FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13s - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of November 2006
Acambis plc
(Translation of registrant's name into English)
Peterhouse Technology Park
100 Fulbourn Road
Cambridge CB1 9PT
England
(address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F
Forms 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934).
Yes No X
(if "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ).
Enclosure:
3rd Quarter Results
Results for the three and nine months ended 30 September 2006
Cambridge, UK and Cambridge, Massachusetts - 7 November 2006 - Acambis plc
(Acambis or the Company) (LSE: ACM, NASDAQ: ACAM) announces its results for the
three and nine months ended 30 September 2006.
Key points:
> Update on Board's strategy for growth
o Results of strategic review: building a high value biotechnology company
> R&D pipeline advancing well:
o ChimeriVax-JE vaccine: positive data from pivotal Phase 3 safety trial
and encouraging initial data from efficacy trial
o Universal pandemic flu vaccine: plans on track for Phase 1 trial in early
2007
> Smallpox franchise:
o ACAM2000 vaccine: on target to deliver on $30m US Government order by
year-end
o MVA litigation: outcome of review of ITC judge's Initial Determination
expected in January
> Cash position enhanced
o $16.5m (GBP8.8m) in cash received for sale of Berna Products to Crucell NV
o $19m (GBP10.1m) in cash received from Novartis AG for ARILVAX settlement
payment
o $30m (c.GBP16m) revenue for delivery of ACAM2000 doses by year-end
Key trading highlights
Three months Nine months
ended ended
30 September 30 September
2006 2005 2006 2005
Revenue GBP2.8m GBP4.6m GBP13.4m GBP17.0m
R&D costs GBP7.7m GBP8.7m GBP28.0m GBP23.4m
Profit/(loss) before tax GBP4.8m GBP(10.2)m GBP(18.1)m GBP(23.0)m
Basic profit/(loss) per share 4.6p (10.3)p (17.3)p (18.8)p
Basic profit/(loss) per ADR $0.17 $(0.36) $(0.65) $(0.67)
Gordon Cameron, Chief Executive Officer of Acambis, said:
"Following significant activity on all fronts, the past two months have been a
very busy period of newsflow for Acambis. We have delivered both positive data
from our key pipeline programmes and achieved a number of agreements that have
raised significant cash for the Company. Acambis is now in a much stronger
financial position and, with our clear strategic direction, the Board is
confident that we are well-positioned to pursue the next stage of Acambis'
growth and development."
A conference call for analysts will be held today at 9.00 am GMT. For details,
contact Anna Gavrilova at Acambis on telephone number +44 (0) 1223 275 349. An
instant replay of the call will be available until 14 November 2006 on telephone
number UK: +44 (0) 20 7365 8427 and US: +1 617 801 6888. The pin code is
68191647. A webcast of the call will also be available via Acambis' website at
www.acambis.com. The webcast replay will be available for 12 months until 7
November 2007.
Acambis plc Today Thereafter
Lyndsay Wright, VP, Communications and IR +44 (0) 20 7831 3113 +44 (0) 1223 275 300
Financial Dynamics
David Yates/Anna Keeble +44 (0) 20 7831 3113
Chairman's statement
OVERVIEW
In today's statement, my first as Chairman of Acambis, I am pleased to report
that, in the third quarter of 2006, the Company achieved important pipeline
advances and significant financial progress.
On 30 October, we were pleased to announce positive results from our pivotal
Phase 3 trials of ChimeriVax(TM)-JE. These data reinforce our confidence that
ChimeriVax-JE has a product profile that is ideally suited to both the endemic
and the travel vaccine markets. The announcement follows positive data from our
ChimeriVax-West Nile and C. difficile vaccines, which we reported at the time of
our second quarter results announcement in September.
Also in September, we announced that the US Government has placed an order for
10 million doses of ACAM2000, potentially contributing $30m (c.GBP16m) in
revenues in 2006. We are working to ensure delivery of these doses before the
end of 2006, with the aim of meeting our overall 2006 revenue guidance of
GBP30m.
At the beginning of October, we announced the sale of Berna Products Corporation
(BPC), the travel vaccine sales and marketing unit, to Crucell NV for $16.5m
(GBP8.8m). With the termination of the ARILVAX licensing agreement, for which we
received a $19m (GBP10.1m) settlement payment from Novartis AG, we concluded
that BPC was no longer a strategic asset for Acambis, and its sale at this time
realised good value.
Altogether, the cash inflows from the BPC sale, the ARILVAX settlement and the
US Government ACAM2000 order significantly strengthen our financial outlook and
balance sheet.
I would like to record the Board's thanks to Alan Smith, who retired as Chairman
and stepped down from the Board at the end of September. Alan oversaw the growth
of Acambis into a substantial international enterprise during his seven-year
tenure as Chairman and his ten years on the Board, and the Board is very
grateful for his leadership during this period.
STRATEGY
Building a high value biotechnology company
We have recently completed a strategic review to evaluate a range of options for
Acambis' further growth and development.
Acambis has established a strong base from which to grow into a substantial
biotechnology company. Through the fulfilment of the US Government smallpox
vaccine contracts, we have developed important in-house expertise and assets
that are essential to the successful development of biological products, such as
vaccines. Acambis is now capable of taking a product through all stages from
concept to licensure. Its pipeline includes a mix of novel infectious disease
vaccines that offer useful near-term revenue sources and higher value
opportunities in the medium to longer term. Its "biodefence" assets - notably
the ACAM2000 and MVA3000 smallpox vaccines - can provide significant revenues
and cashflow to underpin the business while supporting the core non-biodefence
pipeline.
In the Board's view, the non-biodefence pipeline is the primary growth area for
the Company, and we will aim to build this into an increasingly valuable
portfolio. To achieve this, the goal for our existing operations is to drive our
key projects - ChimeriVax-JE, ChimeriVax-West Nile, C. difficile and universal
influenza vaccines - through to licensure as quickly and effectively as
possible. This will be facilitated by identifying and working with appropriate
partners. At the same time, we are ambitious to expand the portfolio through
adding projects that address significant market opportunities, as we have
accomplished with the C. difficile and influenza projects. Acquisitions - be
they of products and/or companies - form a major part of that growth strategy,
as will the output from Acambis' own innovative research programmes.
Our goal for our biodefence assets is to leverage to the full our existing
opportunities and capabilities. The present contracts we have, together with the
ones for which we are currently bidding, provide attractive near-term revenues
and cash, which will be invested in our core product pipeline. However, it is
not our intention to expand the biodefence business significantly beyond the
portfolio that we have today. Moreover, as the value of our pipeline continues
to grow, we expect that the proportion of our business derived from the
biodefence assets will reduce over time.
Strategically, our intention is to continue to retain significant product rights
through to licensure, including manufacturing. In 2005, Acambis successfully
invested in driving each of the proprietary programmes forward into the next
stage of development, and we have made further good progress in 2006. However,
we recognise that funding concurrent late-stage trials for multiple products is
not sustainable from our current or projected financial resources. Therefore,
partnering and leveraging the strengths of others remains part of our strategy.
To that end, we have already indicated that we intend to seek a partner for
ChimeriVax-West Nile beyond the end of Phase 2, in addition to commercialisation
partners for ChimeriVax-JE.
Today, Acambis' principal expertise is in the area of vaccines against
infectious diseases. In assessing opportunities for acquisition-driven growth,
we are also considering biologicals to treat infectious diseases and vaccines
targeting disorders other than infectious diseases. In both areas, we believe
Acambis' established capabilities will be particularly appropriate for such a
business expansion.
With regard to Board and Management composition, we are currently engaged in
recruiting a Senior Vice President of R&D, to succeed Dr Thomas Monath, who
retired as Chief Scientific Officer, and stood down from the Board, in September
2006. In addition, we are currently seeking to strengthen the Board further with
the appointment of one or more additional Non-executive Directors.
RESEARCH AND DEVELOPMENT UPDATE
In September, we announced encouraging data from clinical trials of our C.
difficile vaccine and of our ChimeriVax-West Nile vaccine, both of which
reported high seroconversion rates and excellent safety data. Full details were
published in our second quarter results announcement.
ChimeriVax-JE vaccine: positive data from Phase 3 trials
On 30 October, we announced positive results from the pivotal Phase 3 safety
trial of our ChimeriVax-JE vaccine and encouraging preliminary data from the
Phase 3 efficacy trial. The two Phase 3 trials of ChimeriVax-JE have been
conducted in the US and Australia and are intended to support licence
applications in endemic countries, notably India, using Australia's regulatory
agency, the Therapeutics Goods Administration, as the competent authority.
In the pivotal Phase 3 safety trial, 2,004 subjects were enrolled into the
randomised, double-blind, placebo-controlled trial, for which the primary
endpoint was the incidence of adverse events 30 days after vaccination. Results
show that the total number of subjects reporting adverse events was comparable
between subjects vaccinated with ChimeriVax-JE and those who received placebo.
There was one serious adverse event, febrile illness that was considered to be
vaccine-related; this resolved without complications.
In the efficacy trial, ChimeriVax-JE has been compared to a licensed Japanese
encephalitis (JE) vaccine, JE-VAX(R). The study called for 816 subjects to be
vaccinated, split equally between the two groups. While the trial is still
blinded, early serology data indicate an overall seroconversion rate of
approximately 98% in evaluable subjects receiving either a single dose of
ChimeriVax-JE or three doses of JE-VAX. Final testing and data analysis are
continuing and full results from the efficacy trial are expected to be available
in the first quarter of 2007.
Universal influenza vaccine: progressing towards IND submission
Our preparations are ongoing to submit an IND application to the US FDA to
commence clinical testing of ACAM-FLU-A early in 2007. This is the first vaccine
candidate being developed under our influenza programme and is designed to
function as a universal vaccine, protective against all 'A' strains of
influenza. As such, it could be a candidate pandemic influenza vaccine since all
pandemics to date have been caused by "A" strains of the virus.
SMALLPOX VACCINE FRANCHISE UPDATE
ACAM2000: on track to deliver 10 million doses to US Government
As announced in September, the US Government has ordered an additional 10
million doses of our ACAM2000 smallpox vaccine, worth approximately $30m in
revenues to Acambis. While the doses are being provided from our existing
inventory of filled product, additional work is required to prepare the vaccine
kits in the form required by the US Government. We are targeting delivery of
these doses before the end of 2006 and, therefore, included those revenues in
our upwardly revised revenue guidance, which we gave at the time of our second
quarter results.
As a result of this order and as agreed with the US Government, we have
initiated activities to establish warm-base manufacturing for ACAM2000 entirely
in the US. To achieve this, all stages of the bulk production process are being
transferred to our Canton, MA facility, and lyophilisation and fill/finish
activities will take place at our Rockville, MD facility.
The US Food and Drug Administration (FDA) has accepted our completed Biologics
License Application (BLA) for ACAM2000 and has scheduled a Vaccines and Related
Biological Products Advisory Committee meeting in January 2007. As we
highlighted previously, the FDA has set the "First Action Due Date" as 14
February 2007, which is when we would expect a decision on the BLA. Finalisation
of the long-term ACAM2000 warm-base manufacturing contract with the US
Government is expected to follow the FDA's decision on our product licence
application.
MVA3000: awaiting final stages of US Government tender process
We are continuing to pursue negotiations in relation to a contract to supply the
US Government with 10-20 million doses of Modified Vaccinia Ankara (MVA)
attenuated smallpox vaccine under Project Bioshield. Additional information on
our MVA programme was provided to the US Government in August and we now await
the request for Final Proposal Revisions. We remain confident that our strong
track record with the US Government, our partnership with Baxter and our
demonstrated ability to manufacture and deliver large quantities of vaccine put
us in a very strong competitive position.
Following publication in July of preliminary results from a Phase 2 trial of
MVA3000 in healthy volunteers, we are preparing to vaccinate volunteers in
trials in the target populations for MVA3000: those infected with HIV and
subjects with atopic dermatitis.
MVA litigation: ITC decision on review of Initial Determination
In September, we announced that, in his Initial Determination, the International
Trade Commission (ITC) judge had ruled in Acambis' favour, invalidating each of
the patent claims asserted by Bavarian Nordic (BN) against Acambis in the
MVA-related dispute. The full version of the judge's Initial Determination has
now been published on the ITC's website, www.usitc.gov, through EDIS, the
Electronic Data Information System.
Requests for Commission review of the judge's Initial Determination have been
submitted. The ITC has indicated that a decision on whether or not to proceed to
a review will be taken by 22 November. If it proceeds with a review, the target
date for a final decision on the case is now 8 January 2007.
In Europe, the court in Austria is in the process of determining whether the
case before the Commercial Court in Vienna will be stayed pending the outcome of
the European Patent Organisation's (EPO) review of the oppositions to BN's
MVA-related patent granted in December 2005. In addition to Acambis and Baxter,
five other companies filed oppositions to BN's MVA-related European patent.
Given that BN's European patent is broadly based on the same claims as the
patents reviewed by the ITC, we believe that it, as with the US patents, will be
found to be invalid. A decision on whether the case in Vienna will be stayed is
expected in the first half of 2007. The EPO's review could take several years to
complete.
As ever, we remain confident of our ability to defend our freedom to operate in
all these cases.
ARILVAX SETTLEMENT AND SALE OF BPC
On 12 September, we announced that Novartis AG (Novartis) has agreed to pay us
$19m (c.GBP10m) to settle the dispute related to the ARILVAX(TM) yellow fever
vaccine. This dispute arose under an agreement that had been established in 1999
and resulted from non-performance by predecessor companies acquired by Novartis.
The $19m payment was received in September 2006.
On 2 October, we announced the sale of our US sales and distribution unit, BPC,
to Crucell NV (Crucell) for $16.5m (c.GBP9m). BPC sold and distributed
Vivotif(R), an oral typhoid vaccine, in North America. We acquired it in 2003
to help build a travel vaccines franchise in the US, particularly for ARILVAX.
However, developments since then have resulted in BPC being no longer a
strategic asset for Acambis. By selling it to Crucell, we crystallised value in
the short term and further strengthened our financial position.
FINANCIAL REVIEW
The financial results, prepared under the Group's accounting policies based on
International Financial Reporting Standards, for the three months (Q3) ended 30
September 2006 are presented below. The narrative reflects a comparison of our
activities in 2006 and 2005, and, unless otherwise stated, the comparative
figures in parentheses relate to the equivalent period in 2005.
Trading results
Revenue in Q3 was GBP2.8m (2005 - GBP4.6m). The main sources of revenue were
our two contracts with the NIAID for MVA3000 and product sales of Vivotif. The
higher levels of revenue in 2005 reflected more intensive levels of activity on
government contracts.
Cost of sales for Q3 was GBP2.3m (2005 - GBP5.4m) and represents costs on all
of the above products and certain costs of operating our manufacturing
facilities.
R&D costs in Q3 continued to be in line with management expectations and were
consistent with the full year guidance provided in March 2006. Costs in Q3 were
GBP7.7m (2005 - GBP8.7m). The lower level of costs in Q3 includes a credit
relating to the ARILVAX programme of GBP1.2m (2005 - GBPnil) as a result of
reaching the settlement with Novartis. Certain process development and
manufacturing costs for work on our R&D projects continue to be recorded
against R&D costs.
Sales and marketing costs in Q3 were GBP0.9m (2005 - GBP0.7m). Administrative
costs in Q3 increased to GBP1.9m (2005 - GBP0.7m). The main reasons for the
increase seen in Q3 over 2005 is as a result of costs associated with the MVA
litigation and foreign exchange movements.
In Q3 two items of other operating income were recorded. The first, GBP10.1m
(2005 - GBPnil), relates to the $19.0m settlement received from Novartis for
the ARILVAX programme. The second relates to the profit recorded following the
sale of the BPC business to Crucell for GBP8.7m ($16.5m) at the end of Q3.
Other operating income of GBP4.4m was recorded after offsetting the value of
fixed assets, working capital, goodwill and other intangible assets on the
balance sheet.
The pre-tax profit in Q3 was GBP4.8m (2005 - pre-tax loss of GBP10.2m). The
difference seen over 2005 is as a result of recording the two items of other
operating income relating to the ARILVAX settlement and the sale of BPC.
Balance sheet highlights
i) Cash/debtors
The short-term investments and cash balance of the Group at 30 September stood
at GBP46.1m (31 December 2005 - GBP68.0m). Cash increased during Q3 as a result
of cash receipts from Novartis and Crucell for the ARILVAX settlement and sale
of BPC respectively. Operational cash expenditures in Q3 included ongoing
payments for our two Phase 3 trials for ChimeriVax-JE and costs to support the
MVA litigation. Trade and other receivables decreased to GBP4.1m at
30 September 2006 (31 December 2005 - GBP20.6m), in part as a result of
payments received in the first quarter of 2006 from the NIAID, under the
MVA3000 contract, for the shipment of 500,000 doses of MVA3000 vaccine.
ii) Inventory/current liabilities
Inventory levels were GBP3.0m at 30 September 2006 (31 December 2005 - GBP3.6m).
Inventory principally represents work-in-progress and finished goods in relation
to our ACAM2000 vaccine. Stocks of Vivotif were transferred to Crucell as part
of the sale of BPC and are therefore no longer represented in the inventory
balance.
Current liabilities at 30 September 2006 reduced significantly to GBP18.7m (31
December 2005 - GBP46.8m), principally due to large trade creditor payments made
during the first quarter of 2006, most notably to Baxter for the production of
the 500,000 doses of MVA3000.
iii) Lease financing and overdraft facilities
The combined balance on our US dollar-denominated financing facilities reduced
in the nine months to 30 September 2006 to GBP9.2m (31 December 2005 - GBP12.8m)
principally as a result of the lease-financing facility continuing to be paid
down. The balance on this facility was GBP4.2m at 30 September 2006 (31 December
2005 - GBP7.2m), which, under the terms of this facility, is payable before the
end of the year. The balance on our overdraft facility at 30 September 2006 was
GBP3.7m (31 December 2005 - GBP4.0m). The remaining balance at 30 June 2006 was
GBP1.3m (31 December 2005 - GBP1.6m) which relates to the discounted value of
the future payments for the Rockville fill/finish facility acquired in 2005,
payable between 2006 and 2017.
OUTLOOK
As we have already highlighted, a key focus during the final weeks of 2006 will
be delivery of the 10 million ACAM2000 doses to the US Government. Assuming a
timely delivery, we reiterate our previous revenue guidance, which was increased
from below GBP20m to around GBP30m in September. Given the expected timing of
deliveries, the cash associated with that delivery is likely to be received
during January 2007.
During the coming months, we look forward to the conclusion of the review of the
ITC judge's Initial Determination in the MVA smallpox vaccine-related litigation
and to the start of the target population trials for MVA3000.
As a result of the recent ARILVAX settlement, the sale of BPC and the US
Government's ACAM2000 order, Acambis is now in a much stronger financial
position and, with our clear strategic direction, your Board is confident that
we are well-positioned to pursue the next stage of Acambis' growth and
development.
Dr Peter Fellner
Chairman
--ends-
About Acambis
Acambis is a leading biotechnology company targeting infectious diseases with
novel vaccines. Acambis' development-stage pipeline includes vaccines that could
either offer improvements over existing products or target unmet medical needs.
Its investigational vaccine against Japanese encephalitis, ChimeriVax-JE, which
is undergoing Phase 3 clinical testing, is intended to provide an "ideal"
vaccine to address the estimated 50,000 cases of this viral disease in Asia
every year. Acambis' proprietary ChimeriVax technology, developed in association
with St Louis University, has also been used to develop ChimeriVax-West Nile,
which is undergoing Phase 2 clinical testing, making it the most advanced
investigational vaccine against the West Nile virus. Acambis also has the only
vaccine in development against Clostridium difficile bacteria, a leading cause
of hospital-acquired infections. Recognised internationally as the leading
producer of smallpox vaccines, Acambis is developing an investigational smallpox
vaccine, ACAM2000, and is manufacturing emergency-use stockpiles of this
investigational vaccine for the US Government and other governments around the
world. It is also developing an attenuated smallpox vaccine, MVA3000, under
contracts with the US National Institutes of Health, and has tendered for a US
Government stockpiling contract.
Acambis is based in Cambridge, UK and Cambridge, Massachusetts, US, and is
listed on the London Stock Exchange (ACM). Its shares are listed on NASDAQ
(ACAM) in the form of American Depositary Receipts. More information is
available at www.acambis.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995:
The statements in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties, including the
timing and results of clinical trials, product development, manufacturing and
commercialisation risks, the risks of satisfying the regulatory approval process
in a timely manner, the need for and the availability of additional capital. For
a discussion of these and other risks and uncertainties see "Risk management" in
the Company's 2005 Annual Report and "Risk factors" in its Form 20-F, in
addition to those detailed on the Company's website and in the Company's filings
made with the Securities and Exchange Commission from time to time. These
forward-looking statements are based on estimates and assumptions made by the
management of Acambis and are believed to be reasonable, though are inherently
uncertain and difficult to predict. Actual results or experience could differ
materially from the forward-looking statements.
Results for the nine months ended 30 September 2006
Group income statement
Three months Three months Nine months Nine months Year
ended ended ended ended ended
30 September 30 September 30 September 30 September 31 December
2006 2005 2006 2005 2005
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
GBPm GBPm GBPm GBPm GBPm
Revenue 2.8 4.6 13.4 17.0 40.9
Cost of sales (2.3) (5.4) (9.8) (14.3) (27.6)
_____ _____ _____ _____ _____
Gross profit/(loss) 0.5 (0.8) 3.6 2.7 13.3
Research and development costs (7.7) (8.7) (28.0) (23.4) (34.1)
Sales and marketing costs (0.9) (0.7) (2.2) (2.0) (2.6)
Administrative costs (1.9) (0.7) (7.1) (2.8) (7.7)
Other operating income:
- - Settlement of ARILVAX agreement 10.1 - 10.1 - -
- - Profit on sale of business operation 4.4 - 4.4 - -
- - Fair value of shares received for
grant of licence - - - - 0.4
_____ _____ _____ _____ _____
Operating profit/(loss) 4.5 (10.9) (19.2) (25.5) (30.7)
Finance income 0.4 1.0 1.5 3.2 4.0
Finance costs (0.1) (0.3) (0.4) (0.7) (1.0)
_____ _____ _____ _____ _____
Profit/(loss) on ordinary activities
before taxation 4.8 (10.2) (18.1) (23.0) (27.7)
Taxation: UK (0.1) - (0.8) (0.7) (1.7)
Taxation: Overseas 0.2 (0.9) 0.3 3.5 2.4
_____ _____ _____ _____ _____
Profit/(loss) on ordinary activities
after taxation 4.9 (11.1) (18.6) (20.2) (27.0)
_____ _____ _____ _____ _____
Basic earnings/(loss) per share (in pence) 4.6p (10.3)p (17.3)p (18.8)p (25.2)p
Basic earnings/(loss) per ADR (in $)
(note 2) $0.17 $(0.36) $(0.65) $(0.67) $(0.87)
Diluted earnings/(loss) per share (in pence) 4.5p (10.3)p (17.3)p (18.8)p (25.2)p
Weighted average number of ordinary
shares in issue - basic 107,289,255 107,247,263 107,280,108 107,179,027 107,211,367
Weighted average number of ordinary
shares in issue -diluted 109,801,379 107,247,263 107,280,108 107,179,027 107,211,367
Group balance sheet as at 30 September 2006
As at As at As at
30 September 30 September 31 December
2006 2005 2005
(unaudited) (unaudited) (audited)
GBPm GBPm GBPm
Non-current assets
Goodwill 12.4 15.4 14.9
Other intangible assets 0.8 4.2 4.2
Property, plant and equipment 15.8 20.8 19.8
Deferred tax asset - 2.8 0.3
Financial assets: available for sale investments 0.6 - 0.6
Other non-current assets 0.3 - -
_____ _____ _____
29.9 43.2 39.8
Current assets
Inventory 3.0 3.7 3.6
Current tax assets 0.7 3.4 1.3
Trade and other receivables 4.1 8.1 20.6
Financial assets: derivative financial instruments - - 0.1
Liquid investments 10.0 14.0 18.8
Cash and cash equivalents 36.1 59.5 49.2
_____ _____ _____
53.9 88.7 93.6
Current liabilities
Financial liabilities:
- - short-term borrowings (3.7) (4.0) (4.0)
- - short-term financial liabilities (4.2) (4.4) (7.2)
Trade and other payables (2.1) (6.3) (16.1)
Accruals and deferred income (6.2) (19.8) (14.1)
Income tax payable (2.2) - (3.1)
Provisions (0.3) - (2.3)
_____ _____ _____
(18.7) (34.5) (46.8)
_____ _____ _____
Net current assets 35.2 54.2 46.8
_____ _____ _____
Total assets less current liabilities 65.1 97.4 86.6
Non-current liabilities
Investment in Joint Venture (0.3) (0.3) (0.3)
Long-term financial liabilities (1.3) (5.0) (1.6)
Other non-current liabilities - (0.5) -
Deferred tax liabilities - (1.6) (1.7)
_____ _____ _____
(1.6) (7.4) (3.6)
_____ _____ _____
Net assets 63.5 90.0 83.0
_____ _____ _____
Shareholders' equity
Share capital 10.7 10.7 10.7
Share premium 98.0 98.0 98.0
Other reserves (2.0) (0.4) (0.9)
Retained earnings (43.2) (18.3) (24.8)
_____ _____ _____
Total shareholders' equity 63.5 90.0 83.0
_____ _____ _____
Group cash flow statement
Three months Three months Nine months Nine months Year
ended ended ended ended ended
30 September 30 September 30 September 30 September 31 December
2006 2005 2006 2005 2005
(unaudited) (unaudited) (unaudited) (unaudited) (audited)
GBPm GBPm GBPm GBPm GBPm
Operating activities
Profit/(loss) on ordinary
activities before tax 4.8 (10.2) (18.1) (23.0) (27.7)
Depreciation and amortisation 1.1 1.1 3.1 3.2 5.3
(Increase)/decrease in working capital (4.0) 3.3 (7.8) 3.0 (2.8)
Profit on sale of business operations (4.4) - (4.4) - -
Other non-cash movements - (0.2) (1.0) (0.3) (0.7)
Net finance costs (0.3) (0.7) (1.1) (2.5) (3.0)
Taxes paid - (0.4) (0.9) (5.4) (0.4)
_____ _____ _____ _____ _____
Cash flows from operating activities (2.8) (7.1) (30.2) (25.0) (29.3)
Investing activities
Purchase of business operations - (1.2) - (1.4) (1.7)
Proceeds from sale of business operation 8.8 - 8.8 - -
Purchase of intangibles (0.1) (0.4) (0.2) (0.4) (0.4)
Purchase of property, plant and equipment (0.1) (0.4) (0.6) (3.0) (3.7)
Proceeds from sale of property,
plant and equipment - - 0.5 - -
_____ _____ _____ _____ _____
Cash flows used in investing activities 8.6 (2.0) 8.5 (4.8) (5.8)
Financing activities
Interest element of finance lease payments (0.1) (0.1) (0.3) (0.4) (0.6)
Interest paid - - (0.1) (0.1) (0.2)
Interest received 0.4 1.0 1.7 3.0 3.8
Proceeds from issue of shares - 0.1 - 0.2 0.2
Purchase of own shares - - - - (0.2)
Capital element of finance lease payments (0.8) (0.8) (2.7) (2.4) (3.3)
Purchase of liquid investments - (14.0) (6.1) (26.0) (34.8)
Sale of liquid investments - 17.8 14.9 32.8 36.8
_____ _____ _____ _____ _____
Cash flows from financing activities (0.5) 4.0 7.4 7.1 1.7
_____ _____ _____ _____ _____
Increase/(decrease) in cash and
cash equivalents 5.3 (5.1) (14.3) (22.7) (33.4)
Net foreign exchange difference 0.4 0.2 1.2 1.2 1.6
Cash and cash equivalents opening balance 30.4 64.4 49.2 81.0 81.0
_____ _____ _____ _____ _____
Cash and cash equivalents closing balance 36.1 59.5 36.1 59.5 49.2
_____ _____ _____ _____ _____
Reconciliation of movements in Group shareholders' equity
Nine months Nine months Year
ended ended ended
30 September 30 September 31 December
2006 2005 2005
(unaudited) (unaudited) (audited)
GBPm GBPm GBPm
Retained loss for the period (18.6) (20.2) (27.0)
(Loss)/gain on foreign currency exchange (1.1) 2.0 1.6
Foreign currency exchange realised on sale of
business operation (0.1) - -
Revaluation of available for sale investments - - 0.1
Credit in respect of employee share schemes 0.3 0.7 0.8
_____ _____ _____
(19.5) (17.5) (24.5)
New share capital subscribed - 0.2 0.2
Purchase of Treasury shares - (0.2) (0.2)
_____ _____ _____
Net decrease in shareholders' equity (19.5) (17.5) (24.5)
Opening shareholders' equity 83.0 107.5 107.5
_____ _____ _____
Closing shareholders' equity 63.5 90.0 83.0
_____ _____ _____
Notes
1. Basis of preparation
The financial information for the three and nine months ended 30 September 2006
and 30 September 2005 is unaudited and has been prepared in accordance with the
Group's accounting policies which are based on IFRS as adopted by the European
Union and the Listing Rules of the Financial Services Authority. IAS 34 'Interim
Financial Reporting' has not been applied in preparing these financial results.
The financial information for the year ended 31 December 2005 has been prepared
under IFRS.
This summary of results does not constitute the full financial statements within
the meaning of s240 of the Companies Act 1985. The 2005 financial statements,
which were approved at the 2005 Annual General Meeting on 23 June 2006, have
been reported on by the Company's auditors and subsequently delivered to the
Registrar of Companies. The audit report was unqualified and did not contain a
statement under s237(2) or s237(3) of the Companies Act 1985.
2. Earnings/(loss) per ADR (basic)
Each American Depository Receipt ("ADR") represents two ordinary shares. The
basic earnings/(loss) per ADR is calculated by multiplying the earnings/(loss)
per ordinary share by a factor of two and then multiplying by the prevailing US
dollar exchange rate at the end of the relevant period. The exchange rates used
are 1.8680, 1.7691 and 1.7168 for 30 September 2006, 30 September 2005 and 31
December 2005 respectively.
3. Escrow Account
The cash proceeds of GBP8.8m ($16.6m) relating to the sale of the BPC business
($16.5m relating to the sale, $0.1m relating to working capital) were held in an
escrow account on behalf of the Group as at 30 September 2006. The cash was then
transferred to the Group's bank account on 2 October 2006.
4. Directors' responsibility
The Directors are responsible for the maintenance and integrity of the Group's
website. The Company notes that UK legislation governing the preparation and
dissemination of financial information may differ from that required in other
jurisdictions.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant Peptide Therapeutics Group has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Date: 07 November 2006 ACAMBIS PLC
By: /s/ Lyndsay Wright
Name: Lyndsay Wright
Title: VP, Communications and IR.