• Sanochemia Q1 report: revenues rise – EBIT doubles

• Encouraging outlook reaffirmed   

• Advanced development candidates in R&D pipeline

Vienna, 23 February 2007   -   Sanochemia Pharmazeutika AG, Vienna, listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN AT0000776307), today announces its results for the first quarter of its 2006/2007 financial year (to 31 December):

Benchmarked against the same period of the pervious financial year, group sales rose in the first quarter (1 October – 31 December 2006) from € 7.2m to € 8.5m, or by 19%. This growth is mainly attributable to higher sales volumes achieved by the Production Division. Earnings before interest and tax (EBIT) doubled from € 0.4m to € 0.8m despite higher expenses. The drop in the financial result (to € 0.2m) compared with the same period of the previous year (€ 1.1m) is accounted for by the company’s new investment strategy aimed at ensuring less volatility in financial returns. Consequently, pre-tax profits were lower than a year earlier at € 1.0m (€ 1.4m) which, after tax credits in the amount of € 0.1m (€ -0.4m) culminated in net profits of € 1.1m (€ 1.0m), equivalent to earnings per share of € 0.10 (unchanged).

Cash flow from current operations improved from € 3.5m to € 3.7m, while cash and cash equivalents rose from € 18.5m to € 24.6m (y/y). Although the balance sheet total increased from € 91.2m to € 102.6m, the equity ratio fell from 65.7% to 61.9% at 31 December 2006.

In addition to the general improvement in terms of the financials, the first quarter was also marked by the attainment of a number of important R&D milestones – such as the European out-licensing of the muscle relaxant tolperisone – that will prove central to the company’s future profitability.

OUTLOOK

Based on developments in the first quarter, the company expects to see further organic growth at rates above those of the pharmaceutical market as a whole, as well as positive operating results despite its higher R&D spendings.

The considerable potential of out-licensing candidates at advanced clinical stages will underpin Sanochemia’s future success. Liposomal galantamine and PVP hypericin remain the company’s most promising development projects for out-licensing.

A central focus of activities in the near future will be the launch of marketing activities for tolperisone in Germany and Switzerland. The first revenues generated by this substance are expected in the current financial year. This product is forecast to have a significant impact on margins in the company’s production division in the years ahead.

Sanochemia’s aim remains to develop further innovative products with a high degree of value-added and to achieve lasting shareholder value.

Teleconference

Sanochemia will be holding a teleconference for analysts and investors today at 10:00 on: + 43 / 1 / 7957 6055. The teleconference will be held in German.

The complete quarterly results, including segment reporting, can be requested from the company directly, but are also available online at: www.sanochemia.at. The next annual shareholders’ meeting of Sanochemia Pharmazeutika AG will be held in Eisenstadt on 15 March 2007.

 

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For further information please contact:

Margarita Hoch
Investor RelationsTel.: + 43 / 1 / 3191456 - 335
Mobile: + 43 (0) 664 / 21 38 152 
mailto: m.hoch(at)sanochemia.at