Below please find the H1 report 2013. The full report is available in the enclosed PDF file.
The NeuroSearch group (NEUR) realised an operating profit of DKK 13 million in Q2 2013 (a loss of DKK 408 million in the same period 2012). The operating result after tax was a profit of DKK 24 million in Q2 (a loss of DKK 387 million in the same period 2012).
The operating profit in Q2 is primarily due to a revenue of DKK 29 million relating to the release of the escrow regarding Huntexil®, which was sold to Teva Pharmaceuticals Inc.
The NeuroSearch group realised an operating profit of DKK 2 million in H1 2013 (a loss of DKK 430 million in the same period 2012). The financial result after tax was a profit of DKK 18 million in H1 (a loss of DKK 414 million in the same period 2012).
On 30 June 2013, the company's cash and cash equivalents totalled DKK 63 million (DKK 88 million at 30 June 2012). Cash and cash equivalents have increased further by DKK 37 million in July as a consequence of a positive net effect relating to the release of the sales price for the land and building as well as settlement of remaining mortgage debts.
Important events in Q2 and until today
Update on the company's activities
The Board of Directors and the Executive Management are working on realising the value of the other remaining assets in NeuroSearch.
NeuroSearch is in dialogue with several companies with a view to investigating the possibility of a merger or similar kind of transaction. However, such transactions have been complicated by the prosecution by SEIC just as considerations of a liquidation of the company or distribution to shareholders of the company's cash and cash equivalents will have to await the outcome of the case.
In connection with the H1 report, Chairman of the Board, Allan Andersen, comments as follows:
”We are satisfied that we are now almost done with the operational wind down of the company, and that we have succeeded in increasing the equity capital by DKK 161 million within the last year. Today, the equity capital almost amounts to DKK 100 million and all debts have been repaid to the banks.
As a natural consequence, the company agreed with CEO René Schneider that he will resign from his position by the end of November this year. René is now in a position to say: ”mission completed”.
There is good reason to thank René and his employees for a unique, efficient and dedicated effort for NeuroSearch, and the Board of Directors sends on René to a new career with its very best recommendations.
Financial expectations to 2013
For 2013, NeuroSearch still expects an operating loss of approximately DKK 15 million. For H2, a loss on operating results is expected as a consequence of continued obligations to dismissed employees.
The above expectations do not take into account any loss or profit arising out of a potential sale of the remaining NeuroSearch assets.
Chairman of the Board of Directors
René Schneider, CEO, telephone: +45 2911 2097
NeuroSearch A/S (NEUR) is listed on NASDAQ OMX Copenhagen A/S.