MorphoSys Reports First Quarter 2006 Results
Company Posts Record Level of Profits in First Quarter
Martinsried/Munich, April 28, 2006 , MorphoSys AG (Frankfurt: MOR; Prime Standard Segment, TecDAX) today reported financial results according to IFRS for its first quarter ended March 31, 2006. Revenues increased by 100% to EUR 14.8 million, resulting in a record quarterly net profit of EUR 4.9 million, compared to a net profit of EUR 0.5 million in the previous year. MorphoSys’s cash and equivalents amounted to EUR 43.5 million at the end of the first quarter 2006, compared to EUR 53.6 million at year-end 2005. The cash position at April 4, 2006, which included funds from the Company’s successfully concluded financing on March 28th, 2006, amounted to EUR 60.6 million.
Revenues increased by 100% in the first three months of 2006 to EUR 14.8 million (March 31, 2005: EUR 7.4 million). Revenues arising from the Therapeutic Antibodies segment amounted to EUR 9.9 million or 67% of total revenues, which included success-based payments in the amount of EUR 3.9 million. Revenue growth was driven by high levels of success-based payments within the therapeutic segment, as well as the consolidation of Serotec Group revenues into Group accounts. The AbD segment, formerly the Research Antibodies segment, comprising the Serotec, Biogenesis and Antibodies by Design brands, contributed EUR 4.9 million or 33% to total revenues. Total Company organic revenue growth, excluding Serotec revenues, amounted to 56% over the prior year.
Total operating expenses for the first three months of 2006 amounted to EUR 10.2 million, compared to EUR 6.8 million in the same period of 2005. Cost of goods sold amounted to EUR 2.1 million (March 31, 2005: EUR 0.5 million), representing cost of sales for goods sold by the AbD segment. Research and development costs increased to EUR 3.8 million from EUR 3.7 million; sales, general & administrative expenses amounted to EUR 4.2 million compared to EUR 2.6 million in the previous year. Stock-based compensation, reported as components within R&D and S,G&A expenses, remained unchanged at EUR 0.3 million over the previous year. Operating profit for the first three months of 2006 reached EUR 4.7 million (March 31, 2005: EUR 0.6 million). Non-operating income in the first three months of 2006 amounted to EUR 0.2 million (March 31, 2005: non-operating expense of EUR 0.2 million).
In the first quarter of 2006, MorphoSys achieved a net income of EUR 4.9 million (EUR 4.4 million excluding Serotec), compared to a net income of EUR 0.5 million in the same period of the previous year. Diluted net income per share for the first three months of 2006 amounted to EUR 0.78 (March 31, 2005: EUR 0.08).
On March 31, 2006, MorphoSys had cash, cash equivalents and available-for-sale financial assets of EUR 43.5 million. Additionally, EUR 17.1 million funds due from a financing concluded at month’s end were not yet included in the financial results of the first quarter 2006 following IFRS accounting rules for unpaid share capital. At April 4, 2006, the date of cash settlement, cash items amounted to EUR 60.6 million. On December 31, 2005, MorphoSys had cash, cash equivalents and available-for-sale financial assets of EUR 53.6 million.
The number of shares outstanding at March 31, 2006 was 6,238,901, compared to 5,996,701 at December 31, 2005, reflecting the Company’s capital increase against contribution in kind in conjunction with the acquisition of Serotec as well as exercises of options and convertible bonds by MorphoSys’s employees.
Highlights of the First Quarter 2006 Included:
• Acquisition of the Serotec Group to strengthen research antibodies business - acquisition establishes MorphoSys as a market leader amongst dedicated European research antibody suppliers
• Approval received for a second MorphoSys-generated partnered antibody to enter clinical trials: F. Hoffmann La Roche to commence a European Phase 1 clinical trial in Alzheimer’s disease
• Expansion of therapeutic antibody partnership with Roche for the generation of two new antibody programs in oncology
• Formation of a broad therapeutic antibody alliance with Japanese pharmaceutical group Daiichi Sankyo to develop novel antibody therapies
• Achievement of Fourth Therapeutic Milestone in Centocor Collaboration in the area of inflammatory and auto-immune diseases
• Expansion of existing partnered therapeutic antibody pipeline to 34 programs in total, of which currently two are in phase 1 of clinical development, 8 in pre-clinical development, and 24 in research
• MorphoSys and Chemicon International enter into Worldwide Licensing Agreement for Research Antibodies
• Successful completion of a European-based private placement raising gross proceeds of approximately EUR 17.1 million
• MorphoSys Establishes American Depository Receipt (ADR) Level One Program in USA
“This quarter we saw significant progress across a wide spectrum of MorphoSys activities”, commented Dave Lemus, Chief Financial Officer of MorphoSys AG. “Moreover, we are increasingly seeing the fruits of MorphoSys upside potential in its profits.”
MorphoSys will hold a public conference call today at 10:00 CET to present the financial results of the first quarter 2006.
Dial-in number for the Conference Call (listen-only): +49 (0)69 9897 2634
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.
MorphoSys develops and applies innovative technologies for the production of synthetic antibodies, which accelerate drug discovery and target characterization. Founded in 1992, the Company’s proprietary Human Combinatorial Antibody Library (HuCAL®) technology is used by researchers worldwide for human antibody generation. The Company currently has licensing agreements and/or research collaborations with Bayer (Germany/USA), Boehringer Ingelheim (Germany), Bristol-Myers Squibb (USA), Centocor Inc. (USA), Daiichi Sankyo & Co., Ltd. (Japan), GPC Biotech AG (Germany), Hoffmann-La Roche AG (Switzerland), ImmunoGen Inc. (USA), Merck & Co., Inc. (USA), Novartis AG (Switzerland/USA), Novoplant GmbH (Germany), Pfizer Inc. (USA), ProChon Biotech Ltd. (Israel), Schering AG (Germany), Shionogi & Co., Ltd. (Japan), Xoma Ltd. (USA) and others. Additionally, MorphoSys is active in the antibody research market through its Antibodies by Design business unit. Antibodies by Design was founded in 2003 for the purpose of exploiting the MorphoSys non-therapeutic antibody markets. MorphoSys’ activities in the research antibody segment were significantly strengthened through the acquisition of the U.K. and U.S.-based Biogenesis Group in January 2005 and Serotec Group in 2006. For further information please visit the corporate website at: 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.
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- Mario Brkulj
- Manager Public Relations
- MorphoSys AG
- Contact via E-mail
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