16 December 2011

Reliance GeneMedix plc

Results for the six months ended 30 September 2011

Reliance GeneMedix plc (the "Company"), the AIM listed biopharmaceutical company, which is a subsidiary of Reliance Life Sciences Pvt. Ltd.  ("Reliance Life Sciences"), announces its unaudited interim results for the six month period ended 30 September 2011.

Related party transactions

Note 9 to the interim results describes the related party transactions that have occurred during the period. The independent directors of the Company, namely Dr. R. A. Mashelkar, Mr Dileep Choksi and Mr Atul Dayal consider, having consulted with the Company's Nominated Adviser, that the terms of these related party transactions are fair and reasonable insofar as the Company's shareholders are concerned.

In accordance with AIM Rule 26, a copy of this announcement is available on the Company's website at www.genemedix.com.

ENQUIRIES:

Reliance GeneMedix plc                                                                           Tel: +353 57 932 3572

Vinay Ranade, Chief Executive Officer

Deloitte Corporate Finance                                                                       Tel: 020 7936 3000

Jonathan Hinton, John Ball                                                                                      

Lothbury Financial Services Limited                                                        Tel: 020 7868 2567

Michael Padley

Chief Executive Officer's statement

We are pleased to present the Company's results for the six months ended 30 September 2011.

Background

The Company is a globally-focused biopharmaceutical company, specialising in the development and manufacture of high-quality, cost-effective treatments for some of the world's most serious diseases. Since February 2007, the Company has been a subsidiary of Reliance Life Sciences. The Company is working towards the development, manufacture and marketing of a portfolio of biosimilar recombinant therapeutic proteins for global markets.

Business overview

After withdrawing the marketing authorisation application sent to the European Medicines Agency (EMA), the Company has consulted EMA on various aspects of the development programme of Erythropoietin (EPO) and has since received EMA's Scientific Advice. The Company is in the process of finalising the additional studies to complete this development programme. The Company continues to supply EPO to the Indian market and has taken steps to register EPO in other countries, including Iran and Brazil.

Financial review

Operating losses of €1.016 million for the period (2010: €1.04 million) are in line with budget and reflect planned expenditure. The Company continues to exercise strict control over costs and to optimise management of its cash flow.

During the period the Company capitalised development expenditure of €0.835 million (2010: €1.27 million) incurred on the EPO development programme. Current assets and current liabilities are in line with the level of operations of the Company. Despite the challenging external environment, the Company has been able to sustain its product development programmes as a result of the financial support it continues to receive from Reliance Life Sciences.

Consolidated Income Statement

For the six months ended 30 September 2011

Consolidated Balance Sheet 

As at 30 September 2011

Consolidated Statement of Changes in Equity

For the six months ended 30 September 2011

Consolidated Cash Flow Statement

For the six months ended 30 September 2011

Notes to the Consolidated Interim Financial Statements

1.   General information

These financial statements are the unaudited consolidated interim financial information of Reliance GeneMedix plc, a public limited company incorporated and domiciled in the United Kingdom, with its registered office at 8th Floor, 105 Wigmore Street, London, W1U 1QY, UK , and its subsidiaries (together, the "Group") for the six months ended 30 September 2011.

The Company is a subsidiary of Reliance Life Sciences Private Limited, India.

The Company has its primary listing on the Alternative Investment Market (AIM) of the London Stock Exchange.

The condensed consolidated financial information for the six months ended 30 September 2011 has been reviewed, not audited. 

The condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2011 were approved by the Board of Directors on 31 August 2011 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.

The condensed consolidated financial information for the six months ended 30 September 2011 will be made available at the registered office of the Company and on the Company's website: www.genemedix.com.

2.   Basis of preparation

This condensed consolidated interim financial information for the six months ended 30 September 2011 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, 'Interim Financial Reporting' as adopted by the European Union. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2011, which have been prepared in accordance with IFRS as adopted by the European Union.

3.   Principal risks

The principal risks and uncertainties which could impact the Group have not changed since 31 March 2011. A detailed explanation of those risks and uncertainties can be found in the Directors' Report section of the Annual Report for the year ended 31 March 2011.

4.   Segment information

The Directors are of the opinion that under IAS 8 - 'Operating Segments' the Group has only one business segment, being drug development (EPO) and there was turnover of Euro 0.190 million in the six months to 30 September 2011 (Euro 0.110 million in 2010).

Revenue earned during the period is from the Group's only customer, Reliance Life Sciences, a related party.

Segmental geographic information is set out below:

Non-current assets consist of property, plant and equipment, intangible assets and investments

5.   Revenue

During the period the Company continued its sales to the Indian market on pricing consistent with last year. The attractive pricing offered reflects the current competitiveness of the Indian market.

6.   Analysis of research and development costs

7.   Cash used in operations

8.   Loss per share

The earnings and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:

In the six months ended 30 September 2011, the Group had no dilutive potential ordinary shares in issue because it was loss making.

9.   Related party transactions

Trading transactions

During the period, the Company made sales of EPO worth €190,400 to Reliance Life Sciences.

The balance due from Reliance Life Sciences as at 30 September 2011 was €918,144 (€349,674 in 2010).

During the period, the Company received clinical research services worth €62,409.68 from Reliance Life Sciences and the balance due to Reliance Life Sciences as at 30 September 2011 was €833,132.80 (€408,918.96 in 2010).

During the period, clinical research services worth €4,033.92 were received from Reliance Clinical Research Services Sp. z o.o., Poland ("RCRSS"), a subsidiary of Reliance Life Sciences. The Company made a payment of € 6,359.57 to RCRSS and the balance due to RCRSS as at 30 September 2011 was €114,320.66 (€112,036 in 2010).

Loans from related parties

During the period, the Company received an amount of €1.308 million from Reliance Life Sciences as a loan. The outstanding balance of the loan including interest as at 30 September 2011 was € 12.277 million (€7.926 million in 2010).  Details of this loan were announced on 19 July 2011.

10.   Events occurring after the balance sheet date

There are no events after 30 September 2011 that require disclosure or adjustment to these financial statements.

11.  Statement of Directors' Responsibilities

The directors confirm that this condensed consolidated interim financial information has been prepared in accordance with IAS 34 as adopted by the European Union and that the interim management report includes a fair review of the information required by the DTR 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 Reliance GeneMedix plc are listed in the Annual Report for 31 March 2011. A list of current directors is maintained on the Reliance GeneMedix plc website: www.genemedix.com.

By order of the Board

Vinay Ranade

Chief Executive Officer

16 December 2011