Record year for Cosmo in 2012 Donnerstag, 28. März 2013 - 06:52
Press Releases & Company News
Record year for Cosmo in 2012
Revenues increase by 77.7%, net profit by 154.1% Comprehensive income jumps to EUR 64.0 million One new drug approved; two in late stage development Confident outlook for 2013
Lainate, Italy – 28 March 2013 – Cosmo Pharmaceuticals S.p.A. (SIX: COPN) today announced its results for the year ended 31 December 2012.
Financial highlights
- EBITDA increased by 160.6% to €29.0 million
- Net profit after tax increased by 154.1% to €19.3 million
- Comprehensive income increased by nearly 8 times to € 64.0 million, driven by the increase of Santarus’ shares
- Total revenue increased by 77.7% to €59.5 million
- Royalties increased by 16.2% to €11.7 million
- Manufacturing of MMX® based products increased by 36.0% to €14.7 million
- Other contract drug manufacturing revenue decreased by 3.1% to €10.6 million
- Operating costs increased by 34.5% to €33.1 million
- Cost of sales increased by 12.2% to €16.3 million
- Total research and development costs increased by 40.1% to €11.4 million
- €10.9 million expensed (plus 111.0%)
- €0.5 million capitalized (minus 75.3%)
- Cash and cash equivalents increased by 100.4% to €27.3 million
- The value of financial assets available for sale increased by 261.0% to €66.1 million because of the strong appreciation in value of the Santarus shares (NASDAQ: SNTS)
Operational highlights
- Lialda®/Mezavant®/Mesavancol®, Cosmo’s first licensed MMX® product in the market, had $399.8 million sales in 2012, an increase of 7.4%, reaching a market share of 22.5% of all 5-ASA products in the USA.
- A license fee of $25 million was received from Medicis at signing of CB-03-01 licensing agreement.
Strategic highlights
- Post year-end, both Uceris™ (in the USA) and Cortiment™ (in the Netherlands) got the marketing authorization in January 2013.
- Rifamycin SV MMX® attained the clinical end points in phase III trial for Travellers’ Diarrhoea in the USA; Phase II clinical trials for Methylene Blue MMX™ were successfully completed.
Phase II ascending dose trial of CB-03-01 for Acne was initiated in the USA.
Mauro Ajani, CEO of Cosmo Pharmaceuticals, commented: ”I am very pleased with our results: we have record revenues, record operating profits, a great increase in the value of our investment in Santarus and the approval of our next product Uceris™ in the USA and Cortiment™ in the Netherlands. These are most important steps in transforming Cosmo into a specialty pharma company with special competence in providing solutions to colon diseases. This year we will look to first revenues from Uceris™/Cortiment™ and to progressing our next two products through phase III. We are very optimistic for the future.”
Key consolidated financial figures
| In € million(with the exception of the share data in €) | 2012 | 2011 |
| Revenues | 59.5 | 33.5 |
| Cost of sales | (16.3) | (14.5) |
| Research and development costs | (10.9) | (5.2) |
| Selling, general and administrative costs | (6.0) | (5.7) |
| Profit before taxes | 26.9 | 9.1 |
| Net profit | 19.3 | 7.6 |
| Profit per share | 1.41 | 0.53 |
| 31.12.2012 | 31.12.2011 | |
| Cash and cash equivalents | 27.3 | 13.6 |
| Financial assets available for sale | 66.1 | 18.3 |
| Equity attributable to owners of the company | 124.4 | 63.2 |
| Total assets | 151.8 | 78.0 |
The Annual Report 2012 with further information was published on 28 March 2013 and is available for download at: www.cosmopharma.com/ir/~/media/Files/C/Cosmo-Pharmaceuticals/Cosmo-AR12-130328.pdf
Confident outlook
Financial analysts are projecting a slight increase of sales of Lialda® in the USA and of Mezavant®/Mesavancol® in the EU. Cosmo’s management is very optimistic for the revenues in Uceris™ in the USA and believes that Cortiment™ will be launched in Europe in 2013. This points to a strong increase in revenues from royalties and MMX® manufacturing in 2013. Whether milestone income is generated depends on the negotiations for the licensing/distribution of CB-17-01 (Methylene Blue MMX®).
Cosmo looks forward to progressing CB-17-01 (Methylene Blue MMX®) through phase III and CB-03-01 through phase II for Acne and is confident that the European phase III trial of Rifamycin SV MMX® will get re-started as soon as the regulatory impasse in India is resolved. Cosmo’s partners bear the cost of the phase III clinical trials for Rifamycin SV MMX®. However, the Company is financing the programmes for Methylene Blue MMX® and CB-03-01, so R&D costs are scheduled to increase.
A strong emphasis will remain on cost control. Neither cost of goods nor SG&A are expected to increase materially. Overall, Cosmo expects to post a strong result in 2013, with revenues above €60 million and a corresponding increase of operating income.
FY12 results presentation and conference call at 10am CET on 28 March 2013
Mauro Ajani, CEO, Luigi Moro, CSO, and Chris Tanner, CFO and Head of Investor Relations, will present the full year results and discuss the outlook for 2013 at a media and analyst conference to be held today at 10am CET in Haus zum Rüden (Limmatquai 42, 8001 Zurich).
Participation is also possible via conference call. The dial-in numbers:
+41 (0) 58 310 50 00 Continental Europe
+44 (0) 203 0595 862 UK
+1 613 570 56 13 USA
The presentation is available for download at:
http://www.cosmopharma.com/ir/presentations.aspx
About Cosmo Pharmaceuticals
Cosmo is a speciality pharmaceutical company that aims to become a global leader in the field of optimized therapies for selected Gastrointestinal and topically treated Skin Disorders. The company’s proprietary clinical development pipeline specifically addresses innovative treatments for IBD, such as Ulcerative Colitis and Crohn’s Disease, and Colon Infections. In addition, the Company is developing a diagnostic for the detection of colon cancer and a new chemical entity for the topical treatment of Acne, Alopecia and Hirsutism. Cosmo’s first product in the market is Lialda®/Mezavant®/Mesavancol®, a treatment for mild to moderate Ulcerative Colitis that is licensed globally to Giuliani and Shire Limited. Cosmo’s second product is Uceris™/Cortiment™, a steroid with low side effects that is indicated for Ulcerative Colitis patients that do not get relief when treated with 5-ASA’s and is licensed globally to Santarus and Ferring. Cosmo’s proprietary MMX® technology is at the core of the Company’s product pipeline and was developed from its expertise in formulating and manufacturing gastrointestinal drugs for international clients at its GMP (Good Manufacturing Practice) facilities in Lainate, Italy. The technology is designed to deliver active ingredients in a targeted manner in the intestines. For further information on Cosmo, please visit the Company’s website: www.cosmopharma.com
Next events
Annual General Meeting 23 April 2013, Lainate
Half-year results 2013 2 August 2013
Contact
Dr. Chris Tanner, CFO and Head of Investor Relations
Cosmo Pharmaceuticals S.p.A.
Tel: +39 02 9333 7614
Some of the information contained in this press release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Cosmo undertakes no obligation to publicly update or revise any forward-looking statements.