AndhraNews.net
Home » Business News » 2011 » February » February 8, 2011

Antisoma plc reports half-year results for the six months to 31 December 2010


February 8, 2011 - London And Cambridge, MA




Antisoma plc (LSE: ASM; USOTC:ATSMY) announces its interim financial information for the period ended 31December 2010.


Announced today

* Steps initiated to find a transaction that maximises value of cash and
assets
* Company will by 31 March 2011 reduce operation to 10 or fewer staff to
minimise ongoing operating costs whilst ensuring receipt of long-term
receivables
* Actively looking at all options to maximise shareholder value
* Board downsizing to be announced shortly

Recent developments

* AS1413 discontinued after phase III trial misses primary endpoint
(January)
* AS1411 phase IIb trial in AML stopped (January)

Financial highlights

* Cash and short-term deposits at 31 December 2010 of GBP 23.4 million
(31 December 2009: GBP 49.6 million)
* Revenues of GBP 0.3 million (H1 2009: nil)
* Loss after tax of GBP 15.4 million (H1 2009: loss of GBP 18.3 million)
* Impairments to be recorded in H2

Glyn Edwards, CEO of Antisoma, said: "We are very disappointed that AS1413didnot succeed. However, we are now seeking to deliver the maximum value toshareholders from the remaining assets of the business."

The statements made above concerning a possible offer for the Company mayor maynot lead to an offer being made for the entire issued share capital of theCompany ('the Possible Offer'). There can be no certainty that an offerwill beforthcoming or as to the terms on which such an offer might be made. TheCompany, which is being advised by Canaccord Genuity Limited, will make afurther announcement when appropriate.

Number of Relevant Securities in Issue:

In accordance with Rule 2.10 of the City Code on Takeovers and Mergers (the'Code'), the Company's issued share capital consists of 632,462,777ordinaryshares with a nominal value of 1 pence each ('Ordinary Shares'), each sharehaving equal voting rights.

The ISIN number of the Ordinary Shares is GB0055696032

Canaccord Genuity Limited Tel: +44 (0)20 7050 6500

Robert Finlay

Henry Fitzgerald-O'Connor

Kit Stephenson





Canaccord Genuity Limited ("Canaccord Genuity"), which is authorised andregulated in the United Kingdom by the Financial Services Authority, isactingexclusively for Antisoma and no one else in connection with the PossibleOfferand will not be responsible for anyone other than Antisoma for providingtheprotections afforded to clients of Canaccord Genuity or for providingadvice inrelation to the Possible Offer, or any matter referred to herein.

Disclosure requirements of the Takeover Code (the 'Code')

Under Rule 8.3(a) of the Code, any person who is interested in 1% or moreof anyclass of relevant securities of an offeree company or of any paper offeror(being any offeror other than an offeror in respect of which it has beenannounced that its offer is, or is likely to be, solely in cash) must makeanOpening Position Disclosure following the commencement of the offer periodand,if later, following the announcement in which any paper offeror is firstidentified.

An Opening Position Disclosure must contain details of the person'sinterestsand short positions in, and rights to subscribe for, any relevantsecurities ofeach of (i) the offeree company and (ii) any paper offeror(s). An OpeningPosition Disclosure by a person to whom Rule 8.3(a) applies must be made bynolater than 3.30 pm (London time) on the 10th business day following thecommencement of the offer period and, if appropriate, by no later than 3.30pm(London time) on the 10th business day following the announcement in whichanypaper offeror is first identified. Relevant persons who deal in therelevantsecurities of the offeree company or of a paper offeror prior to thedeadlinefor making an Opening Position Disclosure must instead make a DealingDisclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in1%or more of any class of relevant securities of the offeree company or ofanypaper offeror must make a Dealing Disclosure if the person deals in anyrelevantsecurities of the offeree company or of any paper offeror. A DealingDisclosuremust contain details of the dealing concerned and of the person's interestsandshort positions in, and rights to subscribe for, any relevant securities ofeachof (i) the offeree company and (ii) any paper offeror, save to the extentthatthese details have previously been disclosed under Rule 8. A DealingDisclosureby a person to whom Rule 8.3(b) applies must be made by no later than 3.30pm(London time) on the business day following the date of the relevantdealing.

If two or more persons act together pursuant to an agreement orunderstanding,whether formal or informal, to acquire or control an interest in relevantsecurities of an offeree company or a paper offeror, they will be deemed tobe asingle person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company andby anyofferor and Dealing Disclosures must also be made by the offeree company,by anyofferor and by any persons acting in concert with any of them (see Rules8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevantsecurities Opening Position Disclosures and Dealing Disclosures must bemade canbe found in the Disclosure Table on the Takeover Panel's website atwww.thetakeoverpanel.org.uk, including details of the number of relevantsecurities in issue, when the offer period commenced and when any offerorwasfirst identified. If you are in any doubt as to whether you are required tomakean Opening Position Disclosure or a Dealing Disclosure, you should contactthePanel's Market Surveillance Unit on +44 (0)20 7638 0129.


Except for the historical information presented, certain matters discussedinthis announcement are forward looking statements that are subject to anumberof risks and uncertainties that could cause actual results to differmateriallyfrom results, performance or achievements expressed or implied by suchstatements. These risks and uncertainties may be associated with productdiscovery and development, including statements regarding the Group'sclinicaldevelopment programmes, the expected timing of clinical trials andregulatoryfilings. Such statements are based on management's current expectations,butactual results may differ materially.


Joint Chairman and CEO's statement

Overview

This has been a difficult period for Antisoma. We conducted a carefullydesignedphase III trial for AS1413 and this provided a clear negative result.Havinggiven careful consideration to our situation following this outcome, wehaveinitiated the search for a transaction that will deliver maximum value toshareholders from our remaining assets.

Development of AS1413 discontinued

We evaluated AS1413 in a large, randomised controlled phase III trial. Thiscompared a regimen of AS1413 and cytarabine with standard therapy ofdaunorubicin and cytarabine in patients with secondary acute myeloidleukaemia(secondary AML). The primary endpoint was a comparison of remission rates.Unfortunately, we did not see the improvement in remission rates we werelookingfor, so we see no merit in further work on AS1413.

AS1411 requires change in direction

We felt it was important to have an understanding of the status of ourAS1411programme at the time we got phase III data on AS1413. AS1411 was in aphase IIbtrial in patients with AML. An early look at the data from this studyshowedthat it was unlikely to provide a firm basis for progress to a phase IIItrialin AML. Given this, and the desire to minimise cash outflows from thebusinessafter the AS1413 result, we have terminated the phase IIb trial. We havealsosuspended other work on the AS1411 programme pending a possibletransaction, butwe continue to believe that the drug has significant potential as a cancertreatment.

Other key programmes

In addition to AS1411, we believe there is value in our two promisingpreclinical programmes. These are the DCAM (dendritic cell autoimmunemodulator)and PPM1D (Protein phosphatase magnesium dependent-1-delta) programmes.

DCAMs are small-molecule kinase inhibitors with potential as oral therapiesforauto-immune conditions such as inflammatory bowel diseases and rheumatoidarthritis.

We have generated good supporting data in animal models and the programmeisready to be taken forward towards the initiation of clinical trials.

PPM1D is a phosphatase that is expressed in many forms of cancer and whosepresence can be readily detected, providing potential for targeting ofpatientswho could respond. One obvious application for PPM1D inhibitors is inbreastcancer, where around one sixth of tumours over-express or have amplifiedPPM1D.The programme has been developed under collaboration with the Institute ofCancer Research in London and is ready to be taken forward towards theclinic.


Financial review

Overview

During 2010 we took measures to conserve cash so that we would be in thebestpossible position after any outcome from the AS1413 trial. This isreflected inour figures for the period. As a result of the cessation of clinical trialactivities following the announcement of 31 January, our external R&D costsareundergoing a substantial new reduction, further reducing cash outflows fromthebusiness.

Results of operations

The Group recorded revenues totalling GBP0.3 million for the six monthsended 31December 2010. This revenue derives from a royalty payment that waspayable toXanthus, the business we acquired in 2008. The Group also recorded GBP0.2millionof other operating income. This was a grant awarded by the United StatesGovernment because of our investment in qualifying research and developmentandreceived in November 2010.

During the period, fixed assets were sold for a profit of GBP0.1m.

Total operating expenses for the six months ended 31 December 2010 wereGBP16.7million (2009: GBP21.3 million). Research and development expenditure hasdecreased by GBP3.3 million to GBP14.7 million, reflecting the Group'sincreasedefforts to conserve cash and the reduction in expenditure on the phase IIItrialof AS1413 as it came close to completion. An impairment loss of GBP4.2million,reflecting discontinuation of ASA404, has been recognised in research anddevelopment. Administrative expenditure decreased by GBP1.3 million, againreflecting containment of costs by the Group.

As a result of the decision to stop development of AS1413 and halt thetrial ofAS1411 in AML, impairment reviews will be performed on the goodwill andintangible assets associated with these products. No impairment has beenrecorded in these results because this is a non-adjusting post balancesheetevent (see note 8).

The Group estimates that an impairment of approximately GBP54.3 millionwill bebooked in the accounts for the year ended 30 June 2011; however, a fullanalysiswill be required.

During the period foreign exchange rates were less volatile than in thepreviousyear. We made exchange losses of GBP0.1 million on translation of our USdollarand Euro balances into sterling (2009: GBP1.3 million gain).

Our loss of GBP15.4 million reflects the difference between our revenues,financeincome and tax credit and our operating expenses, as we continued to investduring the period in our drug pipeline.

Liquidity and capital resources

Cash, cash equivalents and short-term deposits amounted to GBP23.4 millionas at31 December 2010 (30 June 2010: GBP32.1 million; 31 December 2009: GBP49.6million).Net cash used in operating activities for the six months ended 31 December2010was GBP8.6 million (six months ended 31 December 2009: GBP18.4 million).

In managing our cash resources, we have maintained a conservative treasurypolicy with short deposit terms and diversified counterparty risk.

Taxation

We have recognised a credit of GBP0.8 million in respect of an R&D taxcreditreceivable for the first six months of the financial year.

Loss per share

The basic loss per share for the half-year ended 31 December 2010 was 2.4p(half-year ended 31 December 2009 3.0p); the share capital in the Companyhasincreased because some former employees have exercised share options andcertainNon-Executive Directors have elected to be paid in shares.

The related parties to Antisoma have been identified by management and areoutlined in note 7 of the interim accounts.

Outlook

We have considered our position carefully following last week'sannouncementthat the AS1413 programme would be terminated. As a result, we are nowseeking atransaction in order to maximise the value to shareholders of our remainingassets, which include a number of promising drug development programmes aswellas the cash on our balance sheet. In the meantime, we are restructuring thebusiness; we will make a further announcement regarding changes to theBoard inthe near future.

Barry PriceChairman Glyn EdwardsCEO

Half-Yearly Financial Report for the six months ended 31 December 2010 Consolidated Income Statementfor the six months ended 31 December 2010 ---------------------------------------------------------------------- 6 months 6 months Year ended 31 ended 31 ended 30 December December June 2010 2009 2010 unaudited unaudited audited Notes GBP'000 GBP'000 GBP'000---------------------------------------------------------------------- Revenue 337 - 20,346----------------------------------------------------------------------Gross profit 337 - 20,346 Research and developmentexpenditure (14,697) (18,040) (35,500) Administrative expenses (2,008) (3,297) (7,888)----------------------------------------------------------------------Total operating expenses (16,705) (21,337) (43,388) Other operating income 152 - -----------------------------------------------------------------------Operating loss (16,216) (21,337) (23,042) Finance income 4 71 1,555 1,678 ----------------------------------------------------------------------Loss before taxation (16,145) (19,782) (21,364) Taxation 765 1,502 2,712 ----------------------------------------------------------------------Loss for the period (15,380) (18,280) (18,652)---------------------------------------------------------------------- Loss per ordinary share Basic and diluted 5 (2.4)p (3.0)p (3.0)p---------------------------------------------------------------------- Consolidated Statement of Comprehensive Incomefor the six months ended 31 December 2010 --------------------------------------------------------------------------- 6 months 6 months Year ended 31 ended 31 ended December December 30 June 2010 2009 2010 unaudited unaudited audited GBP'000 GBP'000 GBP'000------------------------------------------------------------------------------ Loss for the period (15,380) (18,280) (18,652) Exchange translation difference onconsolidation (287) 447 1,000---------------------------------------------------------------------------Other comprehensive income for the period net oftax (287) 447 1,000 ---------------------------------------------------------------------------Total comprehensive income for the period (15,667) (17,833) (17,652)--------------------------------------------------------------------------- Consolidated Statement of Financial Positionas at 31 December 2010 --------------------------------------------------------------------------- As at 31 As at 31 As at 30 December December June 2010 2009 2010 unaudited unaudited audited GBP'000 GBP'000 GBP'000--------------------------------------------------------------------------- ASSETS Non-current assets Goodwill 7,162 6,957 7,353 Intangible assets 47,127 51,615 51,824 Property, plant and equipment 1,052 1,960 1,173--------------------------------------------------------------------------- 55,341 60,532 60,350--------------------------------------------------------------------------- Current assets Trade and other receivables 1,071 1,947 2,106 Current tax receivable 1,038 4,984 3,614 Short-term deposits 8,695 42,267 21,965 Cash and cash equivalents 14,687 7,377 10,098--------------------------------------------------------------------------- 25,491 56,575 37,783 LIABILITIES Current liabilities Trade and other payables (5,738) (8,046) (7,220) Current tax payable (1) - - Deferred income - (19,690) - Provisions (2,134) (2,664) (3,071)--------------------------------------------------------------------------- (7,873) (30,400) (10,291)--------------------------------------------------------------------------- Net current assets 17,618 26,175 27,492--------------------------------------------------------------------------- Total assets less current liabilities 72,959 86,707 87,842--------------------------------------------------------------------------- Non-current liabilities Deferred tax liabilities (7,162) (6,957) (7,353) Provisions (16) (454) (28)--------------------------------------------------------------------------- (7,178) (7,411) (7,381) --------------------------------------------------------------------------- Net assets 65,781 79,296 80,461--------------------------------------------------------------------------- Shareholders' equity Share capital 10,656 10,592 10,628 Share premium 122,091 122,015 122,070 Other reserves 47,632 47,366 47,919 Profit and loss account (114,598) (100,677) (100,156)-------------------------------------------------------------------------- Total shareholders' equity 65,781 79,296 80,461--------------------------------------------------------------------------- Consolidated Statement of Changes in Equityfor the six months ended 31 December 2010 --------------------------------------------------------------------------- Shares Other Other Profit and Share Share to be reserve : reserve: loss Total capital premium issued retranslation merger account--------------------------------------------------------------------------- GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000--------------------------------------------------------------------------- At 1 July2009 10,480 119,783 2,273 7,664 39,255 (83,240) 96,215 Totalcomprehensiveincome forthe period - - - 447 - (18,280) (17,833) New sharecapitalissued 112 2,232 (2,273) - - - 71 Shareoptions:value ofemployeeservices - - - - - 843 843---------------------------------------------------------------------------At 31December2009 10,592 122,015 - 8,111 39,255 (100,677) 79,296--------------------------------------------------------------------------- At 1 July2009 10,480 119,783 2,273 7,664 39,255 (83,240) 96,215 Totalcomprehensiveincome forthe year - - - 1,000 - (18,652) (17,652) New sharecapitalissued 148 2,287 (2,273) - - - 162 Shareoptions:value ofemployeeservices - - - - - 1,736 1,736---------------------------------------------------------------------------At 30 June2010 10,628 122,070 - 8,664 39,255 (100,156) 80,461--------------------------------------------------------------------------- At 1 July2010 10,628 122,070 - 8,664 39,255 (100,156) 80,461 Totalcomprehensiveincome forthe period - - - (287) - (15,380) (15,667) New sharecapitalissued 28 21 - - - - 49 Shareoptions:value ofemployeeservices - - - - - 938 938---------------------------------------------------------------------------At 31December2010 10,656 122,091 - 8,377 39,255 (114,598) 65,781--------------------------------------------------------------------------- Consolidated Statement of Cash Flowsfor the six months ended 31 December 2010 --------------------------------------------------------------------------- 6 months 6 months Year ended 31 ended 31 ended December December 30 June 2010 2009 2010 unaudited unaudited audited GBP'000 GBP'000 GBP'000--------------------------------------------------------------------------- Cash flows from operating activities Loss for the period/year (15,380) (18,280) (18,652) Add back: Foreign exchange loss/(gain) 216 (187) (779) Finance income (71) (1,555) (1,678) Tax credit (765) (1,502) (2,712) Depreciation of property plant and equipment 246 337 673 (Gain)/loss on disposal of property, plant andequipment (84) - 534 Impairment of intangible assets 4,158 343 1,261 Share-based payments 938 843 1,736---------------------------------------------------------------------------Operating cash flows before movement in workingcapital (10,742) (20,001) (19,617) Decrease/(increase) in debtors 1,011 (319) (420) (Decrease)/increase in creditors and provisions (2,360) 1,643 (19,089)---------------------------------------------------------------------------Cash used in operations (12,091) (18,677) (39,126) Finance income 120 243 442 Income taxes received - 2 582 Research and development tax credit received 3,342 - 2,000---------------------------------------------------------------------------Net cash used in operating activities (8,629) (18,432) (36,102)--------------------------------------------------------------------------- Cash flows from investing activities Purchase of property, plant and equipment (128) (330) (459) Proceeds on disposal of property, plant andequipment 84 - 68 Sale/(purchase) of short-term deposits 13,270 (14,443) 5,859---------------------------------------------------------------------------Net cash generated from/(used in) investingactivities 13,226 (14,773) 5,468--------------------------------------------------------------------------- Cash flows from financing activities Proceeds from issue of ordinary share capital 49 71 162---------------------------------------------------------------------------Net cash generated from financing activities 49 71 162--------------------------------------------------------------------------- Net increase/(decrease) in cash and cashequivalents 4,646 (33,134) (30,472) Exchange (losses)/gains on cash and bank overdrafts (57) 1,296 1,355 Cash and cash equivalents at beginning of theperiod 10,098 39,215 39,215---------------------------------------------------------------------------Cash and cash equivalents at end of the period 14,687 7,377 10,098---------------------------------------------------------------------------


Notes to the interim accounts

1. Basis of Preparation and Accounting Policies

The interim financial statements do not comprise statutory accounts withinthemeaning of Section 434 of the Companies Act 2006. The Company is a publiclimited company which is listed on the London Stock Exchange and isincorporatedand domiciled in the United Kingdom. The address of its registered officeisChiswick Park Building 5, 566 Chiswick High Road, London, W4 5YF.

Statutory accounts for the year ended 30 June 2010 were approved by theBoard ofDirectors on 5 August 2010 and delivered to the Registrar of Companies. Thereport of the auditors on those accounts was unqualified, did not containanemphasis of matter paragraph and did not contain any statement underSection498 of the Companies Act 2006. This half-yearly financial report has beenreviewed, not audited.

This condensed consolidated half-yearly financial information for the sixmonthsended 31 December 2010 has been prepared in accordance with the DisclosureandTransparency Rules of the Financial Services Authority and with IAS 34 -'Interim Financial Reporting' as adopted by the European Union. This half-yearlycondensed consolidated financial report should be read in conjunction withtheannual financial statements for the year ended 30 June 2010, which havebeenprepared in accordance with IFRS as adopted by the European Union. Exceptasdescribed below, the accounting policies adopted are consistent with thoseofthe annual financial statements for the year ended 30 June 2010, asdescribed inthose financial statements.

Taxes on income in interim periods are accrued using the tax rate thatwould beapplicable to total expected annual earnings.

The following new standards, amendments to standards or interpretations aremandatory for the first time for the financial year beginning 1 July 2010although they are not considered to be applicable for the Group at thistime:

 * Amendment to IAS 32, 'Financial instruments: Presentation', - classification of rights issues. The amendment addresses the accounting for rights issues (rights, options or warrants) that are denominated in a currency other than the functional currency of the issuer. Prior to the amendment, such rights issues were accounted for as derivative liabilities. The amendment states that, if such rights are issued pro rata to an entity's existing shareholders for a fixed amount of any currency, they should be classified as equity, regardless of the currency in which the exercise price is denominated. Effective for annual periods beginning on or after 1 February 2010. * Amendment to IFRS 1, 'First time adoption' - financial instrument disclosures. This amendment provides first-time adopters with the same transition provisions as included in the amendment to IFRS 7 regarding comparative information for the new three-level classification disclosures. Effective for annual periods beginning on or after 1 July 2010. * IFRIC 19, 'Extinguishing financial liabilities with equity instruments'. This interpretation clarifies the accounting when an entity renegotiates the terms of its debt with the result that the liability is extinguished through the borrower issuing its own equity instruments to the lender. A gain or loss is recognised in the profit and loss account based on the fair value of the equity instruments compared to the carrying amount of the debt. Effective for annual periods beginning on or after 1 July 2010

There are no other new Standards likely to have an effect on the financialstatements for the year ending 30 June 2011.

The following amendments to existing standards and new interpretations havebeenpublished and are mandatory for the Group's future accounting periods. Theyhavenot been early adopted in these financial statements and are not expectedtohave a significant impact on future financial statements when adopted:

 * Improvements to International Financial Reporting Standards 2010 (Effective for annual periods beginning on or after 1 January 2011 subject to endorsement by the European Union); * IAS 24 (Revised), Related party disclosures (Effective for annual periods beginning on or after 1 January 2011 subject to endorsement by the European Union); * IFRS 9, Financial Instruments (Effective for annual periods beginning on or after 1 January 2013 subject to endorsement by the European Union); * IFRIC 14 (Amendment), IAS 19 Prepayments of a minimum funding requirement (Effective for annual periods beginning on or after 1 January 2011).




2. Segmental information

Antisoma's operating segments are being reported based on the financialinformation provided to the Senior Management Team, which is used to makestrategic decisions. The Senior Management Team are of the opinion thatunderIFRS 8 - 'Operating segments' the Group has only one operating segment,beingdrug development.

The Senior Management Team assesses the performance of the operatingsegment onfinancial information which is measured and presented in a mannerconsistentwith that in the financial statements.

3. Impairment of intangible assets and goodwill

During the six month period ending 31 December 2010 Novartis announced thatitwas ceasing further development of the product ASA404. Under IAS 36, thecessation of further development is considered to be an indication that theintangible assets may be impaired.

Impairment reviews have been performed on the goodwill and intangibleassetsassociated with the product where development has ceased in order todeterminethe recoverable amounts of the assets, the recoverable amount being thehigherof value in use and the fair value of the asset less the costs to sell.Whendevelopment of a product is discontinued, management is of the opinion thatthevalue in use is nil.

Consequently, an impairment of GBP4.2 million has been made to impair thecarryingvalue of such intangible assets to GBPnil. The impairment has beenrecordedwithin research and development expenses.

As a result of the announcement made on the 31 January 2011 thatdevelopment ofAS1413 would stop and the phase II trial of AS1411 would be halted.Impairmentreviews will be performed on the goodwill and intangible assets associatedwiththese products. This has not been reflected in the results because it is apostbalance sheet event. The Group estimates that an impairment ofapproximatelyGBP54.3 million will be booked in the accounts for the year ended 30 June2011;however, a full analysis will be required (see note 8).



--------------------------------------------------------------------------- 6 months ended 6 months 31 Dec ended Year ended 2010 31 Dec 2009 30 June 2010 GBP'000 GBP'000 GBP'000---------------------------------------------------------------------------Interest receivable: - On short term deposits 76 130 320 - On cash and cash equivalents 10 150 90 Net foreign exchange gains on financingactivities (15) 1,275 1,268---------------------------------------------------------------------------Total 71 1,555 1,678--------------------------------------------------------------------------- 5. Loss per ordinary share ------------------------------------------------------------------------- 6 months 6 months ended ended Year ended 31 Dec 31 Dec 30 June 2010 2009 2010------------------------------------------------------------------------- Loss for the period (GBP'000) (15,380) (18,280) (18,652) Weighted average number of shares ('000) 630,810 616,105 621,937------------------------------------------------------------------------- Basic loss per ordinary share (2.4)p (3.0)p (3.0)p-------------------------------------------------------------------------


In the six months ended 31 December 2010, the six months ended 31 December2009and the year ended 30 June 2010, the Group had no dilutive potentialordinaryshares in issue because it was loss making.

6. Principal risks and uncertainties

The principal risks and uncertainties which could impact the Group's long-termperformance are not expected to change in the next six months and remainthosedetailed on page 8 of the Group's 2010 Annual Report and FinancialStatements, acopy of which is available on the Group's website: www.antisoma.com. Therisksand uncertainties relate to clinical and regulatory risk, competition andintellectual property risk, economic risk and financial risk.

7. Related party disclosures

* Three of the Directors of the Company purchased new ordinary shares of1p each, having elected to take a part of their fees in newly issuedshares of the Company. * Kudos Independent Financial Services Limited ('KIFS') is a relatedparty because Michael Pappas is a Director of the Company and of KIFS. KIFS advises the Company in relation to pensions, permanent health insuranceand life assurance and derives its income by way of commission from the suppliers of these products. No income is derived directly from theCompany. * Leventis Holding SA ('LH') is a related party as it was a substantial shareholder in Antisoma plc during the year under review. MichaelPappas is the representative of LH on the Board of Antisoma plc.

8. Post balance sheet event

As announced on 31( )January 2011 the ACCEDE phase III trial of AS1413(amonafide) in secondary acute myeloid leukaemia (secondary AML) did notmeetits primary endpoint. As a result a decision was taken by the Board thatitwould cease further development of AS1413. An ongoing phase IIb trial ofAS1411in AML was also stopped.

Under IAS 36, the cessation of further development is considered to be anindication that the associated goodwill and intangible assets will beimpaired. However, the results are considered to be a non-adjusting eventinaccordance with IAS 10 and not informing of the conditions at the periodend andtherefore no impairment has been shown in the 31 December 2010 half-yearlyfinancial report.

Impairment reviews will be performed on the goodwill and intangible assetsassociated with products where development has ceased in order to determinetherecoverable amounts of the assets, the recoverable amount being the higherofvalue in use and the fair value of the asset less the costs to sell. Whendevelopment of a product is discontinued, management is of the opinion thatthevalue in use is nil.

The Group estimates that an impairment of approximately GBP54.3 millionwill bebooked in the accounts for the year ended 30 June 2011; however, a fullanalysiswill be required.

Statement of Directors' Responsibilities

The Directors confirm that half-yearly financial report has been preparedinaccordance with IAS 34 as adopted by the European Union, and that theinterimmanagement report herein includes a fair review of the information requiredbyDTR 4.2.7 and DTR 4.2.8, namely:

 * An indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and * Material related party transactions in the first six months and any material changes in the related party transactions described in the last Annual Report.

The Directors of Antisoma plc are listed in the Antisoma plc 2010 AnnualReport.A list of current Directors is maintained on the Antisoma plc website:www.antisoma.com.

By order of the Board

Glyn EdwardsChief Executive8 February 2011 Eric DoddChief Financial Officer8 February 2011

Independent review report to Antisoma plc

Introduction

We have been engaged by the company to review the half-yearly financialreportin the half-yearly financial report for the six months ended 31 December2010which comprises the Consolidated Income Statement, the ConsolidatedStatement ofOther Comprehensive Income, the Consolidated Statement of FinancialPosition,the Consolidated Statement of Cash Flows, the Consolidated Statement ofChangesin Equity and related notes. We have read the other information containedin thehalf-yearly financial report and considered whether it contains anyapparentmisstatements or material inconsistencies with the information in thecondensedset of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has beenapprovedby, the directors. The directors are responsible for preparing the half-yearlyfinancial report in accordance with the Disclosure and Transparency Rulesof theUnited Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group areprepared in accordance with IFRSs as adopted by the European Union. Thecondensed set of financial statements included in this half-yearlyfinancialreport has been prepared in accordance with International AccountingStandard34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on thecondensedset of financial statements in the half-yearly financial report based onourreview. This report, including the conclusion, has been prepared for andonlyfor the company for the purpose of the Disclosure and Transparency Rules oftheFinancial Services Authority and for no other purpose. We do not, inproducingthis report, accept or assume responsibility for any other purpose or toanyother person to whom this report is shown or into whose hands it may comesavewhere expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, 'Review of Interim Financial InformationPerformed by The Independent Auditor of the Entity' issued by the AuditingPractices Board for use in the United Kingdom. A review of interimfinancialinformation consists of making enquiries, primarily of persons responsibleforfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conductedinaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would becomeawareof all significant matters that might be identified in an audit.Accordingly, wedo not express an audit opinion.


Conclusion

Based on our review, nothing has come to our attention that causes us tobelievethat the condensed set of financial statements in the half-yearly financialreport for the six months ended 31 December 2010 is not prepared, in allmaterial respects, in accordance with International Accounting Standard 34asadopted by the European Union and the Disclosure and Transparency Rules oftheUnited Kingdom's Financial Services Authority.


PricewaterhouseCoopers LLPChartered Accountants8 February 2011Reading


(a) The maintenance and integrity of the Antisoma website is theresponsibilityof the directors; the work carried out by the auditors does not involveconsideration of these matters and, accordingly, the auditors accept noresponsibility for any changes that may have occurred to the financialstatements since they were initially presented on the website.

(b) Legislation in the United Kingdom governing the preparation anddissemination of financial statements may differ from legislation in otherjurisdictions.







This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright andother applicable laws; and

(ii) they are solely responsible for the content, accuracy andoriginality of the information contained therein.

Source: Antisoma plc via Thomson Reuters ONE

[HUG#1486343]

Enquiries:

Antisoma plc
+ 44 (0) 203 249 2127

Glyn Edwards
Chief Executive Officer

Eric Dodd
Chief Financial Officer

Daniel Elger
VP, Marketing & Communications



Buchanan Communications
+44 (0)20 7466 5000

Lisa Baderoon
Jessica Fontaine

MarketWire

Comment on this story

Share