Company Announcement no. 13/2011


To: NASDAQ OMX Copenhagen A/S
Hørsholm, Denmark, 9 November, 2011



Veloxis Pharmaceuticals announces plans to accelerate European MAA submission
and to commercialize LCP-Tacro™ through its own infrastructure in the U.S.



Company announces financial results for the first nine months of 2011 in line
with expectations





Highlights:


-- Based on the data from its first Phase III trial, Study 3001, and its
extensive Phase II program, Veloxis plans to accelerate filing activities
for its lead product candidate, LCP-Tacro™, in Europe and submit its
Marketing Authorization Application to the European authorities in
mid-2012. LCP-Tacro™ successfully demonstrated non-inferiority on
predefined primary efficacy and safety endpoints compared to tacrolimus
(Prograf®; Astellas Pharma Inc.) in Study 3001 in stable kidney transplant
patients.


-- The company continues to actively enroll patients in the second Phase III
trial of LCP-Tacro™, Study 3002, and is on target to complete enrollment in
1Q 2012.


-- Veloxis plans to build and develop its own commercial infrastructure in the
U.S. to support the launch and selling of LCP-Tacro™ in the key U.S.
Transplant market. US commercialization costs will likely require USD 50-60
million (DKK 250-350 million).


-- Veloxis has been granted a U.S. patent for the LCP-Tacro™ product
formulation: U.S. Patent No. 7,994,214 B2. This U.S. patent is in addition
to previously issued patents on the MeltDose® technology required to
manufacture LCP-Tacro™. Veloxis also holds granted LCP‐Tacro™ product
patents in Europe, Mexico, China, India and Australia.


-- Veloxis reported a net loss of DKK 184.4 million for the first nine months
of 2011 compared to a net loss of DKK 212.8 million for the same period in
2010. The result is in line with expectations and the company maintains its
full year outlook.


-- For the first nine months of 2011, Veloxis' research and development costs
amounted to DKK 160.3 million compared to DKK 162.1 million during the same
period in 2010.


-- On 30 September, 2011, Veloxis had cash and cash equivalents of DKK 348.3
million.


“After considerable analysis of the U.S. transplant market structure, we have
determined that the approach that would optimize shareholder return would be
for Veloxis to commercialize LCP-Tacro™ through its own infrastructure in the
very large and valuable U.S. Transplant marketplace,” said John Weinberg, SVP
Commercial Operations. “The concentrated nature of the Transplant market makes
this an area ideally suited to commercialization through a dedicated specialty
marketing and sales team and we look forward to making this important new
therapeutic option available to transplant patients and physicians.”


A conference call will be held tomorrow, 10 November, 2011 at 3:00 PM CET
(Denmark); 2:00 PM GMT (London), 9:00 AM ET (New York), 6:00 AM PT (San
Francisco).


To access the live conference call, please dial one of the following numbers:

+45 32 72 76 25 (Denmark)

+44 (0) 1452 555 566 (UK)

+1 631 510 7498 (USA)

Access code 23519164


Following the conference call, a recording will be available on the company's
website www.veloxis.com.


Outlook for 2011

Veloxis maintains its 2011 outlook announced in the annual report for 2010,
published in March 2011, with an operating loss of DKK 250-280 million and a
net loss of DKK 250-280 million. The Company's position of cash and cash
equivalents as at 31 December, 2011 is expected to be in the range of DKK
250-300 million.


Research & development update


LCP-Tacro™ Regulatory Strategy


Based upon the favorable results of the 3001 Study, and the totality of an
extensive Phase I, II and III clinical safety, efficacy and PK program, the
company announces the intent to file an MAA with the EMA in mid-2012. This
acceleration enables a potential to commercialize LCP-Tacro™ in Europe
approximately one year in advance of previously planned. The U.S. submission
remains unchanged with a target for filing in 1H2013.


LCP-Tacro™ in kidney transplant patients (stable patients, Study 3001)


The study was completed in June 2011, and positive data was released. Data from
this study was presented at the European Society for Organ Transplantation in
September in Glasgow. Further data from this study will be presented at the
American Society of Nephrology Renal Week on November 10.


The study successfully demonstrated non-inferiority in predefined endpoints
compared to tacrolimus (Prograf®; Astellas Pharma Inc.) in the Phase III trial.
The Phase III Open-label conversion (switch) study in 326 stable kidney
transplant recipients, with Prograf® as the comparator, met all its primary
efficacy and safety endpoints. The study also showed a trend towards superior
rejection rates based on central laboratory pathology assessment with rates of
0.6% for LCP-Tacro™ and 3.1% for Prograf® (p=0.214).






LCP-Tacro™ in kidney transplant patients (de novo patients, Study 3002)


The clinical Phase III program in de novo kidney transplant patients was
initiated in October 2010. Patient enrollment is ongoing, and will include
approximately 540 patients.


The Veloxis Study 3002 is a randomized, double-blind, multicenter study that
compares once-daily LCP-Tacro™ against twice-daily Prograf® in de novo adult
kidney transplant patients. The primary endpoint of the study, a composite
endpoint (BPAR, graft failure, loss to follow up or death), will be evaluated
after a 12-month treatment period to demonstrate the non-inferiority of
LCP-Tacro™ compared to Prograf®. Secondary endpoints will include safety,
tolerability and renal function assessments. The study will be conducted at
approximately 100 transplant centers, primarily in the U.S and Europe. Patients
will participate in a 12-month extension period on treatment for follow-up
safety assessments.





Financial
Highlights

YTD YTD Q3 Q3 Year
2011 2010 2011 2010 2010
DKK'000 DKK'000 DKK'000 DKK'000 DKK'000
--------------------------------------------------------------------------------

Income Statement
Revenue - 1,496 - 3 1,496
Research and (160,291) (162,123) (43,079) (66,150) (210,426)
development costs
Administrative (36,429) (38,759) (12,568) (12,829) (52,198)
expenses
One-off - (10,894) - - (10,894)
restructuring
cost
Operating loss (196,720) (210,280) (55,647) (78,976) (272,022)
Net financial 11,521 (1,220) 11,363 (695) (759)
income /
(expenses)
Loss before tax (185,199) (211,500) (44,284) (79,671) (272,781)
Tax for the period 820 (1,257) 1,120 (862) (1,425)
Net loss for the (184,379) (212,757) (43,164) (80,533) (274,206)
period
--------------------------------------------------------------------------------

Balance Sheet
Cash and cash 348,252 134,022 348,252 134,022 531,519
equivalents
Total assets 370,865 163,651 370,865 163,651 562,906
Share capital 452,543 56,568 452,543 56,568 452,543
Total equity 322,516 111,902 322,516 111,902 498,238
Investment in 1,858 1,035 602 441 2,583
property, plant
and equipment
--------------------------------------------------------------------------------

Cash Flow
Statement
Cash flow from (182,498) (192,579) (60,481) (67,109) (238,148)
operating
activities
Cash flow from (195,879) (1,110) 25,878 (281) (2,658)
investing
activities
Cash flow from (4,277) (4,506) (1,445) (2,059) 440,014
financing
activities
Cash and cash 348,252 134,022 348,252 134,022 531,519
equivalents at
period end
--------------------------------------------------------------------------------

Financial Ratios
Basic and diluted (0.41) (3.76) (0.10) (1.42) (2.84)
EPS
Weighted average 452,542,480 56,567,810 452,542,480 56,567,810 96,707,708
number of shares
Average number of 52 60 51 51 59
employees (FTEs)
Assets/equity 1.15 1.46 1.15 1.46 1.13
--------------------------------------------------------------------------------


The interim report is unaudited.




Revenue

For the first nine months of 2011 Veloxis had no revenue compared to DKK 1.5
million in revenues in the same period of 2010. Revenue in 2010 consisted of
payments under Veloxis' collaboration agreements.


Research and development costs

For the first nine months of 2011, Veloxis' research and development costs
amounted to DKK 160.3 million compared to DKK 162.1 million during the same
period in 2010. Research and development costs are mainly attributable to the
two phase III trials in LCP-Tacro™. In the period cost is included to the
finalization of the phase III study in kidney transplant patients (stable
patients, Study 3001) along with costs associated with the ongoing phase III
study in kidney transplant patients (de novo patients, Study 3002).


Administrative expenses

For the first nine months of 2011, Veloxis' administrative cost amounted to DKK
36.4 million compared to DKK 38.8 million during the same period in 2010.


One-off restructuring cost

One-off restructuring cost mainly includes salary payments to former employees
in connection with the reduction in headcount in January 2010.


Compensation costs

For the first nine months of 2011, a total of DKK 8.7 million was recognized as
share-based compensation. The cost is included in R&D and G&A. The comparable
cost for 2010 was DKK 7.7 million.


In the third quarter of 2011, a total of 324,323 warrants were granted to
members of the Executive Management at a strike price of DKK 1.03, while other
employees were granted a total of 1,278,916 warrants at a strike price of DKK
1.03. In the third quarter of 2011, a total of 246,337 warrants have been
cancelled and a total of 145,204 warrants have expired.


As of 30 September, 2011, there were a total of 29,792,113 warrants outstanding
at an average strike price of DKK 3.1. Members of the Board of Directors held
828,976 warrants at an average strike price of DKK 7.2. Members of the
Executive Management held 9,112,445 warrants at an average strike price of DKK
2.1, while other current and former employees held 19,850,692 warrants at an
average strike price of DKK 3.3.


Please refer to Veloxis' latest annual report for additional details on the
Company's warrant programs.


Operating loss

Veloxis' operating loss for the first nine months of 2011 was DKK 196.7 million
compared to DKK 210.3 million in the corresponding period of 2010.


Financial income

During the first nine months of 2011, the Company recognized net financial
income of DKK 11.5 million compared to net financial expenses of DKK 1.2
million in the corresponding period of 2010. The gain in 2011 is mainly
attributable to unrealized currency gains.



Net loss

Veloxis' net loss for the first nine months of 2011 was DKK 184.4 million
compared to DKK 212.8 million in the corresponding period of 2010.


Cash flow

As per 30 September, 2011, the balance sheet reflects cash and cash equivalents
of DKK 348.3 million compared to DKK 531.5 million as per 31 December, 2010.
This represents a decrease of DKK 183.2 million primarily related to the
Company's operating activities for the period.


Balance sheet

As per 30 September, 2011, total assets were DKK 370.9 million compared to DKK
562.9 million at the end of 2010.


Shareholders' equity equalled DKK 322.5 million as of 30 September, 2011,
compared to DKK 498.2 million at the end of 2010.







Accounting policies

The interim report is prepared in compliance with International Accounting
Standard No. 34 (IAS 34), “Interim Financial Reporting” and in accordance with
the NASDAQ OMX Copenhagen's financial reporting requirements for listed
companies.


There have been no changes in accounting policies used for the interim report
compared to the accounting policies used in the preparation of Veloxis
Pharmaceuticals group's annual report for 2010.


Financial review

Veloxis reports its financial statements in Danish Kroner (DKK), which is the
functional currency of the Company and the group. Solely for the convenience of
the reader, this Interim Report contains a conversion of certain DKK amounts
into Euro (EUR) at a specified rate. These converted amounts should not be
construed as representations that the DKK amounts actually represent such EUR
amounts or could be converted into EUR at the rate indicated or at any other
rate. Unless otherwise indicated, conversion herein of financial information
into EUR has been made using the Danish Central Bank's spot rate on 30
September, 2011, which was EUR 1.00 = DKK 7.4417.





Grant of warrants





At a board meeting held on 9 November, 2011, the Board of Directors decided to
issue 200,000 warrants to employees of Veloxis.


By application of the Black-Scholes formula, the market value of the warrant
program can be calculated as DKK 0.41 per warrant assuming an exercise price of
DKK 1.00, based on an interest rate of 0.92% and a volatility of the Company's
shares of 51%.


The volatility is based on the Company's historical share prices since its IPO
in November 2006.







For more information, please contact:


John D. Weinberg
Johnny Stilou

SVP, Commercial Operations and Investor Relations CFO

Mobile: +1 908 304 3389
Mobile: +45 2055 3852

Email: [email protected]
Email: [email protected]













The forward looking statements and targets contained herein are based on
Veloxis Pharmaceuticals A/S' management's current view and assumptions. Such
statements involve known and unknown risks and uncertainties that may cause
actual results, performance or events to differ materially from those
anticipated herein. Veloxis Pharmaceuticals A/S expressly disclaim any
obligation or undertaking to update or revise any forward looking statements,
targets or estimates contained in this interim report to reflect any change in
events, conditions, assumptions, or circulations on which any such statements
are based unless required by applicable law.








About Veloxis Pharmaceuticals A/S (Veloxis)

Based in Hørsholm, Denmark, with an office in New Jersey, Veloxis is a
specialty pharmaceutical company. Clinical development is the core of Veloxis'
efforts to develop a product portfolio which includes the Company's lead
product candidate, LCP-Tacro™, for immunosuppression, specifically organ
transplantation, and products to combat certain cardiovascular diseases.
Veloxis adapts new technologies on a fast commercial timetable. Veloxis'
unique, patented delivery technology, MeltDose®, can improve absorption and
bioavailability - at low-scale up costs - not only for a broad spectrum of
drugs already on the market but also for new chemical entities. Veloxis has a
lipid-lowering product, Fenoglide®, currently on the U.S. market and a
diversified near and medium-term pipeline with three clinical stage product
candidates and a number of projects in preclinical development. Veloxis is
listed on the NASDAQ OMX Copenhagen under the trading symbol OMX: VELO. For
further information, please visit www.veloxis.com.












Executive Management's and the Board of Directors' Statement on the Interim
Report











The Executive Management and the Board of Directors have considered and adopted
the Interim Report of Veloxis Pharmaceuticals A/S.


The Interim Report is prepared in accordance with International Accounting
Standard No. 34 (IAS 34), “Interim Financial Reporting” and additional Danish
disclosure requirements for financial reporting of listed companies.


We consider the applied accounting policies to be appropriate and, in our
opinion, the Interim Report gives a true and fair view of the assets and
liabilities, financial position, results of the operation and cash flow of the
group for the period under review. Furthermore, in our opinion the management
review includes a fair review of the development and performance of the
business and the financial position of the group, together with a description
of the material risks and uncertainties the group faces. The group does not
face any material risks or uncertainties relating to the financial statements.








Hørsholm, 9 November, 2011



Executive Management



Dr. William J. Polvino Peter G. Nielsen

President and CEO Executive Vice President



Board of Directors



Kim Björnstrup Thomas Dyrberg
Kurt Anker Nielsen

(Chairman) (Deputy Chairman)



Anders Götzsche Mette Kirstine Agger
Ed Penhoet







Financ
ial
Highl
ights
Quarte
rly
Numbe
rs in
DKK

Q3 Q2 Q1 Q4 Q3 Q2 Q1
2011 2011 2011 2010 2010 2010 2010
DKK'000 DKK'000 DKK'000 DKK'000 DKK'000 DKK'000 DKK'000
--------------------------------------------------------------------------------

Income
State
ment
Revenu - - - - 3 871 623
e
Resear (43,079) (64,951) (52,261) (48,302) (66,150) (39,625) (56,349)
ch and
devel
opment
costs
Admini (12,568) (12,137) (11,724) (13,439) (12,829) (12,773) (13,157)
strati
ve
expen
ses
One-of - - - - - - (10,894)
f
restr
ucturi
ng
cost
Operat (55,647) (77,088) (63,985) (61,741) (78,976) (51,527) (79,777)
ing
loss
Net 11,363 2,008 (1,850) 461 (695) (313) (212)
finan
cial
incom
e /
(expe
nses)
Loss (44,284) (75,080) (65,835) (61,281) (79,671) (51,840) (79,989)
befor
e tax
Tax 1,120 (300) - (168) (862) (395) -
for
the
perio
d
Net (43,164) (75,380) (65,835) (61,448) (80,533) (52,235) (79,989)
loss
for
the
perio
d
--------------------------------------------------------------------------------

Balanc
e
Sheet
Cash 348,252 402,213 462,319 531,519 134,022 205,136 261,918
and
cash
equiv
alents
Total 370,865 426,860 490,578 562,906 163,651 245,345 302,353
asset
s
Share 452,543 452,543 452,543 452,543 56,568 56,568 56,568
capit
al
Total 322,516 363,606 436,200 498,238 111,902 189,958 240,383
equit
y
Invest 602 635 621 1,548 441 101 493
ment
in
prope
rty,
plant
and
equip
ment
--------------------------------------------------------------------------------

Cash
Flow
State
ment
Cash (60,481) (56,621) (65,396) (45,568) (67,109) (55,659) (69,812)
flow
from
opera
ting
activ
ities
Cash 25,878 77,845 (299,602) (1,548) (281) (246) (583)
flow
from
inves
ting
activ
ities
Cash (1,445) (1,426) (1,407) 444,519 (2,059) (1,351) (1,095)
flow
from
finan
cing
activ
ities
Cash 348,252 402,213 462,319 531,519 134,022 205,136 261,918
and
cash
equiv
alents
at
perio
d end
--------------------------------------------------------------------------------

Financ
ial
Ratio
s
Basic (0.10) (0.17) (0.15) (0.64) (1.42) (0.92) (1.41)
and
dilut
ed EPS
Weight 452,542,4 452,542,4 452,542,4 96,707,7 56,567,81 56,567,8 56,567,8
ed 80 80 80 08 0 10 10
avera
ge
numbe
r of
share
s
Averag 51 52 54 54 51 60 69
e
numbe
r of
emplo
yees
(FTEs
)
Assets 1.15 1.17 1.12 1.13 1.46 1.29 1.26
/equit
y
--------------------------------------------------------------------------------



Financ
ial
Highl
ights
Quarte
rly
Numbe
rs in
EUR

Q3 Q2 Q1 Q4 Q3 Q2 Q1
2011 2011 2011 2010 2010 2010 2010
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
--------------------------------------------------------------------------------

Income
State
ment
Revenu - - - - 117 84
e
Resear (5,789) (8,728) (7,023) (6,491) (8,889) (5,325) (7,572)
ch and
devel
opment
costs
Admini (1,689) (1,631) (1,575) (1,806) (1,724) (1,716) (1,768)
strati
ve
expen
ses
One-of - - - - - - (1,464)
f
restr
ucturi
ng
cost
Operat (7,478) (10,359) (8,598) (8,297) (10,613) (6,924) (10,720)
ing
loss
Net 1,527 270 (249) 62 (93) (42) (29)
finan
cial
incom
e /
(expe
nses)
Loss (5,951) (10,089) (8,847) (8,235) (10,706) (6,966) (10,749)
befor
e tax
Tax 150 (40) - (23) (116) (53) -
for
the
perio
d
Net (5,801) (10,129) (8,847) (8,258) (10,822) (7,019) (10,749)
loss
for
the
perio
d
--------------------------------------------------------------------------------

Balanc
e
Sheet
Cash 46,797 54,049 62,125 71,424 18,010 27,566 35,196
and
cash
equiv
alents
Total 49,836 57,361 65,923 75,642 21,991 32,969 40,630
asset
s
Share 60,812 60,812 60,812 60,812 7,601 7,601 7,601
capit
al
Total 43,339 48,861 58,616 66,952 15,037 25,526 32,302
equit
y
Invest 81 85 83 208 59 14 66
ment
in
prope
rty,
plant
and
equip
ment
--------------------------------------------------------------------------------

Cash
Flow
State
ment
Cash (8,127) (7,609) (8,788) (6,123) (9,018) (7,479) (9,381)
flow
from
opera
ting
activ
ities
Cash 3,477 10,461 (40,260) (208) (38) (33) (78)
flow
from
inves
ting
activ
ities
Cash (194) (192) (189) 59,734 (277) (182) (147)
flow
from
finan
cing
activ
ities
Cash 46,797 54,049 62,125 71,424 18,010 27,566 35,196
and
cash
equiv
alents
at
perio
d end
--------------------------------------------------------------------------------

Financ
ial
Ratio
s
Basic (0.01) (0.02) (0.02) (0.09) (0.19) (0.12) (0.19)
and
dilut
ed EPS
Weight 452,542,4 452,542,4 452,542,4 96,707,7 56,567,81 56,567,8 56,567,8
ed 80 80 80 08 0 10 10
avera
ge
numbe
r of
share
s
Averag 51 52 54 54 51 60 69
e
numbe
r of
emplo
yees
(FTEs
)
Assets 1.15 1.17 1.12 1.13 1.46 1.29 1.26
/equit
y
--------------------------------------------------------------------------------

Statements of comprehensive income



Income Statement Consolidated

(DKK'000) YTD YTD Q3 Q3 Year
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------

Revenue - 1,496 - 3 1,496
Research and (160,291) (162,123) (43,079) (66,150) (210,426)
development costs
Administrative (36,429) (38,759) (12,568) (12,829) (52,198)
expenses
One-off - (10,894) - - (10,894)
restructuring
cost
--------------------------------------------------------------------------------

Operating loss (196,720) (210,280) (55,647) (78,976) (272,022)
--------------------------------------------------------------------------------

Financial income 22,746 2,548 12,493 1,364 3,635
Financial expenses (11,225) (3,768) (1,130) (2,059) (4,394)
--------------------------------------------------------------------------------

Loss before tax (185,199) (211,500) (44,284) (79,671) (272,781)
--------------------------------------------------------------------------------

Tax for the period 820 (1,257) 1,120 (862) (1,425)
--------------------------------------------------------------------------------

Net loss for the (184,379) (212,757) (43,164) (80,533) (274,206)
period
--------------------------------------------------------------------------------




Basic and diluted (0.41) (3.76) (0.10) (1.42) (2.84)
EPS
--------------------------------------------------------------------------------

Weighted average 452,542,480 56,567,810 452,542,480 56,567,810 96,707,708
number of shares
--------------------------------------------------------------------------------




Statements of Consolidated
comprehensive
income

(DKK'000) YTD YTD Q3 Q3 Year
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------

Net loss for the (184,379) (212,757) (43,164) (80,533) (274,206)
period
Other
comprehensive
income:
Currency (31) 340 (338) 328 136
translation
differences
--------------------------------------------------------------------------------

Other (31) 340 (338) 328 136
comprehensive
income for the
period
--------------------------------------------------------------------------------

Total (184,410) (212,417) (43,502) (80,205) (274,070)
comprehensive
income for the
period
--------------------------------------------------------------------------------

Balance sheet



Assets Consolidated

(DKK'000) 30 Sept. 30 Sept. 31 Dec.
2011 2010 2010
--------------------------------------------------------------

Patent rights and software 2,111 1,079 1,938
--------------------------------------------------------------

Intangible assets 2,111 1,079 1,938
--------------------------------------------------------------


Property, plant and equipment 9,356 13,319 11,950
Leasehold improvements 4,414 6,252 5,858
--------------------------------------------------------------

Property, plant and equipment 13,770 19,571 17,808
--------------------------------------------------------------

Non-current assets 15,881 20,650 19,746
--------------------------------------------------------------


Other receivables 5,270 6,016 8,590
Prepayments 1,462 2,963 3,051
--------------------------------------------------------------

Receivables 6,732 8,979 11,641
--------------------------------------------------------------

Securities 195,459 - -
Cash 152,793 134,022 531,519
--------------------------------------------------------------

Cash and cash equivalents 348,252 134,022 531,519
--------------------------------------------------------------

Current assets 354,984 143,001 543,160
--------------------------------------------------------------

Assets 370,865 163,651 562,906
--------------------------------------------------------------

Balance sheet



Equity & Liabilities Consolidated

(DKK'000) 30 Sept. 30 Sept. 31 Dec.
2011 2010 2010
---------------------------------------------------------

Share capital 452,543 56,568 452,543
Share premium - 53,036 43,601
Translation reserves 2,063 2,298 2,094
Retained earnings/loss (132,090) -
---------------------------------------------------------

Equity 322,516 111,902 498,238
---------------------------------------------------------

Finance lease 4,831 9,997 8,532
---------------------------------------------------------

Non-current liabilities 4,831 9,997 8,532
---------------------------------------------------------

Finance lease 5,166 5,665 5,742
Trade payables 16,153 12,656 23,528
Other payables 22,199 23,431 26,866
---------------------------------------------------------

Current liabilities 43,518 41,752 56,136
---------------------------------------------------------

Liabilities 48,349 51,749 64,668
---------------------------------------------------------

Equity and liabilities 370,865 163,651 562,906
---------------------------------------------------------

Cash flow statements



Cash Flow Statement Consolidated

(DKK'000) YTD YTD Q3 Q3 Year
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------

Operating loss (196,720) (210,280) (55,647) (78,976) (272,022)

Share-based payment 8,688 7,728 2,412 2,771 9,810
Depreciation and 5,713 7,517 1,920 2,511 9,957
amortization
Changes in working capital (3,638) 3,477 (11,060) 7,275 14,835
--------------------------------------------------------------------------------

Cash flow from operating (185,957) (191,558) (62,375) (66,419) (237,420)
activities before interest

Interest received 4,307 1,173 963 210 1,689
Interest paid (1,668) (770) (189) (238) (992)
Corporate tax paid 820 (1,424) 1,120 (662) (1,425)
--------------------------------------------------------------------------------

Cash flow from operating (182,498) (192,579) (60,481) (67,109) (238,148)
activities
--------------------------------------------------------------------------------


Purchase of property, plant (1,858) (1,035) (602) (441) (2,583)
and equipment
Investments in bonds (386,033) - (8,365) - -
Sale of bonds 190,574 - 34,845 - -
Cash transfer to restricted 1,438 (75) - 160 (75)
security deposit
--------------------------------------------------------------------------------

Cash flow from investing (195,879) (1,110) 25,878 (281) (2,658)
activities
--------------------------------------------------------------------------------


Installments on bank (4,277) (3,816) (1,445) (1,369) (5,203)
borrowings and finance
lease
Proceeds from issuance of - (690) - (690) 445,217
shares, net
--------------------------------------------------------------------------------

Cash flow from financing (4,277) (4,506) (1,445) (2,059) 440,014
activities
--------------------------------------------------------------------------------


Increase/(decrease) in cash (382,654) (198,195) (36,048) (69,449) 199,208
Cash at beginning of period 530,081 332,066 180,274 203,539 332,066
Exchange gains/(losses) on 5,366 (1,287) 8,567 (1,506) (1,193)
cash
--------------------------------------------------------------------------------

Cash at end of period 152,793 132,584 152,793 132,584 530,081
--------------------------------------------------------------------------------


Cash and cash equivalents
at end of period comprise:

Restricted bank deposit - 1,438 - 1,438 1,438
Securities 195,459 - 195,459 - -
Deposit on demand and cash 152,793 132,584 152,793 132,584 530,081
--------------------------------------------------------------------------------

348,252 134,022 348,252 134,022 531,519
--------------------------------------------------------------------------------

Statement of changes in equity



Consol
idated
Equit
y
Number of Share Share Translation Retained Total
Shares Capital Premium Reserves Earnings
DKK'000 DKK'000 DKK'000 DKK'000 DKK'000
--------------------------------------------------------------------------------

Equity 56,567,810 56,568 1,080,263 1,958 (821,508) 317,281
as of
1
Janua
ry
2010
--------------------------------------------------------------------------------

Total 340 (212,757) (212,41
compr 7)
ehensi
ve
incom
e

Share- 7,728 7,728
based
payme
nt
Costs (690) (690)
relat
ed to
capit
al
incre
ases
Transf (1,026,537 1,026,537 -
er of )
retai
ned
earni
ngs
-----------------------------------------------------------------------------

091111 Veloxis Result First Nine Months 2011.pdf