MARTINSRIED, GERMANY and MUNICH, GERMANY--(Marketwire - March 01, 2012) -
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* Success payments drive revenues over EUR 100 million
* Financial strength enabled increased R&D investment, doubling
proprietary clinical portfolio
* Clinical pipeline expanded to 20 programs
* Next-generation antibody technology Ylanthia unveiled
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today announced
financial results for the year ending December 31, 2011. Group revenues
increased by 16% to EUR 100.8 million (at constant currency EUR 101.9
million)
and operating profit increased by 24% to EUR 12.2 million (at constant
currency
EUR 12.9 million). The year was marked by strong progress in the Company's
pipeline of therapeutic antibody candidates, bringing the number of
partnered
(16) and proprietary programs (4) in clinical development to 20. The
clinical
pipeline is expected to advance further with up to six drug programs ready
to
report proof-of-concept data in 2012, including MorphoSys's proprietary
lead
compound MOR103. With regards to technology, MorphoSys showed major
progress
highlighted by the presentation of its next-generation antibody platform
Ylanthia. The strength of MorphoSys's existing technology alliances was
underscored by a large milestone payment for the installation of the
Company's
HuCAL platform at the premises of Novartis in Basel in the first quarter of
the
year. This one-off milestone contributed significantly to the 2011
financial
results, with revenues exceeding EUR 100 million for the first time in the
Company's history, and a solid cash position of EUR 134.4 million as of
December
31, 2011 (December 31, 2010: EUR 108.4 million).
| In EURO million | 2011 | 2010 | Q4 2011 | Q4 2010 |
+--------------------------+-------+------+---------+---------+
| | | | | |
+--------------------------+-------+------+---------+---------+
| | | | | |
| | | | | |
| Group Revenues | 100.8 | 87.0 | 17.1 | 24.3 |
+--------------------------+-------+------+---------+---------+
| Hereof AbD Serotec | 19.3 | 20.2 | 5.2 | 5.1 |
+--------------------------+-------+------+---------+---------+
| Other Operating Income | 0.5 | 0.2 | 0.1 | 0.2 |
+--------------------------+-------+------+---------+---------+
| Total Operating Expenses | 89.1 | 77.4 | 25.0 | 22.6 |
+--------------------------+-------+------+---------+---------+
| Operating Profit/(Loss) | 12.2 | 9.8 | (7.8) | 1.9 |
+--------------------------+-------+------+---------+---------+
| Net Profit/(Loss) | 8.2 | 9.2 | (4.8) | 2.0 |
+--------------------------+-------+------+---------+---------+
| EPS (diluted) in EURO | 0.36 | 0.40 | - | - |
+--------------------------+-------+------+---------+---------+
| | | | | |
Highlights of the Year 2011
Pipeline: At the end of 2011, MorphoSys's pipeline comprised a total of 76
partnered and proprietary programs. The total number of programs in
clinical
trials increased from 17 at the beginning of 2011 to 20 at year-end.
* Proprietary Development Progress: At the end of 2011, MorphoSys had
four proprietary programs in clinical development (MOR103 in RA and MS,
MOR208 in CLL and MOR202 in MM). At the end of 2011, eight proprietary
programs were active.
* Partnered Development Progress: At the end of 2011, 16 partnered
programs were in clinical development. Altogether, at the end of 2011,
68 partnered programs were ongoing.
AbD Serotec: The increasing focus on diagnostics led to a new milestone in
2011
with the launch of the first diagnostic kits based on HuCAL antibodies.
Technology:
* In December 2011, MorphoSys unveiled its next-generation antibody
technology Ylanthia. MorphoSys expects Ylanthia to set new standards
for therapeutic antibody generation in the pharmaceutical industry over
the next decade and beyond. Commercial application of the new platform
will commence in 2012.
* New deals based on the Slonomics platform for protein engineering, such
as the agreement with Novozymes in industrial biotechnology, provided
an attractive new revenue component.
"2011 was an exceptional year for MorphoSys. Strong revenue growth driven
by a
record-level of success-based payments enabled us to invest strongly in our
proprietary product portfolio," commented Jens Holstein, Chief Financial
Officer
of MorphoSys AG. "Group revenues will become more volatile in the years
ahead,
due to the greater influence of new deals and milestone-related one-off
items,
but more importantly, we have a proven business model and the solid
financial
foundation to continue to invest in long-term value drivers and maintain
profitability in the years ahead."
"Over the past twelve months the Company has made great strides in
advancing its
product pipeline and its technology platform," stated Dr. Simon Moroney,
Chief
Executive Officer. "These developments are important long-term
value-drivers for
us. In 2012 we expect to see a lot of clinical data as the ongoing Phase 2
trial
of our MOR103 is completed and up to five partnered programs also complete
Phase
2 trials. We also look forward to the first commercial applications of our
new
Ylanthia platform, which we expect to become a new technology standard in
our
sector in the years to come."
Financial Review for the Fiscal Year 2011 (IFRS)
Group revenues for the full year 2011 amounted to EUR 100.8 million (2010:
EUR 87.0 million), an increase of 16 % over the prior year. Revenues in the
Partnered Discovery segment comprised EUR 46.6 million in funded research
and
licensing fees (2010: EUR 57.2 million) and EUR 32.7 million in
success-based
payments (2010: EUR 9.1 million). The record level of success-based
payments
resulted predominantly from a technology milestone payment from Novartis.
The
Proprietary Development segment recorded funded research revenues of
EUR 2.4 million (2010: EUR 1.8 million). Assuming constant foreign exchange
rates at the average rate of 2010, segment revenues in the Partnered
Discovery
and Proprietary Development segments would have amounted to EUR 82.4
million.
The AbD Serotec segment provided 19 % or EUR 19.3 million of total revenues
(2010: EUR 20.2 million), a decrease of 4 %. Assuming constant foreign
exchange
rates at the average rate of 2010, revenues in the AbD Serotec segment
would
have amounted to EUR 19.8 million. Other operating income increased by EUR
0.3
million to EUR 0.5 million in 2011 and comprised grant income from
governmental
agencies.
Total operating expenses for the full year 2011 increased by 15 % to EUR
89.1
million (2010: EUR 77.4 million). The change in operating expenses of
EUR 11.7 million was mainly caused by increased proprietary research and
development (R&D) expenses. Cost of goods sold (COGS), a line item specific
to
AbD Serotec, decreased by 4 % to EUR 7.0 million (2010: EUR 7.3 million).
Total
research and development expenses rose by EUR 10.6 million or 23 % to
EUR 57.5 million in 2011 (2010: EUR 46.9 million). The increase in R&D
expenses
mainly resulted from a higher level of investment in proprietary product
and
technology development amounting to EUR 36.7 million (2010: EUR 28.1
million).
Sales, general and administrative expenses increased by 6 % to EUR 24.6
million
(2010: EUR 23.2 million). Non-cash charges related to stock-based
compensation
are embedded in COGS, S,G&A and R&D expenses and amounted to EUR 1.5
million
(2010: EUR 2.1 million).
Total Group operating profit increased to EUR 12.2 million (2010:
EUR 9.8 million). Earnings before interest and taxes (EBIT) amounted to
EUR 11.1 million (2010: EUR 13.1 million). Partnered Discovery showed a
segment
operating profit of EUR 55.7 million (2010: EUR 42.7 million) while
EUR 35.0 million were invested into proprietary development (2010:
investment of
EUR 26.5 million). In the AbD Serotec segment, operating profit decreased
to
EUR 1.0 million (2010: EUR 1.2 million), which represents an operating
margin of
5 %.
Non-operating income and expenses, including taxes, resulted in a loss of
EUR 4.0 million (2010: non-operating loss of EUR 0.6 million). For the full
year
2011, MorphoSys realized a net profit of EUR 8.2 million compared to a net
profit of EUR 9.2 million in the previous year. The resulting diluted
earnings
per share for the year 2011 amounted to EUR 0.36 (2010: EUR 0.40).
On December 31, 2011, the Company had EUR 134.4 million in cash, cash
equivalents and marketable securities, compared to EUR 108.4 million as of
December 31, 2010. Net cash inflow from operations in 2011 amounted to
EUR 27.1 million (2010: EUR 1.9 million). The number of issued shares at
December 31, 2011 was 23,112,167, compared to 22,890,252 shares at December
31, 2010.
Fourth Quarter of 2011 (IFRS)
In the fourth quarter of 2011, the Company generated revenues of
EUR 17.1 million, compared to EUR 24.3 million in the same quarter of 2010.
Total operating expenses amounted to EUR 25.0 million in Q4, compared to
EUR 22.6 million in the same quarter of 2010. The increase of operating
expenses
was mainly due to increased personnel expenses and costs for external
services.
The resulting operating loss amounted to EUR 7.8 million (Q4 2010:
operating
profit of EUR 1.9 million). Net loss for the fourth quarter 2011 was EUR
4.8
million, compared to a net profit of EUR 2.0 million in the fourth quarter
of
2010.
Outlook for 2012
The Company continues to expand and advance its pipeline of proprietary and
partnered development programs. Based on its platform of leading
technologies,
MorphoSys plans to further broaden its roster of partnerships and
customers. The
management of the Company foresees a variety of business opportunities. For
2012, MorphoSys anticipates total Group revenues between EUR 75 million and
EUR 80 million and anticipates an EBIT in the range of EUR 1 million to EUR
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. MorphoSys's management team will provide a more detailed outlook
in
today's conference call.
MorphoSys will hold its conference call and webcast today to present the
Annual
Financial Results 2011 and the Outlook 2012.
Dial-in number for the press conference call (in German) at 10:00 am CET:
Germany: +49 (0) 89 2444 32975
Dial-in number for the analyst conference call (in English) at 02:00 pm
CET;
01:00 pm GMT; 08:00 am EST (listen-only):
Germany: +49 (0) 89 2444 32975
For UK residents: +44 (0) 20 3003 2666
For US residents: +1 212 999 6659
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.
Consolidated Financial Statements 2011 (IFRS) are available on our website:
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'sAbD Serotec unit uses HuCAL and other technologies to generate
superior
monoclonal antibodies for research and diagnostic applications.
Through its own development efforts and successful partnerships in
the
pharmaceutical industry, 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 engineering the medicines 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®, Ylanthia®,
arYla®, CysDisplay®
and RapMAT® 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.
Media Release YE2011:
http://hugin.info/130295/R/1590286/499562.pdf
Consolidated Financial Statements (IFRS) 2011:
http://hugin.info/130295/R/1590286/499583.pdf
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Source: MorphoSys AG via Thomson Reuters ONE
[HUG#1590286]
