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HalcyGen Pharmaceuticals Limited - Appendix 4C quarterly cash flow
Appendix 4C - Quarterly Cash Flow
Friday 29th January 2010, Melbourne Australia: HalcyGen Pharmaceuticals Limited (ASX: HGN) is pleased to present its Appendix 4C quarterly cash flow for the period to 31st December 2009. The Company has recognised $10.2M of operational cash inflows from two months sales of products for the quarter and a resulting net operational cash inflow for the consolidated group for the quarter of $3.2M. The quarter represents a two-month period following the acquisition of Mayne Pharma International Pty Ltd (MPI) on 31st October 2009).
Cash on hand at 31st December 2009 was $14.6M. The consolidated operating cash inflow for the quarter is after the stand-alone HalcyGen operating cash outflow of approximately $1.3M, comprising mainly research and development costs, for the quarter and takes into account costs of integration on the acquisition of MPI including other upfront costs and prepayments such as insurances.
The acquisition of MPI on 31st October 2009 by the Company was made for consideration totalling US$15M plus an Earnings Sharing Arrangement.
The acquisition of MPI was funded by way of a loan from National Australia Bank (NAB) of US$10.0M to be repaid within 2 years from profits and further supplemented by a $9.0M placement of shares and a $4.5M Share Purchase Plan both underwritten by Patersons Securities Limited.
HalcyGen’s CEO, Dr Roger Aston said “This first financial report following the acquisition of MPI demonstrates the strength of the cash flows from the business. He went on to say “that despite the weak USD and a significant proportion of our sales being achieved from US sales, the Company has achieved a strong result during the period. “It is very pleasing to be on track with current forecasts for the full year results”.
The Company expects to be in a position to file its half-year financial statements later in the month of February 2010.
Media Enquiries:
HalcyGen: Dr Roger Aston or Craig Bottomley – 03 8614 7777
HalcyGen Profile:
HalcyGen was founded to bridge the gap between main stream pharmaceutical companies and high volume generics companies through the development and licensing of new improved proprietary generic formulations known as "Super Generics" or "High Functionality Generics". HalcyGen's strategy is to capitalise on the value associated with the development and commercialisation of novel, improved variants of existing proprietary pharmaceuticals known as Super Generics.
The basis of the HalcyGen's strategy is a strategic licensing partnership with Hospira, Inc. The Company will initially develop and market two products in partnership with Hospira. Subject to performance and meeting certain other criteria, the Company has the opportunity to develop further products with Hospira.
Through the global exclusive license granted to HalcyGen by Hospira, Inc., for the commercialisation of SUBA®-Itraconazole, Hospira has a first right of refusal to manufacture SUBA®-Itraconazole to support sales.
Mayne Pharma International:
Mayne Pharma International (MPI) is a specialist manufacturer and developer of proprietary and branded oral products for the Australian and World markets. MPI also undertakes manufacture of products under contract for third parties to TGA, FDA and EU regulatory guidelines.
