MorphoSys Reports Nine Months 2006 Results
10/27/2006 - MorphoSys AG (Frankfurt: MOR; Prime Standard Segment, TecDAX) today reported financial results according to IFRS for the first nine months ended September 30, 2006. During the first nine months of 2006, revenues increased by 64% to EUR 39.0 million, resulting in earnings before interest and taxes (EBIT) of EUR 7.4 million, compared to an EBIT of EUR 3.8 million in the previous year. Net income increased by more than 50% to EUR 6.1 million (30. September 2005: EUR 3.9 million). MorphoSys’s cash position amounted to EUR 66.3 million at the end of the third quarter of 2006.
First Nine Months 2006:
Revenues increased by 64% in the first nine months of 2006 to EUR 39.0 million (September 30, 2005: EUR 23.8 million). Revenue growth was driven in part by high levels of success-based payments within the therapeutic segment, and the consolidation of Serotec Group revenues into Group accounts in the research segment. Revenues arising from the Therapeutic Antibodies segment amounted to EUR 26.0 million or 67% of total revenues, which included success-based payments in the amount of EUR 6.3 million. The AbD segment, formerly the Research Antibodies segment, comprising the Serotec, Biogenesis and Antibodies by Design brands, contributed EUR 13.0 million or 33% to total revenues.
Total operating expenses for the first nine months of 2006 amounted to EUR 31.2 million, compared to EUR 20.0 million in the same period of 2005. The acquisition of the Serotec Group had the effect of increasing operating expenses by EUR 8.5 million. Cost of goods sold (COGS) amounted to EUR 5.5 million (September 30, 2005: EUR 1.9 million), representing cost of sales for goods sold by the AbD segment. Research and development (R&D) costs increased to EUR 11.7 million from EUR 10.2 million, driven mainly by product and technology development expenses. Sales, general & administrative (S,G&A) expenses amounted to EUR 14.0 million compared to EUR 7.9 million in the previous year. Stock-based compensation, reported as components within COGS, R&D and S,G&A expenses, amounted to EUR 1.0 million and changed little over the previous year. Operating profit for the first nine months of 2006 more than doubled to EUR 7.8 million (September 30, 2005: EUR 3.8 million), EBIT amounted to EUR 7.4 million (September 30, 2005: EUR 3.8 million). Non-operating expenses, including income tax expense of EUR 1.2 million, amounted to EUR 1.7 million for the first nine months of 2006 (September 30, 2005: non-operating income of EUR 0.01 million).
In the first nine months of 2006, MorphoSys achieved a net income of EUR 6.1 million, compared to a net income of EUR 3.9 million in the same period of the previous year. Diluted net income per share for the first nine months of 2006 amounted to EUR 0.93 (nine months ended September 30, 2005: EUR 0.67).
Cash flow from operations amounted to EUR 15.7 million in the first nine months of 2006 (September 30, 2005: EUR 1.8 million).
On September 30, 2006, MorphoSys held cash, cash equivalents and available-for-sale financial assets of EUR 66.3 million, compared to EUR 53.6 million on December 31, 2005.
The number of shares issued at September 30, 2006 was 6,689,327, compared to 6,025,863 at December 31, 2005.
Third Quarter 2006:
In the third quarter of 2006, the Company generated revenues of EUR 12.5 million, compared to EUR 8.5 million in the same quarter of 2005. Total operating expenses amounted to EUR 10.2 million, compared to EUR 6.7 million in the same quarter of 2005. The resulting profit from operations for the third quarter of 2006 amounted to EUR 2.3 million, compared to EUR 1.8 million in the third quarter of 2005. A net income of EUR 1.6 million resulted for the third quarter of 2006, compared to a net income of EUR 2.0 million during the same period of 2005. The decrease in net income in the third quarter of 2006 in the amount of EUR 0.4 million was mainly due to income tax expenses accrued for in 2006.
Highlights of the Third Quarter 2006 Included:
# In August 2006, MorphoSys signed a second license agreement with Dutch biotechnology company Crucell N.V. and technology partner DSM Biologics. This license agreement allows MorphoSys to use the PER.C6® cell line in the production of clinical grade material for the development of its proprietary therapeutic antibody program MOR103.
# Number of partnered therapeutic antibody projects increased from 35 to 40 programs, hereof 2 in clinical development, and 14 in pre-clinical development.
# MorphoSys’s business unit AbD Serotec signed a contract as sole source on a biodefense-related project by the USAMRIID, an organization of the U.S. Army Medical Research and Materiel Command and lead medical research laboratory for the U.S. Biological Defense Program.
“The results for the first nine months are indeed encouraging,” commented Dave Lemus, Chief Financial Officer of MorphoSys AG. “Moreover the continued strong financial performance for the past several quarters underscores not only the strength but also the resilience of our commercial franchise.”
MorphoSys will hold a public conference call today at 10:00 CEST to present the financial results of the first nine months of 2006.
Dial-in number for the Conference Call (listen-only): +49 (0)89 2222 2242
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 (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), Novoplant GmbH (Germany), OncoMed Pharmaceuticals, Inc. (USA), Pfizer Inc. (USA), ProChon Biotech Ltd. (Israel), Schering AG (Germany), Schering-Plough (USA), Shionogi & Co., Ltd. (Japan), Xoma Ltd. (USA) and others. Additionally, MorphoSys is active in the antibody research market through its AbD Serotec business unit. The business unit 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.
- Contact Information
- Dr. Claudia Gutjahr-Löser
- Director Corporate Communications
- MorphoSys AG
- Contact via E-mail
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