NeuroSearch A/S – Interim report for the period January-September 2012

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NeuroSearch A/S, building

Below please find the first part of the NeuroSearch interim report for January-September 2012. The full report is available in the enclosed PDF file.

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Announcement
15.11.201 2


Today, the Board of Directors of NeuroSearch A/S (NEUR) considered and adopted the company's interim report for the period 1 January to 30 September 2012.

The operating result of continuing operations was a loss of DKK 446 million (a loss of DKK 337 million in the same period 2011). The result of continuing operations after tax was a loss of DKK 490 million (a loss of DKK 301 million in the same period 2011).

The operating result is affected by a one-off cost without cash effect of DKK 386 million relating to impairment of intangible assets. The operating loss was DKK 60 million with adjustment for the impairment.

Net financials amounted to an expense of DKK 38 million (net income of DKK 36 million in the same period 2011).

The result relating to discontinued operations was an income of DKK 52 million (a loss of DKK 345 million in the same period 2011).

As of 30 September 2012, cash and cash equivalents including securities totalled DKK 47 million. The securities consist primarily of high liquid short-term bonds. In addition, NeuroSearch has contingent proceeds from the sale of Sophion Bioscience A/S of DKK 9 million which fall due in December 2012.


Important events in Q3 2012 and the period until today 

  • On 1 September 2012, the research agreement between Janssen Pharmaceutica NV and NeuroSearch was transferred to Aniona ApS. At the same time, the clinical programmes NSD-788 and NSD-721 as well as a number of preclinical projects were conditionally transferred to Aniona. Aniona is to pay royalties on future income from NSD-788/NSD-721 which will be stepped down over a number of years. In addition, Aniona will pay a minor one-off payment upon initiation of clinical studies with one of the other projects. Please see announcement no. 20-12 for details.
     
  • On 27 September 2012, NeuroSearch signed a conditional agreement with Teva Pharmaceutical Industries Ltd. concerning an asset transfer of the full Huntexil® project against a cash payment of DKK149 million as well as the possibility of up to DKK 55 million in success-based milestone payments. Please see announcement no. 21-12 for details.
     
  • On 23 October 2012, the agreement with Teva was unanimously approved by the company's shareholders.
     
  • In connection with closing of the asset transfer agreement, NeuroSearch received DKK 120.7 million in cash and in addition Teva has placed DKK 28.7 million in escrow which will be released upon satisfactory transfer of the Huntexil® project, but not earlier than six months from 25 October 2012. 


Financial expectations for 2012
For the full year 2012, NeuroSearch maintains the company's expectations of an operating loss of approx. DKK 350 million as announced on 25 October 2012 in connection with the closing of the sale of the Huntexil® project.

CEO René Schneider comments as follows in connection with the interim report:
"This quarter, we succeeded in selling the Huntexil®.project to Teva. In this way, NeuroSearch has improved the company's cash position considerably. In parallel with the project transfer to Teva, the Board of Directors and the Executive Management will evaluate options for value maximisation of the assets that remain within the company, including some clinical projects, the company's building, the company's equity interests and a tax asset."


René Schneider
CEO


Contact person
René Schneider, CEO, telephone: +45 4460 8700 or +45 2911 2097


Teleconference
NeuroSearch will host a teleconference today, 15 November, at 9.30 am CET during which CEO René Schneider will present the interim report for January to September 2012 in English.

The teleconference can be accessed via the following numbers: 

                      Denmark:        +45 3272 8018
                      UK:                +44 145 255 5131
                      USA:              +1 866 682 8490

Listening to the teleconference is also possible via the company’s website along with the accompanying presentation. After the teleconference, the presentation will be available at the company's website.


About NeuroSearch
NeuroSearch A/S (NEUR) is listed on NASDAQ OMX Copenhagen A/S. The company’s product pipeline comprises ordopidine and seridopidine, which have both completed phase I studies, as well as tesofensine, which has completed phase II and NS2359 which has completed phase I. All drug candidates exert their effect in the central nervous system.