CORRECTION: FOURTH QUARTER AND PRELIMINARY 2009 RESULTS
23.02.2010 - This is a correction of the announcement from 19:02 23.02.2010 CET. Reason for the correction: The attached file appeared in zip-format for some receipients. Please see the Q4 report in a pdf-format instead
This is a correction of the announcement from 19:02 23.02.2010 CET. Reason for
the correction: The attached file appeared in zip-format for some
receipients. Please see the Q4 report in a pdf-format instead.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
FOURTh quarter and preliminary 2009
Turnover from sale to Nikken was for FY 2009 MNOK 14.1.
Nikken topped up its inventories in conjunction with the launch in May 2009.
There was therefore no need for further supply in Q4 2009.
Royalty income is in Q4 2009 MNOK 2.1, compared with MNOK 1.8 in the same period
last year - an increase of 17 %. Royalty income for FY 2009 was MNOK 7.6
compared with MNOK 6.4 last year.
EBIT is reported at minus MNOK 0.3 in Q4, and MNOK 3.4 for FY 2009
minus MNOK 6.6 for 2008.
Fourth QUARTER report 2009
After selling MIG, Nutri Pharma will in this report not report any consolidated
figures. In this and the next quarterly report the previous figures from MIG
will be reported as "profit/loss from discontinued operations".
Royalty income in the Nordic area derived from the long term licence agreement
with Orkla for Nutrilett, and was MNOK 2.1 in Q4 2009. Royalty income in the
same period in 2008 was MNOK 1.8.
Royalty income for the whole year 2009 ended at MNOK 7.6 compared to MNOK 6.4
for the year 2008 - an increase of 19 %.
There was no supply of goods to Nikken in Q4 due to the fact that Nikken topped
up its inventories in conjunction with the launch in May 2009.
EBIT for the year 2009 ended at MNOK 2.2 compared with minus MNOK 6.8 for the
After the sale of MIG, Nutri Pharma operates with only one business segment;
Europe, with the existing royalty revenues in the Nordic countries for
Nutrilett, and sales of Nutri5 products through Nikken.
Although the company's top line revenues will be reduced through the sale of
MIG, we believe that in a longer perspective, activities in Russia/CIS should
become profitable and value enhancing through the cooperation with Nikken.
The sale of MIG results in a loss of MNOK 23.4 which is included in net
financial items for the year 2009. The sale had no adverse cash effect.
For further segment information see page 7.
Net financial expense in Q4 was MNOK 0.1.
Cash at end of Q4 2009 was MNOK 11.9, compared to MNOK 11.6 at the end of Q4
Nutri Pharma ASA has no interest bearing debt.
§ Nikken will roll out the product line in Q1 2010 in Russia, first
product being NutriPro (Nutrilett). Throughout the first half of 2010, we expect
to see a renewed growth in sales. These should add to Nutri Pharma's
profitability by selling finished products and by reduced operating costs.
§ Income from Orkla (Axellus) is expected to remain stable,
§ Nutri Pharma's financial situation is satisfactory and should further
be strengthened trough re-entry in the Russian/CIS markets. Future cost
reductions in these markets should gradually strengthen the financial situation
§ Nutri5 is since May 2009 distributed in most European countries
through Nikken, and Spain will follow in Q1 2010. Together with Nikken, Nutri
Pharma has devised several new initiatives in response to market input.
Following the launch of Nutri5, Nikken receives strong consumer testimonials
related to this product, e.g; http://www.youtube.com/watch?v=hI53tg6fO6E.
§ Noting that Nikken's inventories were topped up in conjunction with
the launch and in combination with lower autumn sales than expected, no new
orders can be expected in the short term. Increased market demand should however
materialize in the form of further supplementation of the product.
A significant event for the company took place on January 14, 2010 when the
company made its formal offer to acquire all outstanding shares of vaccine
developer Bionor Immuno AS (Bionor). The acquisition was finalized on February
18, 2010, and represents a new and exciting strategic direction for the company
(see further details of the process outlined below). The acquisition will
potentially be significantly value accretive to shareholders both in a short-,
medium- and long-term perspective. The current clinical program, with various
vaccine candidates in pre-clinical, and phase II stages offers partnership
possibilities. The company's unique technology platform and pipeline will reduce
the risks associated with vaccine development and act as a catalyst for
long-term growth. The company recognizes that this transaction changes the level
of risk involved with the company. The company will continuously strive to
mitigate these risks, most recently through the private placement and
subsequent repair offering, giving the company the financial resources required
to carry out the planned clinical development until the second half of 2011.
Bionor has, based on research conducted since 1990, developed a proprietary
technology platform for the development of vaccines. The candidates suitable to
become vaccines are identified through a novel approach using unique proprietary
technology, and the results of the pre-clinical and clinical trials have been
very encouraging. Several different technologies are combined to make a platform
from which candidates are selected. This process allows the company to select
the most promising candidates from a myriad of possibilities - ensuring a
cost-effective and accurate selection process before entering costly clinical
trials. Furthermore, the technology is not developed to combat one particular
virus, but is applicable to numerous fast mutating chronic virus infections. The
robustness of the platform helps reduce the risks involved in development and
will generate candidates for treating various fast mutating virus infections,
including HIV, Hepatitis-C (HCV), Herpes, Influenza and viruses associated with
various cancer forms.
Vaccine development and the approval process is subject to strict regulations
and by nature a time consuming process. The company has several candidates in
different stages of development and we expect that these will progress according
to plan. The current clinical development program was presented and discussed by
the company's Clinical Advisory Board on January 15.In the short term the main
development program consists of the following elements:
§ Vacc-4x ongoing Phase IIb clinical trial: The trial of the company's
most advanced vaccine candidate is progressing according to plan and results
will be disclosed to the market in Q4 2010.In August 2009 135 patients were
enrolled in the double-blind, placebo-controlled, multicenter clinical trial
(USA, Italy, Germany, England and Spain).
§ Vacc-4x re-boost study: The re-vaccination of the HIV patients that
participated in the successful 2002 phase IIa clinical study. Results are
§ Pre-clinical trial HCV candidate: Following positive immunological
screening tests on sera from non-vaccinated infected patients the company has
decided to move forward with the toxicology screening of the selected Hepatitis
C candidates. The market will be notified when the trials have been concluded
§ Pre-clinical trial Vacc-C5: The company is moving forward with the
toxicology screening of the selected HIV vaccine candidate. While the candidate
Vacc-4x is expected to support patients on traditional HIV treatment, this
candidate is expected to extend opportunities beyond that and potentially act as
a preventative vaccine. The Clinical Phase I/II study is expected to start
Events after Q4:
On 11 January 2010, the Company entered into a transaction agreement with Bionor
Immuno AS regarding the acquisition of all the shares and warrants of Bionor
presented by Nutri Pharma to all shareholders of Bionor ("the Transaction
Agreement"). On 14 January 2010, the Voluntary Offer to purchase the shares was
presented to all shareholders and holders of warrants in Bionor. The offering
period lasted until 20 January 2010. As of February 14, 2010 the Voluntary Offer
has been accepted by 98 % of the shareholders of Bionor and 82 % of the warrant
holders of Bionor. The board of directors in Bionor has declared its support to
the Voluntary Offer and recommended that the shareholders and holders of
warrants in Bionor accept the Voluntary Offer. Completion of a Private
Placement securing minimum NOK 50 million in cash proceeds was a key condition
under the Voluntary Offer, together with corporate approvals and other
conditions relating to Bionor.
The background for the Voluntary Offer is Bionor's research- and development
within areas which Nutri Pharma considers to be of great interest and
importance. As a listed company with established commercial activity, Nutri
Pharma intends to contribute to the financing of Bionor's research- and
development activities until the commercialization of its Intellectual Property
Rights, and thereby provide a significant increase in the sharholder value. (For
more information regarding Bionor please see the stock exchange notifications of
January and February, or visit the company's website at www.bionorimmuno.com
The Bionor Placement
On 12 February 2010, the general meeting resolved to conduct a private
placement through a directed issue to the shareholders of Bionor of 43,889,262
Nutri Pharma Shares. The shares were subscribed in the minutes of the general
meeting. Further, the general meeting resolved to conduct an issuance of
6,353,333 warrants through a directed issue to the warrant holders of Bionor.
The warrants were also subscribed for in the minutes of the general meeting. The
Bionor Placement was announced on 12 January 2010 under the Company's ticker
"NUT" on www.newsweb.no.
The Private Placement
On 1 February 2010, the Board of Directors resolved to issue a total of
50,000,000 Private Placement Shares to a subscription price of NOK 2.00 per
Private Placement Share, constituting NOK 100 million in gross proceeds.
Pursuant to the Board's proposal, the Company's EGM on 12 February 2010 approved
the share capital increase required in connection with issuing Private Placement
Shares in the Private Placement and Subsequent Offering Shares in the Subsequent
The Subsequent Offering
The shareholders of Nutri Pharma as of 29 January 2010, as registered in the VPS
on the morning of 4 February 2010, except for those shareholders who were given
the opportunity to subscribe for Private Placement Shares in the Private
Placement and their respective affiliates, will, to the extent possible, be
given preferred allocation in the Subsequent Offering to the extent required to
maintain their approximate relative ownership as of 29 January 2010 following
the Private Placement and the Subsequent Offering. The subscription price in the
Subsequent Offering is NOK 2.00 per Subsequent Offering Share, which is equal to
the subscription price in the Private Placement.
For further information:
Trond Syvertsen , CEO +47 23 01 09 60 / + 47 91 72 14 57
Lars Helmer Enger, CFO +47 23 01 09 60 / + 47 90 84 37 71
For information about Nutri Pharma, Nutri Pharma products, Nutri Pharma
management and Nutri Pharma financial performance, please point your web browser
to: www.nutripharma.com <http://www.nutripharma.com/>
For information about Bionor Immuno AS, see http://www.bionorimmuno.com/