PHYSIOMICS PLC - Interim Results

PHYSIOMICS PLC - Interim Results



                                Physiomics plc                                 

    Interim Results Announcement for the 6 months ended 31st December 2004     

Oxford, UK 21 March 2005 - Physiomics plc (`Physiomics', AIM: PYC), a European
systems biology simulation company, today publishes its interim results for the
six months ended 31st December 2004. The majority of the financial information
presented in this report relates to the period before the Company's AIM listing
on 20 December 2004.

The business of Physiomics is the development and sale of services aimed at
reducing the high cost of drug development for pharmaceutical and biotechnology
companies, principally by optimising the design of their clinical trials
through the application of computer-based simulation tools. The services have a
particular focus on cancer therapies.

Highlights of the period:

  * Physiomics raises £750,000 before expenses in its AIM listing on 20
    December 2004
   
  * Turnover (ex grants) rose from £30,000 in the corresponding period last
    year to £96,000, an increase of over 200%
   
  * Cancer drug development partnership with Cronos Therapeutics signed
   
  * Major systems biology project initiated at Barcelona University
   
  * Systems Biology expert Professor David Fell joins Board
   
  * Formal notification from the UK Patent Office of registration to Physiomics
    in the UK of European Patent 0 937 286, which covers its SystemCell™
    simulation technology
   
Dr Stephen Parker, Chairman of Physiomics, commented:

"I am delighted to present our first set of results since Physiomics was listed
on AIM on 20 December 2004. We made significant progress in the business over
the period, culminating in the listing. The Directors recognise the invaluable
support of staff, shareholders and advisors in achieving this important goal
for the business and thank everyone for their hard work over the period. Going
forward, we believe Physiomics is well placed to develop a strong business
based on systems biology."

For further information please contact:

Physiomics plc

Dr Stephen Parker (Chairman)   Tel: [phone]
Dr John Savin (CEO)            Tel: [phone]

Northbank Communications       Tel: [phone]

Emma Palmer
Fiona Brown
Rowan Minnion

Notes to Editors

Physiomics plc

Physiomics plc, founded in 2001, develops and sells services aimed at reducing
the high cost of drug development for pharmaceutical and biotechnology
companies by optimising the design of cancer clinical trials through the
application of computer-based simulations. Physiomics is also applying its
technologies to develop proprietary cancer therapy products for out-licensing
and, to this end, it has secured an option to license two innovative molecules.

Chairman's Statement

Business development

The interim results show strong progress in the development of the business,
with a major collaborative agreement with Bayer Technology Services GmbH signed
in July 2004 and a drug development partnership, focused on cancer, initiated
with Cronos Therapeutics Limited in August. Clinical Response Prediction brings
together two unique strengths in systems biology - Bayer Technology Services'
PK-Sim® physiology-based pharmacokinetic (PBPK) modelling and Physiomics'
SystemCell technology which can determine and predict optimum drug levels. In
the collaboration with Cronos, Physiomics will use its novel in silico
technology to select optimal targets for the highly-selective GeneICE
technology from Cronos. The partners will then co-develop the lead GeneICE
constructs.

Physiomics gained assignment of the UK patent to its SystemCell simulation
technology in December. Formal registration of the UK patent is expected to
strengthen the Company's commercial position, and allow Physiomics to exploit
the full potential of SystemCell.

Financial results

Due to the Bayer collaboration, which includes an upfront technology access fee
spread over the contract period, sales rose from £30,000 in the corresponding
period last year to £96,000, an increase of over 200%.  Turnover of £37,000
in
the prior year period included £7,000 of grants.

Before one-off costs, loss at the operating level was £236,000. This low
operating loss shows the potential profit gearing inherent in the business
model of a low fixed cost base with outsourcing on specific projects. The
Company ended the period with net assets (mainly IPO proceeds) of £540,000.

Research and development costs increased in the second quarter as a major
science project was initiated at Barcelona University with a leading systems
biology group under Professor Marta Cascante, a member of the Physiomics
Scientific Advisory Board. This has already yielded significant data on the
biochemistry of cancer cell growth which will be invaluable in the Company's
current research programme and also in marketing activities.

Board developments

The Company welcomed three new Board members in the period: Professor David
Fell, who has been associated with the Company since 2001, as Science Director
and two non executive Directors, Dr Paul Harper and Mr John Pool. Mr Pool is
Chairman of EiRx Pharma Limited, the parent company of Physiomics, and
represents EiRx Pharma Limited on the Physiomics Board.

 

Post period events and outlook for the second half

The Board believes that the business is well placed to benefit from the
increasing interest in systems biology and in silico approaches to
pharmaceutical drug development. The AIM listing provides an excellent basis
for further business development and expansion.

The Company is now actively, but carefully, utilising the IPO proceeds to
invest in product development and has retained a specialist pharmaceutical
business development consultancy to drive marketing in the USA and Europe. A
further highly experienced simulation scientist, expert in modelling cell
growth and division, joined the development team from a leading German
laboratory in January. Physiomics is also fortunate to have recently recruited
a senior software expert in systems biology to further develop its SystemCell
technology. This technology is being developed to grow populations of virtual
cancer cells in order to optimise clinical trial design.

In the second half, it is expected that revenues will be broadly in line with
the first half whilst ongoing operating expenses will rise due to listed
company costs, external science contracts and additional product development.
However, apart from controlled outsourced and marketing investment, the cost
base should then stabilise from the last quarter of the current financial year
onwards to give a solid platform for growth.

Dr. Stephen B. Parker
Chairman     
18th March 2005


Unaudited Profit and Loss Account for the six months ended 31 December 2004

                                     Notes      6 months to         6 months to
                                                 31.12.2004          31.12.2003
                                                      £ 000               £
000
                                                                               
Turnover (sales and grants)                              96                  37
                                                                               
Operating loss                                        (236)                (15)
                                                                               
Loss on ordinary activities before                    (236)                (15)
financing costs                                                                
                                                                               
Net finance income                                        -                   -
                                                                               
Loss on ordinary activities before                    (236)                (15)
taxation                                                                       
                                                                               
Taxation                                                  -                   -
                                                                               
Loss on ordinary activities after taxation            (236)                (15)
                                                                               
Dividends                                                 -                   -
                                                                               
Retained loss                                         (236)                (15)
                                                                               
Earnings (loss) per                      1          (0.132)             (0.009)
share, p                                                                       

Unaudited Balance Sheet as at 31 December 2004

                                       Notes  31.12.04    31.12.03    30.06.04
                                                 £ 000       £ 000       £
000
                                                                              
Fixed assets                                                                  
                                                                              
Tangible fixed assets                               12           3          13
                                                                              
Intangible fixed assets                             56          70          58
                                                                              
Current assets                                                                
                                                                              
Debtors                                    2       384          76          13
                                                                              
Cash at bank                               3       437           -           9
                                                                              
                                                   821          76          22
                                                                              
Current liabilities                                                           
                                                                              
Creditors falling due within one year            (349)       (286)       (447)
                                                                              
Net current assets/(liabilities)                   472       (210)       (425)
                                                                              
Net assets/(liabilities)                           540       (137)       (354)
                                                                              
Capital and reserves                                                          
                                                                              
Called up share                            4        97          67          67
capital                                                                       
                                                                              
Share premium                              5     1,305         205         205
account                                                                       
                                                                              
Profit and loss account                          (862)       (409)       (626)
                                                                              
Total shareholders funds                           540       (137)       (354)
                                                                              

Unaudited Cash Flow Statement for the six months ended 31 December 2004

                                               Notes 6 months to    6 months to
                                                        31.12.04       31.12.03
                                                           £ 000          £
000
                                                                               
Cash outflow from operating activities                     (700)            (5)
                                                                               
Taxation                                                       -              -
                                                                               
Purchase of tangible fixed assets                            (1)              -
                                                                               
Management of liquid resources                                                 
                                                                               
Cash held on short term deposit                            (400)              -
                                                                               
Cash outflow before financing                            (1,101)            (5)
                                                                               
Financing                                                                      
                                                                               
Net proceeds of share issues including IPO                 1,129              -
                                                                               
Increase/(decrease) in cash in the period                     28            (5)

Notes to the financial information

1) The calculation of (loss) per ordinary share is based on 2004 loss per
accounts of £236,000 and weighted average number of shares of 178,306,717.
2003
loss per accounts was £15,000 and the weighted average number of shares in
issue was 167,850,900. At the time of the IPO, the existing share capital was
sub-divided and each ordinary share of 1 pence was divided into 25 ordinary
shares of 0.04p. The EPS calculations show the 2003 loss per share on a
comparable basis, as though the shares had been sub-divided in 2003

2) The company achieved an AIM listing in December 2004 and raised £750,000
gross. As at 31 December 2004, £445,000 had been received. The remaining £
305,000 was included under debtors, and has subsequently been received.

3) Cash at bank as at 31 December 2004 includes £400,000 held on short term
deposit

4) In addition to the new money raised, inter-company charges, creditors and
loans amounting to £618,000 were converted into equity in the period

5) Adviser fees and other costs of the IPO process amounted to £239,000 and
the
whole of this amount has been charged to the Share Premium account

The comparative figures for the year to 30 June 2004 are abridged from the
accounts for that year and do not constitute full accounts within the meaning
of Section 240 of the Companies Act 1985 (as amended). Statutory accounts for
that period, on which the auditors gave an unqualified opinion, have been
delivered to the Registrar of Companies.

This interim report has been prepared in accordance with accounting policies
adopted in the most recent published accounts. The report has been neither
audited nor reviewed by Grant Thornton, our auditors.



END



DATASOURCE: PHYSIOMICS PLC

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