Speedel announces financial results for second Quarter 2008

Quarterly operating loss further reduced

(PresseBox) ( Basel/Switzerland and Bridgewater NJ/USA, )
Speedel Holding Ltd. (SWX: SPPN) today announced financial results for the second quarter and the first six months ending 30 June 2008.

Financial Highlights
- CHF 5.7 million recognised as revenues for H1 2008 from sales of SPP100/Aliskiren (Rasilez/Tekturna®) [5] by Novartis
- Reduced operating expenses: CHF 27.8 million in H1 2008
- Liquid assets of CHF 82.7 million as of 30 June 2008

Konrad P. Wirz, Chief Financial Officer, commented: "It is important to note that Speedel's financial performance continues to be in line with our guidance - in particular due to reduced operating expenses as a result of focussing R&D expenses on the most promising projects."

Revenues

The reported revenues of CHF 5.7 million for the first half year 2008 relate to royalties paid by Novartis on worldwide sales of SPP100/Aliskiren (Rasilez/Tekturna®) 5 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 decreased by CHF 11.2 million for the first half year 2008 compared to the corres-ponding period in 2007. This is for the most part due to significantly decreased expenses for SPP301.

General & Administration Expenses
G&A expenses were down by CHF 0.5 million for the first half year 2008 compared to the first half year in 2007 mainly due to lower business development and licensing expenses.

Finance Costs, net
Net finance costs increased by CHF 1.2 million for the first half year 2008 compared to the same period of 2007. The most important factors for this increase are exchange losses on U.S. Dollar positions and lower financial income from invested funds.

Balance Sheet
As of 30 June 2008, liquid assets were CHF 82.7 million compared to CHF 107.9 million at 31 December 2007.

Share Capital
On 30 June 2008, Speedel Holding Ltd. had 7,813,992 registered shares with a nominal value of CHF 2 per share listed on the SWX Swiss Exchange. In addition, the company had outstanding conditional share capital of 506,603 shares with a nominal value of CHF 2 per share to cover the convertible bond and the company's employee share option plan, as well as authorised share capital of 150,000 shares with a nominal value of CHF 2 per share created for a new employee participation programme.

Cash-burn
For the first half of 2008 the cash-burn was 29.6 million. The company confirms the previous cash-burn guidance of CHF 57-60 million for the full year 2008.

Recent event
On 9 July 2008 five major shareholders informed the Board of Directors of Speedel that they agreed to sell all their registered shares to Novartis at a price of CHF 130.00 per registered share. After acquiring these shares Novartis held a 61.4% stake in Speedel and announced plans to buy the remaining shares in a mandatory public tender offer at the same price. This public tender offer started 11 August 2008.

Please note - there will be no conference call today.

Forward looking statements This press release includes forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are based on our current expectations and projections about future events. All statements, other than statements of historical facts, regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The word "may" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations described in these forward-looking statements and you should not place undue reliance on them. There can be no assurance that actual results of our research and development activities and our results of operations will not differ materially from these expectations. Factors that could cause actual results to differ from expectations include, among others: our or our partners' ability to develop safe and efficacious products; our or our partners' ability to achieve positive results in clinical trials; our or our partners' ability to obtain marketing approval and market acceptance for our product candidates; our ability to enter into future collaboration and licensing agreements; the impact of competition and technological change; existing and future regulations affecting our business; changes in governmental oversight of pharmaceutical product development; the future scope of our patent coverage or that of third parties; the effects of any future litigation; general economic and business conditions, both internationally and within our industry, including exchange rate variations; and our future financing plans.

Forward looking statements This press release includes forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are based on our current expectations and projections about future events. All statements, other than statements of historical facts, regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The word "may" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations described in these forward-looking statements and you should not place undue reliance on them. There can be no assurance that actual results of our research and development activities and our results of operations will not differ materially from these expectations. Factors that could cause actual results to differ from expectations include, among others: our or our partners' ability to develop safe and efficacious products; our or our partners' ability to achieve positive results in clinical trials; our or our partners' ability to obtain marketing approval and market acceptance for our product candidates; our ability to enter into future collaboration and licensing agreements; the impact of competition and technological change; existing and future regulations affecting our business; changes in governmental oversight of pharmaceutical product development; the future scope of our patent coverage or that of third parties; the effects of any future litigation; general economic and business conditions, both internationally and within our industry, including exchange rate variations; and our future financing plans.
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