Crucell announces fourth quarter and annual results 2006
- Total revenues and other operating income increased to €76.0 million in Q4 and to €140.9 million for full year 2006
- Acquisitions of Berna Biotech, BPC and SBL concluded and acquired companies successfully integrated in Crucell Group
- Quinvaxem(TM) pediatric vaccine successfully launched
- All development programs in clinical trials by year-end
- Crucell and DSM opened US development center for PER.C6®
- €33.5 million charge for asset impairment and restructuring in Q4
- Year-end cash position €157.8 million
Leiden, The Netherlands, February 13, 2007 - Dutch biotechnology company Crucell N.V. (Euronext, Nasdaq: CRXL; Swiss Exchange: CRX) today announced its financial results for the fourth quarter and full year 2006 in accordance with International Financial Reporting Standards. These financial results are unaudited.
Key Figures Fourth Quarter and Full Year 2006
(€ million, except net loss per share)
Q4 2006
unaudited
Q4 2005
Year 2006
unaudited
Year 2005
Revenue and other operating income
76.0
12.1
140.9
37.6
Loss for the period
(24.9)
(2.9)
(87.6)
(15.6)
Loss per share
(basic and diluted)
(0.41)
(0.08)
(1.53)
(0.39)
Cash and cash equivalents
At December 31, 2006 (unaudited):
At December 31, 2005:
157.8
111.7
Fourth quarter
Total revenue and other operating income for the fourth quarter ended December 31, 2006 were €76.0 million, up 528% versus the €12.1 million reported over Q4, 2005. The strong fourth quarter revenues were primarily driven by the October launch of Quinvaxem(TM), Crucell's new pediatric vaccine and by strong seasonal influenza vaccine sales. Total other operating expenses amounted to €69.7 million and included an asset impairment charge of €30.4 million and a restructuring provision of €3.1 million. The increase in R&D and SG&A expenses reflects a significantly larger, global organization after Crucell's acquisition of three companies during 2006. The company reported a €11.3 million tax gain mainly as a consequence of the impairment charges. The reported loss for the fourth quarter 2006 was €24.9 million. Excluding the €33.5 million impairment and restructuring charges and also excluding the impact of the purchase price allocation from acquisitions, the operating result for the fourth quarter would have been a profit of €1.9 million.
Full Year
Total revenue and other operating income for the year ended December 31, 2006 were €140.9 million, which represents a more than 275% increase over the €37.6 million in revenues and other operating income reported in 2005. The increase in total revenues is attributable to sales of respiratory, travel and pediatric vaccines acquired by the company during 2006. Total other operating expenses amounted to €148.3 million and included restructuring and impairment charges of €33.5 million. Research and development expenses of €67.6 million reflect increasing emphasis on clinical development, since Crucell successfully initiated clinical trials for nine programs during the year, and reflect research spending in Berna and SBL. Reported loss over 2006 amounted to €87.6 million. Reported loss includes amortization charges of €19.7 million related to purchase price accounting, in addition to the impairment and restructuring charges of €33.5 million. For income taxes the company reported a € 10.6 million gain mainly related to the impairment charge.
Cash and cash equivalents at December 31, 2006 amounted €157.8 million, which also reflects the proceeds of the €80.0 million equity offering the company executed in November 2006.
Crucell's CEO Ronald H.P. Brus commented:"We have successfully transformed Crucell from a strong research-focused organization into a strong independent vaccines company. The acquisitions of Berna in Switzerland, a sales and marketing organization in the US and SBL in Sweden have all been completed and their integration in the Crucell group has been successfully finalized. Our existing products are well positioned to benefit from the increasingly strong global demand for vaccines. We are forecasting total revenues for 2007 in excess of €200 million." He continued:"Despite a planned increased investment in R&D and sales and marketing, we are expecting to reach operational cash break-even in 2007."
Operational Review Full Year 2006
Acquisition of Berna Biotech: In February Crucell acquired Berna Biotech based in Switzerland. Non-core activities in research and veterinary vaccines were divested in the 2nd quarter. In December, Rhein Biotech N.V., one of the operating companies in the Crucell group, de-listed from the Frankfurt Stock Exchange. As a result Crucell held no minority interests for consolidated companies on December 31, 2006.
Acquisition of BPC Inc.: During the year Crucell also acquired BPC Inc. (Berna Products Corporation) in the US from Acambis. This sales and marketing organisation markets the Crucell's Vivotif oral vaccine in North America.
Acquisition of SBL Vaccin: In November 2006 Crucell acquired Stockholm based SBL Vaccin AB (SBL) from 3i and SEB for cash. The acquisition further strengthened Crucell's travel vaccines franchise. The addition of Dukoral®, a market leading oral vaccine against cholera, extended Crucell's core product portfolio to six vaccines.
Launch of Quinvaxem(TM): In October Crucell launched its new Quinvaxem(TM) vaccine, a paediatric vaccine to prevent five important childhood diseases. In December Crucell announced that it had been granted multi-year contracts for over US $230 million by supranational organizations. Crucell was also awarded a US$20 million contract for 2007 for Quinvaxem(TM) by a supranational organization for Latin America.
PERCIVIA: In November Crucell and DSM Biologics opened PERCIVIA, a PER.C6® development center in Cambridge, Massachusetts. PERCIVIA was set up to further develop the PER.C6® technology for the production of proteins and provide turnkey solutions to licensees.
Merck Technology Trade: In December Crucell signed a cross-licensing agreement with Merck & Co. Inc, whereby Merck got the rights to use Crucell technology on an exclusive basis in additional vaccine fields and in turn,
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