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AB Science : AB Science: 2012 Annual financial results and 2013 first quarter revenue

AB Science : AB Science: 2012 Annual financial results and 2013 first quarter
                                   revenue



                                                Paris, 29 April 2013 - 6:00 pm

                                                 2012 Annual financial results
                                                    2013 First quarter revenue

          Filing to the European Medicines Agency of two conditional Marketing
                                        Authorization Applications in oncology

                                              2012 Revenue of 1,340 K€, up 21%

                                  2013 First quarter revenue of 571 K€, up 78%

AB Science SA (NYSE  Euronext - FR0010557264 -  AB), a pharmaceutical  company 
specialized  in  research,  development   and  marketing  of  protein   kinase 
inhibitors (PKIs), reports today its annual financials as of 31 December 2012,
as well as its revenue for the  first quarter of 2013, and provides an  update 
on its  activities. The  Board who  met  on April  24^th, 2013,  reviewed  and 
approved the  consolidated financial  statement  for the  year closing  on  31 
December 2012.  Audit procedures  on  consolidated financial  statements  were 
performed. The audited financial report is available on the Company's website.

Commenting on this announcement, Alain Moussy, Chairman and CEO of AB  Science 
declared: "The  acceptance by  the  European Medicines  Agency to  review  our 
requests for conditional  marketing authorization shows  that the  authorities 
consider  masitinib   as   a   potential   candidate   for   registration   in 
gastrointestinal stromal tumor (GIST) and in pancreatic cancer. Based on these
results, the Company intends to  actively pursue the development of  masitinib 
in oncology where a major program of four phases 3 studies and twelve phase  2 
studies is on-going, with  the aim of  demonstrating that masitinib  increases 
survival for patients under treatment. The steady increase of masitinib  sales 
in veterinary  medicine  reflects  the  increasing use  of  masitinib  by  the 
veterinarians because of its effectiveness in oncology."

I.Key events of year 2012:

In human medicine

  *Masitinib generated promising results  in gastro-intestinal stromal  tumor 
    (GIST) cancer,  a cancer  of  the digestive  system  that affects  15  new 
    patients per one million inhabitants each year. 

           *In second-line of treatment, that is patients with resistance  to 
             Gleevec® which is the first-line treatment, AB Science  announced 
             on 1 February 2012 encouraging results from a phase II study with
             masitinib.

In this study,  44 patients  with inoperable, locally  advanced or  metastatic 
GIST and showing  disease progression while  treated with Gleevec®  (imatinib) 
(400 to 800 mg/day) received either masitinib (23 patients) at 12 mg/kg/day or
Sutent® (21  patients)  until progression.  After  a median  follow-up  of  14 
months, median overall  survival was  not reached for  masitinib (superior  to 
21.2 months) versus  15.2 months  for Sutent® (p  = 0.016).  After 18  months, 
79.9% of patients treated  with masitinib were still  alive, versus 21.6%  for 
patients treated  with Sutent®.  The Hazard  Ratio was  0.29 (95%  CI [0.10  ; 
0.85], meaning that the risk  of death was decreased  by 71% for the  patients 
treated with masitinib versus the patients treated with Sutent®.
These results  have  been presented  orally  during the  American  Society  of 
Clinical Oncology (ASCO) 2012 Annual Meeting,
(http://meetinglibrary.asco.org/content/96397-114).

           *On the basis of these results,  AB Science initiated a phase  III 
             study in  GIST  in second-line  of  treatment, in  resistance  to 
             Gleevec®.  This  is   a  phase   III,  multicenter,   randomized, 
             open-label, controlled, two-parallel  group study evaluating  the 
             efficacy and  safety  of  masitinib as  compared  with  sunitinib 
             (Sutent®) in  GIST  patients  after  progression  under  imatinib 
             (Gleevec®). The primary end-point is overall survival.

The study is currently recruiting.

           *AB  Science   filed   a   conditional   Marketing   Authorization 
             Application (MAA)  of masitinib  in GIST  resistant to  Gleevec®. 
             Filing has been accepted by the European Medicines Agency (EMA).

  *AB Science announced the results from  the phase III study evaluating  the 
    effect of masitinib  in combination with  Gemzar® (gemcitabine, Eli  Lilly 
    and Company) on overall survival (OS) in patients with pancreatic  cancer. 
    Masitinib in combination with Gemzar® significantly extended median OS  by 
    6 and 2.7 months in two independent patient populations, representing  65% 
    and 45%  of  the  overall  population; namely,  patients  with  a  genetic 
    biomarker - collected from simple blood sample - indicative of  aggressive 
    disease progression, and patients with cancer pain. Pain intensity and the
    discovered genetic  biomarker were  shown to  be of  prognostic value  for 
    survival under Gemzar® alone and at the same time predictive of  increased 
    survival with masitinib  in combination  with Gemzar®  for those  patients 
    identified as having a poor prognosis with Gemzar® alone.

AB Science  also  announced  that  the European  Medicines  Agency  (EMA)  has 
accepted to review a Marketing Authorization Application (MAA) for conditional
approval of  masitinib  in  combination  with  Gemzar®  in  the  treatment  of 
pancreatic cancer, following filing of this dossier. 

Full data  has been  submitted for  presentation at  the American  Society  of 
Clinical Oncology  (ASCO) Gastrointestinal  Cancers Symposium  (24-26  January 
2013, in San Francisco, California).

Other events

  *A bond loan agreement,  convertible or repayable  in ordinary shares,  for 
    the nominal amount of 10,000,500euros  (100 bonds with nominal amount  of 
    10,005 euros), authorized by the Board of Directors on 2 March 2012, using
    the delegation given by the General Shareholder's Meeting on 23 May  2011, 
    was subscribed and  fully issued on  17 April 2012.  The bonds bear  1.25% 
    interest to be paid annually. They also bear 4.75% accrued interest to  be 
    paid only  in  case of  repayment  of the  loan  in cash.  The  bonds  are 
    convertible into shares at any time  at the initiative of the  bondholder, 
    one bond giving right to a preset number of ordinary shares, determined as
    follows: "O/P", where O is the nominal  value of the bonds and P is  equal 
    to 15.00 euros. The bonds are automatically repaid in shares, if after  31 
    December 2014, the three-month moving  average share price of the  Company 
    with a 1  euro cent nominal  value is greater  or equal to  20 euros.  The 
    bonds may be repaid by  anticipation in cash at  the option of AB  Science 
    under certain conditions. If  not, they will be  repayable in full on  the 
    seventh anniversary of the issue date at their nominal value, by 17  April 
    2019.

  *AB Science  set-up  an equity  financing  facility (PACEO®)  with  Société 
    Générale on 3 May 2012. Société Générale has subscribed warrants issued by
    AB Science  (bons d'émission  d'actions,  or "BEA")  that AB  Science  may 
    exercise at its sole discretion, with the view to enabling the Company  to 
    carry out successive capital increases representing a maximum of 2,000,000
    shares (approximately 6.3% of the current share capital). AB Science  will 
    decide to carry out share issues  in accordance with its actual  financing 
    requirements over the next  3 years, in tranches  of up to 400,000  shares 
    (i.e. 1.3% of the current share capital). The issue price of the shares at
    the time of  each capital  increase will represent  a 5%  discount on  the 
    weighted average  share price  for the  three trading  days preceding  the 
    pricing date.  When issued,  the shares  are not  intended to  be kept  by 
    Société Générale, which aims at selling them in the market.

  *AB Science  ended  on  17  April  2012  the  liquidity  contract  with  SG 
    Securities. 100,000 euros in  cash were held on  the liquidity account  at 
    the date of  liquidity contract  signature and  85,000 euros  on 17  April 
    2012.

  *Following the exercise of BSCPEs and BSAs (stock warrants), 110,300 shares
    of 0.01 euro nominal value were issued in 2012, resulting in a 1,003 euros
    capital increase.

  *A bond loan agreement,  convertible or repayable  in ordinary shares,  for 
    the nominal amount of  7.539.400 euros (149 bonds  with nominal amount  of 
    50,600 euros),  authorized by  the  Board of  Directors  on 23  May  2011, 
    subscribed and fully issued on 19  August 2011, was converted into  shares 
    on 6 December 2012. 596,000 new shares have been issued. 

  *Since February 24th 2012,  AB Science shares  are eligible to  "long-only" 
    deferred settlement service (SRD) on NYSE-Euronext. Any potential investor
    has therefore the  possibility to  acquire AB Science  shares through  the 
    SRD, while benefiting from leverage and differed payment.

  *AB Science is listed on the SBF 120 since 24 December 2012.

II.Recent events since the closing of the financial year

2013 First quarter revenue

AB Science revenues  in the first  quarter of 2013  amounted to €571  thousand 
versus €321 thousand in the first quarter of 2012, up 78%.

These revenues  derive  from  the  commercial  exploitation  of  masitinib  in 
veterinary medicine in Europe and in the United States.

2013 First quarter other events

The company was subject to  a tax audit for the  research tax credit for  2010 
and 2011.
A proposal for  revision from the  Public Finance Department  was received  in 
April 2013. The adjustment amounts to €646 thousand and mainly relates to  the 
exclusion by the Tax Administration of employee profit-sharing in the tax base
for  the  research  tax  credit  calculation  (€489  thousand).  Due  to  this 
adjustment, a €226 thousand accrual was booked.
It should be noted  that a judgment of  the Administrative Court of  Montreuil 
and a judgment of the  Court of Appeal of Nantes  made in 2012 considered  the 
employee profit-sharing as part of salary and therefore eligible for  research 
tax credit. In the absence of a decision of the State Council, the Company has
maintained the accruals booked.

III.2012 and 2011 consolidated financial statements 

(in thousands of euros)  Dec 31st, 2012 Dec 31st, 2011
Revenues from Sales          1 340          1 104
Other operating revenues       0              0
Total operating income       1 340          1 104

Operating revenues  as  of  31  December  2012  amounted  to  €1,304thousand, 
compared with €1,104thousand in the previous year.

Sales as  of  31 December  2012  amounted to  €1,340thousand,  compared  with 
€1,104thousand as of 31December 2011 - which represents a growth of 21.4%  - 
and were entirely generated by the  commercialization of a drug in  veterinary 
medicine.

(in thousands of euros) Dec 31^st, 2012 Dec 31^st, 2011
Cost of goods sold             238             301
Marketing costs               1 080           1 091
Administrative costs          1 909           1 843
R&D costs                     8 725           7 586
Other operating expenses        0               0
Total operating expenses     11 953          10 820

Operating expenses as  of 31 December  2012 amounted to  €11,953 thousand,  as 
compared with €10,820thousand in the previous  year, which is an increase  of 
10.5%.

The Company's marketing expenses amounted to €1,080 thousand as of 31 December
2012, as  compared with  €1,091thousand  in the  previous  year, which  is  a 
decrease of 1%.

Administrative expenses increased by  3.6%, up from  €1,843thousand as of  31 
December 2011 to €1,909 thousand as of 31 December 2012.

Research and development expenses increased by 15%, up from €7,586thousand as
of 31December 2011 to €8,725thousand as of 31 December 2012.
This increase is explained mainly by the following factors:

  *Decrease of the research tax credit by €344thousand, from €3,154thousand
    in 2011 to €2,810 thousand in 2012. 

  *Increase of other research and development expenses (+ €795 thousand)  due 
    to the continuation of the program of clinical studies.

Operating profit/loss

The operating  loss  as of  31  December 2012  amounted  to  €10,613thousand, 
compared with €9,716thousand as of 31 December 2011, which is an increase  of 
the operating loss by €897thousand (9.2%) for the reasons provided above.

Financial profit/loss

The financial loss as of 31 December 2012 was €411 thousand, as compared  with 
a €51thousand income a year earlier.

Financial expenses,  excluding currency  effects and  discounting effect,  and 
after taking  into  account the  cancellation  of capitalized  interest  (€131 
thousand) related to  the bond  loan converted  in 2012,  increased from  €257 
thousand as of 31 December 2011 to €570 thousand as of 31 December 2012.  This 
increase results primarily  from higher capitalized  interest related to  bond 
loans (€456 thousand as  of 31 December  2012 against €178  thousand as of  31 
December 2012) and to a lesser  extent to the annual current interests  (+€125 
thousand since 31 December 2011).

Capitalized interests are calculated at the rate of 4.75% and are payable only
in case of loan repayment in cash. The annual interests are calculated at  the 
rate of 1.25% payable annually.

For the year  2012, interests earned  from the investment  of the  obligations 
exceeded the interest payable annually.

Net profit/loss

The total net loss on 31  December 2012 amounts to €10,985 thousand,  compared 
with €9,651thousand on 31 December 2011, increasing by 13.8% for the  reasons 
provided above.

IV.Consolidated balance sheet information

Assets

Given the expected sales perspectives, development costs were expensed.  Fixed 
assets correspond essentially  to the  cost of registration  of the  Company's 
patents. Registration  costs of  the  Company's patents  booked as  net  fixed 
assets increased by 17.3% as of  31 December 2012, from €1,069thousand as  of 
31 December 2011 to €1,254 thousand as of 31 December 2012.

Inventories amounted to €523thousand as of 31 December 2011 as compared  with 
€621 as  of  31December  2011. They  are  related  to the  inventory  of  raw 
materials and  principal  ingredient  (€193thousand),  to  the  inventory  of 
work-in-progress products (€186  thousand) and  to the  inventory of  finished 
products (€144 thousand).

Trade  receivable  increased  from  €136thousand  at  the  end  of  2011   to 
€149thousand as  of  31December  2012.  This increase  was  induced  by  the 
increase in sales.

Current financial  assets increased  by  36.8% between  31 December  2011  and 
31December2012,  i.e.  from  €8,558  thousand  to  €11,706  thousand.  These 
financial assets correspond mainly to cash  instruments, the term of which  is 
beyond 3 months.  This increase results  from the investment  of money  raised 
through the collection of subsidies and conditional advances in January  2012, 
and also the release of the bond loan.

Other current  assets  of the  Company  amount to  €3,837  thousand as  of  31 
December 2012, compared with  €6,901 thousand as of  31 December 2011, i.e.  a 
44.4% decrease over the period.

This decrease is explained by the main following factors:

  *Decrease in the research tax credit  receivable (€2,810 thousand as of  31 
    December 2012, compared with €3,154 thousand as of 31 December 2011,  i.e. 
    a €344 thousand decrease)

  *Decrease of  conditional  advances receivable  (€1,956thousand),  advance 
    received in January 2012

  *Decrease of  subsidies  receivable (€974thousand),  subsidy  received  in 
    January 2012

Cash remained stable between 31 December 2011 and 31December2012,  amounting 
to €11,476 thousand  as of  31 December  2012 and  €11,808 thousand  as of  31 
December 2011.

The total cash and financial current assets amounted to €23,452 thousand as of
31 December 2012 compared with €20,366 thousand as of 31 December 2011.

Liabilities

Funding used by the  Company comes mainly from  capital increases and  various 
public aids (research tax credits,  reimbursable advances and subsidies),  and 
issue of bond loan agreements.

The table  hereafter shows  the  change in  the  Company's equity  between  31 
December 2011 and 31December2012.

(in thousands of euros) - IFRS norms                            Company Equity
Equity as of 31 December 2011                                       7 731
Capital increases and additional paid-in capital net of issue
costs                                                               7 676
Total profit/loss over the period                                  (10 968)
Conversion options                                                   361
Payments in shares                                                    67
Own shares                                                            31
Equity as of 31 December 2012                                       4 899

As of 31 December 2012, the Company's net equity stood at €4,899 thousand.

Over  the  last  2  years,  the   main  variations,  except  for  the   annual 
profits/losses,  derived  from  the  capital   increases  in  2012  and   2011 
respectively for €7,676 thousand and €1,315  thousand, and the booking of  the 
equity component of the bond loan for €361 thousand.

Current liabilities  amount to  €9,710  thousand as  of  31 December  2012  as 
compared with €9,359 thousand at the end of 2011, i.e. an increase of 3.8%.
This increase  (€351 thousand)  is explained  in particular  by the  following 
factors:

  *Increase in current accruals (€116 thousand) related to the adjustment  of 
    the tax accrual;

  *increase in trade payable (€553 thousand);

  *decrease in current financial liabilities  (€632 thousand) related to  the 
    reimbursement  of  current  financial  liability  of  €1,000  thousand  in 
    February 2012;

  *increase of other current liabilities  (€314 thousand), mainly related  to 
    the increase of social debts.

Non-current liabilities include  mainly a bond  loan (€8,156 thousand),  which 
has a  maturity  over  2  years,  two  bank  debts  for  €1,473  thousand  and 
conditional advances. They amount to €15,373 thousand as of 31 December  2012, 
compared with €12,372  thousand as of  31December 2011, i.e.  an increase  of 
€3,001 thousand related  notably to the  issue of a  bond loan convertible  or 
reimbursable in ordinary shares  in April 2012 (€10,000  thousand) and to  the 
reclassification into equity of  bonds subscribed in  2011 and converted  into 
shares in December 2012 (€7.5 thousand).

Next financial appointments in 2013

Financial communication on 1^st semester 2013: 30 August 2013
General Shareholders' Meeting: 18 June 2013

        Find our complete 2012 financial report on www.ab-science.com

About AB Science
Founded in 2001, AB  Science is a pharmaceutical  company specializing in  the 
research, development  and  commercialization  of  protein  kinase  inhibitors 
(PKIs), a new class of targeted molecules whose action is to modify  signaling 
pathways within cells. Through these  PKIs, the Company targets diseases  with 
high unmet medical needs (cancer,  inflammatory diseases, and central  nervous 
system diseases), in both human and veterinary medicines.

AB Science  has  developed  a  proprietary  portfolio  of  molecules  and  the 
Company's lead compound, masitinib, has already been registered for veterinary
medicine in Europe and in the USA, and is pursuing 8 on-going phase 3  studies 
in human  medicine in  GIST,  metastatic melanoma  expressing JM  mutation  of 
c-Kit, multiple myeloma,  mastocytosis, severe  persistent asthma,  rheumatoid 
arthritis, and progressive multiple sclerosis. The company is headquartered in
Paris, France, and listed on Euronext Paris (ticker: AB).

 Further information is available on AB Science website: www.ab-science.com.



This document contains prospective information.  No guarantee can be given  as 
for the  realization of  these forecasts,  which are  subject to  those  risks 
described in  documents deposited  by  the Company  to  the Authority  of  the 
financial markets, including trends of the economic conjuncture, the financial
markets and the markets on which AB Science is present.



                                  *  *  *

AB Science - Financial Communication & Media Relations
investors@ab-science.com

FINANCIAL STATEMENTS AS OF 31 DECEMBER 2012

Assets (in thousands of euros) 31/12/2012 31/12/2011
Intangible assets                   1 266      1 103
Tangible assets                       106        151
Non-current financial assets          649        159
Other non-current assets                0         25
Deferred tax assets                     0          0
Non-current assets                  2 020      1 438
Inventories                           523        621
Trade receivable                      149        136
Current financial assets           11 706      8 558
Other current assets                3 837      6 901
Cash and cash equivalents          11 746     11 808
Current assets                     27 962     28 024
TOTAL ASSETS                       29 982     29 462

Liabilities (in thousands of euros)                      31/12/2012 31/12/2011
Share capital                                                   323        316
Additional paid-in capital                                   75 493     67 823
Translation reserve                                               5       (12)
Other reserves and results                                 (70 922)   (60 397)
Total equity attributable to equity holders of the
Company                                                       4 899      7 731
Non-controlling interests
Total equity                                                  4 899      7 731
Non-current provisions                                          292        273
Non-current financial liabilities                            14 373     11 532
Other non-current liabilities                                     0          0
Deferred tax liabilities                                        708        568
Non-current liabilities                                      15 373     12 372
Current provisions                                              818        702
Trade payable                                                 5 786      5 233
Current financial liabilities                                 1 188      1 820
Tax liabilities / Tax payable                                     0          0
Other current liabilities                                     1 918      1 604
Current liabilities                                           9 710      9 359
TOTAL EQUITY AND LIABILITIES                                 29 982     29 462

statement of comprehensive income as OF 31 DECEMBER 2012

(in thousands of euros)                       31/12/2012            31/12/2011
Revenue                                            1 340                 1 104
Other operating revenues                               0                     0
Total revenues                                     1 340                 1 104
Cost of sales                                      (238)                 (301)
Marketing expenses                               (1 080)               (1 091)
Administrative expenses                          (1 909)               (1 843)
Research and development expenses                (8 725)               (7 586)
                                            -           - 
Other operating expenses                                                   
Operating income (loss)                         (10 613)               (9 716)
Financial income                                     490                   378
Financial expenses                                 (901)                 (327)
Financial income (loss)                            (411)                    51
Income tax expense                                    39                    15
Net income (loss)                               (10 985)               (9 651)
including:
Attributable to non-controlling             -           - 
interests                                               
Attributable to equity holders of
the parent Company                              (10 985)               (9 651)
Translation differences                               17                  (29)
Total Comprehensive income for the
period                                          (10 968)               (9 680)
including:
Attributable to non-controlling             -           - 
interests                                               
Attributable to equity holders of
the parent company                              (10 968)               (9 680)
Basic earnings per share - in
euros                                             (0,34)                (0,31)
Diluted earnings per share - in
euros                                             (0,34)                (0,31)

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands of euros)                                 31/12/2012 31/12/2011
Net income (loss)                                          (10 985)    (9 651)
Adjustment for:                                                 405        478
- Depreciation, amortization and charges to provisions            0          0
- Income (loss) from asset sale                                  67         97
- Non-cash income and expenses linked to share-based
payments                                                        166          5
- Other non-cash income and expenses                             24       (16)
- Income tax expense                                              0          0
- Change in deferred tax                                      4 016        801
- Impact of change in working capital requirement
generated by operating activities                               160       (34)
- Income from interest on financial assets                  (6 147)    (8 320)
Cash flow from operations before tax and interest              (64)         0
Income Tax (paid)/received                                  (6 211)    (8 320)
Net cash flow from operating activities                       (324)      (433)
Acquisitions of fixed assets                                      0          0
Sales of tangible and intangible assets                    (12 154)    (8 500)
Acquisitions of financial assets                              8 500     17 000
Proceeds from the sale of financial assets                        0          0
Changes in loans and advances                                   185        319
Interest received/(paid)                                          0          0
Other cash flow related to investing activities             (3 793)      8 386
Net cash flow from investing activities
Dividends paid                                                  291      1 315
Capital increase (decrease)                                  11 201      7 851
Issue of loans and receipt of conditional advances          (1650)       (75)
Repayments of loans and conditional advances                     85          0
Other cash flows from financing activities                    9 926      9 091
Net cash flow from financing activities                          17       (29)
Effect of exchange rate fluctuations                              0          0
Effect of assets held for sale                                    0          0
Impact of changes in accounting principles                     (61)      9 128
Net increase (decrease) in cash and cash equivalents -
by cash flows
Cash and cash equivalents - opening balance                  11 808      2 679
Cash and cash equivalents - closing balance                  11 746     11 808
Net increase / decrease in cash and cash equivalents -
by change in closing balances                                  (61)      9 128

Annual financial results 2012

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The owner of this announcement warrants that:
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information contained therein.

Source: AB Science via Thomson Reuters ONE
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