Sosei Group Corporation (4565, Tokyo Stock Exchange, Mothers Market) today reported financial results for the 3Q ended 31st December 2007.
The net sales for the 3Q ended 31st December 2007 totalled ¥664M, a slight increase of ¥15M compared to ¥649M achieved in the same period a year ago. The income in the current period is primarily due to milestone income from Mundipharma relating to the development of AD 923.
Selling, General and Administration (SGA) expenses were ¥5,139M (¥4,800M in the previous year). Within SGA, R&D expenses were ¥2,897M, an increase from ¥2,331M in the comparative period last year as the Group continued to develop its product pipeline. Other SG&A costs were ¥1,035M, a reduction of 18% from the same period last year. Amortisation of goodwill, relating to the acquisition, remains the same as the previous year at¥1,205M.
The operating loss was ¥4,540M (¥4,561M in the previous year) and the net loss was ¥4,292M (¥4,265M in the prior year period).
The Group had ¥6,085M of cash as of 31st December 2007, compared to ¥6,695M as of 31st December 2006.
Significant development during the 3Q ended 31st December 2007 included: • Initiation of Phase II clinical study of QVA149 (for chronic obstructive pulmonary disease, COPD) by Novartis in November 2007. • Obtaining approval for the Phase III clinical trial programme for AD 923 (for cancer breakthrough pain) in Europe, in November 2007. • Initiation of a multiple dose ascending Phase I study and the initial single ascending dose Phase I study of SD 118 (for neuropathic pain) in November 2007.
Forecast for the Fiscal Year Ending March 31, 2008
The financial forecast for the year ended March 31st 2007 remains unchanged from that announced on May 14th 2007.