Nutri Pharma: Second Quarter in line with expectations
22.08.2001 - Nutri Pharma ASA (OSE: NUT) today announced pre tax results in line with expectations.....
Oslo, August 22, 2001
Royalties
Revenues are chiefly based on royalties from the weight reduction and weight-control products Nutrilett® and ScanDiet™. Nutrilett® is produced and marketed in the Nordic area by Nycomed Pharma, and ScanDiet™ is marketed in North America by GNC (Numico).Operating costs
The increase in operating costs is associated with the development of the international commercial effort.
Graham Waters, Chief Executive in Nutri Pharma said "We are starting to see improvements in our income whilst at the same time executing good cost management. R&D continues to be an essential part of our business and underpins our success in securing additional partners. I am pleased to report that our revitalisation process is beginning to pay off as we strive to be a leading functional food company."New Contracts
Faulding is by year-end to expand Nutri Pharma’s products into Australia and New Zealand with multi channel marketing and distribution of a range of Nutrilett® and Abacor® products. There will be up-front payments and ongoing royalties on sales. A joint effort focused on signing up food companies in Australia and New Zealand is also included in the agreement.Nurol is to expand Nutrilett® products into Turkey, a country where 15% of the population is obese and growing by 2% per annum. Nurol will be responsible for sales, marketing and distribution, whilst Nutri Pharma will contribute with clinical documentation brand communication. Nutri Pharma will receive ongoing royalties on sales. Selected Nutrilett® products will be launched at first, with an opportunity to extend the portfolio to Abacor® products. Nutri Pharma and Nurol believe the Nutrilett® sales will form a base for broadening Nutri Pharma's penetration in the regionResearch and Development
Nutri Pharma has spent a total of in excess of NOK 15 million on R&D and product development in the first half of 2001, a doubling compared to the corresponding period in 2000. R&D and product development in the second quarter was NOK 8,1 million, up from NOK 6,1 million in the same quarter last year. A study of Scan Diet‘ related to weight/cholesterol reduction and control at Columbia University has been concluded with significant results. 3 Abacor&Mac226; studies have been accepted for publication in leading medical journals. Further Abacor&Mac226; studies will be conducted in areas such as combination with lipid lowering drugs and effects on arterial deposits of cholesterol.Business Development
Nutri Pharma's new management team has already signed two marketing agreements. A strategy review and development process is already underway to shape the future direction of the commercial effort. Alignment of strategies and workforce will provide Key Performance Areas (KPAs) that encourage over-performance in terms of market share and geographical expansion.New Top Management
Nutri Pharma’s new management team is revitalising the company. The new management is supported by a new Board, who are actively contributing and adding valuable knowledge and experience to the company.Third U.S. Patent Approved
Nutri Pharma has further increased its global patent protection with a third patent recently approved in U.S. . The new patent reinforces the USP of both ScanDiet™ and Abacor®. Nutri Pharma’s products are the best-documented products in these categories on a world-wide basis.Summary and outlook
Nutri Pharma concludes that results are in line with expectations. The company’s expectations include future growth in both income- and cost-levels going forward in 2001. The final results for 2001 will still remain negative due to business development costs. The new focus will ensure that careful management and achievement of business milestones result in future product and partner expansion.
Nutri Pharma ASA (OSE: NUT) today announced pre tax results in line with expectations.
Financial Overview (all figures in NOK million)
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Q2 2001 | Q2 2000 | 1H 2001 | 1H 2000 | 2000 |
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| Revenues | 4.0 | 1.6 | 7.9 | 2.1 | 7.0 |
| Operating expenses | 44.9 | 36.1 | 78.5 | 45.9 | 94.4 |
| Operating result | -40.9 | -34.5 | -70.6 | -43.7 | -87.4 |
| Financial income/expenses | 7.3 | 4.6 | 15.4 | 5.5 | 22.3 |
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| Pre-tax results | -33.6 | -29.9 | -55.2 | -38.3 | -65.1 |
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Revenues are chiefly based on royalties from the weight reduction and weight-control products Nutrilett® and ScanDiet™. Nutrilett® is produced and marketed in the Nordic area by Nycomed Pharma, and ScanDiet™ is marketed in North America by GNC (Numico).Operating costs
The increase in operating costs is associated with the development of the international commercial effort.
Graham Waters, Chief Executive in Nutri Pharma said "We are starting to see improvements in our income whilst at the same time executing good cost management. R&D continues to be an essential part of our business and underpins our success in securing additional partners. I am pleased to report that our revitalisation process is beginning to pay off as we strive to be a leading functional food company."New Contracts
Faulding is by year-end to expand Nutri Pharma’s products into Australia and New Zealand with multi channel marketing and distribution of a range of Nutrilett® and Abacor® products. There will be up-front payments and ongoing royalties on sales. A joint effort focused on signing up food companies in Australia and New Zealand is also included in the agreement.Nurol is to expand Nutrilett® products into Turkey, a country where 15% of the population is obese and growing by 2% per annum. Nurol will be responsible for sales, marketing and distribution, whilst Nutri Pharma will contribute with clinical documentation brand communication. Nutri Pharma will receive ongoing royalties on sales. Selected Nutrilett® products will be launched at first, with an opportunity to extend the portfolio to Abacor® products. Nutri Pharma and Nurol believe the Nutrilett® sales will form a base for broadening Nutri Pharma's penetration in the regionResearch and Development
Nutri Pharma has spent a total of in excess of NOK 15 million on R&D and product development in the first half of 2001, a doubling compared to the corresponding period in 2000. R&D and product development in the second quarter was NOK 8,1 million, up from NOK 6,1 million in the same quarter last year. A study of Scan Diet‘ related to weight/cholesterol reduction and control at Columbia University has been concluded with significant results. 3 Abacor&Mac226; studies have been accepted for publication in leading medical journals. Further Abacor&Mac226; studies will be conducted in areas such as combination with lipid lowering drugs and effects on arterial deposits of cholesterol.Business Development
Nutri Pharma's new management team has already signed two marketing agreements. A strategy review and development process is already underway to shape the future direction of the commercial effort. Alignment of strategies and workforce will provide Key Performance Areas (KPAs) that encourage over-performance in terms of market share and geographical expansion.New Top Management
Nutri Pharma’s new management team is revitalising the company. The new management is supported by a new Board, who are actively contributing and adding valuable knowledge and experience to the company.Third U.S. Patent Approved
Nutri Pharma has further increased its global patent protection with a third patent recently approved in U.S. . The new patent reinforces the USP of both ScanDiet™ and Abacor®. Nutri Pharma’s products are the best-documented products in these categories on a world-wide basis.Summary and outlook
Nutri Pharma concludes that results are in line with expectations. The company’s expectations include future growth in both income- and cost-levels going forward in 2001. The final results for 2001 will still remain negative due to business development costs. The new focus will ensure that careful management and achievement of business milestones result in future product and partner expansion.
The complete Q2 Word document and PowerPoint Report can be downloaded from the page
For further information, please contact:
Graham Waters, CEO +47 23 31 08 80
Åge Østerstrøm, CFO +47 23 31 08 80