London, UK, 2 October 2009 - Silence Therapeutics plc (London AIM: SLN)
announced its unaudited interim financial results for the six months ended 30
June 2009 on 30 September 2009. It has come to light that there was a typing
error in the published Cash Flow Statement, whereby the Adjustment for Foreign
exchange movement for the six months ended 30 June 2009 was stated as £(91,810)
when it should have read £(14,476). No other figures need amending. The full
corrected text is set out below.
SILENCE THERAPEUTICS plc
("Silence Therapeutics" or "the Group")
INTERIM RESULTS FOR THE SIX months ended 30 June 2009
Operational Highlights
* Silence commenced a phase I clinical study of Atu027, its lead therapeutic
product candidate. Dosing of patients with advanced solid tumours began in
June following the approval of a Clinical Trial Application from the German
regulator BfArM
* Quark initiated phase I/II clinical trials of QPI-1002, another product
candidate based on Silence''s proprietary chemistry. Quark is developing
QPI-1002 for use in kidney transplant surgery
* The European Patent Office (EPO) granted a patent on protein kinase N3
(PKN3), the target gene for Silence''s lead compound Atu027
* The Technical Board of Appeal of the European Patent Office revoked in its
entirety European patent EP1 214 945, which is a fundamental competitor
patent owned by Alnylam Europe AG
Post period
* In August Silence announced a delivery collaboration agreement with
Dainippon Sumitomo Pharma Co., Ltd. of Japan to demonstrate the functional
delivery of Silence''s proprietary small interfering RNA molecules to
specific targets
Financial Highlights
* Revenue for the six months ended 30 June 2009 was £856,626 (six months
ended 30 June 2008: £124,338)
* Research & Development costs were reduced to £2.55m (six months ended 30
June 2008: £3.1m) following the completion of the extensive pre-clinical
programme for Atu027
* Administrative expenses were reduced to £1.92m (six months ended 30 June
2008: £2.3m)
* In January Silence raised £2.65m via a share placing. The cash position as
of 30 June 2009 was £3.1m (as at 31 December 2008: £3.35m)
Merger discussions
Silence Therapeutics plc yesterday announced that the Company is in merger
discussions. The Company expects the proposed transaction to be treated as a
reverse takeover under the AIM Rules. Accordingly, trading in the Company''s
shares has been suspended pending publication of an Admission document. The
proposed transaction is subject to due diligence and would be conditional upon
shareholder approval.
A further announcement will be made in due course.
Enquiries:
For further information, please contact the following:
Silence Therapeutics plc Powerscourt
+44(0)20 7491 6520 +44(0)20 7250 1446
Iain Ross, Chairman & CEO Paul Durman
Melvyn Davies, Finance Director Kay Larsen
Nominated Advisers
Nomura Code Securities Limited
+44(0)20 7776 1200
Chris Collins
SILENCE THERAPEUTICS PLC
CONSOLIDATED INCOME STATEMENT
SIX MONTHS ENDED 30 JUNE 2009
Six months Six months Year ended
ended ended 31 December
30 June 2009 30 June 2008 2008
£ £ £
Revenue 856,626 124,338 2,208,699
Research and development (2,554,426) (3,071,040) (6,712,032)
direct costs
Gross Loss (1,697,800) (2,946,702) (4,503,333)
Administrative expenses (1,915,498) (2,301,875) (3,288,304)
Operating Loss (3,613,298) (5,248,577) (7,791,637)
Finance income 38,667 326,498 356,996
Loss for the period before tax (3,574,631) (4,922,079) (7,434,641)
Taxation credit for the period - 20,000 -
Retained loss for the period
after
taxation attributable to
Equity Holders
transferred from reserves (3,574,631) (4,902,079) (7,434,641)
Loss per Ordinary Equity Share (2.66)p (4.09)p (6.20)p
==== ==== =====
All transactions arose from continuing activities.
SILENCE THERAPEUTICS PLC
CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2009
30 June 31 December 30 June
2009 2008 2008
£ £ £
Non-current assets
Property, plant and equipment 396,288 535,909 448,230
Goodwill 7,704,390 8,611,087 7,175,906
Other intangible assets 733,492 812,696 738,953
8,834,170 9,959,692 8,363,089
Current assets
Trade and other receivables 724,331 1,068,702 996,292
Cash and cash equivalents 3,057,038 3,350,187 5,661,213
3,781,369 4,418,889 6,657,505
Current liabilities
Trade and other payables 828,676 934,601 786,393
Net current assets 2,952,693 3,484,288 5,871,112
Net assets 11,786,863 13,443,980 14,234,201
Capital and Reserves
attributable
to the Company''s Equity
Holders
Share capital 1,349,134 1,199,134 1,198,835
Share premium account 40,467,956 37,967,956 37,964,447
Merger reserve 6,140,874 6,140,874 6,140,874
Share-based payment reserve 3,234,333 2,901,584 3,285,862
Translation reserve 2,226,254 3,291,489 1,171,096
Profit and loss account (41,631,688) (38,057,057) (35,526,913)
Equity Holders'' funds 11,786,863 13,443,980 14,234,201
SILENCE THERAPEUTICS PLC
CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009
Shares Share Merger Share-based Translation Profit and Shareholder
Premium Reserve Payment Reserve Loss Account Funds
Reserve
£ £ £ £ £ £ £
at 1 January 2009 1,199,134 37,967,956 6,140,874 2,901,584 3,291,489 (38,057,057) 13,443,980
Shares issued in 150,000 2,500,000 2,650,000
the period
Loss for 6 months (3,574,631) (3,574,631)
to 30 June 2009
Charge based on - - - 332,749 - - 332,749
options issued
Translation - - - - (1,065,235) - (1,065,235)
adjustment
at 30 June 2009 1,349,134 40,467,956 6,140,874 3,234,333 2,226,254 (41,631,688) 11,786,863
SILENCE THERAPEUTICS PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
Six months Six months Year ended
to to
30 June 200 30 June 31 December
9 2008 2008
Cash flows from operating £ £ £
activities
Loss before taxation (3,574,631) (4,922,079) (7,434,641)
Adjustments for:
Depreciation charges 63,476 52,816 116,489
Amortisation charges 128,499 137,877 306,916
Loss on sale of fixed assets - - 307
Charge for the period in respect 339,845 926,016 544,158
of share-based payments
Foreign exchange movement (14,476) (76,182) 73,410
Recovery of loan provided for in - (18,000) (31,000)
previous years
Finance income (38,667) (308,498) (253,634)
(3,095,954) (4,208,050) (6,677,955)
Decrease in trade and other 271,961 494,568 668,891
receivables
Increase/(decrease) in trade 42,283 (1,015,553) (1,032,708)
payables
Cash absorbed by operations (2,781,710) (4,729,035) (7,041,812)
Income taxes received - - 60,000
Net cash outflow from operating (2,781,710) (4,729,035) (6,981,812)
activities
Cash flows from investing
activities
Recovery of loan made in previous - 18,000 31,000
years
Interest received 38,667 308,498 253,634
Additions to property, plant and (6,347) (70,822) (135,584)
equipment
Additions to intangible assets (104,146) (39,817) (135,752)
Cash (absorbed in)/generated from (71,826) 215,859 13,298
investing activities
Cash flows from financing
activities
Proceeds from issue of share 2,650,000 - 3,808
capital and options
Net (decrease) in cash and cash (203,536) (4,513,176) (6,964,706)
equivalents
Cash and cash equivalents at 3,350,187 10,174,389 10,174,389
beginning of period
Net (decrease) in cash and cash (203,536) (4,513,176) (6,964,706)
equivalents
Effect of exchange rate (89,613) - 140,504
fluctuations on cash held
Cash and cash equivalents at end 3,057,038 5,661,213 3,350,187
of period
SILENCE THERAPEUTICS PLC
NOTES
1. Basis of preparation
The financial information has been prepared in accordance with International
Financial Reporting Standards (IFRS) and using the same accounting policies as
in the preparation of the audited accounts for the year ended 31 December 2008.
The accounts are drawn up in compliance with IAS 34, Interim Financial
Reporting.
The above financial information does not constitute statutory accounts within
the meaning of Section 435, Companies Act 2006. The information relating to the
six months ended 30 June 2009 is neither audited nor reviewed. Information
relating to the year ended 31 December 2008 has been extracted from the
statutory accounts of the Group which have been audited by the Group''s auditors
Grant Thornton UK LLP and whose report thereon is unqualified.
2. Segment Reporting
Six Months Ended 30 June 2009
Business RNAi Immunotherapy Unallocated Consolidated
Segments Therapeutics Group items
£ £ £ £
Revenue 555,626 301,000 - 856,626
Operating (2,925,128) 244,651 (932,821) (3,613,298)
results
Net finance - 507 38,160 38,667
income
Net result for (2,925,128) 245,158 (894,661) (3,574,631)
the period
Segment assets 10,016,507 387,707 2,211,325 12,615,539
Segment (632,976) (51,820) (143,880) (828,676)
liabilities
Costs to acquire 6,347 - - 6,347
property, plant
and equipment
Costs to acquire 104,146 - - 104,146
intangible
Assets
Depreciation and 190,475 1,500 - 191,975
amortisation
Charge for 127,706 1,158 210,981 339,845
non-cash
expenses
Six months ended 30 June 2008
Business RNAi Immunotherapy Unallocated Consolidated
Segments Therapeutics Group items
£ £ £ £
Revenue 98,338 26,000 - 124,338
Operating (3,569,350) (180,804) (1,498,423) (5,248,577)
results
Net finance 165,662 17,371 143,465 326,498
income
Net result for (3,403,688) (163,433) (1,354,958) (4,922,079)
the period
Segment assets 9,924,389 1,981,913 3,114,292 15,020,594
Segment (567,048) (148,956) (70,389) (786,393)
liabilities
Costs to acquire 70,423 399 - 70,822
property, plant
and equipment
Costs to acquire 39,817 - - 39,817
intangible
Assets
Depreciation and 189,193 1,500 - 190,693
amortisation
Charge for 249,308 343 676,365 926,016
non-cash
expenses
3. Earnings per share
The loss per share is based on the loss for the period after taxation
attributable to Equity Holders of £3,574,631 (year ended 31 December 2008 -
loss £7,434,641; six months ended 30 June 2008 - loss £4,902,079) and on the
weighted average of 134,250,409 ordinary shares in issue during the period
(year ended 31 December 2008 - 119,885,617 six months ended 30 June 2008 -
119,883,536). The options outstanding at 30 June 2008, 31 December 2008 and 30
June 2009 are considered to be non-dilutive in that their conversion into
ordinary shares would decrease the net loss per share. Consequently, there is
no diluted earnings per share to report for either year.
4. Taxation
The credit for UK Corporation Tax arises from the Group taking advantage of the
legislation regarding the treatment and surrender of tax losses arising from
certain qualifying research and development expenditure.
Notes to Editors:
About Silence Therapeutics plc (www.silence-therapeutics.com )
Silence Therapeutics plc (AIM: SLN) is a leading European RNAi-focused
biotechnology company.
RNA interference (RNAi), is a Nobel Prize winning technology and one of the
most exciting areas of drug discovery today. It represents a completely new
approach to selectively ''silence'' or inactivate disease relevant genes and as
such it has the potential to create a new class of therapeutic products. RNAi
could therefore offer a therapeutic approach to a broad range of diseases
(cancer, infectious diseases, inherited diseases), many of which have been
regarded as incurable and are not addressed by current therapeutics, therefore
providing a large market opportunity.
Silence Therapeutics has developed a platform of novel short interfering RNA
(''siRNA'') molecules, AtuRNAi, which provide a number of advantages over
conventional siRNA molecules, including increased stability against nuclease
degradation. In addition, the Company has developed a proprietary systemic
delivery system, AtuPLEX. This system enables the functional delivery of siRNA
molecules to targeted diseased tissues and cells, while increasing their
bioavailability and intracellular uptake.
Following the granting of its patents in Europe, the USA and Australia, Silence
Therapeutics is one of only two companies worldwide with a proprietary position
on composition of matter for siRNA therapeutics.
Silence''s lead internal product, Atu027, is a proprietary AtuRNAi molecule in
clinical development for systemic cancer indications. Atu027 has successfully
completed single and repeat dose toxicology and geno-toxicology studies, as
well as a 28-day toxicology study using multiple dosing regimens. In June 2009,
the Company started an open-label, single-centre, dose-escalation Phase I study
with Atu027 in patients with advanced solid (malignant) tumours involving
single as well as repeated intravenous administration. Atu027 specifically
targets PKN3, a molecule involved in cancer growth and metastasis formation.
Atu027 is Silence''s most advanced clinical candidate for a systemically
delivered short interfering RNA (siRNA) using the Company''s proprietary AtuPLEX
delivery technology.
In March 2008 Silence Therapeutics announced a collaboration with AstraZeneca
(LSE: AZN) focused on the development of a range of novel delivery approaches
for siRNA molecules. Under the terms of the agreement both Silence Therapeutics
and AstraZeneca will be allowed to commercialize the truly novel delivery
systems that the two partners develop together.
Silence Therapeutics has granted a licence to AstraZeneca to develop novel
AtuRNAi therapeutics against five specific targets. This collaboration was the
first industry validation of the potential application of Silence Therapeutics''
proprietary AtuRNAi molecules and solidified the Company''s leadership position
in field of RNAi therapeutics.
The Company''s AtuRNAi technology also has been sublicensed to Pfizer via
Quark''s license to them of the compound RTP-801i-14 for the treatment of
age-related macular degeneration (AMD) and a number of other indications. This
compound entered a phase II clinical study in July 2008. Silence Therapeutics
also has licensed to Quark rights to the AtuRNAi structure for Quark''s
proprietary compound, AKIi-5 and DGFi, which are both in Phase I human clinical
studies for treatment of acute kidney injury and delayed graft function in
kidney transplantation respectively.
Forward-Looking Statements
This press release includes forward-looking statements that are subject to
risks, uncertainties and other factors. These risks and uncertainties could
cause actual results to differ materially from those referred to in the
forward-looking statements. All forward--looking statements are based on
information currently available to Silence Therapeutics and Silence
Therapeutics assumes no obligation to update any such forward-looking
statements.
Silence Therapeutics is based in London, UK, and Berlin, Germany, and is listed
on AIM.
END
SILENCE THERAPEUTICS PLC