NeuroSearch A/S sells land and building

Announcement
04.02.2013


Today, NeuroSearch (NEUR) signed a conditional agreement regarding the sale of the company's land and building effective from 1 June 2013 at a cash price of DKK 112.5 million. The agreement is conditional upon legal and technical due diligence as well as the final approval by buyer's Board of Directors as well as documentation for financing, which is expected by the end of March. The purchase price will fall due on the day of the handing-over. Provided that buyer, who is a Nordic professional real estate investor, has not rented out the full office capacity at the day of the handing-over, NeuroSearch may stay in the building until the end of 2013.

The building, which was designed by Henning Larsen Architects, was built in 1999 and comprises both laboratory and office facilities. The building has a total space of 106,000 sq. ft. and is situated on a 350,000 sq. ft. land. Both were put up for sales in May 2012 following the company's reduced activities.

At the end of September 2012, mortgage debts, interest rate swaps and lease liabilities totalled DKK 153 million. Subsequently, NeuroSearch has fully paid off the interest swap and lease liabilities in 2012 and has extraordinarily paid off DKK 50 million on the mortgage debts.

Costs relating to the sale are to be deducted from the sales price. In addition, NeuroSearch will pay off the remaining mortgage debts with revenues from the sale and subsequently the net proceeds will be approx. DKK 8 million.

Part of the previous write-down of land and building in 2011 will be carried back with a net positive effect of approx. DKK 59 million on primary operations for the financial year 2012. The write-down of the building in Annual Report 2011 was based on the value-of-use for NeuroSearch in relation to the company's changed needs.

Surplus office furniture, laboratory equipment and other equipment will be offered for an auction sale, expectedly in the first quarter of 2013.

Expectations to 2012 and 2013
For the full year 2012, NeuroSearch revises the company's expectations upwards to a loss of primary operations of approx. DKK 290 million against the previously announced expected loss of approx. DKK 350 milion. The change relates to the carry back of the previous write-down of land and building in 2011.

NeuroSearch will release the company's expectations to the financial year 2013 on 8 February 2013 in connection with the Annual Report 2012.

René Schneider
CEO


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

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.