MARTINSRIED, GERMANY and MUNICH, GERMANY--(Marketwire - November 07, 2012) - MorphoSys AG /
MorphoSys AG Reports Nine Months 2012 Results
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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 nine months ending September 30, 2012. The most important
event
during the third quarter was the publication of excellent safety and
efficacy
data for MOR103 in rheumatoid arthritis (RA), the most advanced
proprietary
program in MorphoSys's pipeline.
"During the first nine months of 2012, we made significant progress
with our
pipeline of new therapeutic products, which is the most important value
driver
for the Company", stated Dr. Simon Moroney, Chief Executive Officer of
MorphoSys
AG. "The positive outcome of the MOR103 study and the progress of our
partnered
pipeline underscore the strength of our business model. We look
forward to
further progress in the months and years ahead."
Highlights of the Third Quarter
* MorphoSys delivered positive safety and efficacy results from a phase
1b/2a
study of MOR103 in rheumatoid arthritis patients.
* MorphoSys and the University of Melbourne published preclinical data on
the
role of GM-CSF in inflammatory, arthritic and osteoarthritic pain.
* Roche highlighted progress in developing the HuCAL antibody
gantenerumab in
Alzheimer's disease at its Investor R&D Day.
* MorphoSys's partner OncoMed initiated a phase 1b/2 clinical trial with
HuCAL
antibody OMP-59R5 in advanced pancreatic cancer.
* MorphoSys's partner Bayer HealthCare received Orphan Drug Designation
for
the HuCAL-based antibody conjugate BAY 94-9343 in the USA for the
treatment
of mesothelioma.
* The product portfolio at MorphoSys matured further and remains one of
the
industry's broadest antibody pipelines: at the end of the quarter,
MorphoSys's partnered and proprietary pipeline comprised 76 programs,
of
which 21 are in clinical development.
| |Nine Months |Nine Months | | |
| |Ended |Ended | | |
|In EURO million |Sep 30, 2012|Sep 30, 2011|Q3 2012|Q3 2011|
+-------------------------------+------------+------------+-------+-------+
| | | | | |
+-------------------------------+------------+------------+-------+-------+
| | | | | |
| | | | | |
|Group Revenues | 48.9| 83.7| 15.9| 17.1|
+-------------------------------+------------+------------+-------+-------+
|of which success-based payments| 1.9| 32.2| 0.0| 1.0|
+-------------------------------+------------+------------+-------+-------+
|of which AbD Serotec | 13.7| 14.1| 4.9| 4.7|
+-------------------------------+------------+------------+-------+-------+
|Total Operating Expenses | 51.3| 64.1| 16.3| 20.6|
+-------------------------------+------------+------------+-------+-------+
|EBIT | (2.3)| 18.0| (0.4)| (3.4)|
+-------------------------------+------------+------------+-------+-------+
|Net Profit/(Loss) | (1.2)| 13.0| (0.2)| (2.0)|
+-------------------------------+------------+------------+-------+-------+
|EPS, diluted, in EURO | (0.05)| 0.56| (0.01)| (0.09)|
+-------------------------------+------------+------------+-------+-------+
| | | | | |
"Our financial strength allows us to continue investing in proprietary
R&D, the
main value driver of MorphoSys," commented Jens Holstein, Chief
Financial
Officer of MorphoSys AG. "Our financial results are, however,
increasingly
dependent on milestone payments and the initiation of additional
commercial
agreements, leading to a higher volatility in revenues and
earnings.
Negotiations for additional commercial agreements took longer than
originally
anticipated and as a consequence are having a negative impact on our
financial
results for 2012."
Financial Review for First Nine Months of 2012 According to IFRS
Group revenues for the first nine months of 2012 were EUR 48.9 million
(9-months
2011: EUR 83.7 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 32.1 million in funded research and licensing fees
(9-months
2011: EUR 35.7 million) and EUR 1.9 million in success-based payments
(9-months
2011: EUR 32.2 million). The Proprietary Development segment recorded
funded
research revenues of EUR 1.2 million (9-months 2011: EUR 1.9 million).
Assuming
constant foreign exchange rates at the average rate of the first nine
months of
2011, revenues in the Partnered Discovery and Proprietary Development
segments
would have remained almost unchanged at EUR 35.1 million. The AbD
Serotec
segment provided 28 % or EUR 13.7 million of total revenues (9-months
2011: EUR
14.1 million), a decrease of 3 %. Assuming constant foreign exchange
rates at
the average rate of the first nine months of 2011, revenues in the AbD
Serotec
segment would have amounted to EUR 12.9 million.
Total operating expenses for the first nine months of 2012 decreased by 20
% to
EUR 51.3 million (9-months 2011: EUR 64.1 million). The decrease of EUR
12.8
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 13 % to EUR 4.8 million
(9-months
2011: EUR 5.5 million). Total research and development expenses for the
Group
decreased by EUR 11.6 million to EUR 30.3 million (9-months 2011: EUR
41.9
million). The decrease in R&D expenses mainly resulted from a lower
level of
investment in proprietary product and technology development amounting
to EUR
17.2 million (9-months 2011: EUR 26.1 million). Sales, general
and
administrative expenses decreased by 4 % to EUR 16.2 million (9-months
2011: EUR
16.8 million). Non-cash charges related to stock-based compensation are
embedded
in COGS, S,G&A and R&D expenses and amounted to EUR 1.0 million (9-months
2011:
EUR 1.1 million).
For the first nine months of 2012, MorphoSys recorded earnings before
interest
and taxes (EBIT) of minus EUR 2.3 million (9-months 2011: EBIT of EUR
18.0
million). Partnered Discovery showed a segment EBIT of EUR 17.9
million
(9-months 2011: EBIT of EUR 50.9 million) while the continued
investment in
proprietary development led to segment EBIT of minus EUR 13.1 million
(9-months 2011: EBIT of minus EUR 22.9 million). The AbD Serotec segment
recorded a gross
profit margin of 65 %, in comparison to 61 % in the first nine months of
2011.
The EBIT for AbD Serotec amounted to minus EUR 0.04 million (9-months 2011:
EBIT
of EUR 0.3 million).
For the first nine months of 2012, MorphoSys recorded a net loss after
taxes of
EUR 1.2 million compared to a net profit of EUR 13.0 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 nine months of 2012 was EUR 0.05 (9-months 2011: diluted net
profit of
EUR 0.56).
On September 30, 2012, MorphoSys's cash, securities and
interest-bearing
assignable loans amounted to EUR 137.5 million (December 31, 2011: EUR
134.4
million). Net cash inflow from operations in the first nine months of
2012
amounted to EUR 2.4 million (2011: net cash inflow EUR 36.1 million). The
number
of issued shares at September 30, 2012 was 23,308,622, compared to
23,112,167
shares at December 31, 2011.
Financial Review of the Third Quarter of 2012 (IFRS)
In the third quarter of 2012, revenues were EUR 15.9 million, compared
to EUR
17.1 million in the same quarter of 2011. Earnings before interest and
taxes
amounted to minus EUR 0.4 million, compared to an EBIT of minus EUR 3.4
million
in the same period of 2011. A net loss of EUR 0.2 million was achieved
in the
third quarter of 2012, compared to a net loss of EUR 2.0 million during the
same
period in 2011.
Outlook for 2012
As stated in the past, revenues in 2012 are increasingly dependent on
success-based milestones in existing therapeutic antibody programs, new
alliances or the
expansion of existing alliances involving new technology platforms
such as
Slonomics and Ylanthia. In 2012, negotiations for additional
commercial
agreements took longer than originally anticipated. In addition,
the
uncertainties of government fiscal deficits led to a reduction of
funding for
the research market, leading to lower sales in the AbD Serotec unit.
Therefore, MorphoSys updates its financial guidance for the Group for
2012. The
company expects Group revenues to be in the range of EUR 70-75 million,
thus
being slightly below the original guidance of EUR 75-80 million. In
terms of
EBIT for the Group, it is expected to be around the lower end of the
original
guidance of EUR 1-5 million. At the time of the publication of the
9-months
2012 report, certain income-generating events are expected to materialize
before
the end of the year, the timely conclusion of which is important for
reaching
the 2012 financial guidance.
This guidance currently does not include a successful out-licensing of
any of
the Company's proprietary development programs. The scope and the timing of
such
events is difficult to predict and therefore not included in the
financial
projections.
Investment in proprietary research and development in 2012 remains
unchanged and
will be approximately EUR 20-25 million.
MorphoSys will hold a public conference call and webcast today at 02:00
p.m. CET
(08:00 a.m. EST, 01:00 p.m. GMT) 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 3(rd) Interim Report 2012 (January - September) 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.
3rd Interim Report 2012 (PDF):
http://hugin.info/130295/R/1655606/535015.pdf
Media Release (PDF):
http://hugin.info/130295/R/1655606/535014.pdf
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Source: MorphoSys AG via Thomson Reuters ONE
[HUG#1655606]
