MARTINSRIED/MUNICH, Germany, April 29 /PRNewswire-FirstCall/ -- MorphoSys AG (Frankfurt Stock Exchange: MOR; Prime Standard Segment) today reported financial results for its first quarter ended March 31, 2004. Revenues increased by 14% to euro 4.2 million, and total operating expenses decreased by 20% to euro 4.4 million. The Company reported a quarterly profit -- the second consecutive quarter in which earnings have been positive -- which amounted to euro 0.5 million (March 31, 2003: euro -1.8 million loss). A positive EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization), excluding stock-based compensation, was also maintained, amounting to euro 1.5 million in the first quarter of 2004 (March 31, 2003: euro -0.7 million). The Company’s cash position equaled euro 23.8 million at the end of the first quarter 2004, up from euro 23.2 million at year-end 2003.
Revenues grew by 14% in the first three months of 2004 to euro 4.2 million (March 31, 2003: euro 3.7 million). Total operating expenses including stock-based compensation for the first three months of 2004 amounted to euro 4.4 million, compared to euro 5.5 million in the same period of 2003. Research and development costs decreased to euro 2.6 million from euro 2.7 million; sales, general & administrative expenses amounted to euro 1.5 million compared to euro 2.2 million, and stock-based compensation fell to euro 0.3 million (March 31, 2003: euro 0.5 million). Amortization of intangibles and depreciation amounted to euro 0.8 million for the first three months of 2004 (March 31, 2003: euro 0.5 million). Non-operating income in the first three months of 2003 amounted to euro 0.6 million (March 31, 2003: non-operating loss of euro 0.1 million). The resulting net income per share for the first three months of 2004 amounted to euro 0.10 (March 31, 2003: loss per share of euro 0.46).
Highlights of the First Quarter 2004 Included: -- Payment from GPC Biotech to MorphoSys for the extension of a license to a HuCAL(R) antibody to treat certain types of leukemia -- Achievement of further milestones in the Centocor collaboration, and the start of a new therapeutic antibody project in the area of auto-immune diseases -- Cross-licensing agreement with Bayer Healthcare providing Bayer with HuCAL GOLD(R) and securing access for MorphoSys to the human cell line HKB 11 -- Announcement of the formation of its new antibody business unit, “Antibodies by Design” -- Granting of additional U.S. patents for proprietary HuCAL(R) antibody technologies
Commenting on the numbers, Dave Lemus, Chief Financial Officer of MorphoSys AG said: “Today’s results represent an excellent start to the year for MorphoSys. We have now achieved two quarters in a row in which bottom-line earnings were positive. This is an important step in helping us realize our objective of a second year where EBITDA is positive.”
MorphoSys will hold a public conference call today at 10:00 CET to present the financial results of the first quarter 2004.
Dial-in number for the Conference Call (listen-only): +49 (0) 69 22223 105 Please dial in 10 minutes before the beginning of the conference.
A replay of the conference call will be available on http://www.morphosys.com/.
About MorphoSys:
MorphoSys develops and applies technologies for the production of synthetic antibodies, which accelerate drug discovery and disease-related target molecules. The Company was founded in 1992 and has a wide range of innovative technologies, above all HuCAL(R), the Human Combinatorial Antibody Library, which is used by researchers worldwide for human antibody generation. The Company has collaborations with international pharmaceutical companies such as Bayer (Berkeley, California/USA), Biogen Inc. (Cambridge, Massachusetts/USA), Boehringer Ingelheim (Ingelheim, Germany), Bristol-Myers Squibb (Wilmington, Delaware/USA), Centocor Inc. (Malvern, Pennsylvania/USA), GPC Biotech AG (Martinsried/Germany), Hoffmann-La Roche AG (Basel/Switzerland), ImmunoGen Inc. (Cambridge, Massachusetts/USA), Oridis Biomed GmbH (Graz/Austria), Pfizer Inc. (Delaware/USA), ProChon Biotech Ltd. (Rehovot/Israel), Schering AG (Berlin/Germany) and Xoma Ltd. (Berkeley, California/USA). Further information can be found on the Company’s website: http://www.morphosys.com/.
Statements included in this press release which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Factors that may affect future operations and business prospects include, but are not limited to, clinical and scientific results and developments concerning corporate collaborations and the company’s proprietary rights and other factors described in the prospectus relating to the company’s recent public offering.
Consolidated Statement of Operations (U.S. GAAP) in euro, except share data 3/31/2004 3/31/2003 Revenues 4,247,087 3,744,046 Research & Development Expenses 2,602,369 2,740,162 General & Administrative Expenses 1,490,376 2,248,421 Stock-Based Compensation 335,693 461,095 Total Operating Expenses 4,428,438 5,449,678 Gain/(Loss) from Operations (181,351) (1,705,632) Interest Income 103,810 20,066 Interest Expense 77,707 98,860 Other Income, Net 621,392 (3,086) NET INCOME/(LOSS) 466,144 (1,787,512) Earning/(Loss) Loss per Share Basic 0.10 (0.46) Diluted 0.10 (0.46) Shares Used in Computing Net Earnings/(Loss) per Share Basic 4,841,570 3,889,944 Diluted 4,843,040 3,889,944 Consolidated Balance Sheet (U.S. GAAP) in euro 3/31/2004 12/31/2003 Cash, Cash Equivalents and Marketable Securities 23,754,414 23,161,031 Accounts Receivable 1,279,983 2,111,710 Prepaid Expenses and Other Current Assets 740,175 948,575 Total Current Assets 25,774,572 26,221,316 Property and Equipment, Net 2,139,095 1,907,895 Patents, Net 5,906,515 6,103,675 License Fees, Net 10,581,661 10,898,904 Other Assets 501,585 627,130 Total Assets 44,903,428 45,758,920 Current Liabilities Accounts Payable 158,789 258,732 Current Portion of License Payable 716,542 677,060 Current Portion of Deferred Revenue 4,917,676 4,272,249 Accrued Employee Benefits 411,113 949,122 Other Accrued Expenses and Liabilities 1,430,847 1,524,439 Total Current Liabilities 7,634,967 7,681,602 Non-Current Liabilities License payable, Net of Current Portion 1,705,901 1,651,360 Deferred Revenue, Net of Current Portion 4,935,654 6,086,205 Convertible Bonds Due to Related parties 151,800 157,200 Total Non-Current Liabilities 6,793,355 7,894,765 Total Stockholders’ Equity 30,475,106 30,182,553 Total Liabilities and Stockholders’ Equity 44,903,428 45,758,920 Condensed Consolidated Statement of Cash Flows (U.S. GAAP) in euro 3/31/2004 12/31/2003 Net Income / (Loss) 466,144 (1,787,512) Net Cash Provided by Operating Activities 462,697 2,480,288 Net Cash Used in Investing Activities (7,098,507) (3,102,864) Net Cash Provided by/(Used in) Financing Activities 336,529 (6,600) Effect of Exchange Rate Differences in Cash 630 6,524 Decrease in Cash and Cash Equivalents (6,298,651) (622,652) Cash and Cash Equivalents at the Beginning of the Period 6,652,456 842,082 Cash and Cash Equivalents at the End of the Period 353,805 219,430
MorphoSys AG
CONTACT: Dave Lemus, Chief Financial Officer, +49-89-899-27-439,fax: +49-89-899-27-5439, investors@morphosys.com, or Dr. ClaudiaGutjahr-Loeser, Director Corporate Communications, +49-89-899-27-122,fax: +49-89-899-27-5122, gutjahr-loeser@morphosys.com, or Mario Brkulj, PRSpecialist, +49-89-899-27-454, fax: +49-89-899-27-5454, brkulj@morphosys.com,all of MorphoSys AG
Web site: http://www.morphosys.com/
