Transgene: Net Profit of EUR 8.5 Million for the First Half of 2007 Following Partnership Agreement With Roche



    STRASBOURG, France, Aug. 10 /CNW/ - Transgene S.A. (Eurolist Paris:
FR0005175080) announces today its achievements in operations and financial
performance for the first half of 2007.

    
    Condensed Consolidated Statements of Operations

    (IAS/IFRS)
    (Amounts in thousands of euros)                 Six months ended June 30,
                                                           2007         2006
                                                     (unaudited)    (audited)

    Total revenues                                       24,745        2,785
    Total operating expenses                            (16,657)     (13,512)
    Profit (loss) from operations                         8,088      (10,727)
    Interest and other income, net                          374           92
    Income tax                                                -            -
    Net profit (loss)                                     8,462      (10,635)
    

    "In the first half of 2007, the strategic partnership with Roche enabled
us to record significant revenues and a positive net result of
EUR 8.5 million," said Philippe Archinard, Chief Executive Officer of
Transgene. "Our financial position has also been strengthened by a very
successful EUR 100.1 million capital increase carried out on the European
stock markets in June. We now have sufficient financial visibility and means
to carry out our development plans and accelerate our transition to a
full-fledged biopharmaceutical company."

    
    First Half 2007 Highlights:

    -   Clinical pipeline advances:

    -   TG 4001/R3484 (MVA-HPV-IL2) for the treatment of precancerous
        cervical lesions caused by the Human Papilloma Virus (HPV) infection:
        in April, Roche and Transgene entered into an exclusive worldwide
        collaboration agreement to develop and commercialize products from
        Transgene's therapeutic vaccine program against HPV-mediated
        diseases. Transgene received a total of EUR 23 million in upfront and
        an early milestone payment in the second quarter of 2007.

    -   TG 4010 (MVA-MUC1-IL2) in first line therapy for Non Small Cell Lung
        Cancer (NSCLC) in combination with chemotherapy: the recruitment of
        140 patients in the Phase IIb controlled trial, initiated at the
        beginning of 2006, was completed in May 2007. First interim data
        should be available near year-end 2007.

    -   TG 1042 (Ad-IFNg) for the treatment of relapsing cutaneous lymphoma:
        recruitment of the 41-patient Phase II trial commenced in March 2007.
        Interim results from a first group of 13 patients should be available
        near year-end 2007.

    -   TG 4040 (MVA-HCV) in patients chronically infected by the hepatitis C
        virus: a 15-patient Phase I trial was launched in France in
        February 2007. First interim results should be available by the
        beginning of 2008.

    -   EUR 87 million raised on the European markets in June 2007, with an
        additional EUR 13.1 million in July 2007 through the exercise of the
        over-allotment option. TSGH, a company of the Merieux Alliance group
        and Transgene's main shareholder, subscribed to 55% of the offering.
        The institutional investors' placement was 5 times over-subscribed.


    First Half 2007 Financial Results

    Revenues:

    (Figures in millions of euros)                         2007         2006

    Licensing revenues                                     23.3          0.2
    Manufacturing contracts                                   -          0.9
    Contract with the French Muscular Dystrophy
     Association                                            0.4          0.8
    Research and development grants                         0.2          0.2
    Research and development tax credit                     0.9          0.7
    Total                                                  24.8          2.8
    

    For the six months ended June 30, 2007, revenues were EUR 24.8 million
compared to EUR 2.8 million in the same period of 2006.
    Transgene recorded EUR 23.0 million in revenues from the Roche
partnership agreement (EUR 13 million upfront payment and EUR 10 million
near-term regulatory milestone payment received in June 2007). Recurring
licensing revenues remained stable at EUR 0.3 million.
    No revenues from manufacturing services were recorded in the first half
of 2007 compared to EUR 0.9 million in the same period of 2006. Deferred
revenues amounted to EUR 2.5 million at June 30, 2007 which should be
recognized in the profit and loss statement over the second half of 2007 and
in 2008. Cash received from manufacturing contracts decreased from
EUR 1.7 million in the first half of 2006 to EUR 0.8 million in 2007. It is
anticipated that third-party contract manufacturing services and revenues will
progressively consist of manufacturing services and revenues for the supply of
TG 4001/R 3484 to Roche.
    Billings to the French Muscular Dystrophy Association for the Myodys
programme decreased to EUR 0.4 million due to lower services performed for the
project.
    In the first half of 2007, Transgene recorded EUR 0.2 million in grants
relating mainly to the hepatitis C programme, equivalent to last year's
figure. Research and development tax credits increased slightly by
EUR 0.2 million due to higher eligible research and development costs.

    
    Research and Development Expenses:

    Research and development expenses amounted to EUR 13.1 million in the
first half of 2007 compared to EUR 11.7 million in the same period of 2006.
The increase was mainly due to:

    -   Personnel costs including stock-option plans: + EUR 0.7 million

    -   Manufacturing and process development: + EUR 0.2 million

    -   Preclinical and clinical studies: + EUR 0.3 million

    General and Administrative Expenses:

    General and administrative expenses were EUR 2.6 million in the first half
of 2007 compared to EUR 1.8 million in the first half of 2006.
    The increase was mainly due to:

    -   Costs related to the agreement with Roche: + EUR 0.3 million

    -   Personnel costs including stock-option plans: + EUR 0.4 million
    

    Other Operating Gains and Losses:

    Other operating losses amounted to EUR 0.9 million in the first half of
2007 compared to none in the same period of 2006, due to the accrual of exit
costs from Transgene's rented facility in Strasbourg. Transgene has decided to
move by the end of 2008 to a 6,800 sqm laboratory and office facility to be
built next to its existing manufacturing facility in Illkirch, in the suburbs
of Strasbourg. This leased facility will meet the needs for better working
standards and additional space.

    Interest and Other Income:

    Interest income was EUR 0.4 million in the first half of 2007, compared
to EUR 0.1 million in the same period of 2006, due to higher interest rates.

    Net Result:

    Transgene reported a net profit of EUR 8.5 million in the first half of
2007 compared to a net loss of EUR 10.6 million in the first half of 2006.
Excluding net revenues from the partnership agreement with Roche and exit cost
accrual, net result amounted to a loss of EUR 13.3 million in the first half
of 2007.
    Basic profit per ordinary share amounted to EUR 0.49 in the first half of
2007 compared to a basic loss per ordinary share of EUR 0.72 in the first half
of 2006. Diluted profit per ordinary share amounted to EUR 0.48 in the first
half of 2007 compared to a diluted loss per ordinary share of EUR 0.72 in the
first half of 2006.

    Liquidity and Capital Resources:

    As of June 30, 2007, cash, cash equivalents and short-term investments
totalled EUR 114.3 million.

    Investment Activities:

    Investment in intangible assets increased by EUR 1.4 million in the first
half of 2007 compared to the first half of 2006, mainly due to the licensing
of Virax's Co-X-Gene technology rights.

    About Transgene

    Transgene is a France-based biopharmaceutical company dedicated to the
development of therapeutic vaccines and immunotherapeutic products in oncology
and infectious diseases. The company has one product which has completed Phase
II trials (TG4001/R3484), two compounds in Phase II trials (TG4010 and TG1042)
and one compound in Phase I studies (TG4040). Transgene has concluded a
strategic partnership agreement with Roche for the development of its
TG4001/R3484 therapeutic vaccine to treat HPV-mediated diseases. Transgene has
bio-manufacturing production capacities for viral-based vectors and
technologies available for out-licensing. Additional information about
Transgene is available on the Internet at http://www.transgene.fr.

    Cautionary note regarding forward-looking statements

    This press release contains forward-looking statements referring to the
development of Transgene into a biopharmaceutical company. The achievement of
this strategic goal involves numerous risks and uncertainties, some of which
are out of the Company's control, and which include the realization of further
successes in the clinical development and testing of product candidates, the
absence of unforeseen financial, regulatory or technical setbacks, and the
continued interest of the medical community in the technology and products
developed by the Company. For further information regarding the risks facing
the Company, see the Company's Document de reference on file with the Autorite
des marches financiers (AMF), which is available on the Company's website and
the website of the AMF.


    
    Condensed Consolidated Statements of Operations

    (IAS/IFRS)
    (Amounts in thousands of                        Six months ended June 30
    euros except per share data)                           2007         2006
                                                            EUR          EUR
    Revenues                                         (unaudited)    (audited)

    Revenues from collaborative and licensing
     agreements                                          23,675        1,893
    Grants and tax credit received for research           1 070          892
    Total revenues                                       24,745        2,785

    Operating expenses
    Research and development                            (13,077)     (11,720)
    General and administrative                           (2,642)      (1,803)
    Other operating gains and losses                       (938)          11
    Total operating expenses                            (16,657)     (13,512)

    Profit (loss) from operations                         8,088      (10,727)

    Interest and other income, net                          374           92
    Income tax benefit                                        0            0
    Net profit (loss)                                     8,462      (10,635)

    Minority interests                                        0            0

    Profit (loss) attributable to equity holders
     of the parent                                        8,462      (10,635)

    Basic profit (loss) per ordinary share                 0.49        (0.72)
    Diluted profit (loss) per ordinary share               0.48        (0.72)



    Condensed Consolidated Balance Sheets

    (IAS/IFRS)
    (Amounts in thousands of euros)                     June 30, December 31,
                                                           2007         2006
                                                     (unaudited)    (audited)

    ASSETS
    Fixed assets, net                                     6,095        6,214
    Intangible assets, net                                1,549          200
    Financial assets, net                                   213          213
    Other non-current assets                              3,137        2,934
    Total non-current assets                             10,994        9,561

    Cash and cash equivalents                           114,268       20,323
    Short term investments                                    0            0
    Other current assets                                  3,932        2,721
    Total current assets                                118,200       23,044
    Total assets                                        129,194       32,605

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Liabilities, current                                 11,906        8,355
    Liabilities, non current                              5,344        5,271
    Shareholders' equity                                111,944       18,979
    Total liabilities and shareholder's equity          129,194       32,605
    





For further information:

For further information: Investor contacts: Transgene, Philippe Poncet,
Chief Financial Officer, Phone: +33-3-88-27-91-21; Press contacts: Capital
MS&L, Mary Clark, Halina Kukula, Phone: +44-20-7307-5330

Organization Profile

TRANSGENE S.A.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890