Preliminary results for the year ended 30 September 2005

11 Jan 2006

Preliminary results for the year ended 30 September 2005

Nottingham, UK, 11 January 2006 - Innovata plc (LSE: IOV), the pulmonary product company, today announces preliminary financial results for the year ended 30 September 2005.

Operational Highlights:

Adept adhesion reduction solution
- Baxter granted global marketing rights (January 2006)
- Pre-Marketing Approval accepted for filing by the US Food and Drug Administration (FDA)
Duohaler (formerly C200) agreement with European pharmaceutical partner worth in excess of £25 million plus royalties
Clickhaler dry powder inhaler
- First European launches for budesonide and formoterol - Merck KGaA establishes respiratory franchise and confirmed as European partner
- Meptin Clickhaler launched in Japan by partner Otsuka
- Budesonide Clickhaler entered clinical trials in Japan
QDose joint venture regained rights to inhaled insulin from Bristol-Myers Squibb & Company
Restructuring to reduce costs and streamline operations
Reorganised the Board and improved corporate governance
UCOE gene expression technology divested to Celliance Corporation; plans for further divestments of non-core assets underway

Financial Highlights:

Acquisition of Quadrant for £48.5 million
Vendor Financing, Placing and Open Offer raised £26.1 million
Turnover increased to £15.7 million (2004: £7.9 million)
Exceptional charge of £6.1 million arising from restructuring (of which £3.7 million were non cash items)
Operating loss reduced to £3.0 million (2004: £12 million)
Cash and short term deposits at 30 September of £13.9 million (30 September 2004: £10.8 million)

Kieran Murphy, Chief Executive Officer of Innovata, commented: "Last year saw the transformation of Innovata into a business focused on delivering increased revenues and shareholder value. The benefits of the Quadrant acquisition are already visible and our ability to leverage our skills and expertise in the fields of respiratory disease and inhaled therapies has been demonstrated in the deals we have concluded in the period. With growing sales from our marketed products, a strengthened management team and a clear strategy for growth, we are well positioned for continued progress in 2006."

There will be a meeting for analysts today at 9.30am GMT at the offices of Financial Dynamics. Please contact Gemma Cross Brown at Financial Dynamics on 020 7269 7125 for details.

ENDS

Innovata plc	Today: 020 7831 3113
Kieran Murphy, Chief Executive Officer	Thereafter: 0115 974 7474
Peter Shennan, Finance Director

Financial Dynamics	Tel: 020 7831 3113
Sarah MacLeod / David Meredith

Notes to Editors

About Innovata plc

Innovata plc specialises in the development of pulmonary products for the treatment of respiratory disorders and other serious diseases. Using its proprietary dry powder inhaler and drug formulation technologies, Innovata plc has developed a substantial portfolio of 13 marketed and clinical-stage products and has partnered with a number of pharmaceutical companies including Baxter, Merck KGaA, Celltech (part of UCB) and Otsuka.

Innovata plc was formed in July 2005 when ML Laboratories PLC acquired Quadrant Technologies Limited. The company has over 90 employees of whom 65 are engaged in research and development, mainly based at Innovata's headquarters in Ruddington, Nottingham, United Kingdom. The Company is listed on the London Stock Exchange under the symbol IOV.

The full Innovata plc Preliminary results announcement (11/01/06) in PDF format.