Heidelberg, November 10, 2009 – SYGNIS Pharma AG (Frankfurt: LIO; ISIN DE0005043509; Prime Standard) today published its financial results for the second quarter and the first half of the fiscal year 2009/2010, which ended on 30 September 2009.
Q2 2009/2010 Financials
• Cash including marketable securities amounted to €18.3 million (€11.1 million Q2 08/09), i.e. € 2.5 million better than planned. With the commitment of the US fund YA Global, SYGNIS secures up to € 10 million through a 3 year Standby Equity Distribution Agreement (“SEDA”). Long term financial liabilities amounted to €8.0 million resulting from a loan which is not due for repayment before 2015.
• As a result of expanded research and development activities, total operating expenses in the second quarter of the fiscal year 2009/2010 increased by €0.2 million to €2.4 million compared to the same period of the last fiscal year, i.e. € 1.1 million less than planned.
• The net loss in the first half of the fiscal year 2009/2010 amounted to € -6.9 million (€ -3.6 million first half 08/09).
• Due to the fall in the market value of the debt securities unrealized exchange rate losses of € 2,6 million have been posted through profit or loss; these unrealized exchange rate losses were recorded under equity in the past without effecting income and do not result in any additional outflow of liquidity.
Operational Highlights
With the SEDA closed with Yorkville in October, SYGNIS secured up to € 10 million, which SYGNIS has the right to request from Yorkville within the next 3 years.
The phase II efficacy study of SYGNIS’ lead compound AX200 is being advanced and the development of the preclinical projects, in particular regarding KIBRA and the neural stem cell program (NSD), is proceeding during the first half of the fiscal year as planned. SYGNIS is confident that, based on the results achieved so far, the anticipated milestones and project goals will be fulfilled providing a sound basis for further discussions on potential cooperation and licensing opportunities.
Outlook
With the current financial situation and with regard to the recent commitment from Yorkville to invest up to € 10 million, SYGNIS has a good financial basis for its focused development. For the ongoing fiscal year 2009/2010 SYGNIS expects operational costs and net loss to be lower than originally anticipated. The net loss for the fiscal year 2009/2010 is expected to be within the original expectations due to the recognition of unrealized exchange rate losses of available-for-sale securities through profit or loss.
The report on the first quarter which ended on June 30, 2009 is available at the SYGNIS webpage at www.sygnis.de.
About SYGNIS Pharma
SYGNIS Pharma AG, headquartered in Heidelberg, is a specialty pharmaceutical company listed on the Prime Standard of the German stock exchange. The Company is focused on the research, development and marketing of innovative therapies for the treatment of disorders of the Central Nervous System. These include Stroke, Amyotrophic Lateral Sclerosis (ALS) and neurological disorders resulting from injuries of the brain or spinal cord. All these disorders are characterized by the fact that, as the disease progresses, nerve cells are damaged and die. Although there is great medical demand, there are currently no or only inadequate treatment options available.
One of the central elements in this value-creation chain is the continued development of the existing product pipeline. This is achieved by testing the Company’s proprietary compounds, which are already under development in a number of further CNS indications (“line extension”). Within specific R&D programs at SYGNIS, new pre-clinical drug candidates are identified and evaluated as well as early-stage projects are initiated for the purpose of partnering.
