SOURCE: OctoPlus N.V.

February 18, 2011 01:45 ET

OctoPlus announces 2010 annual results

Strong clinical results for Locteron and growing second half-year revenues

LEIDEN, NETHERLANDS--(Marketwire - February 18, 2011) - OctoPlus N.V. ("OctoPlus" or the "Company") (Euronext: OCTO), announces today its unaudited annual results for the year ended 31 December 2010.

During 2010, successful clinical Phase IIb results for Locteron® were presented, which further validated the potential of our PolyActive® technology. Jan Egberts joined OctoPlus in November 2010 and formally started as CEO on 1 January 2011. Non-Locteron revenues grew by 18% in the second half-year compared to the first half-year of 2010. In addition, OctoPlus realised a significantly reduced cost base and a successful financing enhanced our cash position.

OctoPlus builds value in three key areas:

1. Product pipeline: strong clinical results for Locteron

The clinically most advanced product incorporating our PolyActive technology is Locteron, a controlled release formulation of interferon alpha, which we manufacture for our licensee Biolex. Interferon alpha is considered one of the cornerstones of hepatitis C treatment and currently has annual revenues in excess of US$ 2.5 billion.

- Positive interim clinical Phase IIb data on Locteron including a superior side effect profile were presented at the EASL conference in April 2010 and at the AASLD conference in October 2010. These results further validate the clinical benefits of OctoPlus' PolyActive drug delivery technology

- Revenues from Locteron were in line with expectations and substantially lower than in 2009 as the development and manufacturing for Phase IIb has been completed

- Locteron is a major value driver for OctoPlus: we are eligible to future milestone payments up to $138 million. In addition to these milestone payments, we are eligible to royalties on net sales of Locteron and we continue to be involved in the process development and manufacturing of Locteron.

2. Increased adoption of our proprietary drug delivery technologies: four new contracts

- Four technology evaluation contracts were signed in 2010 with three new companies (Novartis and two US-based companies) and one existing customer

- Increased number of request for proposals shows the growing adoption of our proprietary technology by our clients.

3. Stabilising formulation and manufacturing business in a difficult economic climate

- Contracts with ten additional new customers were signed in 2010

- Non-Locteron revenues for the second half-year were 18% higher than in the first half-year.

Financial results

Our financial performance has improved in the second half of 2010: the successful financing strengthened our cash position, non-Locteron revenues increased by 18% and costs and loss in the second half-year have been reduced compared to the first half-year. The net result is negative, but we are realising a steady progression towards a sustainable positive operational cash flow.

- Following the restructuring in 2009, the total cost base (including interest) for the full year was reduced by 34% or EUR 7.5 million to EUR 14.5 million (2009: EUR 22.0 million)

- Total 2010 revenues decreased by 56% to EUR 8.3 million (2009: EUR 19.0 million) due to reduced work for Biolex in 2010 (EUR 0.8 million revenues, 2009: EUR 11.2 million). Non-Locteron revenues for the full year decreased by 5% to EUR 7.5 million (2009: EUR 7.9 million)

- Net loss for the year amounted to EUR 6.2 million (2009: net loss of EUR 3.0 million)

- The cash outflow for the year, excluding equity issues, was reduced to EUR 4.0 million (2009: EUR 5.2 million)

- The cash position was EUR 2.7 million on 31 December 2010 (31 December 2009: EUR 3.3 million)


- Further adoption of our proprietary drug delivery technology by the biotech and pharmaceutical industries will result in further growth of our customer base in this area

- We are on schedule to progress another product utilising our technology into the next phase of development this year

- The proceeds of the private placement that was completed in December will allow us to co-invest in promising customer-funded projects in which we want to retain more of the economic upside of our proprietary technologies

- Consequently, with the current cash position and available credit facility, the reduced cost base, current order portfolio and acquisition pipeline, we expect to be able to continue OctoPlus' development towards a sustainable positive cash flow

- Partnering discussions for OP-145 are taking longer than expected but we aim to bring these to conclusion in 2011.

Jan H. Egberts, M.D., CEO of OctoPlus comments: "We have achieved an encouraging second half-year in a difficult economic climate. We are committed to continue our focus on cost control and revenue growth and continue our path towards sustainable positive cash flow. We are delighted how the Locteron Phase IIb results have confirmed the clinical benefits of our technology in patients and look forward to Locteron moving into the next phase of clinical development. This would generate revenue for us, but even excluding Locteron business we anticipate a successful year."

Conference call and webcast presentation

OctoPlus will hold a conference call and webcast presentation today at 10:00 AM CET. This event can also be followed live via OctoPlus' website If you would like to participate in the conference call, please dial in on telephone number +31 (0) 45 6316901. After the presentation, Jan Egberts, CEO of OctoPlus and Susan Swarte, CFO of OctoPlus, will be available to answer questions. After the event, the webcast will be available for replay on the Company's website.

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Source: OctoPlus N.V. via Thomson Reuters ONE


Contact Information

  • For further information, please contact:
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