Amrad maintains strong cash position

Amrad (ASX:AML) has reported a healthy cash position of AUD$51.7 million and an operating loss of AUD$1.622 million for the year ended 30 June 2005, down from $3.523 million last year.

"We're happy -- it's great for us that our programs are progressing towards the clinic and because of the revenues of our licensing deals we are able to maintain a strong cash position. That means we don't have to worry about how to move the programs forward and can look at other opportunities as they arise," said Amrad CEO Dr Andrew Nash.

Nash said the key contributors to Amrad's cash position were milestone-based revenues received from both Merck & Co and Serono, the demerger of Avexa, improved return on funds under management and continued cost control.

Amrad's exclusive licence agreement with Merck, which aims to develop new antibody based treatments for asthma, delivered milestone revenues for the 2005 year of US$3 million and cumulative project revenues of US$14 million.

"Merck has selected the lead antibody for preclinical development and we would expect to receive more than one milestone payment in the next financial year," said Nash.

"Our main focus is to move our portfolio of projects forward. Our strong cash position does place us in the ideal situation for acquisitions, the in-licensing and further partnering projects."

Avexa demerger

The demerger of the Amrad anti-infectives business was successfully concluded during the first half-year with Avexa being listed as a stand alone entity on the ASX on 23 September 2004. Amrad has retained a 15.3 per cent investment in Avexa at a cost of $5.8 million, and has adjusted the carrying value of the investment at year end to reflect the closing Avexa share price as at 30 June 2005. Amrad reported a consolidated loss of $2.7 million prior to demerger and write down of Amrad's investment in Avexa.