Aspreva Pharmaceuticals Announces Results for Third Quarter 2007



    VICTORIA, Oct. 31 /CNW/ - Aspreva Pharmaceuticals Corporation (NASDAQ:  
ASPV; TSX: ASV), today reported financial results for the third quarter ended
September 30, 2007. Third quarter revenues were $62.3 million with net income
and earnings per fully diluted share of $23.3 million and $0.65, respectively.
Unless otherwise specified, all amounts are in U.S. dollars and are reported
under U.S. GAAP.
    As announced on October 17, 2007, Aspreva's Board unanimously approved a
plan of arrangement under which the Swiss healthcare company, Galenica Group,
through a wholly-owned Canadian subsidiary, has offered $26.00 per Aspreva
share in an all-cash transaction. The transaction is expected to close on
January 3rd, 2008 and is subject to shareholder, court and regulatory
approvals.

    Conference Call

    Aspreva will host a conference call to discuss results for the third
quarter 2007 on Wednesday, October 31, 2007 at 2:00 p.m. Pacific Time
(5:00 p.m. Eastern Time).

    Dial-in information:
    North America (toll free): 1-866-202-0886
    International: 1-617-213-8841
    Enter pass code: 14829169

    The call will be available for re-play until Wednesday, November 7th, by
calling 1-888-286-8010 (North America) or 1-617-801-6888 (International) and
entering the pass code 79726236.
    A live webcast will also be available to all interested parties on
Aspreva's website: www.aspreva.com. Please click on the "Webcasts and Events"
link under the Investors section. A replay of the webcast will be available
for approximately three months following this conference call.
    To learn more about Aspreva, please visit www.aspreva.com.

    Third Quarter 2007 Results

    Revenues

    Total revenue for the third quarter 2007 was $62.3 million compared to
$47.9 million in the third quarter 2006, and $63.8 million in the second
quarter 2007. Aspreva reaffirms its previously disclosed 2007 guidance for
revenues in excess of $245 million.

    Net Income

    Third quarter 2007 net income was $23.3 million, or $0.65 per fully
diluted share, versus net income of $25.4 million, or $0.71 per fully diluted
share, in the third quarter 2006 and $38.1 million, or $1.08, in the second
quarter 2007. Net income for the quarter was impacted by a previously
announced one-time $20 million payment to Roche.

    Research and Development (R&D) Expenses

    Research and Development expenses in the third quarter 2007 were
$8.9 million, compared to $12.4 million in the third quarter 2006 and
$15.5 million in the second quarter 2007. R&D expenses continue to reflect the
wind-down of the induction phase of our lupus nephritis trial in addition to
the ongoing activities in the maintenance phase of the lupus nephritis trial
and the pemphigus vulgaris trial. As in previous quarters, spending in support
of business development efforts also contributed to R&D expenses.

    Marketing, General and Administrative (MG&A) Expenses

    Marketing, General and Administrative expenses in the third quarter 2007
were $11.2 million, compared to $10.0 million in the third quarter 2006 and
$9.2 million in the second quarter 2007. MG&A expenses were incurred in
support of finance, medical affairs, pre-commercialization, information
technology, and human resources in support of global operations. The increase
to MG&A expenses compared to last quarter is due to restructuring charges
incurred during the third quarter.

    Cash and Marketable Securities

    Cash and marketable securities at September 30, 2007 were $353.2 million
compared to $323.9 million at June 30, 2007.

    About The CellCept Agreement

    In July 2003, Aspreva acquired exclusive worldwide rights (excluding
Japan) through 2017 to CellCept from Roche for the treatment of autoimmune
diseases. CellCept is approved for marketing in the United States, European
Union, Canada and other countries for the prevention of organ transplant
rejection. Under the agreement, Aspreva is responsible for clinical
development of CellCept for autoimmune diseases and will be responsible for
sales and marketing upon receipt of regulatory approvals.
    Aspreva currently has two phase III clinical programs underway with
CellCept: lupus nephritis and pemphigus vulgaris. The maintenance phase of the
lupus nephritis study is ongoing and we expect to complete our 52-week
pemphigus vulgaris trial in 2008.

    About Aspreva Pharmaceuticals

    Aspreva is a global pharmaceutical company focused on identifying,
developing, and, upon approval, commercializing evidence-based medicines for
patients living with less common diseases. Aspreva common stock is traded on
the NASDAQ Global Select Market under the trading symbol "ASPV" and on the
Toronto Stock Exchange under the trading symbol "ASV". Learn more at
www.aspreva.com.


    
                      SUMMARY OF ROYALTY REVENUE EARNED
                      TO DATE UNDER AGREEMENT WITH ROCHE

                                        Quarter ended             Year ended

                         --------------------------------------- ------------

    (in thousands of
    U.S. dollars)
    (unaudited)          September 30,    June 30,    March 31,  December 31,
                             2007           2007        2007         2006
                         ------------- ------------ ------------ ------------
    Initial quarterly
     payment less collar  $    59,475  $    59,749  $    54,541  $   192,489
    Reconciliation
     amount                     2,827        4,027        4,732       22,295
                         ------------- ------------ ------------ ------------
    Total royalty
     revenue              $    62,302  $    63,776  $    59,273  $   214,784
                         ------------- ------------ ------------ ------------
                         ------------- ------------ ------------ ------------


                     ASPREVA PHARMACEUTICALS CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS

    (in thousands of U.S. dollars)
    (unaudited)
                                                   September 30, December 31,
                                                        2007        2006
                                                   ------------- ------------
    ASSETS
      Cash and marketable
       securities                                   $   353,163  $   259,895
      Accounts receivable                                70,776       57,426
      Other current assets                                4,538        3,565
      Property and equipment, net                         4,356        4,736
      Other long term assets                              1,817        1,435
                                                   ------------- ------------

                                                    $   434,650  $   327,057
                                                   ------------- ------------
                                                   ------------- ------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
      Unearned royalty advance                      $     6,854  $     6,559
      Other current liabilities                          40,970       37,548
      Long term liabilities                               1,389        1,312
      Shareholders' equity                              385,437      281,638
                                                   ------------- ------------

                                                    $   434,650  $   327,057
                                                   ------------- ------------
                                                   ------------- ------------


                     ASPREVA PHARMACEUTICALS CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

    (in thousands of U.S. dollars,
    except per share amounts)
    (unaudited)

                               Three Months Ended        Nine months Ended
                                  September 30,             September 30,
                               2007         2006         2007         2006
                          ------------ ------------ ------------ ------------

    Royalty revenue       $    62,302  $    47,943  $   185,351  $   162,316

    Expenses
      Research
       and development          8,933       12,357       36,745       34,389
      Global service fee       20,000            -       20,000            -
      Marketing, general
       and administrative      11,204        9,969       30,216       26,833
                          ------------ ------------ ------------ ------------

    Total expenses             40,137       22,326       86,961       61,222
                          ------------ ------------ ------------ ------------

    Other income                4,144        3,258       11,238        7,649
                          ------------ ------------ ------------ ------------

    Income before income
     taxes                     26,309       28,875      109,628      108,743

    Income tax expense          2,989        3,475       11,752       10,634
                          ------------ ------------ ------------ ------------

    Net income            $    23,320  $    25,400  $    97,876  $    98,109
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Earnings per common
     share
    Basic                 $      0.66  $      0.73  $      2.78  $      2.83
    Diluted               $      0.65  $      0.71  $      2.74  $      2.73

    Weighted average
     number of shares
     outstanding:
      Basic                35,201,767   34,890,894   35,185,106   34,650,645
      Diluted              35,696,728   35,917,100   35,781,704   35,924,064

    Included in net
     income for the period
     are the following
     charges for stock-
     based compensation:  $       987  $     2,830  $     6,451  $     6,044


                     ASPREVA PHARMACEUTICALS CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (in thousands of U.S. dollars)
    (unaudited)

                               Three Months Ended        Nine Months Ended
                                  September 30,             September 30,
                               2007         2006         2007         2006
                          ------------------------- -------------------------

    Net Cash Flows provided
     by Operating Activities
      Net income for
       the period         $    23,320  $    25,400  $    97,876  $    98,109
      Add non-cash items:
        Depreciation and
         amortization             308          192        3,681          464
        Deferred taxes          2,421        1,328        2,031        2,028
        Stock-based
         compensation             987        2,830        6,451        6,044
      Net change in non-
       cash working capital
       items related to
       operations                (426)       5,337      (13,897)       6,620
                          ------------ ------------ ------------ ------------
                               26,610       35,087       96,142      113,265
                          ------------ ------------ ------------ ------------

    Net Cash Flows used
     in Investing Activities
        Net purchases of
         marketable
         securities           (50,440)     (40,873)    (114,309)    (100,516)
        Purchase of property
         and equipment           (267)      (1,316)      (3,356)      (1,645)
                          ------------ ------------ ------------ ------------
                              (50,707)     (42,189)    (117,665)    (102,161)
                          ------------ ------------ ------------ ------------

    Net Cash Flows provided
     by Financing Activities
        Issuance of shares,
         net of issue costs       187        1,214          421        3,169
        Payments on capital
         lease obligations        (69)        (109)        (272)        (328)
                          ------------ ------------ ------------ ------------
                                  118        1,105          149        2,841
                          ------------ ------------ ------------ ------------

    Net increase
     (decrease) in cash       (23,979)      (5,997)     (21,374)      13,945

    Cash, beginning of the
     period                    51,822       34,701       49,217       14,759
                          ------------ ------------ ------------ ------------

    Cash, end of the
     period               $    27,843  $    28,704  $    27,843  $    28,704
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------
    

    Forward-Looking Statements

    The financial results in this news release are unaudited, and are not a
complete disclosure of our quarterly or annual financial results.
    This news release contains forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995 and
forward-looking information within the meaning of applicable securities laws
in Canada (collectively, "forward-looking statements"). The words
"anticipates", "believes", "budgets", "could", "estimates", "expects",
"forecasts", "intends", "may", "might", "plans", "projects", "schedule",
"should", "will", "would" and similar expressions are intended to identify
forward-looking statements, although not all forward-looking statements
contain these identifying words. Forward-looking statements in this news
release include, but are not limited to, statements about: the potential
acquisition of Aspreva by Galenica in an all cash transaction valued at
USD$26.00 per outstanding share (the "Acquisition"); the approval of the
Acquisition by our shareholders and the Canadian regulatory authorities; the
expected closing date of the Acquisition; and our two phase III clinical
programs underway with CellCept: lupus nephritis and pemphigus vulgaris.
    With respect to the forward-looking statements contained in this news
release, we have made numerous assumptions regarding, among other things:
Galenica's ability to finance the Acquisition valued at USD$26.00 per
outstanding share; the ability of Aspreva and Galenica to satisfy all of the
closing conditions to complete the Acquisition; our ability to protect our
intellectual property rights and to not infringe on the intellectual property
rights of others; our ability to comply with applicable governmental
regulations and standards; and our ability to succeed at establishing a
successful commercialization program for any of our potential products.
    Readers are cautioned that the plans, intentions or expectations
disclosed in any forward-looking statements and underlying assumptions may not
be achieved and that they should not place undue reliance on any
forward-looking statement. Actual results or events could differ materially
from the plans, intentions, expectations, and assumptions expressed or implied
in any forward-looking statements as a result of numerous risks, uncertainties
and other factors, including those relating to: the possibility of not
satisfying all of the closing conditions to complete the Acquisition; the
possibility that our shareholders do not approve the Acquisition; risks
related to integration of acquisitions; difficulties or delays in obtaining
regulatory approvals; difficulties or delays in the progress, timing and
results of clinical trials and studies; competition from other pharmaceutical
or biotechnology companies; economic and capital market conditions; and
currency exchange rates.
    For a more thorough discussion of the risks associated with our business,
see the "Risk Factors" section in our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2007, filed with the U.S. Securities and Exchange
Commission at www.sec.gov and with securities regulatory authorities in Canada
at www.sedar.com. Although we have attempted to identify important risks,
uncertainties and other factors that could cause actual results or events to
differ materially from those expressed or implied in the forward-looking
statements, there may be other factors that cause actual results or events to
differ from those expressed or implied in the forward-looking statements. All
forward-looking statements are qualified in their entirety by this cautionary
statement and we undertake no obligation to revise or update any
forward-looking statements as a result of new information, future events or
otherwise after the date hereof.

    %SEDAR: 00021534E




For further information:

For further information: Sage Baker, VP, Investor Relations & Corporate
Communications, Aspreva Pharmaceuticals, (250) 744-2488 ext. 84270,
sbaker@aspreva.com

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ASPREVA PHARMACEUTICALS

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