CONFORMED COPY
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1933
February 6, 2009
Pharmaxis Ltd
2/10 Rodborough Road,
Frenchs Forest, NSW 2086
Australia
(Indicate by check mark whether the registrant files or will file annual reports under cover of
Form 20-F or
Form 40-F.)
Form 20-F
þ
Form 40-F
o
(Indicate by check mark whether the registrant by furnishing the information contained in this form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
Yes
o
No
þ
(If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b):
82-
.)
Pharmaxis Ltd
ABN 75 082 811 630
ASX
Half year report 31 December 2008
Lodged with the ASX under Listing Rule 4.2A
This report is to be read in conjunction with the financial statements for the year ended 30 June
2008 and any public announcements made by Pharmaxis Ltd during the interim reporting period in
accordance with the continuous disclosure requirements of the Corporations Act 2001.
Contents
1
Pharmaxis Ltd
ABN 75 082 811 630
Reporting period: Half year ended 31
st
December 2008
(Previous corresponding period: Half year ended 31
st
December 2007)
Results for announcement to the market
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A$000
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Revenue
from ordinary activities
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Up
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22
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%
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to
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3,966
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Profit(loss)
from ordinary activities after tax
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Up
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45
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%
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to
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(15,394
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Net profit(loss)
for the half year
attributable to members
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Up
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45
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%
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to
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(15,394
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)
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Dividends
It is not proposed to pay a dividend
Other Appendix 4D information
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31 December
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31 December
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2008
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2007
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Net tangible assets per ordinary share
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$
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0.53
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$
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0.65
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2
Pharmaxis Ltd
Half-Year Report 31 December 2008
Contents
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Page
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2
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5
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6
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7
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8
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9
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10
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13
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14
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This half-year report covers both Pharmaxis Ltd as an individual entity and the
consolidated entity consisting of Pharmaxis Ltd and its subsidiaries. The
financial report is presented in the Australian currency.
Pharmaxis Ltd is a company limited by shares, incorporated and domiciled in
Australia. Its registered office and principal place of business is:
Pharmaxis Ltd
Unit 2, 10 Rodborough Road
Frenchs Forest, Australia 2086
This interim financial report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this report is to
be read in conjunction with the financial statements for the year ended 30 June
2008 and any public announcements made by Pharmaxis Ltd during the interim
reporting period in accordance with the continuous disclosure requirements of
the
Corporations Act 2001
.
A description of the nature of the consolidated entitys operations and its
principal activities is included in the review of operations and activities in
the directors report which is not part of this financial report.
The half-year report was authorised for issue by the directors on
5
th
February 2009. The company has the power to amend and reissue
the financial report.
Through the use of the internet, we have ensured that our corporate reporting
is timely, complete, and available globally at minimum cost to the group.
Press releases, financial reports and other information are available on our
website: www.pharmaxis.com.au.
Pharmaxis Ltd
Directors Report
For the half-year ended 31 December 2008
Your directors present their report on the consolidated entity consisting of Pharmaxis Ltd and the entities it controlled at the end
of, or during, the half-year ended 31 December 2008.
Directors
The following persons were directors of the company during the whole of the half-year and up to the date of this report:
Denis Hanley (Chairman)
Alan Robertson (Chief Executive Officer)
William Delaat
Peter Farrell
Malcolm McComas
John Villiger
Review of operations
Overview
Pharmaxis is a specialty pharmaceutical company with activities spanning product research and development through to manufacture, sales
and marketing. The group is producing human healthcare products to treat and manage respiratory diseases.
Bronchitol
The group is developing Bronchitol for the management of chronic obstructive lung diseases including cystic fibrosis, bronchiectasis
and chronic bronchitis. Bronchitol is a proprietary formulation of mannitol administered as a dry powder in a convenient hand-held
inhaler. It is designed to hydrate the lungs, restore normal lung clearance mechanisms, and help patients clear mucus more
effectively.
Major milestones achieved during the first half of fiscal 2009 included:
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Release of successful clinical data from the groups Phase II Bronchitol dosing trial in patients with cystic fibrosis.
The lung function of trial participants improved by 8.6% when treated with 400mg Bronchitol
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Completion of enrolment of the groups first global Phase III clinical trial in patients with cystic fibrosis. A total
of 325 participants joined the trial with the last patient scheduled to complete the study in the first quarter of 2009. A
positive result from the trial should allow the group to file a marketing application throughout Europe.
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Commencement of enrolment in the groups second Phase III clinical trial in patients with cystic fibrosis. This trial is
required in order for the group to submit a marketing application in the U.S
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Release of positive long-term safety data from the groups first Phase III clinical trial of Bronchitol in people living
with bronchiectasis
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Filing of a marketing application with the Australian regulatory agency for Bronchitol for the treatment of
bronchiectasis.
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Aridol
Aridol is the groups first approved product. It is a simple-to-use airways inflammation test administered as a dry powder in a
hand-held inhaler. Doctors can use the results of this test to identify airway hyper-responsiveness a hallmark of asthma. During the
first half of fiscal 2009 the group received approvals to market Aridol in Spain, France and Switzerland. Aridol is now available in
13 European countries as well as South Korea and Australia. Initial sales to a number of countries occurred during the half.
Other
Construction of the new purpose built group headquarters progressed on plan. Fit out of the base building has commenced with first
occupancy scheduled for the second quarter of 2009.
2
Pharmaxis Ltd
Directors Report
For the half-year ended 31 December 2008
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31 December
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31 December
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2008
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2007
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Financial Highlights
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$'000
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$'000
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Revenue from sale of goods
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309
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193
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Cost of sales
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(77
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)
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(51
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)
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Gross profit
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232
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142
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Interest income
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3,657
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3,061
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Other income
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144
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235
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Other expenses from ordinary activities
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Research & development expenses
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(13,587
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)
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(9,640
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)
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Administration expenses
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(2,922
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)
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(2,464
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)
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Commercial expenses
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(2,890
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)
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(1,951
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Loss before income tax
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(15,366
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)
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(10,617
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)
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Income tax expense
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(28
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(16
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Loss for the period
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(15,394
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(10,633
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Cash and cash equivalents
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93,970
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120,844
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Net assets
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104,902
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127,139
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Revenue from sale of goods:
The group shipped Aridol to customers in Europe, Australia and Asia during the period, including $42,893 to pharmaceutical companies
for use in their clinical trials. Sales of Aridol in the half-year ended 31 December 2008 were 60% greater than sales in the half-year
ended 31 December 2007. Overall gross margin was 75% of sales for the half-year ended 31 December 2008 (2007: 74%).
Interest:
The increase in interest income is attributable to the greater level of funds invested during the current half-year as a result of a
share placement in October 2007. This is slightly offset by a general decrease in interest rates.
Other income:
Other income includes fees charged for the groups UK and Australian sales force promoting other pharmaceutical companys products to
respiratory specialists, as well as grant income.
Research & development expenses:
Research & development expenses increased by approximately $4.0 million in the first half of fiscal 2009 compared to the first half of
fiscal 2008. There are four major components to research & development expenses:
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1.
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The drug discovery unit based at North Ryde. This unit accounted for approximately 7 percent of the total research and
development expenditure in the current half-year. It is focused on inflammatory and respiratory drug discovery. Expenditure
decreased by approximately $200,000 compared to the half-year ended 31 December 2007 reflecting a decreased requirement for
outside research consultants at the current stage of development work.
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2.
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The preclinical development unit located at our Frenchs Forest facility accounted for approximately 4 percent of the total
research and development expenditure in the current half-year and decreased by approximately $180,000 compared to the half-year
ended 31 December 2007. In the 31 December 2007 half-year the group was managing outsourced safety/toxicology studies of PXS25.
In the current half-year the unit was not engaged in safety studies of a similar size or cost.
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3
Pharmaxis Ltd
Directors Report
For the half-year ended 31 December 2008
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3.
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The clinical unit located at our Frenchs Forest facility accounted for approximately 67 percent of the total research and
development expenditure in the current half-year and increased by approximately $4.4 million compared to the half-year ended 31
December 2007. The clinical unit designs and monitors the clinical trials run by the group and are responsible for regulatory
agency filings. The majority of the expenditures of this unit are directed at hospitals and other services related to the conduct
and analysis of clinical trials. This increase in expenditure reflects the increased number of clinical trials in the active
dosing phase during the current half-year as well as costs associated with achieved and proposed regulatory filings of Aridol and
Bronchitol. As the groups largest area of research, the increase of expenditure by the clinical unit was the predominant cause
of the overall increase of research and development expenditure during the current half-year.
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4.
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Manufacturing. The GMP manufacturing facility at Frenchs Forest is focused on producing material for clinical trials and
regulatory filing related studies, and developing enhanced manufacturing processes. All costs associated with this work are
classified as a research and development expenditure. Costs associated with the Aridol product sold are classified as cost of
sales. Manufacturing accounted for approximately 22 percent of our total research and development expenditure in the current
half-year and increased by approximately $343,000 compared to the half-year ended 31 December 2007 predominantly because of the
completion of outsourced stability studies before the commencement of the current half.
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Administration expenses:
Administration expenses include accounting, administration, recruitment and public company costs. Administration expenses for the
current half-year were $2.9 million, compared to $2.5 million in the half-year ended 31 December 2007 and $2.8 million in the half-year
ended 30 June 2008. The increase in administration expenses in the current half-year is mainly attributable to additional costs
associated with expanding the group both domestically and internationally, and costs to support the expanding clinical program.
Commercial expenses:
The commercial expenses are focussed on developing and delivering the commercial strategy and capability to sell Aridol and Bronchitol
globally. Commercial expenses for the current half-year were $2.9 million, compared to $2.0 million in the half-year ended December
2007 and $2.6 million in the half-year ended 30 June 2008. The increase in commercial expenses is predominantly attributable to the
establishment of US commercial operations in the second half of the 2007 financial year.
Income tax expense:
Income tax expense relates to tax on the income generated by the groups UK and US subsidiaries which are currently reimbursed for
their expenditures on a cost plus basis, upon which tax is payable.
Balance Sheet:
The group ended the half-year with $94 million in cash, cash deposits and bank accepted commercial bills.
Capital expenditure during the period predominantly related to the new manufacturing facility.
Shareholders are advised that additional information concerning the groups progress in the quarter ended 31 December 2008 is contained
in the December 2008 Quarterly Report to Shareholders, available on the Pharmaxis website.
Auditors independence declaration
A copy of the auditors independence declaration as required under section 307C of the
Corporations Act 2001
is set out on page 5.
Rounding of amounts
The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities & Investments Commission, relating to
the rounding off of amounts in the directors report and financial report. Amounts in the directors report and financial report have
been rounded off to the nearest thousand dollars in accordance with that Class Order.
This report is made in accordance with a resolution of the directors.
Alan D Robertson
Director
5
th
February 2009
4
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PricewaterhouseCoopers
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ABN 52 780 433 757
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Darling Park Tower 2
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201 Sussex Street
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GPO BOX 2650
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SYDNEY NSW 1171
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DX 77 Sydney
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Australia
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www.pwc.com/au
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Telephone +61 2 8266 0000
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Facsimile +61 2 8266 9999
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Auditors Independence Declaration
As lead auditor for the review of Pharmaxis Ltd for the half year ended 31 December 2008, I
declare that to the best of my knowledge and belief, there have been:
a)
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no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the review; and
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b)
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no contraventions of any applicable code of professional conduct in relation to the review.
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This
declaration is in respect of Pharmaxis Ltd and the entities it
controlled during the period.
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Mark Dow
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Sydney
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Partner
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5 February 2009
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PricewaterhouseCoopers
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Liability limited by a scheme approved under Professional Standards Legislation
Pharmaxis Ltd
Consolidated income statement
For the half-year ended 31 December 2008
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31 December
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31 December
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2008
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2007
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Notes
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$000
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$000
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Revenue from continuing operations
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|
|
|
|
|
|
|
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|
|
Revenue from sale of goods
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|
|
2
|
|
|
|
309
|
|
|
|
193
|
|
Cost of sales
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|
|
|
|
|
|
(77
|
)
|
|
|
(51
|
)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
232
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|
|
142
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenue
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|
|
2
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|
|
|
3,657
|
|
|
|
3,061
|
|
Other income
|
|
|
3
|
|
|
|
144
|
|
|
|
235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Other expenses from ordinary activities
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|
4
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|
|
|
|
|
|
|
|
|
Research & development expenses
|
|
|
|
|
|
|
(13,587
|
)
|
|
|
(9,640
|
)
|
Administration expenses
|
|
|
|
|
|
|
(2,922
|
)
|
|
|
(2,464
|
)
|
Commercial expenses
|
|
|
|
|
|
|
(2,890
|
)
|
|
|
(1,951
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
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|
|
|
|
|
|
(15,366
|
)
|
|
|
(10,617
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)
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Income tax expense
|
|
|
|
|
|
|
(28
|
)
|
|
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
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|
|
|
|
|
|
(15,394
|
)
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|
|
(10,633
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)
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Earnings per share:
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Cents
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Cents
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Basic earnings / (loss) per share
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9
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|
|
|
(7.9
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)
|
|
|
(5.8
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)
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Diluted earnings / (loss) per share
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|
|
9
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|
|
|
(7.9
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)
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|
|
(5.8
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)
|
The above consolidated income statement should be read in conjunction with the accompanying notes.
6
Pharmaxis Ltd
Consolidated balance sheet
As at 31 December 2008
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31 December
|
|
|
30 June
|
|
|
|
|
|
|
|
2008
|
|
|
2008
|
|
|
|
Notes
|
|
|
$000
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|
|
$000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
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|
|
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|
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|
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Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
93,970
|
|
|
|
111,842
|
|
Trade and other receivables
|
|
|
|
|
|
|
7,406
|
|
|
|
6,651
|
|
Inventories
|
|
|
|
|
|
|
123
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|
|
96
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Total current assets
|
|
|
|
|
|
|
101,499
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|
|
118,589
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|
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Non-current assets
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|
|
|
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|
|
|
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|
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Receivables
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|
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|
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|
|
2,099
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|
|
|
1,526
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Other financial assets
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|
|
|
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|
|
|
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|
39
|
|
Plant and equipment
|
|
|
|
|
|
|
7,858
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|
|
|
3,668
|
|
Intangible assets
|
|
|
|
|
|
|
1,258
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|
|
|
1,227
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
|
|
|
11,215
|
|
|
|
6,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
112,714
|
|
|
|
125,049
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
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|
|
|
|
|
|
|
|
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Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
|
|
|
|
7,563
|
|
|
|
5,709
|
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax liabilities
|
|
|
|
|
|
|
61
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
7,624
|
|
|
|
5,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions
|
|
|
|
|
|
|
188
|
|
|
|
188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities
|
|
|
|
|
|
|
188
|
|
|
|
188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
7,812
|
|
|
|
5,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
|
|
|
|
|
104,902
|
|
|
|
119,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributed equity
|
|
|
5
|
(a)
|
|
|
194,691
|
|
|
|
194,680
|
|
Reserves
|
|
|
|
|
|
|
8,603
|
|
|
|
7,439
|
|
Accumulated losses
|
|
|
|
|
|
|
(98,392
|
)
|
|
|
(82,998
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
|
104,902
|
|
|
|
119,121
|
|
|
|
|
|
|
|
|
|
|
|
|
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
7
Pharmaxis Ltd
Consolidated statement of changes in equity
For the half-year ended 31 December 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 December
|
|
|
31 December
|
|
|
|
|
|
|
|
2008
|
|
|
2007
|
|
|
|
Notes
|
|
|
$000
|
|
|
$000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity at the beginning of the financial year
|
|
|
|
|
|
|
119,121
|
|
|
|
76,559
|
|
Exchange differences on translation of foreign
operations
|
|
|
|
|
|
|
14
|
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income recognised directly in equity
|
|
|
|
|
|
|
14
|
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
|
|
|
|
|
|
|
(15,394
|
)
|
|
|
(10,633
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with equity holders in their capacity as
equity holders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions of equity, net of transaction costs
|
|
|
5
|
(a)
|
|
|
11
|
|
|
|
59,540
|
|
Employee share options
|
|
|
|
|
|
|
1,150
|
|
|
|
1,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity at the end of the financial period
|
|
|
|
|
|
|
104,902
|
|
|
|
127,139
|
|
|
|
|
|
|
|
|
|
|
|
|
The above consolidated statement of changes in equity should be read in conjunction with the
accompanying notes.
8
Pharmaxis Ltd
Consolidated cash flow statement
For the half-year ended 31 December 2008
|
|
|
|
|
|
|
|
|
|
|
31 December
|
|
|
31 December
|
|
|
|
2008
|
|
|
2007
|
|
|
|
$000
|
|
|
$000
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Receipts from customers (inclusive of goods and services tax)
|
|
|
408
|
|
|
|
54
|
|
Payments to suppliers and employees (inclusive of goods and services tax)
|
|
|
(16,200
|
)
|
|
|
(16,003
|
)
|
|
|
|
|
|
|
|
|
|
|
(15,792
|
)
|
|
|
(15,949
|
)
|
|
|
|
|
|
|
|
|
|
Research grant receipts from government
|
|
|
298
|
|
|
|
472
|
|
Other income
|
|
|
66
|
|
|
|
117
|
|
Interest received
|
|
|
3,657
|
|
|
|
3,061
|
|
Income taxes paid
|
|
|
(56
|
)
|
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from operating activities
|
|
|
(11,827
|
)
|
|
|
(12,311
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Payments for plant and equipment
|
|
|
(4,595
|
)
|
|
|
(2,506
|
)
|
Instalment payments to acquire plant and equipment
|
|
|
(1,363
|
)
|
|
|
|
|
Proceeds from disposal of plant & equipment
|
|
|
|
|
|
|
1
|
|
Payments for intangible assets
|
|
|
(129
|
)
|
|
|
(46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from investing activities
|
|
|
(6,087
|
)
|
|
|
(2,551
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Proceeds from issues of shares
|
|
|
11
|
|
|
|
62,061
|
|
Share issue transaction costs
|
|
|
|
|
|
|
(2,521
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash inflow from financing activities
|
|
|
11
|
|
|
|
59,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) / increase in cash and cash equivalents
|
|
|
(17,903
|
)
|
|
|
44,678
|
|
Cash and cash equivalents at the beginning of the financial year
|
|
|
111,842
|
|
|
|
76,182
|
|
Effects of exchange rate changes on the balance of cash held in foreign currencies
|
|
|
31
|
|
|
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the financial period
|
|
|
93,970
|
|
|
|
120,844
|
|
|
|
|
|
|
|
|
The above consolidated cash flow statement should be read in conjunction with the accompanying
notes.
9
Pharmaxis Ltd
Notes to the financial statements
For the half-year ended 31 December 2008
1.
|
|
Basis of preparation of half-year report
|
|
|
|
This general purpose financial report for the interim half-year reporting period ended 31
December 2008 has been prepared in accordance with Accounting Standard AASB 134
Interim
Financial Reporting
and the
Corporations Act 2001
.
|
|
|
|
This interim financial report does not include all the notes of the type normally included in
an annual financial report. Accordingly, this report is to be read in conjunction with the
annual report for the year ended 30 June 2008 and any public announcements made by Pharmaxis
Ltd during the interim reporting period in accordance with the continuous disclosure
requirements of the
Corporations Act
2001.
|
|
|
|
The accounting policies adopted are consistent with those of the previous financial year and
corresponding interim reporting period.
|
|
2.
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
31 December
|
|
|
31 December
|
|
|
|
2008
|
|
|
2007
|
|
|
|
$000
|
|
|
$000
|
|
|
|
|
|
|
|
|
|
|
Sales revenue
|
|
|
|
|
|
|
|
|
Sale of goods
|
|
|
309
|
|
|
|
193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenue
|
|
|
|
|
|
|
|
|
Interest
|
|
|
3,657
|
|
|
|
3,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government grants
|
|
|
(52
|
)
|
|
|
128
|
|
Income from sale force agreements
|
|
|
196
|
|
|
|
107
|
|
|
|
|
|
|
|
|
|
|
|
144
|
|
|
|
235
|
|
|
|
|
|
|
|
|
Government grants comprised the following:
|
i.
|
|
R&D START program grants of $Nil (2007: $5,584).
|
|
|
ii.
|
|
Australian Governments Pharmaceuticals Partnerships Program (P3) grants of $(51,663)
(2007: $52,302).
|
|
|
iii.
|
|
Export Market Development Grant of $Nil (2007: $70,000).
|
|
|
|
|
|
|
|
|
|
|
|
31 December
|
|
|
31 December
|
|
|
|
2008
|
|
|
2007
|
|
|
|
$000
|
|
|
$000
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax includes
the following specific
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
Plant and equipment
|
|
|
278
|
|
|
|
321
|
|
Computer equipment
|
|
|
87
|
|
|
|
71
|
|
Leasehold improvements
|
|
|
54
|
|
|
|
46
|
|
|
|
|
|
|
|
|
Total depreciation
|
|
|
419
|
|
|
|
438
|
|
|
|
|
|
|
|
|
Amortisation
|
|
|
|
|
|
|
|
|
Patents
|
|
|
48
|
|
|
|
47
|
|
Trademarks
|
|
|
3
|
|
|
|
1
|
|
Software
|
|
|
47
|
|
|
|
33
|
|
|
|
|
|
|
|
|
Total amortisation
|
|
|
98
|
|
|
|
81
|
|
|
|
|
|
|
|
|
10
Pharmaxis Ltd
Notes to the financial statements
For the half-year ended 31 December 2008
(continued)
|
|
|
|
|
|
|
|
|
|
|
31 December
|
|
|
31 December
|
|
|
|
2008
|
|
|
2007
|
|
|
|
$000
|
|
|
$000
|
|
|
|
|
|
|
|
|
|
|
Net loss on disposal of plant and equipment
|
|
|
|
|
|
|
5
|
|
Rental expense relating to operating leases
|
|
|
365
|
|
|
|
316
|
|
Net foreign exchange (gains) / losses
|
|
|
(79
|
)
|
|
|
40
|
|
Employee benefits expense
|
|
|
|
|
|
|
|
|
Defined contribution superannuation expense
|
|
|
352
|
|
|
|
292
|
|
Other employee benefits expenses
|
|
|
6,810
|
|
|
|
5,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent entity
|
|
|
Parent entity
|
|
|
|
31 December
|
|
|
30 June
|
|
|
31 December
|
|
|
30 June
|
|
|
|
2008
|
|
|
2008
|
|
|
2008
|
|
|
2008
|
|
|
|
Shares
|
|
|
Shares
|
|
|
$000
|
|
|
$000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Share capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully paid
|
|
|
194,537,262
|
|
|
|
194,514,762
|
|
|
|
194,691
|
|
|
|
194,680
|
|
Movements in ordinary share capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
Date
|
|
Details
|
|
shares
|
|
|
Issue price
|
|
|
$000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 July 2008
|
|
Opening balance
|
|
|
194,514,762
|
|
|
|
|
|
|
|
194,680
|
|
|
|
Exercise of employee options
|
|
|
22,500
|
|
|
$
|
0.5080
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 December 2008
|
|
Balance
|
|
|
194,537,262
|
|
|
|
|
|
|
|
194,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the company in proportion to
the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.
6.
|
|
Contingent liabilities
|
The parent entity and group had contingent liabilities at 31 December 2008 in respect of:
Government grants
The group has received three separate Australian Government research grants under the R&D START Program, all three of which
have been completed. The Government may require the group to repay all or some of the amount of a particular grant together
with interest in either of the following circumstances:
|
a)
|
|
the company fails to use its best endeavours to commercialise the relevant grant project within a reasonable time of
completion of the project; or
|
|
|
b)
|
|
upon termination of a grant due to breach of agreement or insolvency.
|
11
Pharmaxis Ltd
Notes to the financial statements
For the half-year ended 31 December 2008
(continued)
The group continues the development and commercialisation of all three projects funded by the START Program. The total
amount received under the START Program at 31 December 2008 was $4,707,817.
The group recognised $(51,663) (2007: $52,302) under the Australian Governments Pharmaceuticals Partnerships Program (P3)
during the financial period. The Government may require the group to repay all or some of the amount of the grant together
with interest in any of the following circumstances:
|
a)
|
|
the Government determines that expenditure claimed on research projects do not meet the P3 guidelines; or
|
|
|
b)
|
|
upon termination of the grant due to breach of agreement, change in control of the group or insolvency.
|
Guarantees
The companys bankers have issued bank guarantees of $1,115,203 in relation to rental bond deposits for which no provision
has been made in the accounts. These bank guarantees are secured by security deposits held at the bank.
The companys bankers have issued a bank guarantee of GBP70,000 in relation to corporate credit card facilities provided by
an overseas affiliate of the banker to Pharmaxis Pharmaceuticals Limited. This bank guarantee is secured by a deposit held at
the bank.
The companys bankers have issued a bank guarantee of USD100,000 in relation to corporate credit card and local payment
clearing house facilities provided by an overseas affiliate of the banker to Pharmaxis, Inc. This bank guarantee is secured
by a deposit held at the bank.
7.
|
|
Events occurring after the balance sheet date
|
No matter or circumstance has arisen since 31 December 2008 that has significantly affected, or may significantly affect:
|
(a)
|
|
the groups operations in future financial years, or
|
|
|
(b)
|
|
the results of those operations in future financial years, or
|
|
|
(c)
|
|
the groups state of affairs in future financial years.
|
8.
|
|
Financial reporting by segments
|
The group operates predominantly in one industry. The principal activities of the group are the research, development and
commercialisation of pharmaceutical products.
The group operates predominantly in one geographical area, being Australia.
|
|
|
|
|
|
|
|
|
|
|
31 December
|
|
|
31 December
|
|
|
|
2008
|
|
|
2007
|
|
|
|
Cents
|
|
|
Cents
|
|
|
|
|
|
|
|
|
|
|
(a) Basic earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss attributable to the ordinary equity holders of the company
|
|
|
(7.9
|
)
|
|
|
(5.8
|
)
|
|
|
|
|
|
|
|
|
|
(b) Diluted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss attributable to the ordinary equity holders of the company
|
|
|
(7.9
|
)
|
|
|
(5.8
|
)
|
|
|
|
|
|
|
|
|
|
(c) Weighted average number of shares used as the denominator
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares used as the denominator in
calculating basic and diluted earnings / (loss) per share
|
|
|
194,532,615
|
|
|
|
184,226,939
|
|
|
|
|
|
|
|
|
|
|
(d) Information concerning the classification of securities
|
|
|
|
|
|
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Options
Options granted to employees under the Pharmaxis Ltd Employee Option Plan are considered to be potential ordinary shares and have
been included in the determination of diluted earnings per share to the extent to which they are dilutive. The options have not
been included in the determination of basic earnings per share. Given the entity is currently loss making, the potential
ordinary shares are anti-dilutive and have therefore not been included in the diluted earnings per share calculation.
12
Pharmaxis Ltd
Directors declaration
31 December 2008
In the directors opinion:
(a)
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|
the financial statements and notes set out on pages 6 to 12
are in accordance with the
Corporations Act 2001,
including:
|
|
(i)
|
|
complying with Accounting
Standards, the
Corporations Regulations
2001
and other mandatory
professional reporting
requirements; and
|
|
|
(ii)
|
|
giving a true and fair
view of the consolidated
entitys financial
position as at 31 December
2008 and of its
performance for the
half-year ended on that
date; and
|
(b)
|
|
there are reasonable grounds to believe that Pharmaxis Ltd
will be able to pay its debts as and when they become due
and payable.
|
This declaration is made in accordance with a resolution of the directors.
Alan D Robertson
Director
Sydney
5
th
February 2009
13
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|
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PricewaterhouseCoopers
|
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ABN 52 780 433 757
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|
|
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Darling Park Tower 2
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|
201 Sussex Street
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GPO BOX 2650
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SYDNEY NSW 1171
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DX 77 Sydney
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Australia
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INDEPENDENT AUDITORS REVIEW REPORT
|
|
Telephone +61 2 8266 0000
|
to the members of Pharmaxis Limited
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|
Facsimile +61 2 8266 9999
|
|
|
www.pwc.com/au
|
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Pharmaxis Ltd, which comprises the
balance sheet as at 31 December 2008, and the income statement, statement of changes in equity and
cash flow statement for the half-year ended on that date, other selected explanatory notes and the
directors declaration for the Pharmaxis Ltd Group (the consolidated entity). The consolidated
entity comprises both Pharmaxis Ltd (the company) and the entities it controlled during that
half-year.
Directors Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation and fair presentation of the
half-year financial report in accordance with Australian Accounting Standards (including the
Australian Accounting Interpretations) and the
Corporations Act 2001
. This responsibility includes
establishing and maintaining internal control relevant to the preparation and fair presentation of
the half-year financial report that is free from material misstatement, whether due to fraud or
error; selecting and applying appropriate accounting policies; and making accounting estimates that
are reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our
review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE
2410
Review of an Interim Financial Report Performed by the Independent Auditor of the Entity
, in order
to state whether, on the basis of the procedures described, we have become aware of any matter that
makes us believe that the financial report is not in accordance with the
Corporations Act 2001
including: giving a true and fair view of the consolidated entitys financial position as at 31
December 2008 and its performance for the half-year ended on that date; and complying with
Accounting Standard AASB 134
Interim Financial Reporting
and the
Corporations Regulations 2001
. As
the auditor of Pharmaxis Ltd, ASRE 2410 requires that we comply with the ethical requirements
relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review
procedures. It also includes reading the other information included with the financial report to
determine whether it contains any material inconsistencies with the financial report. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing
Standards and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
For further explanation of a review, visit our website http://www.pwc.com/au/financialstatementaudit.
Liability limited by a scheme approved under Professional Standards Legislation
While we considered the effectiveness of managements internal controls over financial reporting
when determining the nature and extent of our procedures, our review was not designed to provide
assurance on internal controls.
Our review did not involve an analysis of the prudence of business decisions made by directors or
management.
Independence
In conducting our review, we have complied with the independence requirements of the
Corporations
Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us
believe that the half-year financial report of Pharmaxis Ltd is not in accordance with the
Corporations Act 2001
including:
(a) giving a true and fair view of the consolidated entitys financial position as at 31
December 2008 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and
Corporations Regulations 2001.
PricewaterhouseCoopers
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Mark Dow
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Sydney
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Partner
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5 February 2009
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Pharmaxis Ltd
(Registrant)
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Date: February 6, 2009
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By:
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/s/ David McGarvey
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Name:
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David McGarvey
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Title:
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Chief Financial Officer
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