MARTINSRIED, Germany, April 29, 2008 (PRIME NEWSWIRE) -- MorphoSys AG (Frankfurt:MOR) (Prime Standard Segment; TecDAX) today announced its financial results according to International Financial Reporting Standards (IFRS) for the first quarter ending March 31, 2008. Group revenues increased by 16% to EUR 16.3 million (Q1 2007: EUR 14.1 million) and operating profit tripled to EUR 4.1 million (Q1 2007: EUR 1.3 million). Net profit amounted to EUR 3.3 million (Q1 2007: EUR 0.6 million). At the end of the first quarter of 2008 MorphoSys's cash position amounted to EUR 111.8 million (December 31, 2007: EUR 106.9 million).
Highlights of the First Quarter of 2008:
* MorphoSys received approval from regulatory authorities in the Netherlands to initiate a phase 1 clinical study for its proprietary therapeutic program MOR103. MOR103 is a fully human HuCAL antibody directed against GM-CSF (granulocyte macrophage colony-stimulating factor), being developed in the area of inflammatory diseases, such as rheumatoid arthritis. The phase 1 trial started as planned and the first dosing regimen in healthy volunteers was already completed. * MorphoSys signed a PER.C6(r) license agreement with Dutch biotechnology company Crucell N.V. and technology partner DSM Biologics. This license agreement allows MorphoSys to use the PER.C6(r) cell line in the production of clinical grade material for the development of its proprietary therapeutic cancer antibody program MOR202. * The therapeutic partnerships with Astellas as well as with Daiichi Sankyo were extended to run their full course. * Partnered pipeline grew to 54 active therapeutic antibody projects (up from 50 at the end of 2007); number of pre-clinical candidates remained constant at 23. * MorphoSys signed a collaboration agreement with Sigma-Aldrich to design, produce and distribute unique recombinant research antibodies using MorphoSys's proprietary HuCAL GOLD technology. * MorphoSys's business unit AbD Serotec has received a multiple research antibody order from Proteomika SL, a Spanish biotechnology company specializing in biomarker discovery. The order ranks Proteomika among the largest customers for custom monoclonals services provided by AbD Serotec. * MorphoSys's collaboration with Novartis has been recognized as the "European Pharma Deal of the Year" in Sachs Associates' Life Science Innovation Awards.
"The first quarter aptly demonstrates continued growth and increasing profitability for both lines of our business," commented Dave Lemus, Chief Financial Officer of MorphoSys AG. "As targeted, the AbD segment has begun its swing into financial profitability for the year, and we expect increased milestone payments on the therapeutic side of our business in coming quarters to help support higher levels of revenues, profits and proprietary product investment."
Financial Review for Q1 2008 (IFRS):
Group revenues for the first quarter of 2008 amounted to EUR 16.3 million (Q1 2007: EUR 14.1 million), an increase of 16% over the prior year. Revenues arising from the Therapeutic Antibodies segment accounted for 74% or EUR 12.0 million of total revenues (Q1 2007: EUR 8.8 million) The AbD research antibody segment generated 26% or EUR 4.3 million of total revenues (Q1 2007: EUR 5.3 million).Measured at constant foreign exchange rates, revenues in the TAB and AbD segments would have amounted to EUR 12.0 million and EUR 4.6 million, respectively. MorphoSys's overall revenue growth was driven primarily by higher levels of funded research and licensing fees in the Therapeutic Antibodies segment, in large part from the strategic partnership with Novartis signed in December 2007.
Total operating expenses for the first three months of 2008 amounted to EUR 12.2 million (Q1 2007: EUR 12.8 million), representing a decrease of 5% over the prior year. Cost of goods sold (COGS),decreased to EUR 1.7 million (Q1 2007: EUR 2.7 million), mainly a result of lower sales levels and reduced amortization charges on acquired inventories. Research and development expenses rose by EUR 0.4 million to EUR 5.3 million in Q1 2008 (Q1 2007: EUR 4.9 million). In the first three months of 2008, the Company incurred costs for proprietary product and technology development in the amount of EUR 1.1 million (Q1 2007: EUR 1.2 million). Sales, general and administrative expenses remained unchanged at EUR 5.2 million (Q1 2007: EUR 5.2 million). Non-cash charges related to stock-based compensation are embedded in COGS, SG&A and R&D expenses and amounted to EUR 0.3 million (Q1 2007: EUR 0.4 million).
Total operating profit amounted to EUR 4.1 million (Q1 2007: EUR 1.3 million). The segment result for the Therapeutic Antibodies segment amounted to EUR 6.1 million (Q1 2007: EUR 3.7 million). The AbD segment result amounted to EUR 0.04 million (Q1 2007: loss of EUR 0.5 million). Unallocated corporate costs in the first quarter of 2008amounted to EUR 2.1 million (Q1 2007: EUR 1.9 million).
For the first three months of 2008, non-operating income amounted to EUR 0.6 million (Q1 2007: EUR 0.2 million). Profit before taxes amounted to EUR 4.7 million (Q1 2007: EUR 1.5 million).
For the first three months of 2008, the Company reported income tax expenses in the amount of EUR 1.4 million (Q1 2007: 0.9 million).
For the first quarter of 2008 MorphoSys posted a net profit of EUR 3.3 million compared to a net profit of EUR 0.6 million in the same period of the previous year. The resulting diluted earnings per share for the first three months of 2008 amounted to EUR 0.44 (Q1 2007: Diluted earnings per share of EUR 0.09).
On March 31, 2008, the Company had EUR 111.8 million in cash, cash equivalents, and marketable securities, compared to the EUR 106.9 million as of December 31, 2007. Cash inflow from operations in the first three months of 2008 amounted to EUR 4.0 million (Q1 2007: EUR 5.2 million). The number of issued shares at March 31, 2008 was 7,413,703 shares, compared to 7,386,753 shares at December 31, 2007.
Financial Outlook for 2008:
MorphoSys left its financial outlook for 2008 unchanged. MorphoSys anticipates total revenues of EUR 73 million to EUR 77 million.Additionally, MorphoSys expects to achieve an operating profit of EUR 9 million to EUR 11 million, which includes consideration of investments in technology and product development in the amount of EUR 13 million.
MorphoSys will hold a public conference call today at 10:00 a.m. CET to present the First Quarter Results 2008 and report on current developments.
Dial-in number for the Conference Call (listen-only):
Germany: +49 (0)69 2222 2244 For U.K. residents: +44 (0)20 7138 0826 Confirmation Code: 4447988
Please dial in 10 minutes before the beginning of the conference.
Approximately two hours after the press conference, a slide-synchronized audio replay of the conference will be available on http://www.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's largest pharmaceutical companies including Boehringer Ingelheim, Centocor/Johnson & Johnson, 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 visithttp://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.