RNS Number:6363G
World Life Sciences PLC
10 July 2001 World Life Sciences Plc Interim Report for the period from 12 October 2000 to 30 June 2001 Chairman's Letter During my first eight months as Chairman, World Life Sciences plc has made
significant progress and is now well positioned to fulfil the Board of
Directors' ambition to emerge as a fully integrated biotechnology play.
To date, investments have been made in functional genomics: Cork based EiRx
Therapeutics Limited which through its research in the field of apoptosis,
will deliver new and improved therapeutic agents for the treatment of human
disease; a profitable and rapidly expanding drug development CRO (contract
research organisation), Fulcrum Pharmaceutical plc; and a medical-informatics
opportunity Integrisys Limited.
The Directors of World Life Sciences plc have conditionally agreed further
investments in two novel drug delivery companies, and excitingly in an "in
silico" physiomic drug discovery and development company, details of which
will be announced shortly.
Notwithstanding the pressures of volatile market conditions with respect to
new economy stocks that have seen the Company's share price drop, I am today
pleased to report a profit of #254,000.
World Life Sciences plc intends to develop its investment portfolio
anticipating and embracing the current moves toward the integration of digital
and life science opportunities.
Your Board's policy has been to assist investee companies develop their
commercial strategies, believing that this in turn will benefit the entire
portfolio and its overall performance.
A comprehensive review of the life sciences and more importantly, potential
applications has enabled World Life Sciences plc to put in place the
cornerstones of a complex business model. The Directors are confident that
this will underpin their drive for growth and increased net asset value in the
short to medium term, against a long term industry norm. Physiomics will
exemplify this point by providing the technology needed to reduce the time
from drug discovery and development to product marketing, and synergistically
makes calls on the skill sets of many of the developing technologies in which
World Life Sciences plc is investing.
I would like to thank my fellow Directors, executive and members of the
scientific advisory panel who have all worked tirelessly to ensure early
success, in particular Angus Forrest and Peter Hoskins for his understanding
of the technology and its applications.
Victor Beamish Chairman 10 July 2001 Existing portfolio EiRx Therapeutics Limited ("EiRx") World Life Sciences plc has acquired a 22.62% shareholding for #1 million
investing alongside 3i plc. EiRx, the emerging Irish biopharmaceutical
company, is using novel technology to identify new gene targets involved in
the control of the natural process of programmed cell death or apoptosis. When
this natural process becomes uncontrolled it can give rise to a number of
different diseases including cancers. Once the controlling genes are
identified and validated as potential targets, EiRx looks for collaborative
partners to commercialise the target. Since the completion of its second round
of financing in December 2000, EiRx has made significant progress on a number
of fronts.
The creation of the company's proprietary discovery micro-array, the "EiRx
Array" is progressing well. In addition the company's technology platform has
already given rise to a number of leads from which the first validated targets
will be identified for further in-house development or licensing out to
pharmaceutical development companies. As a result of this progress, the
company is actively forming research and commercial partnerships with major
pharmaceuticals to apply its experience and platform to the delivery of
validated targets in specific disease categories.
During the first quarter of 2001, the company was able to recruit a number of
highly qualified scientists and now has a team of 20 people, sufficient for
the next phase of the company's development. In addition, EiRx has acquired an
additional 6,000 sq ft of multipurpose accommodation that will provide
sufficient space for the expansion of the company for the foreseeable future.
The Board of EiRx was strengthened at the end of 2000 by the appointment of
Mr. Stephen Jones, formerly a main board director of Celltech plc responsible
for business development, as a non-executive Director. World leading expert in
the field of apoptosis Professor Green, head of the Division of Cellular
Immunology at La Jolla Institute of Allergy and Immunology, has joined the
company's prestigious Scientific Advisory Board.
Recent trials of first generation apoptosis therapeutics have highlighted the
significant potential of drugs that target this process. The challenge now is
to find superior points of intervention early in the apoptotic process that
will provide essential cell selectivity in drugs, fully preserve cellular
function and demonstrate greater efficacy in modulation of cell survival and
death in a wide range of human diseases.
Fulcrum Pharma plc World Life Sciences plc has invested #700,871 in AIM listed Fulcrum Pharma plc
to acquire a 10.41% shareholding purchased at an average price of 11.2 pence
per share. The holding is currently showing a substantial unrealised gain.
Fulcrum Pharma plc is the first independent company to offer global virtual
drug development and strategic outsourcing services to the pharmaceutical
industry. Having established highly successful operations in the UK and Japan
Fulcrum Pharma plc has its sights firmly set on the US.
In the company's latest set of Interim Accounts, Fulcrum Pharma plc directors
announced further evidence of their success detailing contracts with Xenova,
Pharmagene and Shire Pharmaceutical while also unveiling revenue growth of
approximately #6 million per annum. Viewed as a cornerstone investment in its
portfolio World Life Sciences plc directors acknowledge the constraints facing
small companies as they strive to bring product to market lacking both the
financial resources and expertise to carry out extensive clinical trials. Fulcrum Pharma plc is pivotal to the complex business model being developed by
World Life Sciences plc as it seeks eventually to develop proprietary drug
candidates.
IntegriSys Limited IntegriSys is one of the fastest growing medical infomediary in the UK
providing information to primary care doctors (GPs). World Life Sciences plc
has acquired a 4% shareholding and is a co-investor alongside MTI (Managed
Technology Investors) and AIM listed Billam plc.
As part of a global trend towards healthcare consolidation the NHS has
re-organised its infrastructure for providing primary care administration
throughout the UK. A budget of #1.3 billion has been set aside for
modernisation, improving and enhancing its IT network.
IntegriSys, established in 1997, won the contract to provide community wide
intranet in the Kingston & Richmond health economy, an opinion leading centre. Having proven its product IntegriSys subsequently raised funds to roll out its
product throughout the UK.
The company has partnerships with IBM, BackWeb, the leading supplier of
internet push technology and the National Association of Primary Carers
(NAPC). It is currently in discussion with several major pharmaceutical
companies who have expressed significant interest in utilising this channel to
the GPs' desktop. Future development will see the product in Europe and
Australasia. Period to 30 June 2001
Revenue Capital Total #'000 #'000 #'000
Net change in unrealised appreciation - 408 408
Income 82 - 82
Gross return 82 408 490
Administrative expenses 236 - 236
Return before taxation (154) 408 254
Taxation - - -
Return after taxation (154) 408 254
Transfer to reserves (154) 408 254
Return per ordinary share (0.02)p 0.05p 0.03p The revenue column of this statement is the profit and loss account of the
Company
30 June 2001 #'000
Fixed assets
Tangible assets 2
Listed investments 1,109
Unlisted investments 1,503
2,614
Current assets
Debtors 64
Cash at bank and in hand 1,783
1,847
Creditors: amounts falling due within one year 64
Net current assets 1,783
Total assets less current liabilities 4,397
Total net assets 4,397
Financed by:
Called up share capital 1,916
Share premium account 2,227
Capital reserve unrealised 408
Revenue reserve (154)
Equity Shareholders' funds 4,397
Net asset value per share 0.574p
Period
to 30 June 2001 #'000
Net cash outflow from operating activities (154)
Net cash outflow from capital expenditure and
financial investment (2,206)
Net cash inflow from financing 4,143
Increase in cash for the period 1,783 1. Basis of preparation The interim financial information in respect of the period from 12 October
2000 to 30 June 2001 is unaudited. It has been prepared on the basis of the
under the historical cost convention, as modified by the revaluation of
investment assets. The accounts have been prepared in accordance with
applicable accounting standards and with the Statement of Recommended
Practice, for the Financial Statements of Investment Trust Companies.
2. Financial information The financial information contained in this statement does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985. The
Company's first statutory accounts will be in respect of the period ending 31
December 2001. 3. Continuing activities The Company was incorporated on 21 September 2000 and with the exception of
the issue of ordinary shares on incorporation and 18 October 2000 did not
trade until the shares were admitted to trading on 22 November 2000. 4. Returns Returns per Ordinary Share are based on 766,246,167 Ordinary shares in issue.
5. Taxation No tax provision was considered necessary on the unrealised gain.
6. Dividends The Directors do not recommend the payment of an interim dividend.
7. Net asset value per share Net asset value per Ordinary Share is based on the net assets attributable to
Ordinary shareholders at the period end and 766,246,167 Ordinary shares in
issue at the period end.
|