Actelion announces Full Year 2007 financial results

21.02.2008 | from Actelion Pharmaceuticals Ltd


Actelion Pharmaceuticals Ltd

21.02.2008, Total net revenues of CHF 1.32 billion, up 39 percent – Tracleer® sales up 31 percent to CHF 1.18 billion – Cash EBIT of CHF 471.4 million, up 47 percent – US-GAAP operating profit of CHF 142.6 million - Rapid pipeline expansion and maturation – Almorexant partnering process ongoing – 2008 expected top-line growth in local currency in the low double digit percentage range – 2008 accelerated R&D investment with multiple Phase III programs results in possible slight margin compression – 2008 US GAAP operating and net profit to increase significantly in absence of large 2007 IPRD charge - Unique potential for long-term growth and transformation.

ALLSCHWIL/BASEL, SWITZERLAND – Actelion Ltd (SWX: ATLN) today announced its audited financial results for the full year 2007. With total net revenues for 2007 of CHF 1.32 billion (FY 2006: CHF 945.7 m) and operating expenses of CHF 1.18 billion (FY 2006: CHF 677.5 m) – including a one-time non-cash In-Process Research and Development (IPRD) charge of CHF 224.8 million incurred in the first quarter related to the acquisition of CoTherix Inc. – the company reported an operating profit of CHF 142.6 million (FY 2006: CHF 268.2 m).

To better measure and compare operating performance over time, Actelion continues to report non-US GAAP Cash-EBIT (Operating Income excluding non-cash charges such as In- Process R&D, charges related to employee stock options under FAS 123R as well as non- cash depreciation and amortization charges). In 2007, Actelion achieved a Cash- EBIT of CHF 471.4 million, an increase of 47 percent compared to the same period in 2006. Accordingly, adjusted (non-US GAAP) diluted earnings per share in 2007 were CHF 3.67, compared to CHF 2.48 in 2006, an increase of 48%.

On a US-GAAP basis, the 2007 net profit was CHF 124.6 million (FY 2006: CHF 241.1 m). As a result, 2007 fully diluted earnings per share (EPS) were CHF 1.00, compared to CHF 2.05 in 2006.

Jean-Paul Clozel, M.D. and Chief Executive Officer commented: “In 2007, Actelion executed flawlessly. Only ten years after incorporation, we have already achieved revenues far in excess of 1 billion Swiss Francs. Tracleer® sales alone amounted to 1.18 billion Swiss Francs, documenting our successful efforts in the field of pulmonary arterial hypertension. We successfully integrated CoTherix, adding Ventavis® in the US as a third marketed product to our line-up. Our clinical and pre-clinical pipeline has expanded and matured rapidly, with five different projects alone in the last clinical evaluation phase.“

Jean-Paul Clozel continued:” In 2007, Actelion’s focus on innovation was evident once again with the breakthrough data generated with our first-in-class orexin receptor antagonist, almorexant. Actelion successfully demonstrated that this compound has the potential to transform the way sleep disorders are treated. As a testimony to Actelion’s outstanding skill base and financial strength, Actelion has moved this project rapidly from an in-house research program a few years ago to initiating the comprehensive Phase III program RESTORA in December 2007.“

Jean-Paul Clozel added: “Together with its numerous other innovative projects focusing on small molecules, Actelion has the potential to transform medicine in several areas while transforming itself once again by reaching out to the general practitioner market. This could be achieved either through our partnership with Merck in the field of renin inhibition or through a potential almorexant partnership for which we have recently initiated the related partner selection process. We are focused on maximizing the value of almorexant by allocating all appropriate resources thereby fully leveraging the breakthrough potential of this compound in sleep disorders and beyond.”

Jean-Paul Clozel concluded: “Actelion has both marketed products with significant growth potential as well as an outstanding pipeline with the potential to transform medicine. Our key focus in 2008, therefore, is to make the most appropriate investments in terms of support required for marketed products, additional clinical trials to accelerate pipeline maturation, hiring additional talent and adapting our infrastructure.”

Andrew J. Oakley, Chief Financial Officer commented: “In 2007, we have again grown product sales, pipeline and infrastructure, coupled with continuous strong cash generation. We were able to do so because we made the appropriate investments in the past. Accordingly, our continued focus will be on driving operational excellence through successful management of both top-line expansion and an acceleration of R&D spending, given the multitude of promising growth opportunities.”

Andrew J. Oakley added: “For 2008, unforeseen events excluded, Actelion expects total net revenues to grow – in local currency terms – in the low double digit percentage range. As a result of accelerated investment in R&D, the company expects a slight compression of operating margins, with Cash-EBIT either flat or slightly decreasing in the mid-single digit percentage range. Actelion’s 2008 performance could be positively impacted on both top line and bottom line by an almorexant partnership agreement.”

In terms of US GAAP results, Actelion expects to report significantly improved operating and net profit for 2008, given that 2007 was impacted by the CHF 224.8 million IPRD charge related to the CoTherix acquisition.

Andrew Oakley concluded:” With ongoing strong cash generation, Actelion maintains full strategic flexibility to act on any arising in-licensing or M&A opportunity. At the same time, Actelion remains committed to improve shareholder value through the pro-active management of any dilution that may arise in the future.”

During 2007, Actelion committed to mitigating dilution from both the 2008 convertible bond – conversion of which was forced in February 2007 – and the employee stock option plans. At the end of 2007, Actelion owned a total of 3.3% of its capital as treasury shares and – in early 2008 – concluded a program to reduce dilution by a further 4 percent through derivative instruments. These measures are expected to substantially limit the issuance of new shares in the future.

--- END press release Actelion announces Full Year 2007 financial results ---


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