August 02, 2012 / 7:00 am, CET
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today announced its financial results according to International Financial Reporting Standards (IFRS) for the six months ending June 30, 2012. Group revenues were EUR 33.0 million (H1 2011: EUR 66.6 million), and the Company recorded an EBIT of EUR (1.9 million) (H1 2011: EBIT of EUR 21.5 million) and a net loss after taxes of EUR 1.0 million (H1 2011: net profit after taxes of EUR 15.0 million). Revenues and profits in the first half of 2011 were heavily influenced by a one-off technology milestone payment from Novartis in connection with the installation of MorphoSys's HuCAL antibody platform at Novartis's premises in Basel. This is the main reason for the differences to the current year. MorphoSys's investment in proprietary product and technology development amounted to EUR 12.3 million in the first half of 2012 (H1 2011: EUR 17.1 million). MorphoSys's cash, securities and interest-bearing assignable loans on June 30, 2012 amounted to EUR 133.5 million (December 31, 2011: EUR 134.4 million). The Company re-confirmed its full year guidance for 2012.
| In EURO million || H1 2012 || H1 2011 |
| || || |
| || || |
| Group Revenues || 33.0 || 66.6 |
| hereof success-based payments || 1.9 || 31.2 |
| hereof AbD Serotec || 8.8 || 9.4 |
| Total Operating Expenses || 35.0 || 43.5 |
| EBIT || (1.9) || 21.5 |
| Net (Loss)/Profit || (1.0) || 15.0 |
| EPS, diluted, in EURO || (0.04) || 0.65 |
| || || |
Highlights of the Second Quarter
MorphoSys reached a major milestone in its 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.
MorphoSys announced the election of two new Supervisory Board members: Karin Eastham and Marc Cluzel.
MorphoSys announced two new management appointments: Charlotte Lohmann joins MorphoSys from Wilex as General Counsel, and Martin Clark joins MorphoSys from Sandoz Biopharmaceuticals as Head of Central Purchasing & Logistics.
AbD Serotec launched a panel of new HuCAL anti-drug antibodies supporting the development of novel antibody therapeutics. The new product category targets primarily CROs and pharmaceutical companies.
MorphoSys and its US-based partner Xencor completed enrollment in a phase 1 clinical trial evaluating the antibody MOR208 in CLL. Study data is expected in Q4 2012. MorphoSys plans to initiate additional clinical trials for MOR208 in NHL and ALL in 2012.
MorphoSys presented MOR208 preclinical combination therapy data at this year's ASCO meeting. The data demonstrate synergistic effects with four approved treatment options including rituximab and ofatumumab.
MorphoSys's partner OncoMed presented clinical phase 1-data on the HuCAL antibody program OMP-59R5 at the ASCO conference. OMP-59R5 was generally safe and well tolerated.
At the end of the second quarter of 2012, MorphoSys's partnered and proprietary pipeline comprised 73 programs, of which 20 are in clinical development.
"We are optimistic regarding the development of our business performance in the second half of the year and thus confirm our financial guidance for 2012," commented Jens Holstein, Chief Financial Officer of MorphoSys AG. "Our ability to continue to invest in long-term value drivers and maintain profitability in 2012 sits at the core of our business model."
"The progress with the HuCAL antibody gantenerumab for the treatment of Alzheimer's disease is clearly a major event", stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "This is the first HuCAL antibody program to advance into a potentially pivotal clinical trial and highlights the growing importance of our pipeline to the Company's value proposition. We anticipate further news from the pipeline before year-end including clinical data from several trials, in particular our proprietary programs MOR103 and MOR208."
Financial Review for First Six Months of 2012 According to IFRS
Group revenues for the first six months of 2012 were EUR 33.0 million (H1 2011: EUR 66.6 million), the difference to the previous year largely reflecting 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, Switzerland. Revenues in the Partnered Discovery segment comprised EUR 21.5 million in funded research and licensing fees (H1 2011: EUR 24.9 million) and EUR 1.9 million in success-based payments (H1 2011: EUR 31.2 million). The Proprietary Development segment recorded funded research revenues of EUR 0.8 million (H1 2011: EUR 1.2 million). Assuming constant foreign exchange rates at the average rate of H1 2011, total revenues in the Partnered Discovery and Proprietary Development segments would have remained unchanged at EUR 24.2 million. The AbD Serotec segment provided 27% or EUR 8.8 million of total revenues (H1 2011: EUR 9.4 million), a decrease of 6 %. Assuming constant foreign exchange rates at the average rate of H1 2011, revenues in the AbD Serotec segment would have amounted to EUR 8.4 million.
Total operating expenses for the first six months of 2012 decreased by 20 % to EUR 35.0 million (H1 2011: EUR 43.5 million). The decrease of EUR 8.5 million was mainly caused by reduced proprietary research and development (R&D) expenses in line with the Company's plans. Cost of goods sold (COGS), a line item specific to AbD Serotec, decreased by 14 % to EUR 3.2 million (H1 2011: EUR 3.7 million). Total research and development expenses for the Group decreased by EUR 7.0 million to EUR 21.2 million (H1 2011: EUR 28.2 million). The decrease in R&D expenses mainly resulted from a lower level of investment in proprietary product and technology development amounting to EUR 12.3 million (H1 2011: EUR 17.1 million). Sales, general and administrative expenses decreased by 8 % to EUR 10.6 million (H1 2011: EUR 11.5 million). Non-cash charges related to stock-based compensation are embedded in COGS, S,G&A and R&D expenses and amounted to EUR 0.6 million (H1 2011: EUR 0.9 million).
For the first six months of 2012, MorphoSys recorded earnings before interest and taxes (EBIT) of EUR (1.9 million) (H1 2011: EBIT of EUR 21.5 million). Partnered Discovery showed a segment EBIT of EUR 12.6 million (H1 2011: EBIT of EUR 44.2 million) while the continued investment in proprietary development led to segment EBIT of EUR (9.6 million) (H1 2011: EBIT of EUR (14.9 million)). The AbD Serotec segment recorded a gross profit margin of 63 %, in comparison to 60 % in the first six months of 2011. The EBIT for AbD Serotec amounted to EUR (0.5 million) (H1 2011: EBIT of EUR 0.1 million).
For the first six months of 2012, MorphoSys recorded a net loss after taxes of EUR 1.0 million compared to a net profit of EUR 15.0 million in the same period of the previous year, the difference again being predominantly due to the one-off payment received in Q1, 2011. The resulting diluted net loss per share for the first six months of 2012 was EUR 0.04 (H1 2011: diluted net profit of EUR 0.65).
On June 30, 2012, the Company had EUR 123.5 million in cash, cash equivalents, and marketable securities compared to EUR 134.4 million as of December 31, 2011. Net cash outflow from operations in H1 2012 amounted to EUR 1.2 million (H1 2011: net cash inflow EUR 32.4 million). The number of issued shares at June 30, 2012 was 23,252,972, compared to 23,112,167 shares at December 31, 2011.
Financial Review of the Second Quarter of 2012 (IFRS)
In the second quarter of 2012, revenues were EUR 16.9 million, compared to EUR 18.0 million in the same quarter of 2011. Significantly reduced expenses led to an improved result, with earnings before interest and taxes of EUR (1.1 million), compared to an EBIT of EUR (6.1 million) in the same period of 2011. A net loss of EUR 0.4 million was achieved in the second quarter of 2012, compared to a net loss of EUR 3.8 million during the same period in 2011.
Outlook for 2012
MorphoSys re-confirmed its guidance for 2012. The Company anticipates total Group revenues of EUR 75-80 million and anticipates an EBIT in the range of EUR 1-5 million. This guidance does not, at this stage, include a successful out-licensing of any of the Company's proprietary development programs. Investment in proprietary research and development in 2012 will be approximately EUR 20-25 million. Looking forward, MorphoSys anticipates progress across its product pipeline including first proof-of-concept data from its lead proprietary compound MOR103 in Q3 2012.
MorphoSys will hold a public conference call and webcast today at 02:00 p.m. CEST (08:00 a.m. EST, 01:00 p.m. BST) to present the Second Quarter 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 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.
The complete 2nd Interim Report 2012 (January - June) is available on our website (HTML and PDF): http://www.morphosys.com/FinancialReports
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. The company's AbD Serotec unit uses HuCAL and other antibody technologies to generate superior monoclonal antibodies for research and diagnostic applications.
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® and 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.
For more information, please contact:
Dr. Claudia Gutjahr-Löser
Head of Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-122
Senior Manager Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-454
Specialist Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-332