ABLYNX ANNOUNCES FULL YEAR RESULTS FOR 2007

Transcription

1 ABLYNX ANNOUNCES FULL YEAR RESULTS FOR 2007 GHENT, Belgium, 28 February Ablynx [Euronext Brussels: ABLX], a pioneer in the discovery and development of Nanobodies, a novel class of antibody-derived therapeutic proteins, announced today its results for These are the Company s first set of results since its successful IPO and listing on Euronext Brussels in November Highlights o Raised a total of 85.2 million from its IPO on Euronext Brussels o million in cash at year end o 150% increase in revenues to 9.9 million (2006: 4.0 million) o ALX-0081, an anti-thrombotic, entered Phase I clinical trials in April and positive final results were reported in December o A research and licensing deal worth up to 1.3 billion was signed with Boehringer Ingelheim in September 2007 o A collaborative agreement with Boehringer Ingelheim in the area of Alzheimer s disease worth up to 206 million was announced in January 2007 o Key Nanobody related claims of the Hamers-1 patent were maintained in opposition appeal proceedings in December o Wyeth confirmed it was extending the research term with Ablynx as part of its $212 million TNF-alpha licensing agreement in December o The drug discovery and development alliance with Novartis was extended in December for another year o 1.9 million grant was approved by the Flemish government in September to develop new therapeutic applications of Nanobodies Prospects for 2008 Based on the positive Phase I data for ALX-0081, Ablynx intends to submit a regulatory application to carry out its multiple-dose study directly in the target patient population rather than in healthy volunteers. The Company aims to start Phase II development of ALX-0081 by the end of As part of Ablynx s strategy to exploit the Nanobody advantages and to access larger potential markets, it has initiated a programme to develop a subcutaneous delivery form of ALX-0081 and plans to file an IND equivalent for this product by the end of 2008.

2 During 2008, Ablynx will further develop its own product pipeline by advancing other Nanobodies into pre-clinical studies alone or with partners. The Company intends to initiate 6-8 new research programmes during the year as well as further developing its own technology platform and exploiting the key Nanobody advantages in areas such as alternative routes of administration. Commenting on the 2007 results and the very significant progress Ablynx made last year, Dr Edwin Moses Chairman and CEO said: 2007 was a pivotal year for Ablynx on all fronts: despite challenging financial markets we completed the largest ever biotech IPO on Euronext raising 85.2 million; our first product, ALX-0081, entered and successfully completed a Phase I study during the year the first time that a Nanobody had been administered to humans in a clinical trial; and we announced collaborative agreements with Boehringer Ingelheim potentially worth more than 1.5 billion, underlining the attractiveness of our Nanobody technology to the pharmaceutical industry and our strategy of entering into alliances to maximise the value of our platform. We are focused in 2008 on driving our lead programmes further along the clinical development path, building our pipeline by progressing existing programmes and adding 6-8 new ones. We are committed to delivering excellence within our existing collaborations and to forging new commercial relationships which reflect our growing maturity as a Company. To achieve these goals we will continue to expand in terms of both physical space and headcount we continue to aim to attract the best national and international talent as part of our ambitious plans for this exciting Company. Certain statements, beliefs and opinions in this press release are forward-looking, which reflect the Company s or, as appropriate, the Company s directors current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Forward looking statements contained in this press release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this press release as a result of any change in expectations or any change in events, conditions assumptions or circumstances on which these forward-looking statements are based. Neither the Company nor its advisers or representatives nor any of its of their parent or subsidiary undertakings or any such person s officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this press release or the actual occurrence of the forecasted developments. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release.

3 FINANCIAL INFORMATION Ablynx financial statements have been prepared in accordance with IFRS as adopted by the EU and in accordance with Belgian General Accounting Principles (BE GAAP). The financial information included in this press release is an extract from the IFRS financial statements that will be published together with the BE GAAP financial statements before the end of March The statutory auditor, PricewaterhouseCoopers Reviseurs d Entreprises SCCRL, represented by Raf Vander Stichele, has confirmed that his audit work, which is substantially complete, has not revealed any significant matters requiring adjustments to the 2007 income statement, balance sheet, condensed cash flow statement or statement of changes in shareholder's equity included in this press release. ANALYSIS OF RESULTS OF OPERATIONS The tables herein include information relating to the Company's results for the years ended December 31, 2006 and Revenue Revenue increased 150% to 9.9 million (2006: 4.0 million). This increase was primarily attributable to a 5.2 million increase in research and development revenues, resulting mainly from the collaborative agreements with Novartis, Wyeth and Boehringer Ingelheim. In addition, Ablynx had a 0.8 million increase in grant revenue. Research and development expenses Research and development expenses increased by 39% to 18.8 million (2006: 13.5 million). This increase was primarily attributable to a 2.1 million increase in personnel costs as research and development staff increased to 116 as at the end of It also reflects an increase in expenses related to laboratory costs, rent and intellectual property related expenses. General and administrative expenses General and administrative expenses increased 1.3 million to 5.5 million (2006: 4.2 million). This increase primarily resulted from a 1.1 million increase in personnel expenses, share based payments and Executive Committee compensation. Finance income Finance income primarily comprises interest from term deposits. Finance income increased approximately 1.4 million to 1.8 million (2006: 0.4 million). The increase was principally due to increased income from deposits following the call down of the remaining 20 million in June 2007 related to the capital increase of 2006 and the proceeds from the IPO of 85.2 million in November 2007.

4 Losses for the period As a result of the foregoing, the Company's losses decreased to 12.5 million (2006: 13.2 million). BALANCE SHEET The Company's non-current assets include intangible assets (a portfolio of patents which are being depreciated over 12 years) and tangible assets (the Company's laboratory and office equipment). The increase in non-current assets essentially relates to the purchase of equipment. The Company's current assets essentially consist of trade receivables and cash and cash equivalents. The increase in 2007 primarily relates to increases in cash and cash equivalents from the call down of the remaining 20 million in June 2007, related to the capital increase of 2006 and the proceeds form the IPO of 85.2 million in November The Company's current liabilities primarily relate to deferred income from collaborative arrangements and trade payables. The increase in deferred income is related to new deals with partners. The Company's non-current liabilities relate to leasing contracts and a borrowing contract. CASH FLOW Cash flow from operating activities represents a net inflow of 3.0 million in 2007 (2006: net outflow of 4.8 million). The increased operating expenses were more than offset by the positive impact of the new collaborative agreements in Cash flow from investing activities represents a net outflow of 2.0 million in 2007 (2006: 1.4 million). These changes primarily reflect increased investments in laboratory and office equipment. Cash flow from financing activities represents a net inflow of 99.7 million in 2007 (2006: 20.2 million). This increase essentially related to the call-down of the remaining amount to be paid up in respect of the Company's capital increase in August 2006 and the proceeds of the IPO.

5 INCOME STATEMENT Year ended 31 December ( '000) Income Statement Data: Revenue: Research and development 8,785 3,628 Grants 1, Total revenue 9,920 3,969 Research & development expense (18,750) (13,504) General & administrative expense (5,482) (4,160) Total operating expenses (24,232) (17,664) Other operating income/(expense) 5 48 Operating result (14,307) (13,647) Finance income (net) 1, Loss before taxes (12,522) (13,233) Income tax expense 0 0 Loss for the year (12,522) (13,233) Basic and diluted loss per share (0.49) (0.76) BALANCE SHEET As at December 31 ( '000) Non-current assets 3,505 2,525 Intangible assets Property, plant & equipment 2,754 1,626 Current assets 130,831 28,147 Trade receivables 2,082 1,369 Other current assets 1, Accrued income and deferred charges 1, Cash and cash equivalents 126,489 25,799 Total assets 134,336 30,672 Equity 108,175 20,051 Share capital 61,970 24,416 Share premium account 88,851 26,530 Share-based payments 1, Retained earnings (44,197) (31,675) Non-current liabilities Borrowings Current liabilities 26,100 10,467 Borrowings Trade payables 5,223 2,302 Other current liabilities 1,689 1,097 Deferred income 19,076 6,890 Total liabilities 26,161 10,621 Total equity and liabilities 134,336 30,672

6 CONDENSED CASH FLOW STATEMENT The following table sets forth the Company's cash flow statement data for the years ended 31 December 2007 and Year Ended 31 December ( '000) Net cash used in operating activities 3,000 (4,766) Net cash used in investing activities (2,005) (1,372) Net cash generated from financing activities 99,695 20,192 Cash and cash equivalents at end of the year 126,489 25,799 STATEMENT OF CHANGES IN SHAREHOLDER S EQUITY ( '000) Share capital Share premium Sharebased payments Retained loss Total equity Balance at December 31, ,661 13, (18,442) 12,885 Capital increase 26,895 13,105 Of which unpaid capital (20,000) Issuance costs (140) Share-based payments 539 Loss of the year (13,233) Balance at December 31, ,416 26, (31,675) 20,051 Unpaid capital paid up 20,004 Capital increase 22,880 62,316 Of which unpaid capital Issuance costs (5,463) Exercise of warrants 133 (22) Share-based payments 793 Share premium 5 Loss of the year (12,522) Balance at December 31, ,970 88,851 1,551 (44.197) 108,175 - ends -

7 About Ablynx Founded in 2001 in Ghent, Belgium, Ablynx is a biopharmaceutical company focused on the discovery and development of Nanobodies, a novel class of therapeutic proteins based on single-domain antibody fragments, for a range of serious and life-threatening human diseases. The Company currently has over 150 employees. Ablynx completed a successful IPO on Euronext Brussels [ABLX] on 7 November Ablynx is developing a portfolio of Nanobody -based therapeutic programmes in a number of major disease areas, including inflammation, thrombosis, oncology and Alzheimer s disease. Nanobodies have been generated against more than 100 different disease targets. Efficacy data has been obtained in 16 in vivo models for Nanobodies against a range of different targets. Ablynx has an extensive patent position in the field of Nanobodies for healthcare applications. It has exclusive and worldwide rights to more than 50 families of granted patents and pending patent applications, including the Hamers patents covering the basic structure, composition, preparation and uses of Nanobodies. Ablynx has ongoing research collaborations and significant partnerships with several major pharmaceutical companies, including Boehringer Ingelheim, Wyeth Pharmaceuticals, Novartis, and P&G Pharma. Ablynx is building a diverse and broad portfolio of therapeutic Nanobodies through these collaborations as well as through its own internal discovery programmes. Ablynx announced final Phase I data from its first programme, an anti-thrombotic (ALX-0081) in December 2007 and another programme, which is partnered, is in advanced preclinical development. Nanobody is a registered trademark of Ablynx NV. For more information, please contact: College Hill Life Sciences for UK/International media enquiries: Sue Charles, Justine Lamond, Holly Griffiths t: +44 (0) f: +44 (0) e: ablynx@collegehill.com Ablynx: Dr. Edwin Moses Chairman and CEO t: +32 (0) m: +44 (0) / +32 (0) e: edwin.moses@ablynx.com Eva-Lotta Allan Chief Business Officer t: +32 (0) m: +32 (0) / +44 (0) e: eva-lotta.allan@ablynx.com Wim Ottevaere Chief Financial Officer t: +32 (0) e: wim.ottevaere@ablynx.com