Announcement
31 August 2016
Below please find the H1 report 2016. The full report is available in the enclosed PDF file.
The NeuroSearch Group posted an operating loss of DKK 1.4 million in H1 2016 (H1 2015: a loss of DKK 3.0 million).
A loss after tax of continuing operations of DKK 1.7 million was posted in H1 2016 (H1 2015: a loss of DKK 3.0 million).
A consolidated net loss of DKK 0.5 million was posted for H1 2016 (H1 2015: a net loss of DKK 2.6 million).
At 30 June 2016, cash and cash equivalents totalled DKK 77 million (30 June 2015: DKK 80 million).
Update on the Company’s assets
NeuroSearch signed an agreement with Saniona AB on 31 May 2016 for the transfer of its rights to the two drug candidates ACR325 and ACR343, which have both completed Phase I clinical development. This marks the conclusion of NeuroSearch's sale of patents and rights to drug candidates. The portfolio contains no further projects.
The Company has shareholdings in:
- NsGene: 26.8%
- Atonomics: 3.9%
Licence agreements:
- Potential milestone payments from Teva Pharmaceuticals of up to DKK 55 million relating to the development of Huntexil®
- Potential milestone payments and royalties from Saniona
The value of the assets listed above is subject to substantial uncertainty as no established market exists for such assets.
In addition, NeuroSearch calculated the value as of 31 December 2015 of its unrecognised tax losses carried forward at approximately DKK 2.2 billion, and deductible temporary differences at approximately DKK 0.1 billion, or a total of approximately DKK 2.3 billion. Under certain conditions, the unrecognised tax assets may be utilized in full or in part by a potential buyer of NeuroSearch.
Ongoing litigation
In August 2014, the Copenhagen City Court convicted NeuroSearch of share price manipulation in violation of the rules of the Danish Securities Trading Act in an action brought by the Public Prosecutor for Special Economic and International Crime (SØIK). The judgment was a result of the conviction of the Company’s then CEO for share price manipulation. The Eastern Division of the Danish High Court upheld the judgment of the City Court on 14 October 2015 and ordered the Company to pay a fine of DKK 5 million for share price manipulation. The Company elected to file an application with the Danish Appeals Permission Board for leave of appeal to a court of third instance. On 16 March 2016, the Appeals Permission Board granted the Company leave to appeal the decision of the Eastern Division of the Danish High Court to the Danish Supreme Court. The Supreme Court will hear the case in November 2016. It is not clear yet when the judgment will be rendered. Until the Supreme Court judgment is available, the Company will continue its disposal of the Company’s assets under due consideration for protecting the interests of the shareholders in the best possible way. Soon after the Supreme Court judgment, the Company intends to release an action plan for the future of the Company.
Outlook for 2016
In 2016, NeuroSearch expects an operating loss in the range of DKK 4-6 million. The outlook does not include any income from the possible sale of Company assets, potential income from the Company’s agreements with Teva, Saniona or others, and neither does the outlook take into account a potential reversal of the provision of DKK 5 million made in 2014 to cover the fine the Company has been ordered to pay.
Allan Andersen
CEO
Contact person
Allan Andersen, CEO, mobile+45 4016 3864
About NeuroSearch
NeuroSearch A/S (NEUR) is listed on NASDAQ Copenhagen A/S.
