Year-End Report July 2012 – June 2013

  • Eurocine Vaccines ends collaboration with Japanese company
  •  Immunose™ FLU is repositioned for children, the segment of the influenza vaccines market that is projected to have the highest growth rate
  •  New patent applications can give protection until 2032
  •  Net loss for the financial year was SEK -13.0 million (p.y. -13.4 million)
  •  Net loss for the last quarter was SEK -2.7 million (p.y. -3.6 million)
  •  Operating income for the financial year was SEK 0 million (1.5 million)
  •  Operating income for the last quarter was SEK 0 million (0 million)
  •  Earnings per share for the financial year was (before and after dilution)
  • SEK -1.09 (-1.13)
  •  Earnings per share for the last quarter was SEK -0.23 (-0.30)
  •  Cash and cash equivalents at year end amounted to SEK 13.6 million (8.2 million)

Comments from the CEO

Events in Eurocine Vaccines during the financial year of 2012-2013 have included both disappointment and encouraging progress. 

A year ago, I was convinced that the Company would sign a first license agreement before publishing the year-end report 2012-2013. That did not happen. The thorough evaluation of our nasal influenza vaccine Immunose™ FLU, done by a Japanese company, did not continue into a license agreement in spite of a big successful mouse study and the results in ferrets, where Immunose™ FLU showed complete protection. This was a big disappointment for me and I fully understand that this was a burden also for many other shareholders. In that situation, it was crucial to quickly clarify the positioning of Immunose™ FLU in order to attract the interest of additional vaccine companies. This has been successful implemented.

      
The repositioning of Immunose™ FLU for children has generated an increased interest from the vaccine companies

WHO has identified children as one of the groups that benefits the most from being protected against influenza. In this strongly growing market segment, we saw a great potential for Immunose™ FLU to contribute. The good results we had generated in ferrets are particularly important for the new positioning of Immunose™ FLU.

     
Immunose™ FLU is repositioned for children, the segment of the influenza vaccines market that is projected to have the highest growth rate

We are now able to present Immunose™ FLU as a competitive vaccine candidate for children, the segment of the influenza vaccines market that is projected to have the highest growth rate. Since better vaccines are needed in the segment, higher prices may be demanded, which FluMist (Fluenz in Europe) has shown. Immunose™ FLU can be manufactured by existing capacity for vaccine antigens and can thereby be produced at an attractive cost. Altogether, this can give a better profitability than the present injected vaccines.

    
New patent applications can give protection to 2032

In December 2012 we submitted patent applications that can protect important parts of the new positioning. In other words, we are now marketing a product candidate with premium price and a potential for patent protection until 2032.

        
Premium price and rational production can give good profitability

Our experience since January has confirmed that this positioning of Immunose™ FLU is right. We are now having concrete talks with several vaccine companies that show a strong interest for the repositioning of Immunose™FLU. 

        
Total focus on licensing activities

Thanks to the great interest for the repositioning of Immunose™ FLU for children we now focus entirely on licensing activities and do not start any big studies. With this strategy, our existing cash covers the costs, even without licensing income, during the entire present financial year.

        
Hans Arwidsson
CEO

  
Results and financial position

Net loss for the financial year was SEK -13.0 million (-13.4 million) or SEK -1.09 (-1.13) per share. Net loss for the fourth quarter was SEK -2.7 million (-3.6 million) or SEK -0.23

(-0.30) per share. Cash and cash equivalents at year end amounted to SEK 13.6 million (8.2 million). All numbers are stated on group level if not otherwise mentioned and numbers in brackets refer to previous year, corresponding reporting period.

      
Significant events during the financial year

Eurocine Vaccines ends collaboration with Japanese company

Eurocine Vaccines´ Japanese partner announced in October 2012 that it would not proceed with a licensing agreement for Immunose™ FLU, despite good immunological results in the evaluation studies conducted.

      
Immunose ™ FLU is repositioned for children

Eurocine Vaccines has repositioned the nasal influenza vaccine Immunose™ FLU for children, the segment of the influenza vaccines market that is projected to have the highest growth rate. The strategy is based on the company’s scientific results suggesting that Immunose™ FLU can take a strong position in the children’s segment. The company has protected key elements of the new positioning by two new patent applications submitted in December 2012.

The new position for Immunose™ FLU has been presented at Phacilitate Vaccine Forum in Washington on January 29th, at Oxford 3rd Annual Vaccines Congress in London on 25-26th of March, and at World Vaccine Congress in Washington on 16-18th of April .

         
Organization

Dr. Anna-Karin Maltais has been appointed Head of Research and Development (Chief Scientific Officer, CSO). Emma Berglund Eng has been appointed director of Business Development (Chief Business Officer, CBO). Prof. Jorma Hinkula remains in his previous role as advisor to Eurocine Vaccines.

    
Contact
For additional information, please contact CEO Hans Arwidsson, 
e‐mail hans.arwidsson@eurocine‐vaccines.com, telephone +46 70 634 0171.

      
About Eurocine Vaccines

Eurocine Vaccines is a publicly listed, clinical‐stage company developing nasal vaccines that meet important medical needs. The vaccines are developed up to proof of concept (clinical phase I/II) and licensed to partners for further development and commercialization. The company’s proprietary vaccine adjuvant technology, which is a key element of the nasal vaccines, is also offered to license partners for development in various indications. 

Present focus is on partnering the nasal influenza vaccine program, Immunose™ FLU, which has shown proof of concept in a clinical study, and on preclinical development of a nasal vaccine against bacterial pneumonia. 

More information about us, our research and our products is available at www.eurocine­vaccines.com