LCT Half Yearly Report period ended 31 December 2011
28 February 2012: Sydney, Australia & Auckland, New Zealand. Living Cell Technologies Limited (ASX: LCT; OTCQX: LVCLY), today announced the half yearly report for the six months ended 31 December 2011. The report is attached.
The consolidated operating profit after income tax for the period 1 July to 31 December 2012 was $8.1 million (2010 loss $4.3m). This turnaround is primarily due to an $11.2 million gain on sale of DIABECELL® intellectual property to Diatranz Otsuka Limited (DOL), a 50% owned company, and $0.9 million of services fees charged to DOL from 1 November.
During the six months ended 31 December 2011 the company implanted 4 patients in Argentina with DIABECELL, continued the primate study of NTCELL for the treatment of Parkinson's disease and provided services to DOL. Services fees were $0.9m (2010: $0.2m) and grant income was $0.4m (2010: $0.8m). Cost of services was $0.8 m (2010: $0.0m), research and development costs were $1.8m in the period (2010: $2.8m), for the supply of DIABECELL for the clinical trial in Argentina and preclinical studies of NTCELL. A foreign exchange loss of $0.1m was reported compared to a loss of $0.6m last year.
As at 31 December 2011 net assets were $15.0m compared to $4.2m at 31 December 2010 and $6.8m as at 30 June 2011. Cash and cash equivalents at 31 December 2011 decreased to $2.5m (30 June 2011 $4.5m).
On 1 November 2011 the company settled the formation of a 50/50 company Diatranz Otsuka Limited with Otsuka Pharmaceutical Factory, Inc. (OPF), to accelerate the commercialisation of DIABECELL. LCT sold DIABECELL assets to DOL for $25m of shares and OPF invested $25m of cash in DOL. LCT provides research and development and administrative services to DOL at commercial rates and retains access to the facilities and designated pathogen free pigs for products other than diabetes.