------
Non-current liabilities
Trade and other payables (511) (229)
Borrowings (6,556) (5,485)
----------- -----------
(7,067) (5,714)
----------- -----------
Net assets 7,248 10,179
----------- -----------
Shareholders' equity
Share capital 26,412 26,412
Share premium 41,601 41,601
Shares to be issued - -
Other reserves 2,941 2,941
Retained losses (63,706) (60,775)
----------- -----------
Total equity attributable to equity holders
of the parent 7,248 10,179
----------- -----------
Consolidated Statement of Changes in Equity
For the year ended 31 March 2011
Shares
Share Share to be Other Retained
capital premium issued reserves losses Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 01 Apr
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
consideration 4,107 1,027 (5,134) - - -
Warrant reserve
transfer on shares
issued - 1,036 - (1,036) - -
-------- -------- ------- --------- -------- -------
Balance at 31 Mar
2010 26,412 41,601 - 2,941 (60,775) 10,179
Loss for the year - - - - (2,931) (2,931)
Balance at 31 Mar
2011 26,412 41,601 - 2,941 (63,706) 7,248
-------- -------- ------- --------- -------- -------
Company Statement of Changes in Equity
For the year ended 31 March 2011
Shares
Share Share to be Other Retained
capital premium issued reserves losses Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Balance at 01 Apr
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
consideration 4,107 1,027 (5,134) - - -
Warrant reserve
transfer on shares
issued - 1,036 - (1,036) - -
-------- -------- ------- --------- -------- -------
Balance at 31 Mar
2010 26,412 41,601 - 2,941 (60,775) 10,179
Loss for the year - - - - (2,931) (2,931)
Balance at 31 Mar
2011 26,412 41,601 - 2,941 (63,706) 7,248
-------- -------- ------- --------- -------- -------
Consolidated Cash Flow Statement
For the year ended 31 March 2011
Year Year
ended ended
31 Mar 2011 31 Mar 2010
EUR'000 EUR'000
Cash flow from operating activities
Cash used in operating activities (1,860) (1,292)
Net cash used in operations (1,860) (1,292)
------------ ------------
Cash flows from investing activities:
Payments for plant and equipment - (62)
Receipt for plant and equipment - 24
Payments for intangible assets (2,615) (4,376)
Interest received - 1
Proceeds from disposal of subsidiary - 191
(Increase)/decrease in restricted cash (2) (8)
Net cash flows used in from investing activities (2,617) (4,230)
------------ ------------
Cash flows from financing activities:
Proceeds from borrowings 4,347 5,485
------------ ------------
4,347 5,485
------------ ------------
Net decrease in cash and cash equivalents (130) (37)
Cash and cash equivalents at the beginning
of year 134 169
Net currency translation effect 1 2
------------ ------------
Cash and cash equivalents 5 134
------------ ------------
Company Cash Flow Statement
For the year ended 31 March 2011
Year Year
ended ended
31 Mar 2011 31 Mar 2010
EUR'000 EUR'000
Cash flow from operating activities
Cash used in operating activities (1,860) (1,292)
Net cash used in operations (1,860) (1,292)
------------ ------------
Cash flows from investing activities:
Payments for plant and equipment - (62)
Receipt for plant and equipment - 24
Payments for intangible assets (2,615) (4,376)
Interest received - 1
Proceeds from disposal of subsidiary - 191
(Increase)/decrease in restricted cash (2) (8)
Net cash flows used in from investing activities (2,617) (4,230)
------------ ------------
Cash flows from financing activities:
Proceeds from borrowings 4,347 5,485
------------ ------------
4,347 5,485
------------ ------------
Net decrease in cash and cash equivalents (130) (37)
Cash and cash equivalents at the beginning
of year 134 169
Net currency translation effect 1 2
------------ ------------
Cash and cash equivalents 5 134
------------ ------------
Note 1: Related party transactions
Trading transactions
During the year, the Company made sales of EPO worth EUR 578,387
(2010: EUR409,948), sold used equipment worth EUR3,000 (2010:
EUR23,713) and clinical research services worth EUR89,841 (2010:
EUR158,417) were provided to Reliance Life Sciences. Reliance Life
Sciences made a payment of EUR127,119.The balance due from Reliance
Life Sciences as on 31 March 2011 was EUR725,279 (2010:
EUR158,817).
During the year, clinical research services worth EUR361,804
(2010: EUR408,418) were received from Reliance Life Sciences. The
balance due to Reliance Life Sciences as on 31 March 2011 was
EUR770,723 (2010: EUR408,418).The net balance due to Reliance Life
Sciences including its subsidiary Reliance Clinical Research
Services Sp. z o.o. as on 31 March 2011 was EUR45,443 (2010:
EUR249,601).
Loan
During the year, the Company received an amount of EUR4,347,000
(2010: 5,485,000) from Reliance Life Sciences as a loan. The
outstanding balance including interest accrued to RLS as on 31
March 2011 was EUR 10,598,834 (2010:EUR5,714,172). Interest of
EUR537,662 (2010: EUR229,172) was charged on the loan during the
year. The terms of this loan were announced by the Company on 24
December 2009.
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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