Arana Reports Strong Financial Position
Arana Reports Increased Revenues and Strong Financial Position
Arana Therapeutics Limited today reported a strong financial position for its year ended 30 September 2008 and substantial progress in product and technology development.
Financial and development highlights include:
ART621 in Phase II clinical trials: ongoing
psoriasis trial and IND application for rheumatoid arthritis
successfully passed FDA review
Major new collaboration with Kyowa Hakko Kirin (KHK) of Japan to co-develop ART104 with potential for future milestone and royalty revenues.
Completion of projects for technology partners CSL and Vegenics again with potential for future milestones and royalties.
Receipt of final instalment from sale of shares in Domantis - $17.7 million
Strong cash position of $181.6 million
Revenues increased by 14.2% to $39.5 million
Net loss of $4.1 million, including non cash depreciation and amortisation of $9.6 million
Revenues for the period were $39.5 million, an increase of $4.9 million or 14% over last year. The strong Australian dollar through the 2008 financial year offset a significant increase in underlying US dollar denominated revenues. This included income earned on the major new collaboration with Kyowa Hakko Kirin. Revenues for the period also included increased interest income on Arana’s significant cash balance due to higher interest rates.
Arana reported a net loss for the period of $4.1 million, compared to a profit of $133.4 million last year. Last year’s profit included a $136.1 million gain from the sale of shares in Domantis. The net loss for the year included the writing off of tax losses, contributing to a $3.0 million tax expense, and non cash depreciation and amortisation expenses of $9.6 million.
Cash at 30 September 2008 was $181.6 million, an increase of $12.6 million compared with last year.
Commenting on the full year results, Robin Beaumont, Chairman of Arana said: “We are in a very strong financial position thanks to ongoing revenues from licensing fees and royalties and the benefits of our strategic investments. Arana has never been in a better financial condition.”
“Our financial assets put us in a very strong position, particularly in the current market environment. This has enabled us to continue the development of our substantial research and development program, while also undertaking prudent financial management.”
“We continue to invest in activities that will create shareholder value. During the year, we increased our research and development expenditure by 107% to $24.1 million. This increase was due to our full year ownership of EvoGenix and costs associated with our progressing clinical program,” he added.
Arana’s lead inflammatory product ART621, has successfully passed review by the FDA (Food and Drug Administration) in the USA and Arana can now proceed with its planned Phase II study in rheumatoid arthritis (RA). Results of the ongoing Phase II psoriasis trial are expected in the first quarter if 2009.
“The passing of the FDA review for ART 621 is a significant step for Arana and we are planning to initiate recruitment in the RA trial by the end of this year. This is important milestone is also a catalyst for our ongoing partnering discussions.”
“Our other products also continue to progress, particularly ART104, an antibody targeting colon cancer, which is being co-developed with Japanese partner Kyowa Hakko Kirin.”
Arana’s technology platform continues to deliver to partners. Over the year, Arana completed projects for CSL and Vegenics, delivering enhanced and potentially more effective antibodies.
“Our technology business continues to be a success – we have now completed four technology projects, all of which have met the expectations of our partners,” Mr Beaumont said.