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FOURTH QUARTER AND PRELIMINARY 2009 RESULTS

23.02.2010 - 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

This information is subject of the disclosure
requirements acc. to §5-12 vphl (Norwegian Securities
Trading Act)

FOURTh quarter and preliminary 2009

HEADLINES

 

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 compared with

       minus MNOK 6.6 for 2008.

 

 

Fourth QUARTER report 2009

 

 

PRESENTATION FORM

 

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".

 

SEGMENTS

 

Europe

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 year 2008.

 

Russia/CIS

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 2008.

Nutri Pharma ASA has no interest bearing debt.

 

                                     OUTLOOK

 

Soy-based products

 

§         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 going forward.

§         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.

 

Vaccine development

 

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
expected Q2

§         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 1H 2011.

 

For additional information on this very important
transaction and background of the acquired company
please go to www.nutripharma.com.

 

 

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 Offering.


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.

 

Please download the report here.

 

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 Nutri5®, please point your web
browser to:  www.nutri5.no,

 

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

For information about Bionor Immuno AS, see
http://www.bionorimmuno.com/