1997, An "Annus Horribilis" for Celltech

UK-based biotechnology company Celltech has had what the companyeuphemistically described on announcing its full-year results ended September 30, 1997, as "a year of mixed fortunes." More directly, finance director Peter Allen told AFX News that "it has been an annus horribilis," following the failure of the company's septic shock study with Bayer's BAYX-1351 (Marketletters passim).

Celltech made a pretax loss of L12 million ($19.8 million), due principally to increased R&D spending of L20.9 million, up 20.1% on last year. Nevertheless, the company remains upbeat and expects to trim its losses to modest levels over the next two years.

Such enthusiasm is based on the company's sound financial position (cash at year-end was L36.3 million), reinforced by milestone payments and royalties on patented Celltech technology. Licensing revenues rose sharply to L4.3 million from L1 million last year, predominantly from sales of Centocor's ReoPro (abciximab).