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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| GW Pharm. | LSE:GWP | London | Ordinary Share | GB0030544687 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 735.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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GW Pharmaceuticals PLC
20 May 2010
GW Pharmaceuticals plc
("GW" or "the Group")
Interim Results
Porton Down, UK, 20 May 2010: GW Pharmaceuticals plc (AIM: GWP), the speciality
pharmaceutical company focused on cannabinoid science, announces its interim
results for the six months ended 31 March 2010.
OPERATIONAL HIGHLIGHTS
* Sativex regulatory process in UK and Spain for MS Spasticity enters final national phase. All major and minor outstanding issues resolved. UK approval expected by end of Q2
* Marketing teams at partners, Bayer and Almirall, prepared for Sativex launch
* Positive data reported in US-targeted Sativex Phase IIb cancer pain trial
support entry into Phase III - Phase III preparations underway
* Phase II clinical programme of novel cannabinoid medicine in diabetes/metabolic
disease in final stages of set-up and due to commence Q3 2010
* Continued progress of early stage pipeline in cancer, epilepsy and psychiatric
illness under the GW-Otsuka cannabinoid research collaboration
FINANCIAL HIGHLIGHTS
* Net loss before tax of GBP2.7m (H1 2009: GBP4.0m profit, H2 2009: GBP2.9m loss)
* Turnover, excluding milestones, increased to GBP11.4m (H1 2009: GBP8.1m)
reflecting revenue growth from the Otsuka alliance and Sativex sales
* Cash and short term deposits at 31 March 2010 of GBP20.4m (H1 2009: GBP11.8m)
Dr Geoffrey Guy, GW's Chairman, said, "GW is transitioning from a late stage
development company to a commercial pharmaceutical business with excellent
growth prospects. The first six months of this year have proven the most
important in GW's history in which we have made material progress towards
Sativex's launch in Europe and generated positive cancer pain data in the US. We
believe that these recent successes validate GW's cannabinoid technology
platform and enable us to progress the development of our pipeline across a
range of therapeutic areas with increased confidence."
An analyst presentation of the interim results is being held today at 11.00am at
Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London WC2A 1PB.
Please contact Juliet Edwards at Financial Dynamics on +44 20 7269 7125 for
details. An audio webcast of the presentation will be available on GW's website
at www.gwpharm.com later this afternoon.
Enquiries:
+----------------------------------------+--------------------------+
| GW Pharmaceuticals plc | (20/05/10) + 44 20 7831 |
| | 3113 |
+----------------------------------------+--------------------------+
| Dr Geoffrey Guy, Executive Chairman | (Thereafter) + 44 1980 |
| | 557000 |
+----------------------------------------+--------------------------+
| Justin Gover, Managing Director | |
+----------------------------------------+--------------------------+
| | |
+----------------------------------------+--------------------------+
| Financial Dynamics | + 44 20 7831 3113 |
+----------------------------------------+--------------------------+
| Ben Atwell / John Dineen | |
+----------------------------------------+--------------------------+
| | |
+----------------------------------------+--------------------------+
| Piper Jaffray Ltd | +44 (0)20 3142 8700 |
+----------------------------------------+--------------------------+
| Neil Mackison / Rupert Winckler | |
+----------------------------------------+--------------------------+
GW Pharmaceuticals plc
("GW" or "the Group")
Interim Results For The Six Months Ended 31 March 2010
Interim Management Report
INTRODUCTION
The first six months of the year has seen GW make significant progress with
Sativex . The regulatory process in the UK and Spain in the Multiple Sclerosis
(MS) Spasticity indication is now in its final stage with all major and minor
issues now resolved. We expect approval and launch in the UK before the end of
Q2 2010 and in Spain shortly thereafter. Separately, the development of Sativex
as a treatment for cancer pain made a significant advance with the reporting of
positive data from a 360 patient Phase IIb trial in this indication. This data,
together with positive results from a previously reported Phase IIa trial,
support advancing this indication into Phase III development and preparations
for this are now well underway.
We believe that the recent successes with Sativex provide validation of GW's
cannabinoid technology platform. With a world leading position in cannabinoid
science, a promising pipeline, partnership track record, and a prudent financial
model focused on revenue growth and partner funded R&D, we believe that GW has
the assets and capability to create further valuable product opportunities. GW
therefore intends to continue to pursue a strategy which focuses on maximizing
the commercial potential of Sativex, in terms of expanded geography and
indication, as well as leveraging the company's cannabinoid platform to expand,
advance and partner the pipeline.
SATIVEX REGULATORY STRATEGY
The primary regulatory strategy for Sativex in Europe is to obtain marketing
authorisation for the indication of MS spasticity. Following initial approval in
the UK and Spain, marketing authorisation for this indication will be sought in
the rest of Europe and certain other territories around the world. In the United
States, cancer pain has been selected as the initial target indication. GW
expects to expand the licensed indication of Sativex in Europe and other
territories to cancer pain in the future based on the data being generated from
the US studies. Longer term, the commercial opportunity for Sativex may be
expanded into other indications for which positive Phase II/III data has already
been generated.
In Canada, MS neuropathic pain was the first approved indication, and this has
been successfully followed by the approval in cancer pain. These approvals were
obtained with earlier data under the Notice of Compliance with conditions
(NOC/c) policy.
MS SPASTICITY
In 2009, GW filed a regulatory submission for Sativex in the treatment of the
symptoms of spasticity due to MS. The submission was filed in the UK and Spain
under the European Decentralised Procedure, with the UK acting as the Reference
Member State.
The UK and Spain regulatory authorities have reached consensus that all "major"
and "minor" issues related to the Sativex application have been resolved. The
decentralised procedure has now closed with the recommendation that Sativex
should be approved and the regulatory process is entering its final phase. This
final phase, known as the national phase, takes place separately in the UK and
Spain and its purpose is to finalise local wording on product packaging and
related documents. The duration of the national phase is determined separately
by the UK and Spanish authorities.
GW expects regulatory approval in the UK before the end of Q2 2010, and in Spain
shortly thereafter.
Following UK approval, submissions for approval will be made in additional
European countries in H2 2010 under the mutual recognition procedure.
Beyond Europe, we have filed for a Notice of Compliance (NOC) approval in this
indication in Canada and have also filed a "Section 23" submission in New
Zealand. We intend to file in other selected territories around the world in the
second half of 2010 in parallel with pursuing discussions with distribution
partners for these other markets.
EUROPEAN LAUNCH PREPARATION
Sativex will be marketed in the UK by Bayer Schering Pharma and in the rest of
the European Union by Almirall S.A. Upon UK regulatory approval, GW expects to
receive a GBP10m milestone payment from Bayer. A further GBP2.5m milestone
payment is payable by Almirall following both regulatory and pricing approval in
Spain. Both marketing partners are now well advanced in preparation for the
Sativex launch.
The Sativex marketing and medical team at Bayer Schering is derived from that
company's current MS team. Bayer already has a leading position in the field of
MS disease modifying treatments, established through its Betaferon product, and
is therefore able to take advantage of its close relationships with key opinion
leaders and patient organisations in the MS field. Bayer has in place eight MS
specialist sales persons for Betaferon targeting the 85 MS centres in the UK and
these individuals will be responsible for the Sativex sales effort. A further
team of healthcare development professionals have been employed by Bayer to
inform NHS budget-holders around the UK about the forthcoming launch of
Sativex and the potential budget impact of the product. All activities at Bayer
are closely supported by GW and a cross functional team is working to ensure a
successful product launch.
Sativex has been available as an unlicensed medicine in the UK since 2006 and
this provides valuable clinical experience for commercial launch. Over 2,500 UK
patients have received Sativex on prescription to date (including 400
ex-clinical trial patients), and over 2,000 UK physicians have prescribed the
medicine. 95 per cent of UK Primary Care Trusts (PCTs) have reimbursed Sativex
on prescription.
The Sativex launch team at Almirall benefits from Almirall's position as Spain's
largest domestic pharmaceutical company. Almirall's last reported annual sales
in Spain exceeded EUR500m, of which EUR168m related to neurology products. Almirall
has a dedicated central European brand and marketing team for Sativex as well as
a local team for each individual country, including Spain. As with Bayer, GW has
a close working relationship with all relevant functions within Almirall as we
work together towards launch in Spain and thereafter in the rest of Europe.
GW's in-house facility is the manufacturing site for the commercial launch of
Sativex. In 2009, this facility passed a Good Manufacturing Practice (GMP)
inspection by the UK regulatory authority, following which GW was awarded a GMP
Certificate and Manufacturer's/Importer's Licence. UK launch stocks have been
manufactured and will be available for distribution immediately upon UK
approval.
Sativex has now been exported to 28 countries either on named patient
prescription or in clinical trials. We believe that this demonstrates a growing
awareness and appreciation of Sativex amongst the medical community and gives
reason to be confident about eventual regulatory approvals abroad.
CANCER PAIN
Sativex is also being developed to treat pain in people with advanced cancer,
who experience inadequate analgesia despite optimised chronic opioid therapy.
GW's cancer pain clinical programme is being wholly funded by Otsuka
Pharmaceutical Co. Ltd, which has licensed the US commercialisation rights to
this product. The cancer pain trials are designed to obtain approval in this
indication from the Food & Drug Administration (FDA) in the US, but these data
will also be used by GW for future regulatory applications in this indication in
Europe and around the world.
In March 2010, GW announced preliminary results of a 360 patient Phase IIb
cancer pain trial, performed in conjunction with Otsuka. The study met its key
objectives of providing data to support entry into Phase III, showing
statistically significant differences from placebo in pain scores, according to
both the FDA-recommended continuous response analysis and the change from
baseline analysis in NRS average pain score.
The results of the Phase IIb dose ranging study are consistent with a Phase IIa
study in which Sativex also showed statistically significant improvements versus
placebo in the continuous response analysis, as well as the mean change from
baseline in NRS pain score. This study was recently published in the Journal of
Pain and Symptom Management.
As a result of this positive Phase II data, GW and Otsuka are now planning an
End of Phase II meeting with the FDA to gain endorsement of the proposed Phase
III programme. This meeting is due to take place in H2 2010. The current US
development programme anticipates two further Phase III trials prior to a
subsequent submission of a New Drug Application to the FDA. The first patients
are expected to enter the Phase III programme in H2 2010.
OTHER SATIVEX INDICATIONS
Following the approval for Sativex in Europe in MS spasticity, GW intends to
broaden the commercial opportunity for the product through a clinical
development programme in selected additional indications. In recent years, GW
has generated positive results from clinical trials in a range of indications,
including various types of pain, as well as other symptoms of MS. GW will
evaluate these opportunities in conjunction with its marketing partners before
selecting the first new target indication for development.
CANNABINOID PIPELINE
GW occupies a world leading position in cannabinoid science. The company has
developed a proprietary and validated cannabinoid technology platform and formed
constructive collaborations with leading international scientists in the field.
GW's extensive research into the pharmacology of cannabinoids continues to yield
highly promising data and new intellectual property across a range of
therapeutic areas and provides GW with the potential to develop and licence
several new cannabinoid drug candidates in the coming years. GW expects to step
up the pace of this research in the coming years to maximise the potential of
its in-house pipeline.
CANCER
We have shown in pre-clinical studies the ability of certain cannabinoids to
inhibit the growth of various cancers, notably prostate, breast and colon
cancer. We have also produced promising data showing a potential synergistic
action of cannabinoids with existing anti-cancer agents in reducing the
proliferation of glioma cells in cancer models. The mechanisms of action that
cause these effects are becoming better understood and extend far beyond actions
at the cannabinoid receptors. Several new patent filings have been submitted to
protect these data. As a result of the promising progress to date in this area,
GW expects an increased focus on its cancer research programme in the next 12
months.
GW's cancer research is carried out as part of the GW-Otsuka research
collaboration agreement. Under this agreement, Otsuka fund all research in this
area.
NEUROSCIENCE
Research into nervous system disorders is currently focused primarily on
epilepsy and psychiatric illness. This research programme is also funded as part
of the GW-Otsuka research collaboration agreement.
A number of GW phytocannabinoids have already shown a marked anti-epileptic
effect in several pre-clinical models of epilepsy. This research is centred at
the University of Reading and data are now being published.
In the field of schizophrenia, GW cannabinoids have shown notable anti-psychotic
effects in accepted pre-clinical models of schizophrenia and importantly have
also demonstrated the ability to reduce the characteristic movement disorders
induced by currently available anti-psychotic agents.
GW expects to advance its research effort in both the above therapeutic areas
and is confident that the data generated will support advancing new cannabinoid
drug candidates into clinical trials.
DIABETES / METABOLIC DISEASE
GW has carried out pre-clinical research on its cannabinoids in several models
of diabetes looking at several metabolic parameters, and is now preparing to
embark on a Phase II clinical programme. The Group's metabolic research effort
is centred on a strategic alliance with Professor Mike Cawthorne, the scientist
who led the team that invented rosiglitazone (Avandia ), and the Clore
Laboratory, University of Buckingham. A dedicated section of the Clore
Laboratory has been named the "GW Metabolic Research Laboratory".
GW is planning a programme of small scale Phase IIa trials in this therapeutic
area focusing on lipid metabolism and distribution in subjects with metabolic
syndrome. The first clinical trial, a Phase IIa multiple dose study of a novel
cannabinoid medicine in the treatment of dyslipidaemia and fatty liver in Type
II diabetic patients, is expected to commence in Q3 2010. We also expect an
additional Phase IIa trial to start in H2 2010.
INFLAMMATION
Several GW cannabinoids have shown anti-inflammatory properties in a number of
models of inflammation, and have the capacity to inhibit the production in
tissues of chemical mediators of inflammation. We are currently working to
select candidate cannabinoids with a view to constructing proof of concept
studies in inflammatory conditions.
SUMMARY AND OUTLOOK
GW is transitioning from a late stage development company to a commercial
pharmaceutical business with excellent growth prospects. The first six months of
this year have proven the most important in GW's history in which we have made
material progress towards Sativex's launch in Europe and generated positive
cancer pain data in the US. We believe that these recent successes validate GW's
cannabinoid technology platform and enable us to progress the development of our
pipeline across a range of therapeutic areas with increased confidence.
With the first major approvals and launches for Sativex now imminent, the US
cancer pain Phase III trial preparation well underway, partners for Sativex
secured in key markets, a highly promising earlier stage pipeline and a strong
financial position, we remain confident in the future prospects for GW.
FINANCIAL REVIEW
In the six months to 31 March 2010, GW recorded a loss before tax of GBP2.7m.
This compares to a profit of GBP4.0m in the prior period which included GBP8.0m
of milestone income. No milestones were received in the current period. The
reported loss of GBP2.7m therefore compares to the underlying loss of GBP4.0m,
before milestone income, recorded in H1 2009.
Total revenue decreased to GBP11.4m from the GBP16.1m recorded in H1 2009. This
decrease is due to the prior period having included GBP8.0m of milestone income.
Research and development fees increased to GBP9.5m (H1 2009: GBP6.2m). These
fees represent charges to Otsuka for research conducted under both the Sativex
US licence agreement and the research collaboration agreement.
Named patient sales of Sativex increased by 29% to GBP0.7m (H1 2009: GBP0.5m).
The majority of named patient prescriptions occur in the UK. Outside the UK, the
largest named patient prescription use is currently in Spain and Italy.
Commercial sales of Sativex to Bayer Canada reduced from GBP0.4m in 2009 to
GBP0.2m in 2010 due to timing of deliveries, with just one batch being delivered
in the current period compared to two batches in the prior period. Total Sativex
sales of GBP0.93m were therefore marginally lower than the GBP0.97m recorded for
the prior period.
The remaining GBP0.95m (H1 2009:GBP0.95m) of revenue relates to the recognition
of deferred signature fees arising under the Almirall and Otsuka licence
agreements.
Total research and development expenditure increased to GBP12.1m (H1 2009:
GBP9.9m). Consistent with the trend established over the last three years, the
proportion of expenditure funded by GW decreased further to GBP2.6m (H1 2009:
GBP3.7m), representing 21% (H1 2009: 38%) of total R&D spend. The amount funded
by our partner, Otsuka, increased by 54% to GBP9.5m (H1 2009: GBP6.2m).
Management and administrative expenses decreased to GBP1.4m from GBP1.7m in H1
2009. Capital expenditure was GBP0.2m (H1 2009: GBP0.6m).
In previous years GW has surrendered tax losses in order to claim a research and
development tax credit cash payment. Despite having recorded a loss for the
first six months of the year, our expectation is that we will not be seeking to
claim such a repayment at year end so no tax credit has been recorded at this
interim stage (H1 2009: GBPNil).
At 31 March 2010, GW had GBP20.4m of cash (31 March 2009: GBP11.8m). The net
cash outflow for the six months of just GBP0.2m compares favourably to the
outflow of GBP2.2m in the comparable period last year. The improved cashflow
results from growing revenues and reducing GW-funded expenditure, but also
reflects the timing of receipt of advance funding from Otsuka. This funding is
to cover costs expected to be incurred in H2 as we progress the set-up of
planned Phase III cancer pain trials, the costs of which are entirely funded by
Otsuka.
Inventory of GBP0.6m (31 March 2009: GBP0.6m) consists of finished goods,
consumable items and work in progress. Carrying value of inventory continues to
be based upon expected net realisable value, calculated by applying historic
growth rates to current named patient sales and commercial sales in Canada. In
accordance with our inventory accounting policy, upon achievement of territorial
regulatory approvals, we will revise our sales projections to reflect expected
sales by commercial partners and will revise the carrying value accordingly.
Total deferred income of GBP18.8m (H1 2009: GBP18.1m) represents the
unrecognised balances of the non-refundable signature fees of GBP14.5m (H1 2009:
GBP16.3m) and GBP4.3m (H1 2009: GBP1.8m) of advance payments received from
Otsuka. These amounts will be recognised as revenue in future periods.
The average headcount for the period to 31 March 2010 was 120 compared to 110 as
at 30 September 2009 and 107 at 31 March 2009.
For the 2010 financial year, we expect GW-funded R&D expenditure to be in line
with 2009 but would expect spend to increase in H2 compared to the low levels
seen in H1. Following regulatory approval in the UK, expected to be achieved in
calendar Q2 2010 (financial H2 10), GW expects to receive a GBP10m milestone
payment from Bayer and to start to generate commercial sales revenues. This
would result in GW reporting a profit for the 2010 financial year. A GBP2.5m
milestone payment from Almirall is payable upon pricing approval in Spain, which
is likely to occur after the 2010 financial year end.
RISKS AND UNCERTAINTIES
GW continues to face a number of potential risks and uncertainties which could
have a material impact on the Group's performance over the remaining six months
of the financial year and could cause actual results to differ materially from
expected and historical results. The directors do not consider that the
principal risks and uncertainties have changed since the publication of the
annual report for the year ended 30 September 2009. A detailed explanation of
the risks summarised below can be found on pages 11 and 12 of the annual report
which is available to download at www.gwpharm.com.
The directors are satisfied that the Group has sufficient resources to continue
in operation for the foreseeable future, a period of not less than 12 months
from the date of this report. Accordingly, they continue to adopt the going
concern basis in preparing the financial information for the half year ended 31
March 2010.
The principal risks can be summarised as follows:
Clinical Risk
Clinical trials may encounter delays or fail to achieve their endpoints.
Manufacturing Risk
GW may encounter problems in its manufacturing process which may delay product
development programmes or restrict the commercial quantities of product that can
be made.
Funding Risk
The Group may require access to additional funding in future. If it fails to
secure such funding the Group may need to delay or scale back some of its R&D
programmes or the commercialisation of some of its products.
Commercialisation Risk
Following regulatory approval, GW's products may not achieve commercial success
or may be subject to competition.
Financial Risks
The Group is subject to exchange rate risk, interest rate risk, credit risk,
counterparty risk, market price and liquidity risks.
Regulatory Risk
Regulatory bodies around the world have different requirements for approval of
therapeutic products. Submissions to regulatory authorities may result in
restriction of indication, denial of approval or demands for additional data.
In the next six months, the key risk facing the Group relates to the submission
of marketing authorisation applications for Sativex to various European
regulators under the Mutual Recognition Procedure.
Related Party transactions
The Group did not enter into any related party transactions during the period.
Responsibility Statement
The directors confirm that this condensed set of financial statements has been
prepared in accordance with IAS 34 as adopted by the European Union, and that
the interim management report herein includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of the principal risks and uncertainties for the
remaining six months of the year) and DTR 4.2.8R (disclosure of related party
transactions and changes therein).
The directors of GW Pharmaceuticals plc are listed in the GW Pharmaceuticals plc
Annual Report for the year ended 30th September 2009 and there has been no
change in the interim period.
By Order of the Board
+--------------------------+-----------------------------------+
| Dr Geoffrey Guy | Justin Gover |
| Chairman | Managing Director |
+--------------------------+-----------------------------------+
GW Pharmaceuticals plc
Condensed consolidated income statement
Six months ended 31 March 2010
+--------------------------------+-------+-------------+-------------+------------+
| | | Six months | Six months | Year |
| | | ended | ended | ended |
+--------------------------------+-------+-------------+-------------+------------+
| | | 31 March | 31 March | 30 |
| | | | | September |
+--------------------------------+-------+-------------+-------------+------------+
| |Notes | 2010 | 2009 | 2009 |
+--------------------------------+-------+-------------+-------------+------------+
| | | (Unaudited) | (Unaudited) | (Audited) |
+--------------------------------+-------+-------------+-------------+------------+
| | | GBP000's | GBP000's | GBP000's |
+--------------------------------+-------+-------------+-------------+------------+
| Revenue | 3 | 11,409 | 16,086 | 24,121 |
+--------------------------------+-------+-------------+-------------+------------+
| Cost of sales | | (243) | (269) | (433) |
+--------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| Gross profit | | 11,166 | 15,817 | 23,688 |
+--------------------------------+-------+-------------+-------------+------------+
| Research and development | 4 | (12,100) | (9,904) | (19,337) |
| expenditure | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| Management and administrative | | (1,433) | (1,686) | (2,693) |
| expenses | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| Share-based payment | | (334) | (298) | (634) |
+--------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| Operating (loss)/profit | | (2,701) | 3,929 | 1,024 |
+--------------------------------+-------+-------------+-------------+------------+
| Interest payable | | (4) | - | (8) |
+--------------------------------+-------+-------------+-------------+------------+
| Interest receivable | | 39 | 99 | 136 |
+--------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| Loss/(profit) on ordinary | | (2,666) | 4,028 | 1,152 |
| activities before taxation | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| Tax credit on loss on ordinary | 5 | - | - | 353 |
| activities | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| Loss/(profit) on ordinary | | | | |
| activities after taxation | | (2,666) | 4,028 | 1,505 |
+--------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| | | | | |
+--------------------------------+-------+-------------+-------------+------------+
| (Loss)/earnings per share - | 6 | (2.1)p | 3.3p | 1.2p |
| basic and fully diluted | | | | |
+--------------------------------+-------+-------------+-------------+------------+
All amounts relate to continuing operations.
The Group has no recognised gains or losses other than the losses above and
therefore no separate statement of recognised income and expense has been
presented.
GW Pharmaceuticals plc
Condensed consolidated statement of changes in equity
Six months ended 31 March 2010
Unaudited
+--------------------------+--+------------+------------+-----------+------------+-----------+
| | | Called-up | Share | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| | | share | premium | Other | Retained | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| | | capital | account | reserves | earnings | Total |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| | | GBP000's | GBP000's | GBP000's | GBP000's | GBP000's |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| At 1 October 2008 | | 121 | 58,375 | 19,262 | (79,485) | (1,727) |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Exercise of share | | - | - | - | - | - |
| options | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Share-based payment | | - | - | - | 298 | 298 |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Retained loss for the | | - | - | - | 4,028 | 4,028 |
| period | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| | | __________ | __________ | _________ | __________ | _________ |
| | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Balance at 31 March 2009 | | 121 | 58,375 | 19,262 | (75,159) | 2,599 |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Exercise of share | | - | 15 | - | - | 15 |
| options | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Issue of new share | | 8 | 6,599 | - | - | 6,607 |
| capital | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Expenses of share | | - | (312) | - | - | (312) |
| placing | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Share-based payment | | - | - | - | 336 | 336 |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Retained loss for the | | - | - | - | (2,523) | (2,523) |
| period | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| | | __________ | __________ | _________ | __________ | _________ |
| | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Balance at 30 September | | 129 | 64,677 | 19,262 | (77,346) | 6,722 |
| 2009 | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Exercise of share | | 1 | 297 | - | - | 298 |
| options | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Share-based payment | | - | - | - | 334 | 334 |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Retained profit for the | | - | - | - | (2,666) | (2,666) |
| period | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| | | __________ | __________ | _________ | __________ | _________ |
| | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| Balance at 31 March 2010 | | 130 | 64,974 | 19,262 | (79,678) | 4,688 |
+--------------------------+--+------------+------------+-----------+------------+-----------+
| | | _________ | __________ | _________ | __________ | _________ |
| | | | | | | |
+--------------------------+--+------------+------------+-----------+------------+-----------+
GW Pharmaceuticals plc
Condensed consolidated balance sheet
As at 31 March 2010
+-----------------------------------+-------+-------------+-------------+------------+
| | | 31 March | 31 March | 30 |
| | | | | September |
+-----------------------------------+-------+-------------+-------------+------------+
| |Notes | 2010 | 2009 | 2009 |
+-----------------------------------+-------+-------------+-------------+------------+
| | | (Unaudited) | (Unaudited) | (Audited) |
+-----------------------------------+-------+-------------+-------------+------------+
| Non-current assets | | GBP000's | GBP000's | GBP000's |
+-----------------------------------+-------+-------------+-------------+------------+
| Intangible assets - goodwill | | 5,210 | 5,210 | 5,210 |
+-----------------------------------+-------+-------------+-------------+------------+
| Property, plant & equipment | | 1,815 | 1,500 | 1,858 |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| | | 7,025 | 6,710 | 7,068 |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Current assets | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Inventories | 7 | 566 | 599 | 551 |
+-----------------------------------+-------+-------------+-------------+------------+
| Taxation recoverable | | 360 | - | 360 |
+-----------------------------------+-------+-------------+-------------+------------+
| Trade and other receivables | 8 | 560 | 9,010 | 811 |
+-----------------------------------+-------+-------------+-------------+------------+
| Cash and cash equivalents | | 20,371 | 11,828 | 20,601 |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| | | 21,857 | 21,437 | 22,323 |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Total assets | | 28,882 | 28,147 | 29,391 |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Current liabilities | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Trade and other payables | 9 | (5,356) | (7,396) | (4,496) |
+-----------------------------------+-------+-------------+-------------+------------+
| Obligations under finance leases | | (42) | - | (35) |
+-----------------------------------+-------+-------------+-------------+------------+
| Deferred revenue | 10 | (6,225) | (3,703) | (4,594) |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| | | (11,623) | (11,099) | (9,125) |
+-----------------------------------+-------+-------------+-------------+------------+
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Non-current liabilities | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Obligations under finance leases | | (22) | - | (45) |
+-----------------------------------+-------+-------------+-------------+------------+
| Deferred revenue | 10 | (12,549) | (14,449) | (13,499) |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Total liabilities | | (24,194) | (25,548) | (22,669) |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Net assets | | 4,688 | 2,599 | 6,722 |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Equity | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Share capital | | 130 | 121 | 129 |
+-----------------------------------+-------+-------------+-------------+------------+
| Share premium account | | 64,974 | 58,375 | 64,677 |
+-----------------------------------+-------+-------------+-------------+------------+
| Other reserves | | 19,262 | 19,262 | 19,262 |
+-----------------------------------+-------+-------------+-------------+------------+
| Retained earnings | | (79,678) | (75,159) | (77,346) |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
| Shareholders' funds | | 4,688 | 2,599 | 6,722 |
+-----------------------------------+-------+-------------+-------------+------------+
| | | __________ | __________ | __________ |
| | | | | |
+-----------------------------------+-------+-------------+-------------+------------+
These interim results were approved by the board of Directors on 19 May 2010.
GW Pharmaceuticals plc
Condensed consolidated cash flow statement
For the six months ended 31 March 2010
+------------------------------------+-+-----------+-------------+------------+
| | Six months | Six months | Year |
| | ended | ended | ended |
+------------------------------------+-------------+-------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+------------------------------------+-------------+-------------+------------+
| | 2010 | 2009 | 2009 |
+------------------------------------+-------------+-------------+------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+------------------------------------+-------------+-------------+------------+
| | GBP000's | GBP000's | GBP000's |
+------------------------------------+-------------+-------------+------------+
| Operating (loss)/profit | (2,701) | 3,929 | 1,024 |
+------------------------------------+-------------+-------------+------------+
| Adjustments for: | | | |
+------------------------------------+-------------+-------------+------------+
| Depreciation of property, plant & | 286 | 233 | 456 |
| equipment | | | |
+------------------------------------+-------------+-------------+------------+
| Share-based payment charge | 334 | 298 | 634 |
+------------------------------------+-------------+-------------+------------+
| | __________ | __________ | __________ |
| | | | |
+------------------------------------+-------------+-------------+------------+
| Operating cash flow before | (2,081) | 4,460 | 2,114 |
| movements in working capital | | | |
+------------------------------------+-------------+-------------+------------+
| (Increase)/decrease in inventories | (15) | (96) | (48) |
+------------------------------------+-------------+-------------+------------+
| (Increase)/decrease in receivables | 415 | (8,229) | (38) |
+------------------------------------+-------------+-------------+------------+
| Increase/(decrease) in payables | 1,401 | 375 | (2,599) |
+------------------------------------+-------------+-------------+------------+
| | __________ | __________ | __________ |
| | | | |
+------------------------------------+-------------+-------------+------------+
| Cash used by operations | (280) | (3,490) | (571) |
+------------------------------------+-------------+-------------+------------+
| Income tax credits received | - | 1,792 | 1,791 |
+------------------------------------+-------------+-------------+------------+
| | __________ | __________ | __________ |
| | | | |
+------------------------------------+-------------+-------------+------------+
| Net cash in/(out)flow from | (280) | (1,698) | 1,220 |
| operating activities | | | |
+------------------------------------+-------------+-------------+------------+
| Investing activities | | | |
+------------------------------------+-------------+-------------+------------+
| Interest received | 34 | 99 | 135 |
+------------------------------------+-------------+-------------+------------+
| Interest paid | (4) | - | (8) |
+------------------------------------+-------------+-------------+------------+
| Purchases of property, plant and | (243) | (627) | (1,061) |
| equipment | | | |
+------------------------------------+-------------+-------------+------------+
| | __________ | __________ | __________ |
| | | | |
+------------------------------------+-------------+-------------+------------+
| Net cash from investing activities | (213) | (528) | (934) |
+------------------------------------+-------------+-------------+------------+
| Financing activities | | | |
+------------------------------------+-------------+-------------+------------+
| Proceeds on issue of shares | 298 | - | 6,622 |
+------------------------------------+-------------+-------------+------------+
| Expenses of share issue | (18) | - | (294) |
+------------------------------------+-------------+-------------+------------+
| Capital element of finance leases | (17) | - | (67) |
+------------------------------------+-------------+-------------+------------+
| | __________ | __________ | __________ |
| | | | |
+------------------------------------+-------------+-------------+------------+
| Net cash from financing activities | 263 | - | 6,261 |
+------------------------------------+-------------+-------------+------------+
| Net increases/(decrease) in cash and | (230) | (2,226) | 6,547 |
| cash equivalents | | | |
+--------------------------------------+-----------+-------------+------------+
| Cash and cash equivalents at | 20,601 | 14,054 | 14,054 |
| beginning of year | | | |
+------------------------------------+-------------+-------------+------------+
| | __________ | __________ | __________ |
| | | | |
+------------------------------------+-------------+-------------+------------+
| Cash and cash equivalents at end | 20,371 | 11,828 | 20,601 |
| of the period | | | |
+------------------------------------+-------------+-------------+------------+
| | __________ | __________ | __________ |
| | | | |
+------------------------------------+-------------+-------------+------------+
| | | | | |
+------------------------------------+-+-----------+-------------+------------+
1. General information and basis of preparation
These interim financial statements are condensed financial statements that have
been prepared in accordance with IAS 34 - "Interim Financial Reporting" and were
approved by the Board on 19 May 2010.
The information for the year ended 30 September 2009 does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006. The
statutory accounts for the year ended 30 September 2009 have been filed with the
Registrar of Companies. The auditors' report on those financial statements was
not qualified, did not draw attention to any matters by way of emphasis without
qualifying their report and did not contain statements under section 498(2) or
498(3) of the Companies Act 2006.
At 31 March 2010 the Group had cash resources of GBP20.4 million. The Group is
also generating revenues from Sativex sales, from research and development
activity that it carries out on behalf of Otsuka Pharmaceutical Ltd and has
several opportunities to earn milestones from these partners in the next year.
The directors have reviewed the working capital and research and development
funding requirements of the Group for the next twelve months and consider that
the cash in hand, recurring revenues together with the strong development
partner relationships that are in place mean that the Group is well placed to
manage its business risks successfully despite the current economic outlook.
The directors are satisfied that the Group has sufficient resources to continue
in operation for the foreseeable future, a period of not less than 12 months
from the date of this report. Accordingly, they continue to adopt the going
concern basis in preparing the financial information for the half year ended 31
March 2010.
Results for the six month periods ended 31 March 2010 and 31 March 2009 have not
been audited.
2. Significant Accounting policies
The significant accounting policies and methods of computation adopted in the
preparation of these interim condensed financial statements are consistent with
those used in the preparation of the Group's financial statements for the year
ended 30th September 2009.
3. Business and Geographical segments
The Directors consider that the Group operates within a single business segment,
being pharmaceutical development.
All turnover and losses before taxation originated in the UK. All assets and
liabilities are held in the UK.
The Directors do not consider the business to be seasonal or cyclical.
Revenues can be analysed as follows:
+-------------------------------------+------------+------------+------------+
| Revenue: | Six months | Six months | Year |
| | ended | ended | ended |
+-------------------------------------+------------+------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+-------------------------------------+------------+------------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000's |
+-------------------------------------+------------+------------+------------+
| Product sales | 932 | 974 | 1,689 |
+-------------------------------------+------------+------------+------------+
| Research and development fees | 9,527 | 6,162 | 12,532 |
+-------------------------------------+------------+------------+------------+
| Licensing fees: | | | |
+-------------------------------------+------------+------------+------------+
| - signature fees | 950 | 950 | 1,900 |
+-------------------------------------+------------+------------+------------+
| - development and approval fees | - | 8,000 | 8,000 |
+-------------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+------------+------------+------------+
| | 11,409 | 16,086 | 24,121 |
+-------------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+------------+------------+------------+
Geographical analysis of turnover: - by destination of customer
+-------------------------------------+------------+------------+------------+
| | Six months | Six months | Year |
| | ended | ended | ended |
+-------------------------------------+------------+------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+-------------------------------------+------------+------------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000s |
+-------------------------------------+------------+------------+------------+
| UK | 540 | 444 | 915 |
+-------------------------------------+------------+------------+------------+
| Europe (excluding UK) | 571 | 8,508 | 9,152 |
+-------------------------------------+------------+------------+------------+
| North America | 8,152 | 5,660 | 10,689 |
+-------------------------------------+------------+------------+------------+
| Asia | 2,146 | 1,474 | 3,365 |
+-------------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+------------+------------+------------+
| | 11,409 | 16,086 | 24,121 |
+-------------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+------------+------------+------------+
4. Research and development expenditure
+-------------------------------------+------------+------------+------------+
| | Six months | Six months | Year |
| | ended | ended | ended |
+-------------------------------------+------------+------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+-------------------------------------+------------+------------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000s |
+-------------------------------------+------------+------------+------------+
| GW-funded research | 2,573 | 3,742 | 6,805 |
+-------------------------------------+------------+------------+------------+
| Development partner-funded research | 9,527 | 6,162 | 12,532 |
+-------------------------------------+------------+------------+------------+
| | __________ | __________ | _________ |
| | | | |
+-------------------------------------+------------+------------+------------+
| Total | 12,100 | 9,904 | 19,337 |
+-------------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+------------+------------+------------+
5. Tax credit
+-------------------------------------+------------+------------+------------+
| | Six months | Six months | Year |
| | ended | ended | ended |
+-------------------------------------+------------+------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+-------------------------------------+------------+------------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000's |
+-------------------------------------+------------+------------+------------+
| UK Corporation tax - R&D tax | | | |
| credit: | | | |
+-------------------------------------+------------+------------+------------+
| Prior year | - | - | 7 |
+-------------------------------------+------------+------------+------------+
| Current period | - | - | (360) |
+-------------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+------------+------------+------------+
| Total credit for the period | - | - | (353) |
+-------------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+------------+------------+------------+
The UK Corporation tax credits relate to research and development expenditure
claimed under the Finance Act 2000.
The amounts are subject to the agreement of HM Revenue and Customs.
6. Earnings per share
The calculations of earnings/(loss) per share are based on the following losses
and numbers of shares.
+----------------------------------+-------------+-------------+-------------+
| | Six months | Six months | Year ended |
| | ended | ended | |
+----------------------------------+-------------+-------------+-------------+
| | 31 March | 31 March | 30 |
| | | | September |
+----------------------------------+-------------+-------------+-------------+
| | 2010 | 2009 | 2009 |
+----------------------------------+-------------+-------------+-------------+
| | GBP000's | GBP000's | GBP000's |
+----------------------------------+-------------+-------------+-------------+
| Profit/(loss) for the period - | (2,666) | 4,028 | 1,505 |
| basic | | | |
+----------------------------------+-------------+-------------+-------------+
| Profit/(loss) for the period - | (2,666) | 4,030 | 1,511 |
| fully diluted | | | |
+----------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
| | | | |
+----------------------------------+-------------+-------------+-------------+
| | | | |
+----------------------------------+-------------+-------------+-------------+
| | Number of | Number of | Number of |
| | shares | shares | shares |
+----------------------------------+-------------+-------------+-------------+
| Weighted average number of | 129,644,229 | 120,785,335 | 122,534,208 |
| shares - basic | | | |
+----------------------------------+-------------+-------------+-------------+
| Weighted average number of | 129,644,229 | 123,248,756 | 128,125,821 |
| shares - fully diluted | | | |
+----------------------------------+-------------+-------------+-------------+
| | ___________ | ___________ | ___________ |
| | | | |
+----------------------------------+-------------+-------------+-------------+
In the current period, since the Group reported a net loss, diluted loss per
share is equal to basic loss per share.
7. Inventories
+----------------------------------+------------+------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+----------------------------------+------------+------------+------------+
| | 2010 | 2009 | 2009 |
+----------------------------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000's |
+----------------------------------+------------+------------+------------+
| Raw materials | 79 | 159 | 93 |
+----------------------------------+------------+------------+------------+
| Work in progress | 359 | 365 | 286 |
+----------------------------------+------------+------------+------------+
| Finished goods | 128 | 75 | 172 |
+----------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+----------------------------------+------------+------------+------------+
| | 566 | 599 | 551 |
+----------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+----------------------------------+------------+------------+------------+
Inventory is stated net of a realisable value provision of GBP4.1m (31 March
2009: GBP4.0m)
8. Trade and other receivables
+----------------------------------+------------+------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+----------------------------------+------------+------------+------------+
| | 2010 | 2009 | 2009 |
+----------------------------------+------------+------------+------------+
| | GBP000's | GBP000's | GBP000's |
+----------------------------------+------------+------------+------------+
| Amounts falling due within one | | | |
| year | | | |
+----------------------------------+------------+------------+------------+
| Trade receivables | 222 | 8,138 | 129 |
+----------------------------------+------------+------------+------------+
| Other receivables | 84 | 169 | 75 |
+----------------------------------+------------+------------+------------+
| Prepayments and accrued income | 254 | 703 | 607 |
+----------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+----------------------------------+------------+------------+------------+
| | 560 | 9,010 | 811 |
+----------------------------------+------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+----------------------------------+------------+------------+------------+
9. Trade and other payables
+-------------------------------------+-------------+------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+-------------------------------------+-------------+------------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------+-------------+------------+------------+
| | GBP000's | GBP000's | GBP000's |
+-------------------------------------+-------------+------------+------------+
| Trade payables | 996 | 2,478 | 2,463 |
+-------------------------------------+-------------+------------+------------+
| Other taxation and social security | 275 | 151 | 156 |
+-------------------------------------+-------------+------------+------------+
| Accruals and other payables | 4,042 | 4,725 | 1,834 |
+-------------------------------------+-------------+------------+------------+
| Defined contribution pension scheme | 43 | 42 | 43 |
| accruals | | | |
+-------------------------------------+-------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+-------------+------------+------------+
| | 5,356 | 7,396 | 4,496 |
+-------------------------------------+-------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+-------------+------------+------------+
10. Deferred Revenue
+-------------------------------------+-------------+------------+------------+
| | 31 March | 31 March | 30 |
| | | | September |
+-------------------------------------+-------------+------------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------+-------------+------------+------------+
| Amounts falling due within one year | GBP000's | GBP000's | GBP000's |
+-------------------------------------+-------------+------------+------------+
| Deferred signature fee income | 1,900 | 1,900 | 1,900 |
+-------------------------------------+-------------+------------+------------+
| Advance payments received | 4,325 | 1,803 | 2,694 |
+-------------------------------------+-------------+------------+------------+
| | ____ | __________ | __________ |
| | _____ | | |
+-------------------------------------+-------------+------------+------------+
| | 6,225 | 3,703 | 4,594 |
+-------------------------------------+-------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+-------------+------------+------------+
| Amounts falling due after one year | | | |
+-------------------------------------+-------------+------------+------------+
| Deferred signature fee income | 12,549 | 14,449 | 13,499 |
+-------------------------------------+-------------+------------+------------+
| | __________ | __________ | __________ |
| | | | |
+-------------------------------------+-------------+------------+------------+
Deferred signature fee income represents the balance of the non-refundable
signature fees received from Almirall and Otsuka. These amounts will be
recognised as revenue in future periods.
For Almirall the GBP12m signature fee is being recognised at the rate of GBP0.8m
per year over 15 years from December 2005. In the case of Otsuka, where the
Group's obligations under the agreement are weighted towards the earlier years,
the $18m (GBP9.2m) signature is being recognised from 1 April 2007 to 30
September 2011 at the rate of GBP1.1m per year and at GBP0.28m per year for the
following 15 years.
Advance payments received represents payments for research and development
activities to be carried out on behalf of Otsuka. These amounts will be
recognised as revenue in the next period.
11. Availability of information
A copy of this statement is available from the Company Secretary at Porton Down
Science Park, Salisbury, Wiltshire, SP4 0JQ. Full details can also be found on
the Company's website at www.gwpharm.com.
Cautionary statement
This Interim Management Report "IMR" has been prepared solely to provide
additional information to shareholders to assess the Group's strategies and the
potential for those strategies to succeed. The IMR should not be relied on by
any other party for any other purpose.
The IMR contains certain forward-looking statements. These statements are made
by the directors in good faith based on the information available to them up to
the time of their approval of this report but such statements should be treated
with caution due to the inherent uncertainties, including both economic and
business risk factors, underlying any such forward-looking information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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