Aspreva posts $24.3-million profit

CEO says the Victoria drug firm is ready to consider acquisitions

The Canadian Press
The Province
February 9, 2006

With its first profitable year behind it, Aspreva Pharmaceuticals Corp. of Victoria (TSX:ASV) is looking to grow through partnerships and if the opportunity is right, an acquisition.

"We have all the tools that we need to take our company to the next level," CEO Richard Glickman said Wednesday.

Glickman said the company's model is to focus on building partnerships, but with cash in the bank and the right situation, Aspreva is now is a position also to consider acquisitions.

"We are in position should we see a target that actually would complement or expand our current portfolio or leverage our resources we wouldn't be opposed to an acquisition of specific products," he said. "Primarily though, our business development initiatives are directed to expanding current and building additional partnerships."

The drug company, which reports its results in U.S. dollars, said Wednesday it earned $24.3 million US or 68 cents per diluted share for the three months ended Dec. 31, 2005.

That compared with a loss of $10.3 million or 79 cents per share a year ago.

Quarterly revenue was $45 million, compared with no reported revenue in the last quarter of 2004.

In 2003, Aspreva signed a deal with Roche for the exclusive rights, excluding Japan, for CellCelpt, a drug used to prevent organ rejection in kidney transplant patients, for the treatment of autoimmune diseases.

In its guidance, the company said it expected revenue to top $175 million and for the firm to remain profitable based on that deal.

Aspreva said Wednesday that it is committed to securing another partnership this year."

For 2005, Aspreva reported a profit of $19.7 million or 62 cents per diluted share on revenue of $76.5 million.

That compared with a loss of $22.5 million or $1.86 per share on no revenue in 2004.

At Dec. 31., the company had cash and short-term investments of $112 million.

The company has three Phase 3 clinical programs underway with CellCept expected to be completed later this year and early next.

Aspreva Pharmaceuticals is focused on identifying, developing and commercializing alternative uses for approved drugs for underserved patient groups.

Shares in the company, which released its results after the close of financial markets, finished Wednesday up $1 at $31 on the Toronto Stock Exchange.