SYGNIS Pharma AG Announces Three Months Results of Fiscal Year 2012/2013
Published: Aug 14, 2012
• The net loss in the first quarter was €-1.2 million (€-1.3 million Q1 2011/2012).
• Total operating expenses for the first three months were down at €1.3 million (€2.2 million first quarter 2011/2012).
• Cash including marketable securities amounted to €3.0 million as of June 30, 2012 (€4.8 million June 30, 2011).
• The focus of the business operations of SYGNIS during the first quarter was on the preparation of the planned business combination of GENETRIX’ subsidiary X-Pol Biotech and SYGNIS. On 18 July 2012, SYGNIS and GENETRIX have signed a binding Term Sheet under which the companies propose to combine X- Pol Biotech - a company focussed on DNA sequencing - and SYGNIS. Furthermore SYGNIS has signed ahead of schedule a prolongation of the standby equity distribution agreement (SEDA) with YA Global Master SPV LTD on 31 July 2012. The binding Term Sheet and the prolongation of SEDA are subject to an exemption granted by BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) from the obligations pursuant to Section 35 of the German Takeover Act (Wertpapiererwerbs- und Übernahmegesetz), in particular to submit a mandatory tender offer to the existing shareholders of SYGNIS.
• The operating expenses and the liquidity outflow during the first quarter were within the expectations of the Company.
• In the KIBRA project further milestones were reached. Initial examinations with regard to therapeutic peptides are very promising and the development of a peptide-based medicine represents another approach to treating dementia.
• The discussions with potential partners for KIBRA were intensified.
• For the upcoming months emphasis is being placed on securing sufficient funding and the further implementation of the strategic realignment through the proposed merger with X-Pol Biotech. With this merger and the marketing of existing products and technologies, SYGNIS expects to generate initial revenues.
• For the KIBRA project SYGNIS is looking for a pharma partner. The Company has therefore started a systematic partnering process and is in ongoing discussions with potential partners for the project. However, should the Company not succeed in winning a partner for KIBRA, the management will have to reconsider the future of this project.
• The Company’s available financial assets as of 30 June 2012 secure the liquidity of SYGNIS until approximately March 2013. This estimation does not include revenues that may result from potential research co-operations for the KIBRA project. To further finance its business activities, the Company will have to rely on further funding from March 2013 on.
For further information please contact:
Chief Financial Officer
SYGNIS Pharma AG
Tel.: +49 6221 454 836
About SYGNIS Pharma
SYGNIS Pharma AG (Heidelberg, Germany) is currently a specialty drug development company, focusing on innovative treatments for underserved human diseases. Early in 2012 the company decided to discontinue its Phase II lead program AX200 in stroke. While the company continued research activities in the field of cognitive disorders, it started at the same time a systematic M&A process, to add new operational assets and activities to SYGNIS Pharma AG. SYGNIS Pharma AG is listed in the Prime Standard of the Frankfurt Stock Exchange under the ticker: LIOK; and ISIN: DE000A1E9B74.
Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of SYGNIS Pharma AG may deviate greatly from the established conclusions or implied predictions contained in such statements. SYGNIS does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason.