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MorphoSys AG Reports Results for the First Six Months of 2014


July 28, 2014 - London

MorphoSys AG /MorphoSys AG Reports Results for the First Six Months of 2014. Processed and transmitted by NASDAQ OMX Corporate Solutions.The issuer is solely responsible for the content of this announcement.

Conference call (in English) today at 2:00pm CET (1:00pm GMT/8:00am EST)

MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX, OTC: MPSYY) today announced its financial results for the six months ending 30 June 2014. Group revenues from continuing operations were EUR 30.5 million (H1 2013: EUR 48.2 million). Reasons for the revenue decrease were one-time effects in H1 2013 such as a payment for a HuCAL license by Bio-Rad in connection with the sale of AbD Serotec and the license agreement with GlaxoSmithKline for MorphoSys's clinical antibody program MOR103. Earnings before interest and taxes (EBIT) from continued operations amounted to EUR 0.4 million (H1 2013: EUR 17.3 million). On 30 June 2014, MorphoSys's liquid funds, marketable securities and financial assets amounted to EUR 374.2 million (31 December 2013: EUR 390.7 million). 

In EURO million* H1 2014 H1 2013
Continuing Operations:
Group Revenues 30.5 48.2
Total Operating Expenses 30.1 31.2
Other Income/Expenses 0 0.3
Earnings Before Interest and Taxes - EBIT 0.4 17.3
Profit from Continuing Operations 0.6 13.0
Profit from Discontinued Operations 0 6.0
Consolidated Net Profit 0.6 19.0
Total EPS, diluted, in EURO 0.02 0.81

* Differences due to rounding                                                                                                                 

  

Highlights of the Second Quarter 2014

  • MorphoSys is able to disclose today the royalties due on sales of gantenerumab, a HuCAL antibody in Phase 3 development by Roche for Alzheimer's disease. MorphoSys stands to receive royalties of 5.5 - 7% of net sales of gantenerumab if the compound reaches the market.
  • MorphoSys and Merck Serono entered strategic immuno-oncology collaboration based on MorphoSys' Ylanthia next-generation antibody technology
  • MorphoSys and The Moulder Center for Drug Discovery Research, a unit of Temple University, USA, announced a strategic alliance. The Moulder Center will receive access to MorphoSys's Ylanthia technology. MorphoSys will receive an exclusive option to develop any resulting antibodies.
  • MorphoSys and Galapagos have advanced a joint development program into preclinical development stage. The Ylanthia antibody MOR106 will be developed in inflammatory diseases.
  • The Food & Drug Association (FDA) granted orphan drug designation to MOR208, for the treatment of CLL or SLL. Additionally, the Company has received a positive opinion from the European Medicines Agency (EMA) for an orphan medicinal product application for MOR208 in these indications. This positive opinion from the EMA has in the meantime been confirmed by the European Commission.
  • The US Patent and Trademark Office (USPTO) and the State Intellectual Property Office of China granted additional patents covering the Company's latest antibody platform Ylanthia.
  • At the end of the second quarter of 2014, MorphoSys's partnered and proprietary pipeline comprised 92 antibodies, of which 20 were in clinical development.

"The second quarter saw excellent progress with regard to partnering our latest Ylanthia antibody technology. With Merck Serono and the Temple University's Moulder Center for Drug Discovery two new alliances were initiated that have the potential to expand our pipeline of exciting new drug candidates," stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG.

"We are pleased with the first half of 2014 and are on track to meet our goals for the full year. With the first-time disclosure of a royalty rate for our HuCAL antibody gantenerumab we are able to provide more visibility on the long-term revenue potential of our partnered compounds," commented Jens Holstein, Chief Financial Officer of MorphoSys AG.

Financial Review for the First Half of 2014 (IFRS)

Group revenues from continuing operations for the first six months of 2014 amounted to EUR 30.5 million (H1 2013: EUR 48.2 million). Reasons for the decrease of 37 % were one-time effects in H1 2013 in connection with the license agreement with GlaxoSmithKline for MOR103 as well as the license payment from Bio-Rad in connection with their acquisition of MorphoSys's AbD Serotec segment. Revenues in the Partnered Discovery segment comprised EUR 21.4 million in funded research and licensing fees (H1 2013: EUR 27.0 million) and EUR 1.4 million in success-based payments (H1 2013: EUR 0.9 million). The Proprietary Development segment recorded revenues of EUR 7.7 million (H1 2013: EUR 20.3 million). Those revenues were recorded in connection with the co-development agreement with Celgene.

Total operating expenses from continuing operations for the first six months of 2014 amounted to EUR 30.1 million (H1 2013: EUR 31.2 million). Total research and development expenses were EUR 23.4 million (H1 2013: EUR 22.7 million). R&D expenses mainly consisted of personnel costs and costs for external lab services. Investment in proprietary product and technology development amounted to EUR 14.9 million (H1 2013: EUR 14.6 million). Selling, general and administrative expenses decreased to EUR 6.7 million (H1 2013: EUR 8.4 million) driven by lower expenses for personnel and for external services.

Earnings before interest and taxes (EBIT) from continuing operations amounted to EUR 0.4 million (H1 2013: EUR 17.3 million). Partnered Discovery showed a segment EBIT of EUR 12.4 million (H1 2013: EUR 15.6 million), while the Proprietary Development segment reported a segment EBIT of EUR -5.8 million (H1 2013: EUR 8.2 million).

For the first half of 2014, MorphoSys realized a net profit from continuing operations of EUR 0.6 million compared to EUR 13.0 million in the same period of the previous year. The resulting diluted earnings per share from continuing operations for the six months ending 30 June 2014 amounted to EUR 0.02 (H1 2013: EUR 0.56). Group net profit amounted to EUR 0.6 million (H1 2013: EUR 19.0 million). The resulting diluted Group earnings per share amounted to EUR 0.02 (H1 2013: EUR 0.81).

On 30 June 2014, the Company held liquid funds and marketable securities, as well as other financial assets (reported in the balance sheet under cash and cash equivalents, available for sale financial assets, bonds, available for sale and other receivables), in the amount of EUR 374.2 million, compared to EUR 390.7 million on 31 December 2013. The net cash outflow from operations in H1 2014 was EUR 12.5 million (H1 2013: net cash inflow of EUR 0.2 million). The number of shares issued at 30 June 2014 was 26,372,584, compared to 26,220,882 on 31 December 2013.

 

Second Quarter of 2014 (IFRS)

In the second quarter of 2014, the Company generated revenues from continuing operations in the amount of EUR 14.7 million, compared to EUR 31.3 million in the same quarter of 2013. The main reason for the revenue decrease was the license agreement with GlaxoSmithKline for MorphoSys's clinical antibody program MOR103 in Q2 2013. Total operating expenses amounted to EUR 15.6 million in Q2 2014, compared to EUR 16.6 million in the same quarter of 2013. EBIT amounted to EUR -1.0 million (Q2 2013: EUR 14.8 million). Net loss for the second quarter 2014 was EUR 0.5 million, compared to a net profit of EUR 11.1 million in the second quarter of 2013.

 

Outlook for 2014

MorphoSys re-confirmed its guidance for 2014. MorphoSys anticipates total Group revenues of EUR 58 million to EUR 63 million and anticipates a negative EBIT in the range of EUR -11 to EUR -16 million in 2014. The Company's management anticipates the EBIT to be at the EUR -11 million level. Investments in proprietary products and technologies will amount to EUR 36 million to EUR 41 million.

 

MorphoSys will hold a public conference call today at 02:00 p.m. CEST (08:00 a.m. EST, 01:00 p.m. BST) to present the Q2 Results 2014 and report on current developments.

Dial-in number for the analyst conference call (in English) at 02:00 pm CET; 01:00 pm GMT; 08:00 am EST (listen-only):

Germany:                             +49 (0) 89 2444 32975

For UK residents:                 +44 (0) 20 3003 2666

For US residents:                 +1 202 204 1514

Please dial in 10 minutes before the beginning of the conference.

A replay and transcript will be made available at http://www.morphosys.com.


The complete 2nd Interim Report 2014 (January - June) is available on our website (HTML and PDF): http://www.morphosys.com/FinancialReports

About MorphoSys:

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.

Together with its pharmaceutical partners, MorphoSys has built a therapeutic pipeline of more than 80 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®, 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:

MorphoSys AG

Dr. Claudia Gutjahr-Löser

Head of Corporate Communications & IR

 

Mario Brkulj

Associate Director Corporate Communications & IR

 

Alexandra Goller

Specialist Corporate Communications & IR

 

Jessica Rush

Specialist Corporate Communications & IR

 

Tel: +49 (0) 89 / 899 27-404

 

investors@morphosys.com


Q2 Media Release (PDF)
2nd Interim Report 2014 (PDF)



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: MorphoSys AG via Globenewswire

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GlobeNewswire

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