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Leiden, The Netherlands, October 14, 2002 - Dutch antibody and vaccine company Crucell N.V. (Euronext, NASDAQ: CRXL) today announced its financial results for the third quarter 2002. During the third quarter 2002, Crucell's revenues were EUR 2.0 million (US$ 2.0 million) compared to EUR 3.2 million (US$ 3.1 million) for the same quarter last year. Crucell's revenues for the first nine months of 2002 were EUR 7.0 million (US$ 6.9 million), a 32% increase over the same period last year. The net loss for the third quarter 2002 was EUR 6.5 million (US$ 6.4 million) compared to EUR 6.0 million (US$ 5.9 million) for the same quarter last year.
EUR 6.0 million (US$ 5.9 million) for the same quarter last year.
Highlights Third Quarter 2002
Crucell and Genexine announce PER.C6(TM) agreement for Hepatitis B vaccine
Crucell and the US National Institutes of Health (NIH) extend Ebola vaccine agreement to include Marburg and Lassa vaccines
Crucell signs PER.C6(TM)licensing agreement with GenVec for BioBypass
Crucell and Johns Hopkins University announce research agreement for antibodies against Langerhans Cell Histiocytosis (LCH)
Crucell signs PER.C6(TM) agreement with NatImmune for production of therapeutic proteins
Crucell appoints Dr. Jaap Goudsmit as Chief Scientific Officer
Key Figures per Quarter
(EUR 000s, except per share data)
|
|
Q3 2002 |
% change |
Q3 2001 |
|
Revenues |
2.0 |
(36.6%) |
3.2 |
|
Net loss |
(6.5) |
(9.5%) |
(6.0) |
|
Net loss per share (basic and diluted) |
(0.18) |
(5.9%) |
(0.17) |
|
|
|
|
|
|
Cash and cash equivalents on September 30, 2002 and December 31, 2001 |
110.3 |
|
120.2 |
Details of the Financial Results
Revenues
Crucell's revenues for the third quarter 2002 were EUR 2.0 million (US$ 2.0 million), a 37% decrease from EUR 3.2 million (US$ 3.1 million) in the same quarter last year. License revenues earned in the third quarter 2002 were EUR 1.5 million (US$ 1.4 million), compared to EUR 2.9 million (US$ 2.9 million) in the third quarter 2001 which included the initial payments from Johnson & Johnson / Centocor. New license agreements closed in the third quarter of 2002 include an agreement with Korean company Genexine, an agreement with US-based GenVec, and a research license agreement with Danish company NatImmune. Government subsidies and other revenues amounted to EUR 0.5 million (US$ 0.5 million) in the third quarter 2002, compared to EUR 0.2 million (US$ 0.2 million) in the same quarter in 2001.
Crucell's revenues are related to specific contractual agreements and can therefore vary significantly from quarter to quarter. Crucell seeks to increase revenues from year to year.
Results
The net loss for the third quarter 2002 was EUR 6.5 million (US$ 6.4 million), or EUR 0.18 net loss per share (US$ 0.18), compared to a net loss of EUR 6.0 million (US$ 5.9 million) for the third quarter 2001, or EUR 0.17 per share (US$ 0.17).
Total research and development expenses in the third quarter 2002 were EUR 6.2 million (US$ 6.0 million), compared to EUR 4.5 million (US$ 4.4 million) in the third quarter 2001. Selling, general and administrative expenses for the third quarter 2002 were EUR 2.6 million (US$ 2.5 million), compared to EUR 2.1 million (US$ 2.0 million) for the same quarter in 2001.
Cash Flow and Cash Position
Total cash used in operations was EUR 13.1 million (US$ 12.8 million) in the first nine months of 2002, compared to EUR 10.9 million (US$ 10.7 million) in the comparable period of 2001. The increase in cash used in operations was primarily attributable to increased investment in research and development. Cash invested in plant and equipment in the first nine months of 2002 was EUR 2.3 million (US$ 2.2 million), compared to EUR 2.6 million (US$ 2.5 million) for the first nine months in 2001. Financing activities for the nine months ended September 30, 2002 relate primarily to sale lease back transactions which generated proceeds of EUR 4.6 million (US$ 4.5 million).
The company's cash and cash equivalents amount to EUR 110.3 million (US$ 108.2 million) on September 30, 2002.
General Market Developments and Outlook
In the vaccine market, the threat of bioterrorism is a catalyst for vaccine development. Furthermore, emerging diseases in the US, such as West Nile virus, are also driving the demand for effective vaccines. Billions of dollars in funding from government and non-governmental organizations are currently available to support the development of vaccines in these areas. New FDA rules for vaccine approval could potentially reduce the time to market.
The market continues to be faced with a shortage in antibody production capacity, a field in which Crucell actively markets its PER.C6(TM) production platform. The company also continues to develop alliances with contract manufacturing organizations to increase capacity and to make PER.C6(TM) derived products widely available. Crucell actively promotes its PER.C6(TM) production cell line for the production of new viral vaccines.
Although sales of existing antibodies are accelerating, the market faced a number of setbacks in the development and approval of new products world-wide. Due to limited early licensing opportunities currently available, Crucell is focusing on further in-house development of its pre-clinical product leads.
The company is expected to reach profitability once products are brought to market by licensees using Crucell's technology.
Note: Euros are translated at the September 30 exchange rate of 0.981 to US Dollars.
About Crucell
Crucell N.V. discovers and develops biopharmaceuticals that use the human immune system to combat cancer, infectious diseases and other conditions. Crucell leverages its patented technologies, MAbstract(TM), AdVac(TM), and PER.C6(TM), for discovery, development and production of antibodies and vaccines. Crucell offers its technologies to the pharmaceutical and biotechnology industry and also uses them to create its own product pipeline. Partners include Merck & Co. for the HIV vaccine, the National Institutes of Health (NIH) for the Ebola vaccine and Centocor, a Johnson & Johnson company, for the CD46 antibody for treatment of various types of cancer. In addition, Crucell has over 20 licensees for its PER.C6(TM) technology. These include Novartis, GSK, Aventis and Schering AG. With headquarters in Leiden, The Netherlands, the company currently employs 200 people. Crucell is listed on Euronext and NASDAQ (ticker symbol CRXL). For more information visit www.crucell.com.
This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For information relating to these factors please refer to our Form 20-F, as filed with the U.S. Securities and Exchange Commission on June 13, 2002, and the section entitled "Risk Factors". The company prepares its financial statements under generally accepted accounting principles in the United States.
To view the entire press release and full financials, please click on the link provided:
Q3 2002 Results Press Release
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