MorphoSys AG Reports Results for the First Quarter of 2014

        Print
| Source: MorphoSys AG

MARTINSRIED / MUNICH, Germany, April 29, 2014 (GLOBE NEWSWIRE) -- Conference call (in English) today at 2:00pm CEST (1:00pm BST/8:00am EDT)

MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today announced its financial results for the three months ending 31 March 2014. Group revenues decreased by 6% to EUR 15.9 million compared to the same period of the previous year (Q1 2013: EUR 16.9 million). The reason for the revenue decrease was a one-time payment in Q1 2013 for a HuCAL license by Bio-Rad in connection with the sale of AbD Serotec. Earnings before interest and taxes (EBIT) were EUR 1.4 million (Q1 2013: EUR 2.5 million). On 31 March 2014, MorphoSys's cash, securities and interest-bearing assignable loans amounted to EUR 380.4 million (31 December 2013: EUR 390.7 million).

In EUR million* Q1 2014 Q1 2013
Continuing Operations:
Group Revenues 15.9 16.9
Total Operating Expenses 14.5 14.6
Other Income/Expenses 0 0.2
Earnings Before Interest and Taxes (EBIT) 1.4 2.5
Profit from Continuing Operations 1.1 1.9
Profit from Discontinued Operations 0 6.0
Consolidated Net Profit 1.1 7.9
Total EPS (diluted) in EURO 0.04 0.33

* Differences due to rounding

Highlights of the First Quarter

  • In February, Roche initiated a second phase 3 trial with the HuCAL antibody gantenerumab. The trial will evaluate gantenerumab in up to 1,200 patients with mild Alzheimer's disease.
  • MorphoSys achieved the first clinical milestone in a partnered program in 2014 as Novartis completed a clinical trial application for a phase 1 study of a HuCAL antibody in inflammation.
  • In March, MorphoSys's partner Janssen published positive clinical data from a phase 2b trial for the anti-inflammatory, HuCAL antibody guselkumab. The study met its primary endpoint of significantly reducing the signs and symptoms of psoriasis at the 16-week point of the trial.
  • The phase 1b trial for MOR103 in multiple sclerosis was successfully completed and results will be presented at an upcoming conference and in a peer-reviewed journal.
  • Clinical development of MOR202 in multiple myeloma and MOR208 in ALL, NHL and CLL continued according to plan.
  • MorphoSys conducted a share buy-back program and acquired 111,000 shares. The Company intends to use the shares primarily for its long-term incentive programs for its Executive Board and the Senior Management Group.
  • At the end of the first quarter of 2014, MorphoSys's partnered and proprietary pipeline comprised 83 antibodies, of which 20 were in clinical development.

"The first quarter saw continued excellent progress in our clinical therapeutic antibody pipeline. MOR202 and MOR208 continue to advance according to plan. Amongst the partnered programs, Janssen reported significant efficacy for guselkumab in a phase 2b study in psoriasis, and Roche started a new phase 3 study of gantenerumab in patients with mild Alzheimer's disease. We expect a lot more progress in the pipeline during the rest of this year," stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG.
"We are pleased with our start in 2014 and are on track to meet our goals for the full year. Both segments, Partnered Discovery and Proprietary Development, performed well. Our solid business model enables us to continue to invest in long-term value drivers and we expect our proprietary R&D investments to increase over the course of the year," commented Jens Holstein, Chief Financial Officer of MorphoSys AG.

Financial Review for the First Quarter of 2014 (IFRS)

Group revenues from continuing operations for the first quarter of 2014 were EUR 15.9 million (Q1 2013: EUR 16.9 million), a decrease of 6% over the prior year. The small decrease resulted from lower license fees, as Q1 2013 was impacted by a HuCAL license, which was granted in connection with the sale of AbD Serotec to Bio-Rad. This was compensated in Q1 2014 by higher revenues in the Proprietary Development segment and higher success-based payments. Revenues in the Partnered Discovery segment comprised EUR 10.9 million in funded research and licensing fees (Q1 2013: EUR 16.5 million) and EUR 0.9 million in success-based payments (Q1 2013: EUR 0.4 million). Revenues in the Proprietary Development segment were EUR 4.1 million (Q1 2013: no revenues). Those revenues were recorded in connection with the co-development agreement with Celgene.

Total operating expenses for the first quarter of 2014 decreased slightly to EUR 14.5 million (Q1 2013: EUR 14.6 million). Total research and development expenses amounted to EUR 11.2 million (Q1 2013: EUR 11.0 million), of which EUR 7.3 million were for proprietary product and technology development (Q1 2013: EUR 7.0 million). R&D expenses comprise mainly costs for personnel, external laboratory funding as well as expenses for immaterial assets, technical infrastructure and material. Selling, general and administrative expenses were EUR 3.3 million (Q1 2013: EUR 3.6 million) mainly comprising expenses for personnel and for external services. Non-cash charges related to share-based payments are embedded in S,G&A and R&D expenses and amounted to EUR 0.9 million (Q1 2013: EUR 1.1 million).

Earnings before interest and taxes (EBIT) from continuing operations were EUR 1.4 million (Q1 2013: EUR 2.5 million). Partnered Discovery showed a segment EBIT of EUR 6.9 million (Q1 2013: EUR 10.9 million), while the Proprietary Development segment reported an EBIT loss of EUR -2.6 million (Q1 2013: loss of EUR -5.5 million) due to investments in proprietary development.

For the first quarter of 2014, MorphoSys realized a net profit of EUR 1.1 million compared to a net profit of EUR 7.9 million in the same period of the previous year, which included an additional EUR 6.0 million profit from discontinued operations. The resulting diluted earnings per share from continuing operations for the first three months of 2014 were EUR 0.04 (Q1 2013: EUR 0.33).

On 31 March 2014, the Company held liquid funds and marketable securities, as well as other financial assets (reported in the balance sheet under cash and cash equivalents; available for sale financial assets; bonds, available for sale and other receivables), in the amount of EUR 380.4 million, compared to EUR 390.7 million on 31 December 2013. Net cash outflow from operations in Q1 2014 was EUR 7.8 million (Q1 2013: net cash inflow of EUR 5.8 million). The number of shares issued at 31 March 2014 was 26,220,882, unchanged in comparison to 31 December 2013.

Outlook for 2014

MorphoSys re-confirmed its guidance for 2014. MorphoSys anticipates total Group revenues of EUR 58 million to EUR 63 million and anticipates a negative EBIT in the range of EUR -11 to EUR -16 million in 2014. Investments in proprietary products and technologies will amount to EUR 36 million to EUR 41 million.

MorphoSys will hold a public conference call today at 02:00 p.m. CEST (08:00 a.m. EDT, 01:00 p.m. BST) to present the First Quarter Results 2014 and report on current developments.

Dial-in number for the analyst conference call (in English, listen-only):
Germany: +49 (0) 89 2444 32975
For UK residents: +44 (0) 20 3003 2666
For US residents: +1 202 204 1514
Please dial in 10 minutes before the beginning of the conference.
The speech and transcript of the conference call will be available on http://www.morphosys.com.
The complete 1st Interim Report 2014 (January - March) is available on our website (HTML and PDF): http://www.morphosys.com/FinancialReports

About MorphoSys:
MorphoSys developed HuCAL, the most successful antibody library technology in the pharmaceutical industry. By successfully applying this and other patented technologies, MorphoSys has become a leader in the field of therapeutic antibodies, one of the fastest-growing drug classes in human healthcare.
Together with its pharmaceutical partners, MorphoSys has built a therapeutic pipeline of more than 80 human antibody drug candidates for the treatment of cancer, rheumatoid arthritis, and Alzheimer's disease, to name just a few. With its ongoing commitment to new antibody technology and drug development, MorphoSys is focused on making the healthcare products of tomorrow. MorphoSys is listed on the Frankfurt Stock Exchange under the symbol MOR. For regular updates about MorphoSys, visit http://www.morphosys.com.
HuCAL®, HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®, RapMAT®, arYla®, Ylanthia® and 100 billion high potentials® are registered trademarks of MorphoSys AG.
Slonomics® is a registered trademark of Sloning BioTechnology GmbH, a subsidiary 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.

For more information, please contact:
MorphoSys AG

Dr. Claudia Gutjahr-Löser
Head of Corporate Communications & IR

Mario Brkulj
Associate Director Corporate Communications & IR

Alexandra Goller
Specialist Corporate Communications & IR

Jessica Rush
Specialist Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-404
investors@morphosys.com

Media Release (PDF) http://hugin.info/130295/R/1780504/608774.pdf
1st Interim Report 2014 (PDF) http://hugin.info/130295/R/1780504/608791.pdf

HUG#1780504