MARTINSRIED, Germany, Feb. 28, 2008 (PRIME NEWSWIRE) -- MorphoSys AG (FSE:MOR) (Prime Standard Segment:TecDAX) today announced its financial results according to International Financial Reporting Standards (IFRS) for the three-months' period and fiscal year ending December 31, 2007. The Company achieved Group revenues of EUR 62.0 million (2006: EUR 53.0 million) and an operating profit of EUR 7.0 million (2006: EUR 6.2 million), which included advisory fees relating to the Novartis deal of approx. EUR 4.5 million. Net profit nearly doubled to EUR 11.5 million (2006: EUR 6.0 million), including a tax benefit of EUR 2.3 million. At the end of the year 2007 MorphoSys's cash position amounted to EUR 106.9 million (2006: EUR 66 million).
Highlights of the Year 2007:
* US $600 Million Landmark Deal with Novartis: MorphoSys and Novartis forged one of the most comprehensive strategic alliances in the discovery and development of biopharmaceuticals. Financial terms include committed payments in excess of US $600 million during the expected 10-year lifetime of the agreement. Additionally, the expanded alliance includes rights to co-develop and co-detail products in specific territories through creation of MorphoSys's own sales force. * Strong Therapeutic Partnered Pipeline Growth: Substantial growth of partnered pipeline to 50 active therapeutic antibody projects (up from 43 at the beginning of 2007); two new antibodies with partners entered clinical trials during the year; number of pre-clinical candidates increased to 23 (up from 14 at the beginning of 2007). Overall pipeline progress resulted in increased milestone payments of EUR 12.1 million (2006: EUR 7.5 million). * First Proprietary Program Enters the Clinic: Development of lead compound MOR103 and MOR202 remained on track. MorphoSys has filed a clinical trial application (CTA) for MOR103 for rheumatoid arthritis in 2007 and expects to start clinical trials in Q1 2008; MorphoSys disclosed GM-CSF as underlying target molecule of MOR103 program and secured strong intellectual property position around target and molecule. * AbD Segment: Integration of Serotec resulted in more efficient operations and improved gross margins; Custom monoclonal business continued to grow with more than 20% over the prior year. * Financials: In May 2007, MorphoSys has successfully placed 652,188 shares to international institutional investors and raised approximately EUR 32.6 million. The Company's cash balance amounted to 106.9 million at the end of the year 2007.
"In this past year, the Company has reached a new stage in its development," stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "The new year brings us unprecedented value-building opportunities and transformed our prospects for future growth. Nevertheless, the cornerstones of our business strategy remain exactly as before, namely the partnered and proprietary development of innovative medicines based on our proprietary antibody technology allied with further expansion into the research market."
"The overall picture of our business remains healthy, as evidenced by our full year 2007 numbers," commented Dave Lemus, Chief Financial Officer of MorphoSys AG. "Looking ahead, we remain optimistic about the prospects of both segments and thereby our ability to generate value for the benefit of our stakeholders."
Financial Review for the fiscal year 2007 (IFRS):
Group revenues for the full year 2007 amounted to EUR 62.0 million (2006: EUR 53.0 million), an increase of 17 % over the prior year. Measured in constant currency terms, total revenues would have amounted to EUR 63.0 million. Revenues arising from the Therapeutic Antibodies segment accounted for 68 % or EUR 42.4 million of total revenues. The AbD research antibody segment generated 32 % or EUR 19.6 million of total revenues. MorphoSys's overall revenue growth was driven primarily by revenues arising from extended deals and success-based payments from existing collaborations.
Total operating expenses for the full year 2007 were EUR 54.9 million (2006: EUR 46.9 million), representing an increase of 17 % over the prior year. Cost of goods sold (COGS), amounted to EUR 7.9 million (2006: EUR 8.0 million). Research and development expenses rose by EUR 4.7 million to EUR 22.2 million in 2007 (2006: EUR 17.5 million). The increase in R&D expenses mainly resulted from higher expenses for product and technology development amounting to EUR 6.1 million (2006: EUR 3.0 million). Sales, general and administrative expenses increased by EUR 3.4 million to EUR 24.8 million (2006: EUR 21.4 million). This change was mainly impacted by higher costs for external services, including one-off fees in connection with the Novartis deal. Non-cash charges related to stock-based compensation are embedded in COGS, S G&A and R&D expenses and amounted to EUR 1.4 million (2006: EUR 1.2 million).
Total operating profit amounted to EUR 7.0 million (2006: EUR 6.2 million). The segment result for the Therapeutic Antibodies segment amounted to EUR 15.2 million (2006: EUR 16.6 million). The AbD segment result amounted to a segment loss of EUR 0.6 million (2006: loss of EUR 3.4 million), and included a non cash impairment charge relating to the former Biogenesis U.S. facility in Brentwood in the amount of EUR 0.2 million. Unallocated corporate costs in 2007 amounted to EUR 7.6 million.
Non-operating income, including taxes, amounted in 2007 to EUR 4.5million (2006: Non-operating expenses of EUR 0.1 million). In non-operating items, a deferred tax asset relating to tax loss carry-forwards has been capitalized resulting in a tax benefit of EUR 3.6 million.
For the full year 2007 MorphoSys posted a net profit of EUR 11.5 million compared to a net profit of EUR 6.0 million in the same period of the previous year. The resulting diluted earnings per share for the year 2007 amounted to EUR 1.59 (2006: Diluted earnings per share of EUR 0.93).
On December 31, 2007, the Company had EUR 106.9 million in cash, cash equivalents, and marketable securities, compared to the EUR 66.0 million as of December 31, 2006. The increased cash item mainly derived from solid cash inflows as a result of the expanded operational activity and from a capital increase successfully executed in May 2007. The number of issued shares at December 31, 2007 was 7,386,753 shares, compared to 6,715,322 at December 31, 2006.
Fourth Quarter of 2007 (IFRS):
In the fourth quarter of 2007, the Company generated revenues of EUR 17.9 million, compared to EUR 14.0 million in the same quarter of 2006, an increase of 28 %. Total operating expenses amounted to EUR 17.8 million, compared to EUR 15.7 million in the same quarter of 2006. The increase of operating expenses was mainly due to higher product and technology development cost. The resulting operating profit amounted to EUR 0.1 million (2006: loss from operations of EUR 1.7 million). Net profit for the fourth quarter 2007 was EUR 6.6 million, compared to a net loss of EUR 0.1 million in the fourth quarter of 2006.
Financial Outlook for 2008:
For 2008, MorphoSys anticipates total revenues of EUR 73 million to EUR 77 million. Additionally, MorphoSys expects to increase its operating profit to EUR 9 million to EUR 11 million, including investments in technology and product development in the amount of EUR 13 million. The Company will provide detailed guidance in today's press conference and conference call.
MorphoSys will hold a public conference call today at 10:30 a.m. CET to present the Annual Financial Results 2007 and report on current developments.
Dial-in number for the Conference Call (listen-only): Germany: +49 (0)69 5007 1312 For U.K. residents: +44 (0)20 7806 1962 Confirmation Code: 1442837
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.
Approximately two hours after the press conference, a slide-synchronized audio replay of the conference will be available on http://www.morphosys.com.
For further information please contact: Dr. Claudia Gutjahr-Loser, Head of Corporate Communications & Investor Relations, Tel: +49 (0) 89 / 899 27-122, gutjahr-loeser@morphosys.com or Mario Brkulj, Manager Corporate Communications & Investor Relations, Tel: +49 (0) 89 / 899 27-454, brkulj@morphosys.com
About MorphoSys:
MorphoSys is a publicly traded biotechnology company focused on the generation of fully human antibodies as a means to discover and develop innovative antibody-based drugs against life-threatening diseases. MorphoSys's goal is to establish HuCAL as the technology of choice for antibody generation in research, diagnostics and therapeutic applications. The Company currently has therapeutic and research alliances with the majority of the world largest pharmaceutical companies including Boehringer Ingelheim, Centocor/Johnson & Johnson, Merck & Co., Novartis, Pfizer and Roche. Within these partnerships, more than 50 therapeutic antibody programs are ongoing in which MorphoSys participates through exclusive license and milestones payments as well as royalties on any end products. Additionally, MorphoSys is active in the antibody research market through its AbD Serotec business unit. The business unit has operations in Germany (Munich), the U.S. (Raleigh, NC) and U.K.(Oxford). For further information, please visit http://www.morphosys.com/
HuCAL(r) and HuCAL GOLD(r) are registered trademarks 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.