Zealand announces full-year results in line with guidance and releases its Annual Report for 2016

Company announcement - No. 5 / 2017

Zealand announces full-year results in line with guidance and releases its Annual Report for 2016

Copenhagen, March 15, 2017 - Zealand Pharma A/S ("Zealand") (CVR No. 20 04 50 78) announces financial results in line with guidance and considerable progress for its product portfolio and business for the 12-month period from January 1 to December 31, 2016.

Financial results for the full year 2016

• Revenue of DKK 234.8 million (25% increase vs. 2015).
• Net operating expenses^[1] of DKK 319.0 million (29% increase vs. 2015).
• Net loss of DKK 153.9 million (35% increase vs. 2015).
• The cash position amounted to DKK 642.0 million at December 31, 2016 (December 31, 2015: DKK 440.2 million). This includes restricted cash of DKK 318.7 million (December 31, 2015: DKK 21.4 million) held as collateral for the royalty bond.

Financial highlights for Q4 2016

• Revenue of DKK 180.5 million (8% increase vs. 2015).
• Net operating expenses of DKK 98.1 million (40% increase vs. 2015).
• Net profit of DKK 52.7 million (23% decrease vs. 2015).

Business highlights and updates for Q4 2016 and the period thereafter

• Soliqua(TM) 100/33 (insulin glargine 100 units/ml and lixisenatide 33 mcg/ml injection) was approved in the U.S. on November 22, 2016 and has been marketed by Sanofi in the U.S. from January 4, 2017.
• Suliqua(TM) was approved in the EU by the European Commission and is expected to be marketed by Sanofi in some EU countries in Q2 2017.
• Two Phase 2a trials initiated with dasiglucagon for potential use in an artificial pancreas system. Results from the trials are expected in Q2 2017.
• Patient recruitment completed for the Phase 2 trial with glepaglutide for the treatment of short bowel syndrome. Results from the Phase 2 trial are expected in the summer of 2017. 
• Terms of USD 50 million royalty bond renegotiated as of March 15, 2017. 50% or DKK 175 million (USD 25 million) repaid, and restricted cash of DKK 175 million released to cash and cash equivalents.

Britt Meelby Jensen, President and CEO of Zealand, comments on the year:

"2016 was a successful year for Zealand. Two outlicensed products, Adlyxin^® and Soliqua(TM) 100/33, both based on Zealand's invention lixisenatide, were approved in the U.S. and made available to patients by Sanofi in early 2017. This will reward Zealand with a steadily growing revenue stream in the form of milestone payments and royalties based on Sanofi's global sales in the coming years. And for the first time ever, we have three fully owned product candidates in Phase 2 development. Zealand retains full control over these product candidates, which have the potential to significantly increase the future value of Zealand.

"Following our progress in 2016, we aim to create more value in 2017 through increased revenue from marketed products, by moving our own product candidates closer to the market and expanding our portfolio of new product candidates addressing specialty  gastrointestinal and metabolic diseases with no or insufficient treatment, for the benefit of patients."

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Attachments:

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