Ad-hoc Announcement pursuant to Article 15 of the German Securities Trading Act (WpHG)

Sanochemia Pharmazeutika AG: First Quarter Results 2009/2010

 

Sanochemia Pharmazeutika AG profitable in Q1

Increase in sales revenues / EBIT improve by € 3m / bottom line positive

 

Vienna, 25 February 2010 – SANOCHEMIA Pharmazeutika AG, Vienna, listed in the Prime Segment of the Frankfurt Stock Exchange (ISIN AT0000776307) today announces its above-forecast results for the first quarter of the 2009/2010 financial year. These figures are visible evidence of the effectiveness of recent steps, in particular cost-saving measures, and represent a significant improvement in terms of earnings when compared to the same quarter a year earlier.

Following a 10% increase, sales revenues rose to T€ 6,544 (PY: T€ 5,950). This is accounted for by higher contributions from the Production segment compared to a weak Q1 in the prior year. Usually characterised by high revenues, the Human Pharmaceuticals segment saw a forecast decline in turnover due to product-related restructuring which has already been partially made up for in Q2. The improvement in EBIT of € 3m accounted for a positive bottom line in the amount of T€ 152 (prior year: minus T€ 3,035). Cost savings of T€ 300 in the area of personnel expenses and T€ 1,600 in the form of other operating expenses indicate that we have been successful in adapting our fixed and variable costs to the new revenue situation.

Due to higher interest payments, the financial result declined to minus T€ 110 (PY: T€ 20) due to higher interest payments. Following taxes on income of T€ 3 (PY: minus T€ 2), the net result for the period amounts to T€ 45 (PY: minus T€ 3,015), equivalent to earnings per share of € 0.01 (PY: minus € 0.29).

The value of cash and cash equivalents (available-for-sale securities and cash) amounts to approx. € 10 million. The equity ratio remains high at 55.7 percent, indicating the firm financial standing of the Company.  

Cash flow from operating activities improved to T€ 1,353 (PY: minus T€ 2,588). This is mainly attributable to a change in accounts receivables - trade.

 

Segment reporting

As a result of product-related restructuring, revenues in the Human Pharmaceuticals division fell, in line with expectations, to T€ 2,906 (PY: T€ 4,098). The new focus on improving margins rather than on volume will enable Sanochemia to achieve more value-oriented growth and free up otherwise committed resources. This restructuring accounted for the segment operating result of minus T€ 70 (PY: T€ 538). With its radiological products and Viveo^® (tolperisone), this segment accounted for 44 percent of overall sales revenues and is set to achieve further growth and bottom-line contributions as markets for its radiological products are expanded. The Production division considerably exceeded expectations following a doubling of sales revenues to T€ 3,502 (PY: T€ 1,820). EBIT improved from minus T€ 1,940 to T€ 861. The top revenue drivers were again synthetic active pharmaceutical ingredients such as galantamine, following a marked rise in demand compared to the same quarter of the preceding period. Contract manufacturing activities also achieved a satisfactory increase in revenues due to higher order volumes. The Research and Development division did not report any significant revenue contributions. With its leading projects Secrelux^® and, in particular, PVP hypericin, Sanochemia is focussing on attractive, high-growth segments in fields such as oncology. A recent success was the progress made in a clinical trial to assess the use of PVP hypericin as both a diagnostic and a treatment for bladder cancer. 

 

Outlook 2010

Besides that for its MRT imaging agents, Sanochemia is also awaiting marketing authorisations in a number of European markets for its tolperisone formulation. Intensive negotiations are already being conducted with several regional marketing partners, some of which we expect to conclude in the near future.  Work is continuing at full speed on the development of PVP hypericin as a diagnostic and treatment for bladder cancer. Sanochemia expects to receive decisive findings and data from the ongoing clinical trials within a year.

 

The full Q1 report, including segment reporting, will be available on our website from Friday, 26 February. Further details of upcoming financial events are available either at http://www.sanochemia.at/en/ or on request from the Company.

 

Sanochemia Pharmazeutika AG will be holding a press conference for journalists at the Vienna Stock Exchange on 26 February (10:00). To register, please contact:

Margarita Hoch,Investor Relations 
phone: +43 / 1 / 3191456 / 335
fax:      +43 / 1 / 3191456/ 344 
m.hoch(at)sanochemia.at