MorphoSys AG Reports Nine Months 2012 Results
MARTINSRIED, GERMANY and MUNICH, GERMANY, Nov 07, 2012 (Menafn - MARKETWIRE via COMTEX) --MorphoSys AG / MorphoSys AG Reports Nine Months 2012 Results .Processed and transmitted by Thomson Reuters ONE. The issuer issolely responsible for the content of this announcement.
MorphoSys AG todayannounced its financial results according to International Financial Reporting Standards(IFRS) for the nine months ending September 30, 2012. The most important eventduring the thirdquarter was the publication of excellent safety and efficacydata for MOR103 in rheumatoid arthritis (RA), the most advancedproprietaryprogram in MorphoSys's pipeline.
"During the first nine months of 2012, we made significantprogress with our pipeline of new therapeutic products, which is themost important value driverfor the Company", stated Dr. SimonMoroney, Chief Executive Officer of MorphoSysAG. "The positiveoutcome of the MOR103 study and the progress of ourpartneredpipeline underscore the strength of our businessmodel. We look forward to further progress in the months and yearsahead."
Highlights of the Third Quarter
* MorphoSys delivered positive safety and efficacy results from aphase 1b/2a study of MOR103 in rheumatoid arthritis patients.
* MorphoSys and the University of Melbourne published preclinicaldata on the role of GM-CSF in inflammatory, arthritic andosteoarthritic pain.
* Roche highlighted progress in developing the HuCAL antibodygantenerumab in Alzheimer's disease at its Investor R&D Day.
* MorphoSys's partner OncoMed initiated a phase 1b/2 clinical trialwith HuCAL antibody OMP-59R5 in advanced pancreatic cancer.
* MorphoSys's partner Bayer HealthCare received Orphan DrugDesignation for the HuCAL-based antibody conjugate BAY 94-9343 inthe USA for the treatment of mesothelioma.
* The product portfolio at MorphoSys matured further and remainsone of the industry's broadest antibody pipelines: at the end ofthe quarter, MorphoSys's partnered and proprietary pipelinecomprised 76 programs, of which 21 are in clinical development.
Nine Months Nine Months
EndedEnded
In EURO millionSep 30, 2012Sep 30, 2011Q3 2012Q3 2011
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Group Revenues48.983.715.917.1
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of which success-based payments1.932.20.01.0
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of which AbD Serotec13.714.14.94.7
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Total Operating Expenses51.364.116.320.6
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EBIT(2.3)18.0(0.4)(3.4)
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Net Profit/(Loss)(1.2)13.0(0.2)(2.0)
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EPS, diluted, in EURO(0.05)0.56 (0.01) (0.09)
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"Our financial strength allows us to continue investing inproprietary R&D, the main value driver of MorphoSys," commented Jens Holstein, Chief FinancialOfficer of MorphoSys AG. "Our financial results are, however, increasinglydependent on milestone payments and the initiation of additionalcommercialagreements, leading to a higher volatility in revenues and earnings.Negotiations for additional commercialagreements took longer than originallyanticipated and as aconsequence are having a negative impact on our financialresultsfor 2012."
Financial Review for First Nine Months of 2012 According to IFRS
Group revenues for the first nine months of 2012 were EUR 48.9million (9-months2011:EUR 83.7 million), the difference to theprevious year largely reflectinga one-off payment received in Q1 2011 from Novartis for the successfulinstallation of the HuCAL platform at the Novartis Institutes for BioMedicalResearch in Basel, Switzerland. Revenues in the Partnered Discoverysegmentcomprised EUR 32.1 million in funded research andlicensing fees (9-months2011:EUR 35.7 million) and EUR 1.9 millionin success-based payments (9-months2011:EUR 32.2 million). The Proprietary Development segment recorded fundedresearch revenuesof EUR 1.2 million (9-months 2011:EUR 1.9 million).Assumingconstant foreign exchange rates at the average rate of thefirst nine months of 2011, revenues in the Partnered Discovery andProprietary Development segmentswould have remained almost unchanged at EUR 35.1 million. The AbD Serotecsegment provided28 % or EUR 13.7 million of total revenues (9-months 2011:EUR 14.1million), a decrease of 3 %. Assuming constant foreign exchangerates at the average rate of the first nine months of 2011,revenues in the AbD Serotecsegment would have amounted to EUR 12.9million.
Total operating expenses for the first nine months of 2012 decreasedby 20 % to EUR 51.3 million (9-months 2011:EUR 64.1 million). Thedecrease of EUR 12.8million was mainly caused by reducedproprietary research and development (R&D)expenses in line with the Company's plans. Cost of goods sold (COGS), a lineitem specific to AbD Serotec, decreased by 13 % to EUR 4.8 million(9-months2011:EUR 5.5 million). Total research and developmentexpenses for the Groupdecreased by EUR 11.6 million to EUR30.3 million (9-months 2011:EUR 41.9million). The decrease in R&Dexpenses mainly resulted from a lower level of investment inproprietary product and technology development amounting to EUR17.2 million (9-months 2011:EUR 26.1 million). Sales, general andadministrative expenses decreased by 4 % to EUR 16.2million (9-months 2011:EUR 16.8 million). Non-cash charges relatedto stock-based compensation are embeddedin COGS, S,G&A and R&Dexpenses and amounted to EUR 1.0 million (9-months 2011:EUR 1.1million).
For the first nine months of 2012, MorphoSys recorded earningsbefore interestand taxes (EBIT) of minus EUR 2.3 million (9-months 2011:EBIT of EUR 18.0million). Partnered Discovery showed a segment EBIT of EUR 17.9 million(9-months 2011:EBIT of EUR 50.9 million) while the continued investment inproprietary development led to segment EBIT of minus EUR 13.1million (9-months 2011:EBIT of minus EUR 22.9 million). The AbDSerotec segment recorded a gross profit margin of 65 %, incomparison to 61 % in the first nine months of 2011.The EBIT for AbDSerotec amounted to minus EUR 0.04 million (9-months 2011:EBITofEUR 0.3 million).
For the first nine months of 2012, MorphoSys recorded a net lossafter taxes of EUR 1.2 million compared to a net profit of EUR 13.0million in the same periodof the previous year, the differenceagain being predominantly due to the one-off payment received in Q1 2011. The resulting diluted net loss per share for the first ninemonths of 2012 was EUR 0.05 (9-months 2011:diluted net profit of EUR0.56).
On September 30, 2012, MorphoSys's cash, securities andinterest-bearingassignable loans amounted to EUR 137.5 million(December 31, 2011: EUR 134.4million). Net cash inflow from operations in the first nine months of 2012amounted to EUR 2.4million (2011:net cash inflow EUR 36.1 million). The numberof issued shares at September 30, 2012 was 23,308,622, compared to23,112,167shares at December 31, 2011.
Financial Review of the Third Quarter of 2012 (IFRS)
In the third quarter of 2012, revenues were EUR 15.9 million,compared to EUR 17.1 million in the same quarter of 2011. Earnings before interest and taxesamounted to minus EUR 0.4 million,compared to an EBIT of minus EUR 3.4 millionin the same period of 2011. A net loss of EUR 0.2 million was achieved in the thirdquarter of 2012, compared to a net loss of EUR 2.0 million during thesameperiod in 2011.
Outlook for 2012
As stated in the past, revenues in 2012 are increasingly dependenton success-based milestones in existing therapeutic antibody programs,new alliances or the expansion of existing alliances involving new technology platforms such as Slonomics and Ylanthia. In 2012, negotiations for additional commercialagreements took longer than originally anticipated. In addition,theuncertainties of government fiscal deficits led to a reductionof funding for the research market, leading to lower sales in the AbDSerotec unit.
Therefore, MorphoSys updates its financial guidance for the Groupfor 2012. The company expects Group revenues to be in the range of EUR 70-75 million, thusbeing slightly below the original guidanceof EUR 75-80 million. In terms of EBIT for the Group, it is expected to be around the lower end of the originalguidance of EUR 1-5 million. At the time of the publication of the 9-months2012report, certain income-generating events are expected to materializebeforethe end of the year, the timely conclusion of which isimportant for reachingthe 2012 financial guidance.
This guidance currently does not include a successfulout-licensing of any of the Company's proprietary developmentprograms. The scope and the timing of suchevents is difficult to predict and therefore not included in the financialprojections.
Investment in proprietary research and development in 2012 remainsunchanged and will be approximately EUR 20-25 million.
MorphoSys will hold a public conference call and webcast today at02:00 p.m. CET (08:00 a.m. EST)(01:00 p.m. GMT) to present the SecondQuarter Results 2012 and report on current developments.
Dial-in number for the Conference Call (listen-only):
Germany:49 89 2444 32975
For U.K. residents:44 20 3003 2666
For U.S. residents:1 202 204 1514
Please dial in 10 minutes before the beginning of the conference.
In addition, MorphoSys offers participants the opportunity tofollow the presentation through a simultaneous slide presentation online athttp://www.morphosys.com.
A live webcast, slides, webcast replay and transcript will be madeavailable at http://www.morphosys.com.
Approximately two hours after the press conference, aslide-synchronized audioreplay of the conference will be available onhttp://www.morphosys.com.
The complete 3(rd) Interim Report 2012 (January - September) isavailable on our website (HTML and PDF):http://www.morphosys.com/FinancialReports
About MorphoSys:
MorphoSys developed HuCAL, the most successful antibody librarytechnology inthe pharmaceutical industry. By successfully applyingthis and other patentedtechnologies, MorphoSys has become a leaderin the field of therapeutic antibodies, one of the fastest-growingdrug classes in human healthcare. Thecompany's AbD Serotec unit usesHuCAL and other antibody technologies to generate superior monoclonalantibodies for research and diagnostic applications.Together withits pharmaceutical partners, MorphoSys has built atherapeuticpipeline of more than 70 human antibody drug candidatesfor the treatment ofcancer, rheumatoid arthritis, and Alzheimer'sdisease, to name just a few. Withits ongoing commitment to newantibody technology and drug development, MorphoSys is focused onmaking the healthcare products of tomorrow. MorphoSys is listed onthe Frankfurt Stock Exchange under the symbol MOR. For regularupdatesabout MorphoSys, visit http://www.morphosys.com
HuCAL(R), HuCAL GOLD(R), HuCAL PLATINUM(R), CysDisplay(R),RapMAT(R), arYla(R) and Ylanthia(R) and 100 billion highpotentials(R) are registered trademarks of MorphoSys AG
Slonomics(R) is a registered trademark of Sloning BioTechnology GmbH, a subsidiary of MorphoSys AG.
This communication contains certain forward-looking statementsconcerning the MorphoSys group of companies. The forward-lookingstatements contained hereinrepresent the judgment of MorphoSys asof the date of this release and involverisks and uncertainties. Should actual conditions differ from the Company'sassumptions, actual results and actions may differ from thoseanticipated.MorphoSys does not intend to update any of theseforward-looking statements as far as the wording of the relevant pressrelease is concerned.
3rd Interim Report 2012 (PDF):http://hugin.info/130295/R/1655606/535015.pdf
Media Release (PDF): http://hugin.info/130295/R/1655606/535014.pdf
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Source: MorphoSys AG via Thomson Reuters ONE
[HUG#1655606]
For more information, please contact:
MorphoSys AG
Dr. Claudia Gutjahr-Loser
Head of Corporate Communications & IR
Tel: 49 (0) 89 / 899 27-122
Mario Brkulj
Senior Manager Corporate Communications & IR
Tel: 49 (0) 89 / 899 27-454
Alexandra Goller
Specialist Corporate Communications & IR
Tel: 49 (0) 89 / 899 27-332
Email Contact
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