MUNCHEN, GERMANY--(Marketwire - March 05, 2013) -
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Therapeutic Antibody Pipeline Progress and Novel Technologies Are Key Value
Drivers
Conference call and webcast (in English) today at 2:00pm CET (1:00pm
GMT/8:00am
EST)
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today
announced
financial results for the year ending December 31, 2012. Due to the sale
of the
AbD Serotec segment to Bio-Rad, which was completed on January 10,
2013,
revenues and costs arising from this segment are classified as
discontinued
operations. Group revenues from continuing operations amounted to EUR
51.9
million and earnings before interest and taxes to EUR 2.5 million. Total
group
revenues including AbD Serotec would have summed to EUR 69.6
million, the
respective EBIT to EUR 1.9 million. Profit for the year from
continuing
operations amounted to EUR 2.4 million, the consolidated net profit
including
AbD Serotec to EUR 1.9 million.
The year was marked by strong progress in the Company's pipeline of
proprietary
and partnered therapeutic antibody candidates, including MOR103 and
MOR208,
gantenerumab, CNTO1959 and BYM338. With the commercial launch of the
Ylanthia
antibody library, MorphoSys enhanced its position as an originator of the
most
advanced platforms for the development of therapeutic antibodies. By
selling the
research and diagnostic business unit AbD Serotec to Bio-Rad, MorphoSys
further
increased its focus on its therapeutic business segments and
significantly
strengthened its cash position.
Operational Highlights of 2012:
* Excellent safety and efficacy results in MOR103 rheumatoid arthritis
phase
1b/2a study
* Promising phase 1 data for MOR208 in CLL
* Major milestone reached in 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
* Further maturation of one of the industry's broadest antibody
pipelines: at
year-end, MorphoSys's partnered and proprietary pipeline comprised 76
programs, of which 20 are in clinical development
* Divestment of research and diagnostic business unit AbD Serotec to
Bio-Rad for a total consideration of approximately EUR 53 million
* Technology alliance with Lanthio Pharma for the development of
lantipeptides, underpinned by equity investment - Launch of MorphoSys's
"Innovation Capital" initiative
* Commercial launch of Ylanthia with expansion of Novartis collaboration
"The year 2012 was one of the most successful in the history of
MorphoSys and
our antibody pipeline and financial position have never been stronger,"
stated
Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "Major
advances in
our proprietary programs were the decisive events of the year. The
positive
reaction of the market illustrates the importance of these programs
for the
Company's value proposition. We are also excited about the significant
progress
with our partnered programs, which include numerous antibodies
against
attractive therapeutic targets. We are focused on advancing our
proprietary and
partnered antibody candidates and leveraging our technologies in
collaborations
to further advance our development pipeline. We will invest, as
necessary, to
generate the maximum possible value from our portfolio of drug candidates."
Financial Overview 2012
Due to the sale of the AbD Serotec segment to Bio-Rad, which was
completed on
January 10, 2013, revenues and costs arising from the AbD Serotec
segment are
classified as discontinued operations. Group revenues from continuing
operations
decreased by 37 % to EUR 51.9 million (2011: EUR 82.1 million) and
earnings
before interest and taxes decreased to EUR 2.5 million (2011: EUR 9.8
million).
Total group revenues including AbD Serotec would have amounted to EUR
69.6
million (2011: EUR 100.8 million), the respective EBIT to EUR 1.9 million
(2011:
EUR 10.1 million). The difference to the previous year largely reflects 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.
The consolidated net profit including AbD Serotec amounted to EUR 1.9
million
(2011: EUR 8.2 million). MorphoSys's cash, securities and
interest-bearing assignable loans on December 31, 2012 amounted to EUR
135.7 million, including
cash reserves of the AbD Serotec segment in the amount of EUR 5.3
million
(December 31, 2011: EUR 134.4 million). This does not reflect the
effects nor
does it include the proceeds of the AbD Serotec transaction, which was
closed on
January 10, 2013. As a result, MorphoSys's cash, securities and
interest-bearing assignable loans increased to EUR 180.8 million as of
January 31, 2013.
|In EUR million |2012 |2011 |Q4 2012|Q4 2011|
+-----------------------------------------+-----+-----+-------+-------+
| | | | | |
+-----------------------------------------+-----+-----+-------+-------+
| | | | | |
|Continuing Operations: | | | | |
+-----------------------------------------+-----+-----+-------+-------+
|Group Revenues |51.9 |82.1 |16.5 |12.3 |
+-----------------------------------------+-----+-----+-------+-------+
|Total Operating Expenses |49.8 |70.8 |12.2 |20.4 |
+-----------------------------------------+-----+-----+-------+-------+
|Other Income/Expenses |0.3 |(1.5)|0.1 |0.1 |
+-----------------------------------------+-----+-----+-------+-------+
|Earnings Before Interest and Taxes (EBIT)|2.5 |9.8 |4.4 |(8.0) |
+-----------------------------------------+-----+-----+-------+-------+
|Profit/Loss from Discontinued Operations |(0.4)|0.01 |(0.1) |0.0 |
+-----------------------------------------+-----+-----+-------+-------+
|Consolidated Net Profit |1.9 |8.2 |3.2 |(4.8) |
+-----------------------------------------+-----+-----+-------+-------+
|Total EPS (diluted) in EURO |0.08 |0.36 |- |- |
+-----------------------------------------+-----+-----+-------+-------+
"Financial stability based on our strong cash position together
with a
profitable and cash-generating partner business, continues to be one
of the
greatest strengths of our company. Financial discipline will remain a key
factor
as we strive to maximize the value of our proprietary portfolio of
antibody
candidates. We are seeking to out-license MOR103 in 2013 and we will
also
consider further transactions such as in-licensing deals to access new
drug
candidates and technologies as well as equity participation in
companies,"
commented Jens Holstein, Chief Financial Officer of MorphoSys AG.
Financial Review for the Fiscal Year 2012 (IFRS)
Results from Continuing Operations
Group revenues from continuing operations for the full year 2012
amounted to
EUR 51.9 million (2011: EUR 82.1 million), a decrease of 37 % over the
prior
year. The decrease resulted predominantly from a one-time technology
milestone
payment from Novartis in 2011. Revenues in the Partnered Discovery
segment
comprised EUR 44.7 million in funded research and licensing fees
(2011:
EUR 79.3 million) and EUR 1.9 million in success-based payments
(2011:
EUR 32.7 million). The Proprietary Development segment recorded funded
research
revenues of EUR 7.0 million (2011: EUR 2.4 million). Assuming constant
foreign
exchange rates at the average rate of 2011, revenues in the Partnered
Discovery
and Proprietary Development segments would have amounted to EUR 51.3
million.
Total operating expenses from continuing operations for the full year
2012
decreased by 30 % to EUR 49.8 million (2011: EUR 70.8 million). The
reduction in
operating expenses of EUR 21.0 million was mainly caused by
decreased
proprietary research and development (R&D) expenses and lower S, G&A
costs.
Total research and development expenses fell by EUR 18.2 million or 33
% to
EUR 37.7 million in 2012 (2011: EUR 55.9 million). The decrease in R&D
expenses
mainly resulted from a lower level of investment in proprietary
product and
technology development amounting to EUR 21.7 million (2011: EUR 36.8
million).
Sales, general and administrative expenses fell by 19 % to EUR 12.1
million
(2011: EUR 14.9 million). Non-cash charges related to stock-based
compensation
are embedded in COGS, S,G&A and R&D expenses and amounted to EUR 1.3
million
(2011: EUR 1.5 million).
Earnings before interest and taxes (EBIT) from continuing operations
amounted to
EUR 2.5 million (2011: EUR 9.8 million). Partnered Discovery showed a
segment
EBIT of EUR 23.0 million (2011: EUR 55.7 million), while the
Proprietary
Discovery segment reported a segment EBIT of EUR -11.0 million (2011:
EUR -
32.2 million) due to investments in proprietary development.
Other income and expenses, including taxes, resulted in an income of
EUR 0.2
million (2011: expense of EUR 3.1 million). For the full year 2012,
MorphoSys
realized a net profit from continuing operations of EUR 2.4 million
compared to
a net profit of EUR 8.2 million in the previous year. The resulting
diluted
earnings per share from continuing operations for the year 2012
amounted to
EUR 0.10 (2011: EUR 0.35).
Results from the AbD Serotec segment
Sales from the AbD Serotec segment amounted to EUR 18.0 million
(2011:
EUR 19.3 million). Assuming constant foreign exchange rates at the average
rate
of 2011, segment revenues in AbD Serotec would have
amounted to
EUR 17.0 million. EUR 17.7 million of the segment revenues are not
included in
the Group revenues from continuing operations and are presented as revenues
from
discontinuing operations.
Total operating costs for the AbD segment decreased by 4 % to EUR 17.6
million
(2011: EUR 18.4 million), including cost of goods sold (COGS) in the
amount of
EUR 6.2 million (2011: EUR 7.0 million).
Earnings before interest and taxes (EBIT) from the AbD Serotec segment
amounted
to EUR 0.3 million (2011: EUR 0.9 million).
Results for the Group:
Group net profit amounted to EUR 1.9 million (2011: EUR 8.2
million). The
resulting Group earnings per share amounted to EUR 0.08 (2011: EUR 0.36).
On December 31, 2012, the Company had EUR 135.7 million in cash,
cash
equivalents and marketable securities, including an interest-bearing
assignable
loan in the amount of EUR 10.0 million and including cash reserves of
the AbD
Serotec segment in the amount of EUR 5.3 million, compared to EUR 134.4
million
as of December 31, 2011. Net cash inflow from operations in 2012
amounted to
EUR 1.8 million (2011: EUR 27.1 million). The number of issued
shares at
December 31, 2012 was 23,358,228, compared to 23,112,167 shares at
December
31, 2011.
Fourth Quarter of 2012 (IFRS)
Results from Continuing Operations
In the fourth quarter of 2012, the Company generated revenues from
continuing
operations in the amount of EUR 16.5 million, compared to EUR 12.3
million in
the same quarter of 2011. Total operating expenses amounted to EUR 12.2
million
in Q4, compared to EUR 20.4 million in the same quarter of 2011. The
decrease of
operating expenses was mainly due to decreased personnel expenses and
costs for
external services. The EBIT amounted to EUR 4.4 million (Q4 2011:
EUR -
8.0 million). Net profit for the fourth quarter 2012 was EUR 3.2
million,
compared to a net loss of EUR 4.8 million in the fourth quarter of 2011.
Results from Discontinued Operations (AbD Serotec)
The discontinued operations generated revenues of EUR 4.2 million in the
fourth
quarter of 2012, compared to EUR 4.8 million in the same quarter of 2011.
Total
operating expenses amounted to EUR 4.4 million in Q4, compared to
EUR 4.6
million in the same quarter of 2011. The decrease of operating
expenses was
mainly due to decreased costs of goods sold. The resulting EBIT
amounted to
EUR -0.2 million (Q4 2011: EBIT of EUR 0.2 million). Net loss for the
fourth
quarter 2012 was EUR 0.1 million, compared to a slight net profit for the
fourth
quarter of 2011.
Outlook for 2013
MorphoSys's main goals for 2013 are the expansion and progress of
its
therapeutic antibody pipeline and the further development and
exploitation of
its technology platforms. Without taking into account a successful
out-licensing of one of its proprietary compounds, MorphoSys anticipates
total Group revenues
of EUR 48 million to EUR 52 million and anticipates an EBIT in the
range of
EUR -18 to EUR -22 million in 2013. Total operating expenses will amount
to EUR
70 million to EUR 74 million, of which EUR 32 million to EUR 37
million
represent investments in proprietary products and technologies. From the
sale of
the AbD Serotec segment, MorphoSys expects an extraordinary income of
EUR 4
million to EUR 6 million. Additional income from an out-licensing deal in
2013,
which is not included in the current guidance, could lead to an
out-performance of the guidance.
MorphoSys will hold its conference call and webcast today to present the
Annual
Financial Results 2012 and the Outlook 2013.
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: +1 202 204 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.
Consolidated Financial Statements 2012 (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.
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®,
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.
Consolidated Financial Statements (IFRS) 2012:
http://hugin.info/130295/R/1682840/550611.pdf
Media Release (PDF):
http://hugin.info/130295/R/1682840/550610.pdf
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Source: MorphoSys AG via Thomson Reuters ONE
[HUG#1682840]
