Sosei Group Corporation (4565, Tokyo Stock Exchange, Mothers Market) today reported financial results for the 3Q ended 31st December 2008.
Net sales totaled ¥132M, a decrease of 80.1% from ¥664M the same period a year ago, as there were no milestones payments or sales revenue in this quarter.
Selling, General and Administration (SG&A) expenses for the 3Q were ¥3,118M (¥5,139M in the prior year). Of which, R&D costs were ¥731M, a 74.8% decrease (¥2,897M in the prior year). Amortization of goodwill arising from the Sosei R&D Ltd. acquisition was ¥1,191M while other SG&A expenses totaled ¥1,195M.
The net loss was ¥3,534M for the period compared to ¥4,292M in the prior year period.
As of 31st December 2008, Sosei had ¥2,380M in cash and no outstanding debt, compared to ¥4,907M in cash, cash equivalents and short term investments as of 31st March 2008. This decrease was a result of the operating loss for the 9 months from April to December in 2008.
Progress of Development and other activities for 3 months from October to December in 2008:
• NVA237 Phase II results presented at the European Respiratory Society Annual Meeting on 7th October (results showed promising efficacy and tolerability with potentially faster onset then tiotropium).
• Announcement of binding terms with ASKA Pharmaceuticals for commercialization of SOH-075 (NorLevo) on 22nd October
• Completion of SD118(neurophatic pain) Phase I studies on 8th October
• Buyback of commercialization rights to AD 923 from Mundipharma on 26th December
Sosei Group Corporation
Financial forecast for the year ending March 31st 2009
As a result of the ¥700M exchange rate loss, and the maintenance cost of Sosei R&D that have surpassed initial forecast, Ordinary Loss and Net Loss in the consolidated forecast have been revised.
Revised Financial Forecasts for the Fiscal Year 2008 (1 April 2008 – 31 March 2009