SOURCE: Speedel Holding AG

May 04, 2007 01:10 ET



CHF 161.0 million liquid assets on hand and cash-burn of CHF 14.9 million

Basel/Switzerland and Bridgewater NJ/USA, 04 May 2007

Speedel (SWX: SPPN) today announced financial results for the three months ending 31 March 2007.

Financial Highlights

* During the period the company raised net proceeds of CHF 54.0 million through a convertible bond

* At 31 March 2007 liquid assets on hand were CHF 161.0 million

* Cash-burn for the first quarter 2007 was CHF 14.9 million compared with CHF 16.8 million for the first quarter 2006

Konrad P. Wirz, Chief Financial Officer, commented: "We were delighted with the investment community's response to our convertible bond listed on the SWX Swiss Exchange. Cash-burn for 2007 is dependent on our plans for SPP301 and SPP200, and we reiterate our full year guidance of between CHF 75-85 million."

Financial Key Data [i] (CHF million)

|                                  |  Q1 2007  |  Q1 2006  | Change |
| Revenues                         |       0.0 |       0.0 |      - |
| Research & Development           |    (11.6) |    (14.1) |   -2.5 |
| General & Administration         |     (3.4) |     (3.0) |   +0.4 |
| Total operating                  |    (14.9) |    (17.1) |   -2.2 |
| expenses                         |           |           |        |
| Operating loss                   |    (14.9) |    (17.1) |   -2.2 |
| Finance costs, net               |     (0.1) |     (0.9) |   -0.8 |
| Taxes                            |       0.0 |       0.1 |   +0.1 |
| Loss for the period              |    (15.0) |    (17.9) |   -2.9 |
| Basic & diluted loss per         |    (1.96) |    (2.78) |  -0.82 |
| share/CHF [ii]                   |           |           |        |
|                                  |           |           |        |
| Cash-burn [iii]                  |      14.9 |      16.8 |   -1.9 |
|                                  |           |           |        |
|                                  | 31 Mar 07 | 31 Dec 06 | Change |
| Liquid assets [iv]               |     161.0 |     121.1 |  +39.9 |

Footnotes i-iv can be found on last page of this press release. Consolidation is based on IFRS, but these results for the period are unaudited. Complete financial statements and notes for the 3 months ending 31 March 2007 can be accessed at

Research & Development Expenses

R&D expenses decreased by CHF 2.5 million for the first quarter 2007 compared to the corresponding period in 2006. However, we continue to incur significant closure costs for the SPP301 Phase III trial which are being both accrued and paid out in cash during each quarter of 2007. Moreover we continue to invest in our next generation renin inhibitor programmes both in the clinic and in research (SPP635 Phase IIa, SPP1148 Phase I and others).

General & Administration Expenses

G&A expenses increased by CHF 0.4 million for the quarter compared to the corresponding period in 2006, mainly due to the non-cash expensing of new share options granted to staff.

Finance Costs, net

Net finance costs decreased by CHF 0.8 million for the quarter compared to the corresponding period in 2006. This difference mainly reflects the higher amortisation costs of the 2005 CHF 70.0 million gross convertible loan in Q1 2006 compared to that of the CHF 55.5 million gross convertible bond issued in January 2007. The company is also benefiting from the increased funds available for investment.

Balance Sheet

On 18 January 2007 the company concluded a successful convertible bond issue which raised gross proceeds of CHF 55.5 million. Demand was very strong and the conversion premium was raised to 35.9% with a reference price of CHF166.3 and a conversion price of CHF 226. The 4 year bond is listed on the SWX Exchange under SPP07.

During Q1 2007 some 25,000 shares were issued for conversion by holders of the 2005 CHF 70 million loan, which matures on 31 July 2007. This conversion generated a premium of CHF 625,000 booked in equity. The remaining face value of this convertible loan at 31 March 2007 is CHF 3.9 million.

As of 31 March 2006, liquid assets on hand were CHF 161.0 million compared to CHF 121.1 million at 31 December 2006. These funds provide a comfortable base to finance the company's current pipeline until at least the end of 2008. This is a conservative statement as it excludes any possible sources of revenues such as royalty income from SPP100 (Tekturna/Rasilez[1]) which was launched by Novartis in the US in March 2007.

Share Capital

On 31 March 2007, Speedel Holding Ltd had 7,707,165 registered shares with a nominal value of CHF 2 per share which are listed on the SWX Swiss Exchange under the symbol SPPN. In addition the company had outstanding conditional share capital of 613,430 shares with a nominal value of CHF 2 per share, mainly to cover the convertible bond and the company's employee share option plan.

Key news flow on SPP100 (Tekturna/Rasilez)

* On 06 March 2007 the FDA announced approval of SPP100 (Tekturna/Rasilez) for the treatment of hypertension both as monotherapy and in co-administration with other antihypertensives

* In March 2007 Novartis officially launched SPP100 (Tekturna/Rasilez) in the US

* On 26 March 2007 during the Annual Scientific Sessions of the American College of Cardiology (ACC) further data was presented on the combination of SPP100 (Tekturna/Rasilez) and the ARB Diovan. This showed that patients receiving both drugs experienced reductions in blood pressure over those provided by either treatment alone

* During the Annual Scientific Meeting and Exposition of the American Society of Hypertension (ASH), to be held in Chicago19-22 May, further data on SPP100 (Tekturna/Rasilez) will be presented. This will include Phase III data from trials conducted by Novartis on its use in co-administration with HCTZ (diuretic).

Web cast and Conference Call

At 14.00 CET /13:00 London/ 08:00 EST today 4 May 2007, the company will host a web cast which can be accessed at In addition participants may join a teleconference facility using the following telephone numbers:

Switzerland:     0445 803 409
UK:              0845 245 0248
USA:             1866 789 2220
International    +44 (0) 1452 560 068
Passcode for all: 6362876

Slides for the web cast will be downloadable from 10:00 CET today and the web cast will be accessible on the company's website until 03 June 2007.

Calendar 2007
AGM           10 May
Q2 2007       15 August
Q3 2007       14 November
About Speedel

Speedel is a public biopharmaceutical company that seeks to create value for patients, partners and investors by developing innovative therapies for cardiovascular and metabolic diseases. Speedel is a world leader in renin inhibition, a promising new approach with significant potential for treating cardiovascular diseases. Our lead compound SPP100 (Tekturna/Rasilez[2]), the first-in-class renin inhibitor, was in-licensed from Novartis in 1999 and licensed-back to Novartis Pharma in 2002 for further development and commercialisation; SPP100 was approved by the FDA in the US in March 2007, and filed by Novartis with the EMEA in the EU in Q3 2006. Our pipeline covers three different modes of action, and in addition to SPP100, includes SPP301 in Phase III (on hold), SPP200 in Phase II, SPP635 in Phase Il, SPP1148 in Phase I and several pre-clinical projects.

Speedel develops novel product candidates through focused innovation and smart drug development from lead identification to the end of Phase II. We either partner with big pharma for Phase III and commercialisation in primary-care indications, or we may ourselves complete Phase III development in specialist indications. Candidate compounds for development and the company's intellectual property come from our late-stage research unit Speedel Experimenta and from in-licensing. Our team of approximately 70 employees, including over 30 experienced pharmaceutical scientists, is located at our headquarters and laboratories in Basel, Switzerland and at offices in New Jersey, USA and Tokyo, Japan.

In January 2007 the company raised gross proceeds of CHF 55.5 million (approximately EUR 34.3 million or USD 44.5 million) through a convertible bond issue. In March 2006 the company raised gross proceeds of CHF 83.95 million (approximately EUR 53m or USD 64m) through the public offering of 500,000 treasury shares. Previously, as a private company, we raised gross proceeds of CHF 255 million (approximately EUR 157 million or USD 204 million) from private placements of equity securities and two convertible loans including the conversion premiums. We have had total revenues, principally from milestone payments, of CHF 57.7 million (approximately EUR 37 million or USD 44 million). The company's shares were listed in September 2005 on the SWX Swiss Exchange under the symbol SPPN.

Forward looking statements

This press release includes forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are based on our current expectations and projections about future events. All statements, other than statements of historical facts, regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The word "may" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations described in these forward-looking statements and you should not place undue reliance on them. There can be no assurance that actual results of our research and development activities and our results of operations will not differ materially from these expectations. Factors that could cause actual results to differ from expectations include, among others: our or our partners' ability to develop safe and efficacious products; our or our partners' ability to achieve positive results in clinical trials; our or our partners' ability to obtain marketing approval and market acceptance for our product candidates; our ability to enter into future collaboration and licensing agreements; the impact of competition and technological change; existing and future regulations affecting our business; changes in governmental oversight of pharmaceutical product development; the future scope of our patent coverage or that of third parties; the effects of any future litigation; general economic and business conditions, both internationally and within our industry, including exchange rate variations; and our future financing plans.

-- Ends --

For further information please contact

Nick Miles
Director Communications & Investor Relations
Hirschgässlein 11
CH - 4051 Basel

T +41 (0) 61 206 40 00
D +41 (0) 61 206 40 14
F +41 (0) 61 206 40 01
M +41 (0) 79 446 25 21

Frank LaSaracina
Managing Director
Speedel Pharmaceuticals Inc
1661 Route 22 West
P.O. Box 6532
Bridgewater, NJ 08807
United States of America

T +1 732 537 2290
F +1 732 537 2292
M +1 908 338 0501

[1] Tekturna/Rasilez ® are Novartis trademarks

[2] Tekturna/Rasilez ® are Novartis trademarks

[i] Numbers may not add up due to rounding

[ii] Earnings per share are calculated on the weighted average of
registered shares outstanding for the periods:
Q1 2007 = 7,666,347; Q1 2006 = 6,444,315

[iii] Cash-burn is defined as the difference in liquid assets between
the beginning and end of the period, minus any cash inflow during the

[iv] Includes cash and cash equivalents and financial assets at fair
value through profit and loss

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