MARTINSRIED, Germany, Oct. 27, 2005 (PRIMEZONE) -- MorphoSys AG (Frankfurt: MOR; Prime Standard Segment, TecDAX) today reported financial results according to IFRS for the first nine months ended September 30, 2005.
In the first nine months of 2005 revenues increased by 52% to EUR 23.8 million (September 30, 2004: EUR 15.7 million). The Research Antibody segment, comprising Antibodies by Design as well as Biogenesis, contributed 3.1 million to total revenues. Revenue growth was driven by revenues arising from new deals and success-based payments from existing collaborations including clinical and research milestones achieved in the first nine months of 2005. Cost of goods sold amounted to EUR 1.9 million (September 30, 2004: EUR 0.7 million), representing cost of sales for goods sold by the research antibody segment. Gross profit amounted to EUR 22.0 million, compared to EUR 15.1 million in the first nine months of the previous year.
Total other operating expenses for the first nine months of 2005 amounted to EUR 18.1 million, compared to EUR 13.9 million in the same period of 2004. Research and development costs increased to EUR 9.9 million from EUR 8.2 million, mainly resulting from the impact of the cross licensing agreement with Eli Lilly signed in Q3 2005, as well as higher success-based license fees. Additionally, R&D expenses increased due to higher personnel expenses and material costs relating to new cooperations signed during 2004. Sales, general and administrative expenses amounted to EUR 7.4 million compared to EUR 5.0 million in the previous year. The increase in S,G & A expense resulted from higher personnel costs relating to the consolidation of Biogenesis as well as increased costs for external marketing and legal services. Stock-based compensation remained almost unchanged at EUR 0.9 million (September 30, 2004: EUR 0.8 million). The operating profit for the first nine months of 2005 summed to EUR 3.8 million (September 30, 2004: EUR 1.2 million).
In the first nine months of 2005, MorphoSys achieved a net income of EUR 3.9 million, compared to a net income of EUR 1.0 million in the same period of the previous year.
The number of shares outstanding as of September 30, 2005 was 5,967,551, compared to 5,408,790 as of December 31, 2004. Earnings per share for the first nine months of 2005 amounted to EUR 0.67 (September 30, 2004: EUR 0.18).
On September 30, 2005, the Company held EUR 50.2 million in cash, cash equivalents and marketable securities compared to a EUR 37.2 million balance as of December 31, 2004. The increased cash item resulted mainly from a capital increase executed in March 2005.
Events of the Third Quarter 2005 Included:
-- Signing of a cross licensing agreement with Lilly: AME (Applied
Molecular Evolution) patent dispute settled
-- Conclusion of a three-year license agreement with Japanese
pharmaceutical company Shionogi on the use of MorphoSys's HuCAL
GOLD(r) technology
-- Successful conclusion of first therapeutic antibody program with
Novartis after only 11 months
-- Start of a new antibody program with Centocor
-- Initiation of multiple antibody programs with Schering
Dave Lemus, Chief Financial Officer of MorphoSys AG commented: "During the third quarter of 2005, MorphoSys continued its excellent operational progress, also illustrated by the strong financial performance of the Company."
Press Release (PDF): http://hugin.info/130295/R/1018043/159714.pdf
Quarterly Report (PDF): http://hugin.info/130295/R/1018087/159738.pdf
MorphoSys will hold a public conference call today at 10:00 CET to present the financial results of the first nine months of 2005. Dial-in number for the Conference Call (listen-only): +49 (0)69 2222 2242. Please dial in 10 minutes before the beginning of the conference. A replay of the conference call will be available on http://www.morphosys.com.
About MorphoSys:
MorphoSys develops and applies innovative technologies for the production of synthetic antibodies, which accelerate drug discovery and target characterization. Founded in 1992, the Company's proprietary Human Combinatorial Antibody Library (HuCAL(r)) technology is used by researchers worldwide for human antibody generation. The Company currently has licensing agreements and/or research collaborations with Bayer (Berkeley, California/USA), Boehringer Ingelheim (Ingelheim, Germany), Bristol-Myers Squibb (New Jersey/USA), Centocor Inc. (Malvern, Pennsylvania/USA), GPC Biotech AG (Munich/Germany), Hoffmann-La Roche AG (Basel/Switzerland), ImmunoGen Inc. (Cambridge, Massachusetts/USA), Novartis AG (Basel, Switzerland), Novoplant GmbH (Gatersleben, Germany), Pfizer Inc. (Delaware/USA), ProChon Biotech Ltd. (Rehovot/Israel), Schering AG (Berlin/Germany), Shionogi & Co., Ltd. (Osaka/Japan), Xoma Ltd. (Berkeley, California/USA) and others. Additionally, MorphoSys is active in the antibody research market through its Antibodies by Design business unit. Antibodies by Design was founded in 2003 for the purpose of exploiting the MorphoSys non-therapeutic antibody markets. MorphoSys' activities in the research antibody segment were significantly strengthened through the acquisition of the U.K. and U.S.-based Biogenesis Group in January 2005. For further information please visit the corporate website at: http://www.morphosys.com/.
Statements included in this press release which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Factors that may affect future operations and business prospects include, but are not limited to, clinical and scientific results and developments concerning corporate collaborations and the company's proprietary rights and other factors described in the prospectus relating to the company's recent public offering.