OctoPlus N.V.
AMS : OCTO

July 29, 2011 01:43 ET

OctoPlus announces 2011 first half-year results

LEIDEN, NETHERLANDS--(Marketwire - Jul 29, 2011) -



OctoPlus N.V. ("OctoPlus" or the "Company") (Euronext: OCTO), the specialty pharmaceutical company, announces today its results for the six-month period ended 30 June 2011.

Highlights first half-year 2011

1. Drug delivery technology commercialisation

  * Full  development of our newly signed  agreement with ESBATech, a
    subsidiary of  Alcon/Novartis has started.  This is our  first project 
    in ophthalmology (eye  care).  Injections  into the  eye are  an area
    where the  benefits of reduced injection frequency are obvious.
  * We   signed   a  new  drug  delivery  evaluation  contract  with  a
    top-10 biopharmaceutical company in April.
  * Revenues  from projects  based on  our proprietary  drug delivery
    technology continue to grow.

2. Locteron

  * Successful final results of Phase IIb clinical study demonstrated
    Locteron's superior profile in terms of significantly reduced side
    effects and improved convenience,  further strengthening our confidence
    in the potential of this best-in-class hepatitis C product.
  * Biolex  has  announced  that  Phase  III  studies are planned to
    commence in 2012.
  * We  expect to play  an active role  in the preparation  of the next
    clinical phase.

3. Contract formulation and manufacturing services

  * We  signed service contracts with three  new clients including a new
    process development and manufacturing contract which was announced in
    July.
  * Net bookings (signed new work minus cancellations) in the first half-
    year of 2011 increased by 20% versus prior year.
  * Non-Locteron  revenues increased compared to the  same period last
    year as a result of our strengthened order book.
  * OctoPlus  has now worked  for more than  125 companies including half
    of the top 10 pharmaceutical companies worldwide.

Financial results

  * Non-Locteron  service revenues  increased by  18% to EUR  3.8 million
    (2010: EUR 3.2 million).
  * Total revenues decreased by 2% to EUR 4.0 million (2010: EUR 4.0
    million) driven by  lower revenues  from Locteron,  which were  EUR 0.1
    million  (2010: EUR 0.6 million).
  * Total  costs (including  interest) further  reduced by  10% to EUR 6.8
    million (2010: EUR 7.6 million) as a result of continued cost control.
  * Net loss reduced by 19% to EUR 2.9 million (2010: net loss of EUR 3.5
    million).
  * Cash outflow of EUR 1.5 million (2010: cash outflow EUR 2.9 million)
    resulted in a cash position of EUR 1.2 million at 30 June 2011 (EUR
    0.4 million last year).
  * A  EUR 2.0 million  credit line  facility is  in place  with ABN Amro
    Bank, of which EUR 0.9 million was available per 30 June 2011.

Outlook

We continue to focus on strengthening our portfolio including a well- balanced mix of "fee for service" projects and longer-term contracts where we retain upside in the form of royalties and milestones. In addition, we will continue to focus on cost control.

Jan Egberts, M.D., CEO of OctoPlus comments: "In the first six months of my time at OctoPlus we have dedicated a significant amount of time on improving operational efficiency, streamlining organisational structure and maintaining our reduced cost base. During this period I travelled extensively to both existing and new customers. Our team has identified a number of high- value opportunities in specialty generics, where we can co-invest and leverage our world-class expertise in formulation development. Our acquisition pipeline is slowly re-emerging but due to difficult market conditions our lead time in closing deals has increased over the past year. During the remainder of the year we will also look for other ways to strengthen our balance sheet. Finally, we look forward to participate in the Phase III clinical development for Locteron. We expect our focus and dedication to pay off in the periods to follow."

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 www.octoplus.nl. If you would like to participate in the conference call, please dial in on telephone number +31 (0) 45 631 6902. After the presentation, Jan Egberts, CEO of OctoPlus, and Susan Swarte, CFO, will be available to answer questions. After the event, the webcast will be available for replay on the Company's website.

About OctoPlus

OctoPlus is a specialty pharmaceutical company focused on the development and manufacture of improved injectable pharmaceuticals based on our proprietary drug delivery technologies that exhibit fewer side effects, improved patient convenience and a better efficacy/safety balance than existing therapies. OctoPlus also focuses on the development of long-acting, controlled release versions of known protein therapeutics, peptides and small molecules, including specialty generics.

The clinically most advanced product incorporating our technology is Locteron®, a controlled release formulation of interferon alpha for the treatment of chronic hepatitis C. OctoPlus licensed Locteron exclusively to Biolex in October 2008. Locteron is being manufactured for Biolex by OctoPlus and has recently completed Phase IIb clinical studies with superior clinical data versus current treatment.

In addition, OctoPlus is a leading European provider of advanced drug formulation and clinical scale manufacturing services to the pharmaceutical and biotechnology industries, with a focus on difficult-to-formulate active pharmaceutical ingredients.

OctoPlus is listed on Euronext Amsterdam by NYSE Euronext under the symbol OCTO. For more information about OctoPlus, please visit our website www.octoplus.nl. This document may contain certain forward-looking statements relating to the business, financial performance and results of OctoPlus and the industry in which it operates. These statements are based on OctoPlus' current plans, estimates and projections, as well as its expectations of external conditions and events. In particular the words "expect", "anticipate", "predict", "estimate", "project", "plan", "may", "should", "would", "will", "intend", "believe" and similar expressions are intended to identify forward- looking statements. We caution investors that a number of important factors, and the inherent risks and uncertainties that such statements involve, could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements. In the event of any inconsistency between an English version and a Dutch version of this document, the English version will prevail over the Dutch version.


Click here for the full press release including financial tables: http://hugin.info/137076/R/1534705/467811.pdf


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Source: OctoPlus N.V. via Thomson Reuters ONE

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