MARTINSRIED, GERMANY and MUNICH, GERMANY--(Marketwire - Aug 2, 2012) - MorphoSys AG
Reports Results for the First Six Months of 2012
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The issuer is solely responsible for the content of this announcement.
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today
announced its
financial results according to International Financial Reporting
Standards
(IFRS) for the six months ending June 30, 2012. Group revenues were EUR
33.0
million (H1 2011: EUR 66.6 million), and the Company recorded an EBIT
of EUR
(1.9 million) (H1 2011: EBIT of EUR 21.5 million) and a net loss after
taxes of
EUR 1.0 million (H1 2011: net profit after taxes of EUR 15.0 million).
Revenues
and profits in the first half of 2011 were heavily influenced by a
one-off
technology milestone payment from Novartis in connection with the
installation
of MorphoSys's HuCAL antibody platform at Novartis's premises in Basel.
This is
the main reason for the differences to the current year. MorphoSys's
investment
in proprietary product and technology development amounted to EUR 12.3
million
in the first half of 2012 (H1 2011: EUR 17.1 million). MorphoSys's
cash,
securities and interest-bearing assignable loans on June 30, 2012
amounted to
EUR 133.5 million (December 31, 2011: EUR 134.4 million). The
Company re-confirmed its full year guidance for 2012.
| In EURO million | H1 2012 | H1 2011 |
+-------------------------------+---------+---------+
| | | |
+-------------------------------+---------+---------+
| | | |
| | | |
| Group Revenues | 33.0 | 66.6 |
+-------------------------------+---------+---------+
| hereof success-based payments | 1.9 | 31.2 |
+-------------------------------+---------+---------+
| hereof AbD Serotec | 8.8 | 9.4 |
+-------------------------------+---------+---------+
| Total Operating Expenses | 35.0 | 43.5 |
+-------------------------------+---------+---------+
| EBIT | (1.9) | 21.5 |
+-------------------------------+---------+---------+
| Net (Loss)/Profit | (1.0) | 15.0 |
+-------------------------------+---------+---------+
| EPS, diluted, in EURO | (0.04) | 0.65 |
+-------------------------------+---------+---------+
| | | |
+-------------------------------+---------+---------+
Highlights of the Second Quarter
* MorphoSys reached a major milestone in its collaboration with Roche as
the
clinical trial evaluating the HuCAL antibody gantenerumab to treat
Alzheimer's disease was expanded to a pivotal phase 2/3 study.
* MorphoSys announced the election of two new Supervisory Board members:
Karin
Eastham and Marc Cluzel.
* MorphoSys announced two new management appointments: Charlotte Lohmann
joins
MorphoSys from Wilex as General Counsel, and Martin Clark joins
MorphoSys
from Sandoz Biopharmaceuticals as Head of Central Purchasing &
Logistics.
* AbD Serotec launched a panel of new HuCAL anti-drug antibodies
supporting
the development of novel antibody therapeutics. The new product
category
targets primarily CROs and pharmaceutical companies.
* MorphoSys and its US-based partner Xencor completed enrollment in a
phase 1
clinical trial evaluating the antibody MOR208 in CLL. Study data is
expected
in Q4 2012. MorphoSys plans to initiate additional clinical trials for
MOR208 in NHL and ALL in 2012.
* MorphoSys presented MOR208 preclinical combination therapy data at this
year's ASCO meeting. The data demonstrate synergistic effects with four
approved treatment options including rituximab and ofatumumab.
* MorphoSys's partner OncoMed presented clinical phase 1-data on the
HuCAL
antibody program OMP-59R5 at the ASCO conference. OMP-59R5 was
generally
safe and well tolerated.
* At the end of the second quarter of 2012, MorphoSys's partnered and
proprietary pipeline comprised 73 programs, of which 20 are in clinical
development.
"We are optimistic regarding the development of our business performance
in the
second half of the year and thus confirm our financial guidance for
2012,"
commented Jens Holstein, Chief Financial Officer of MorphoSys AG. "Our
ability
to continue to invest in long-term value drivers and maintain
profitability in
2012 sits at the core of our business model."
"The progress with the HuCAL antibody gantenerumab for the
treatment of
Alzheimer's disease is clearly a major event", stated Dr. Simon Moroney,
Chief
Executive Officer of MorphoSys AG. "This is the first HuCAL antibody
program to
advance into a potentially pivotal clinical trial and highlights the
growing
importance of our pipeline to the Company's value proposition. We
anticipate
further news from the pipeline before year-end including clinical data
from
several trials, in particular our proprietary programs MOR103 and MOR208."
Financial Review for First Six Months of 2012 According to IFRS
Group revenues for the first six months of 2012 were EUR 33.0 million (H1
2011:
EUR 66.6 million), the difference to the previous year largely
reflecting a one-off payment received in Q1 2011 from Novartis for the
successful installation of
the HuCAL platform at the Novartis Institutes for BioMedical Research in
Basel,
Switzerland. Revenues in the Partnered Discovery segment comprised EUR
21.5
million in funded research and licensing fees (H1 2011: EUR 24.9
million) and
EUR 1.9 million in success-based payments (H1 2011: EUR 31.2
million). The
Proprietary Development segment recorded funded research revenues of EUR
0.8
million (H1 2011: EUR 1.2 million). Assuming constant foreign exchange
rates at
the average rate of H1 2011, total revenues in the Partnered
Discovery and
Proprietary Development segments would have remained unchanged at EUR
24.2
million. The AbD Serotec segment provided 27% or EUR 8.8 million of
total
revenues (H1 2011: EUR 9.4 million), a decrease of 6 %. Assuming
constant
foreign exchange rates at the average rate of H1 2011, revenues in
the AbD
Serotec segment would have amounted to EUR 8.4 million.
Total operating expenses for the first six months of 2012 decreased by 20
% to
EUR 35.0 million (H1 2011: EUR 43.5 million). The decrease of EUR 8.5
million
was mainly caused by reduced proprietary research and development (R&D)
expenses
in line with the Company's plans. Cost of goods sold (COGS), a line
item
specific to AbD Serotec, decreased by 14 % to EUR 3.2 million (H1 2011: EUR
3.7
million). Total research and development expenses for the Group decreased
by EUR
7.0 million to EUR 21.2 million (H1 2011: EUR 28.2 million). The decrease
in R&D
expenses mainly resulted from a lower level of investment in proprietary
product
and technology development amounting to EUR 12.3 million (H1 2011: EUR
17.1
million). Sales, general and administrative expenses decreased by 8 %
to EUR
10.6 million (H1 2011: EUR 11.5 million). Non-cash charges
related to stock-based compensation are embedded in COGS, S,G&A and R&D
expenses and amounted to
EUR 0.6 million (H1 2011: EUR 0.9 million).
For the first six months of 2012, MorphoSys recorded earnings before
interest
and taxes (EBIT) of EUR (1.9 million) (H1 2011: EBIT of EUR 21.5
million).
Partnered Discovery showed a segment EBIT of EUR 12.6 million (H1 2011:
EBIT of
EUR 44.2 million) while the continued investment in proprietary
development led
to segment EBIT of EUR (9.6 million) (H1 2011: EBIT of EUR (14.9 million).
The
AbD Serotec segment recorded a gross profit margin of 63 %, in comparison
to 60
% in the first six months of 2011. The EBIT for AbD Serotec amounted to EUR
(0.5
million) (H1 2011: EBIT of EUR 0.1 million).
For the first six months of 2012, MorphoSys recorded a net loss after
taxes of
EUR 1.0 million compared to a net profit of EUR 15.0 million in the same
period
of the previous year, the difference again being predominantly due
to the one-off payment received in Q1, 2011. The resulting diluted net
loss per share for
the first six months of 2012 was EUR 0.04 (H1 2011: diluted net profit
of EUR
0.65).
On June 30, 2012, the Company had EUR 123.5 million in cash, cash
equivalents,
and marketable securities compared to EUR 134.4 million as of
December
31, 2011. Net cash outflow from operations in H1 2012 amounted to EUR
1.2
million (H1 2011: net cash inflow EUR 32.4 million). The number of issued
shares
at June 30, 2012 was 23,252,972, compared to 23,112,167 shares at
December
31, 2011.
Financial Review of the Second Quarter of 2012 (IFRS)
In the second quarter of 2012, revenues were EUR 16.9 million, compared
to EUR
18.0 million in the same quarter of 2011. Significantly reduced expenses
led to
an improved result, with earnings before interest and taxes of EUR
(1.1
million), compared to an EBIT of EUR (6.1 million) in the same period of
2011. A
net loss of EUR 0.4 million was achieved in the second quarter of 2012,
compared
to a net loss of EUR 3.8 million during the same period in 2011.
Outlook for 2012
MorphoSys re-confirmed its guidance for 2012. The Company anticipates
total
Group revenues of EUR 75-80 million and anticipates an EBIT in the range
of EUR
1-5 million. This guidance does not, at this stage, include a successful
out-licensing of any of the Company's proprietary development programs.
Investment
in proprietary research and development in 2012 will be approximately EUR
20-25
million. Looking forward, MorphoSys anticipates progress across its
product
pipeline including first proof-of-concept data from its lead
proprietary
compound MOR103 in Q3 2012.
MorphoSys will hold a public conference call and webcast today at 02:00
p.m.
CEST (08:00 a.m. EST, 01:00 p.m. BST) to present the Second Quarter
Results
2012 and report on current developments.
Dial-in number for the Conference Call (listen-only):
Germany: +49 89 2444 32975
For U.K. residents: +44 20 3003 2666
For U.S. residents: +1 202 204 1514
Please dial in 10 minutes before the beginning of the conference.
In addition, MorphoSys offers participants the opportunity to
follow the
presentation through a simultaneous slide presentation online
at
http://www.morphosys.com.
A live webcast, slides, webcast replay and transcript will be made
available at
http://www.morphosys.com.
Approximately two hours after the press conference, a slide-synchronized
audio
replay of the conference will be available on http://www.morphosys.com.
The complete 2nd Interim Report 2012 (January - June) is available on our
website (HTML and PDF): http://www.morphosys.com/FinancialReports
About MorphoSys:
MorphoSys developed HuCAL, the most successful antibody library technology
in
the pharmaceutical industry. By successfully applying this and other
patented
technologies, MorphoSys has become a leader in the field of therapeutic
antibodies, one of the fastest-growing drug classes in human healthcare.
The
company's AbD Serotec unit uses HuCAL and other antibody technologies to
generate superior monoclonal antibodies for research and diagnostic
applications.
Together with its pharmaceutical partners, MorphoSys has built a
therapeutic
pipeline of more than 70 human antibody drug candidates for the treatment
of
cancer, rheumatoid arthritis, and Alzheimer's disease, to name just a few.
With
its ongoing commitment to new antibody technology and drug development,
MorphoSys is focused on making the healthcare products of tomorrow.
MorphoSys is
listed on the Frankfurt Stock Exchange under the symbol MOR. For regular
updates
about MorphoSys, visit http://www.morphosys.com
HuCAL®, HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®,
RapMAT®, arYla®
and Ylanthia® and 100 billion high potentials® are registered
trademarks of
MorphoSys AG
Slonomics® is a registered trademark of Sloning BioTechnology
GmbH, a
subsidiary of MorphoSys AG.
This communication contains certain forward-looking statements
concerning the
MorphoSys group of companies. The forward-looking statements contained
herein
represent the judgment of MorphoSys as of the date of this release and
involve
risks and uncertainties. Should actual conditions differ from the
Company's
assumptions, actual results and actions may differ from those
anticipated.
MorphoSys does not intend to update any of these forward-looking
statements as
far as the wording of the relevant press release is concerned.
H1 2012 Media Release (PDF):
http://hugin.info/130295/R/1631157/522870.pdf
2nd Interim Report 2012 (PDF):
http://hugin.info/130295/R/1631157/522881.pdf
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Source: MorphoSys AG via Thomson Reuters ONE
[HUG#1631157]