Zealand: 'financially stronger' despite lack of royalties
(CercleFinance.com) - Zealand maintained its financial guidance for full-year 2018 on Friday after the company became "financially stronger" in the first nine months of the year.
The Copenhagen-based biotech firm said revenue fell to 24.9 million Danish kronor (3.9 million dollars) in the first nine months of 2018, from 125.8 million Danish kronor (20 million dollars), as there was no milestone revenues over the period.
However, operating income jumped to 1.1 billion Danish kronor (170.6 million dollars) from 0.5 million kronor (0.1 million dollars) in the first nine months of 2017 after Zealand entered into an agreement to sell future royalties and potential commercial milestones for its anti-diabetes drugs.
As a reminder, Zealand received 1.3 billion Danish kronor (205 million dollars) as part of the transaction.
For 2018, net operating expenses are still expected to be in a range of 475-495 million Danish kronor (73-77 million dollars), with most of this amount related to clinical development costs associated with Phase 3 trials.
As the company has sold future royalties and milestones for Soliqua/ Suliqua and Lyxumia/Adlyxin, no further royalties or milestones are expected in 2018.
Zealand is now focusing on its own late-stage candidates, with three Phase 3 trials ongoing, including the pivotal trial for glepaglutide as treatment for short bowel syndrome.
Its shares were up 2.6% in Copenhagen after the report.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The Copenhagen-based biotech firm said revenue fell to 24.9 million Danish kronor (3.9 million dollars) in the first nine months of 2018, from 125.8 million Danish kronor (20 million dollars), as there was no milestone revenues over the period.
However, operating income jumped to 1.1 billion Danish kronor (170.6 million dollars) from 0.5 million kronor (0.1 million dollars) in the first nine months of 2017 after Zealand entered into an agreement to sell future royalties and potential commercial milestones for its anti-diabetes drugs.
As a reminder, Zealand received 1.3 billion Danish kronor (205 million dollars) as part of the transaction.
For 2018, net operating expenses are still expected to be in a range of 475-495 million Danish kronor (73-77 million dollars), with most of this amount related to clinical development costs associated with Phase 3 trials.
As the company has sold future royalties and milestones for Soliqua/ Suliqua and Lyxumia/Adlyxin, no further royalties or milestones are expected in 2018.
Zealand is now focusing on its own late-stage candidates, with three Phase 3 trials ongoing, including the pivotal trial for glepaglutide as treatment for short bowel syndrome.
Its shares were up 2.6% in Copenhagen after the report.
Copyright (c) 2018 CercleFinance.com. All rights reserved.