27.10.2005 – 09:28

Zeltia and PharmaMar

Zeltia and PharmaMar: R&D Spend Increases by 10% in the 9 Months to September 2005

Madrid (ots/PRNewswire)

Zeltia S.A. (ZEL SM; ZEL.MC), Spanish
pioneer and leader in biotechnology, announces 9 months results to
September 2005. Research and Development spend amounted to EUR31
million during this period, a 10% increase year on year. 83% of this
amount was accounted for by PharmaMar.

Notable advances at PharmaMar in the last quarter include the
initiation of clinical trials for PM02734, PharmaMar's sixth compound
as well as the programme of Phase I/II combination trials of Aplidin
in several solid and haematological indications.

One consequence of applying International Financial Reporting
Standards (IFRS) is that R&D expenditure is no longer considered an
investment and accounted for as an asset but is rather accounted for
as an expense in the quarter in which it is incurred. Consequently,
higher R&D spend translates into a greater expense on the income
statement and net profit is lower.

Net revenues to 30 September amounted to EUR58 million, 8% lower
year on year. However, gross profit remains stable at EUR35 million
(61% of sales vs 57% in 2004) due to the continuing capacity of the
consumer chemicals companies to control costs.

Net loss to September 2005 was EUR21.6 million compared to EUR15.5
million in September 2004. However, the 2004 figure included an
extraordinary gain of EUR4.7 million derived from the sale of real
estate assets.

Net cash (Cash + Cash Equivalents - Short Term Debt) at
September 2005 was EUR102 million.

Isabel Lozano
    CEO
    PHARMAMAR, S.A.
    C/ Reyes, 1.Colmenar Viejo
    Madrid
    Telephone: +34-91-846-60-00
    Catherine Moukheibir
    Head of Capital Market
    Strategy
    ZELTIA, S.A.
    José Abascal,2.Madrid
    Telephone: +34-91-444-45-00
    M(a) Luisa de Francia
    CFO
    ZELTIA, S.A.
    José Abascal, 2. Madrid
    Telephone: +34-91-444-45-00

Contact:

Isabel Lozano, CEO, PHARMAMAR, S.A., C/ Reyes, 1.Colmenar Viejo,
Madrid, Telephone: +34-91-846-60-00; Catherine Moukheibir, Head of
Capital Market, Strategy, ZELTIA, S.A., José Abascal,2.Madrid,
Telephone: +34-91-444-45-00; M(a) Luisa de Francia, CFO, ZELTIA,
S.A., José Abascal, 2. Madrid, Telephone: +34-91-444-45-00