Sosei Group Corporation (4565, Tokyo Stock Exchange, Mothers Market) today reported financial results for the 1Q ended 30th June 2009.
The net sales for the 1Q ended 30th June 2009 totaled ¥733M, an increase of ¥669M compared to ¥64M achieved in the same period a year ago. The income in this period is primarily based on the milestone from Novartis triggered by the commencement of Phase III trials for NVA237, and ongoing sales of NorLevoⓇ to Sandoz through a sub-licence arrangement in Australia.
Selling, General and Administration (SGA) expenses were ¥689M (¥1,070M in the previous year), a significant decrease due to reduction of R&D and other overhead spendings. Within SGA, R&D expenses were ¥112M, a decrease of 66.8% from ¥337M in the comparative period last year. Other SG&A costs were ¥179M, a reduction of 46.4% from the same period last year. Amortization of goodwill was ¥397M same as the amount in the comparative period last year.
As a result, an operating profit of ¥6M was realized versus a loss of ¥1,064M in the previous year. Net income was ¥276M against a loss of ¥939M in the same period of the prior year.
The Group had ¥1,732M of cash as of 30th June 2009, compared to ¥1,768M as of 31st March 2009.
Progress of product development and other activities during the 1Q ended 30th June 2009 included:
• NVA237 (COPD)
– in May 2009 Sosei granted manufacturing process related patent for NVA237
－ In June 2009 Novartis announced commencement of NVA237 Phase III clinical trials.
Forecast for the Fiscal Year Ending March 31, 2010
The financial forecast for the year ending March 31st 2010 remains unchanged from that announced on May 14th 2009.