Pharmaxis completed 2008 with A$112 million of cash, providing a strong position from which to progress our business in the forthcoming year.
Aridol sales in 2008 amounted to A$0.5 million, and were to customers in Australia where the product was launched at the end of 2006 and in Europe where a number of new individual marketing authorisations were received during the year. Additional sales came from pharmaceutical companies for use in clinical trials. Other income is predominantly research grant revenue.
Research & development expenses of $20 million in 2008 includes our drug discovery group which is working on PXS4159 and made up 11 per cent of our 2008 R&D spend; our preclinical group which has completed the work necessary for PXS25 to move into clinical studies and made up three per cent of our 2008 R&D spend; our clinical group which designs and manages our global clinical trial program and made up 55 per cent of our 2008 R&D spend; and our manufacturing operations which produce material for clinical trials and develop production processes, accounting for 30 per cent of our 2008 R&D spend. The decrease in R&D expenses in 2008 is primarily attributable to a reduction in the number and size of clinical trials in the active dosing stage during 2008 compared to 2007.
Commercial expenses of A$4.6 million include the costs of developing our sales and marketing infrastructure and supporting the development and awareness of our products with key respiratory clinicians around the world. Administration expenses of A$5.2 million include our finance, administrative, office, public company and professional service costs. Higher (non cash) costs in relation to employee share options were the major reason for the increase in both commercial and administration expenses in 2008 compared to 2007.
We invested A$5.1 million in 2008 in property, plant and equipment, the majority of which related to the fit-out and installation of manufacturing equipment in the company’s new premises.
(prepared in accordance with Australian equivalents to International Financial Reporting Standards)
| Year ended 30 June | ||||
|---|---|---|---|---|
| 2008 | 2007 | 2006 | 2005 | |
| A$ | A$ | A$ | A$ | |
| (in thousands, except per share data) | ||||
| Income Statement Data | ||||
| Revenue from sale of goods | 527 | 205 | 8 | - |
| Cost of sales | (129) | (49) | (2) | - |
| Gross profit | 398 | 156 | 6 | - |
| Interest | 7,402 | 5,278 | 4,282 | 1,702 |
| Other income | 1,576 | 2,152 | 1,299 | 1,219 |
| Expenses | ||||
| Research & development | (19,996) | (23,840) | (16,978) | (9,269) |
| Commercial | (4,557) | (3,240) | (1,946) | (963) |
| Administration | (5,231) | (4,666) | (4,391) | (3,134) |
| Loss before income tax | (20,408) | (24,160) | (17,728) | (10,445) |
| Income tax expense | (32) | (19) | (5) | - |
| Loss for the year | (20,440) | (24,179) | (17,733) | (10,445) |
| Cents | Cents | Cents | Cents | |
| Earnings (loss) per share | (10.8) | (13.6) | (11.1) | (8.4) |
| As at 30 June | ||||
| 2008 | 2007 | 2006 | 2005 | |
| A$ | A$ | A$ | A$ | |
| Balance Sheet Data | ||||
| Cash and cash equivalents | 111,842 | 76,182 | 97,840 | 33,390 |
| Plant & equipment | 3,668 | 3,521 | 3,205 | 2,477 |
| Total Assets | 125,049 | 82,648 | 104,267 | 37,937 |
| Net assets | 11,9121 | 76,559 | 98,888 | 35,467 |
| Contributed equity | 194,680 | 135,108 | 137,745 | 54,716 |
| Share Data | ||||
| Ordinary shares on issue | 194,515 | 177,949 | 176,904 | 134,770 |
| Options over ordinary shares on issue | 11,536 | 9,836 | 9,692 | 10,914 |
