Press release BoxID: 159137 (Speedel Pharma AG)
  • Speedel Pharma AG
  • Hirschgässlein 11
  • 4051 Basel
  • Contact person
  • Frank LaSaracina
  • +1 (732) 537-2290

Speedel announces financial results for full year 2007

First year of recurring revenues from SPP100 / Lower than expected cash-burn

(PresseBox) (Basel, ) Speedel Holding Ltd (SWX: SPPN) today announced consolidated financial results for the year ending 31 December 2007.

Financial Highlights 2007

- CHF 3.1 million recognised as revenues from sales of SPP100 (Tekturna/Rasilez[1]) by Novartis
- CHF 55.5 million gross proceeds realised from a convertible bond transaction in January 2007
- Cash-burn of CHF 71.0 million
- Solid cash reserves of CHF 107.9 million at year-end 2007

Konrad P. Wirz, Chief Financial Officer, commented: "We are pleased that the reported revenues of CHF 3.1 million reflect both stronger sales of SPP100 in Q4 2007 and an increasing contribution from a portion of the cost-of-goods savings achieved by Novartis using our production method for SPP100. The cash-burn of CHF 71.0 million, down from CHF 75.1 million in 2006, reflects the company's portfolio focus as well as our continuing strict cost control. Our solid financial reserves together with expected revenues from SPP100 sales will secure the funding of operations until approximately the end of 2009."

Alice Huxley, CEO, stated: "2007 was marked by successful further progress of our renin inhibitor programme with compounds from two series, SPP600 and SPP1100, in clinical phases I and II. The development of various compounds of this product family continuously expands our knowledge of renin inhibition. SPP301 is in the planning phase for a new Phase IIb dose finding study. In addition, we continued development on a new mode of action for the treatment of cardiovascular disease about which we will inform the investment community together with further updates on our clinical research programmes at Speedel's upcoming R&D day 31 March 2008."


SPP100 (Tekturna/Rasilez[1]) was approved by the FDA in March 2007 and by the EMEA in August 2007 and subsequently launched by Novartis in the US and Europe respectively. In January 2008, Novartis publicly reported total sales of USD 40 million for 2007 with USD 20 million in Q4.

The reported revenues of CHF 3.1 million for the year 2007 relate to royalties paid by Novartis on worldwide sales of SPP100 and payments equivalent to a portion of the savings resulting from a reduction in the cost-of-goods below a predetermined threshold, using the production method developed by Speedel for the commercial supply of SPP100.

Research & Development Expenses

R&D expenses for the whole year decreased by CHF 13.4 million over 2006.This primarily reflects the reduced costs of our halted SPP301 programme in 2007 compared to the full year 2006, although we continued to incur closure costs for SPP301 in each quarter of 2007. The high variance of CHF 12.4 million for Q4, 2007 (CHF 15.7 million as opposed to CHF 28.3 million for Q4, 2006) is explained by high accrued expenses that had to be set up in conjunction with the halted ASCEND Phase III study of SPP301 in December 2006. Above all we continued to invest in our next generation renin inhibitor programmes both in clinical development (SPP635 in Phase IIa, SPP1148 Phase I, SPP676 Phase I) and in research (SPP1100 series, SPP800 series, SPP600 series).

General & Administration Expenses

G&A expenses of CHF 12.0 million for the year under review were equivalent to those incurred in 2006. Increased communications activities and the associated higher costs were offset by cost savings in other areas.

Finance Costs, net

Net finance costs 2007 of -1.3 million decreased substantially compared to finance costs of -6.3 million in 2006. The positive variance of CHF 5.0 million mainly reflects lower non-cash effective amortisation costs related to the CHF 55.5 million convertible bond issued in January 2007 compared to those of the CHF 70.0 million convertible loan issued in 2005. The company also benefited from the increased funds available for investment and improved money market interest rates, where most of our liquid assets were invested.

Balance Sheet

In January 2007 the company issued a 3.5% p.a. convertible bond with a nominal value of CHF 55.5 million which is listed on the SWX Swiss Exchange under the symbol SPP07. The bond matures four years from the date of issue and can be converted at any time into voting shares at a fixed conversion rate of CHF 226 per share.

Share Capital

On 31 December 2007, Speedel Holding Ltd had 7,800,560 registered shares with a nominal value of CHF 2 per share which are listed on the SWX Swiss Exchange under the symbol SPPN. In addition the company had outstanding conditional share capital of 520,035 shares with a nominal value of CHF 2 per share, mainly to cover the 2007 convertible bond and the company's employee share option plan.


Historically the company has provided guidance on cash-burn excluding any revenues from sources such as sales of SPP100 or other licensing agreements. It will continue to use this definition to ensure like-for-like comparisons with previous years when it had no recurring revenues.

The cash-burn for 2007 was 71.0 million and CHF 12.9 million for Q4 respectively. The company's previous guidance for full year 2007 cash-burn was approx. CHF 75 million. The lower cash-burn for 2007 compared to 2006 is partially driven by the fact that major costs for the new SPP301 Phase II programme in diabetic kidney disease will not be incurred until 2008.

Clinical Highlights 2007
- SPP100: FDA, EMEA and Swiss marketing approval, with launch by Novartis in the US and EU.
- Next generation renin inhibitors: clinical trials of SPP1148, SPP635, SPP676
- SPP301: Phase III ASCEND analysis and decision to design new Phase IIb dose finding study

Financial Calendar 2008

Full year 2007 07 March 08
Annual Report 25 March 08
R&D Day 31 March 08
AGM 15 April 08
Q1 2008 15 May 08
Q2 2008 19 August 08
Q3 2008 14 November 08

Webcast Podcast and Conference Call

At 15.00 CET /14:00 London/ 09:00 EST today 7 March 2008, the company will host a webcast which can be accessed at In addition participants may join a teleconference facility using the following telephone numbers:

Switzerland: 0445 804 872
UK: 0845 302 2569
USA: 1866 854 5856
International +44 (0) 1452 587436

Passcode for all:


Slides for the web cast will be downloadable from 13:00 CET today and the webcast will be accessible on the company's website until 7 April 2008. A podcast will also be available.