In 2008, net financial income amounted to EUR5.5 million compared to EUR5.2 million in 2007 and represents mainly the returns on the financial investments of the Group's cash, cash equivalents and financial instruments.
The income tax expense incurred by NicOx in 2008 relates to its subsidiaries and amounted to EUR0.1 million, identical to 2007.
The net loss reached EUR73.9 million in 2008 compared to EUR32.1 million in 2007. As indicated above, this very significant increase in net loss in 2008 is due to the strong increase of research and development expenses associated with naproxcinod and from the considerable decrease in the revenues recognized in 2008.
Balance sheet items
The indebtedness incurred by NicOx is mainly short-term operating debt. On December 31, 2008, the Company's current liabilities amounted to EUR21.2 million, including EUR16.2 million in accounts payable to suppliers and external collaborators, EUR2.1 million in accrued compensation for employees, EUR1.5 million in taxes payable, EUR1.1 million in deferred revenues due to payments received under collaboration agreements and EUR0.3 million for other liabilities.
In 2008, NicOx granted to Archimica a loan of EUR6.0 million as part of the financial terms of the manufacturing and supply agreement with this company. Following the termination of the agreement in November 2008, EUR5.0 million out of the EUR6.0 million loan were forgiven in accordance with the terms of the agreement and Archimica remains liable to NicOx, as of December 31, 2008, of an amount of EUR0.9 million with regards to this loan. Considering there is a risk for the recovery of this sum, the Company has decided to depreciate partially this asset and has booked as of December 31, 2008 a contingency provision for an amount of EUR0.5 million.
On December 31, 2008, the Co
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