MorphoSys Reports Six Months 2007 Results
MorphoSys AG (Frankfurt: MOR; Prime Standard Segment, TecDAX) today reported financial results according to IFRS for its first six months ended June 30, 2007. During the first half of 2007, the operating profit amounted to EUR 3.5 million (H1 2006: EUR 5.6 million). Total Group revenues increased by 8% to EUR 28.6 million (H1 2006: EUR 26.5 million). MorphoSys's cash position amounted to EUR 102.1 million at the end of the second quarter of 2007, compared to EUR 66.0 million at year-end 2006.
Events of the Second Quarter 2007: * During the ASCO (American Society of Oncology) meeting in Chicago in June 2007, MorphoSys presented preliminary preclinical data for MOR202, its proprietary therapeutic antibody of MorphoSys, designed to treat Multiple Myeloma. At the conference, MorphoSys showed that in an in vivo animal model, MOR202 demonstrated superior efficacy in comparison to Velcade, one of the better therapeutic options for Multiple Myeloma patients currently on the market. * Clinical milestone in partnered therapeutic antibody program achieved - the third HuCAL-based antibody to begin human clinical trials * Existing partnered therapeutic antibody pipeline increased to 45 programs in total, of which currently three are in phase 1 clinical development, 17 in pre-clinical development, and 25 in research. * MorphoSys successfully completed EUR 32.6 million equity issue in private placement to investors in Europe and North America * During the second quarter of 2007, the collaborations with Bristol-Myers Squibb and Chemicon were successfully concluded
"During the first six months of 2007, our overall business performed positively" commented Dave Lemus, Chief Financial Officer of MorphoSys AG. "While the AbD segment's performance for the year's first six months came in somewhat beneath our expectations, several measures have been undertaken with the aim of achieving the units profitability goal for the year."
Financial Review of the First Half Year 2007 (IFRS): Group revenues increased by 8% in the first six months of 2007 to EUR 28.6 million (H1 2006: EUR 26.5 million). The increase is due mainly to higher levels of funded research and licensing fees in the therapeutic antibody segment and increased sales levels in the AbD segment. Revenues arising from the Therapeutic Antibodies segment amounted to EUR 18.7 million or 65% of total Group revenues, which included success-based payments in the amount of EUR 4.0 million. The AbD segment contributed EUR 9.9 million or 35% to total revenues.
Total operating expenses for the first six months of 2007 amounted to EUR 25.1 million, compared to EUR 21.0 million in the same period of 2006. Cost of goods sold (COGS) amounted to EUR 4.2 million (H1 2006: EUR 4.0 million), representing cost of sales for goods sold by the AbD segment. Research and development costs increased to EUR 10.5 million from EUR 7.9 million; sales, general & administrative expenses amounted to EUR 10.5 million compared to EUR 9.1 million in the previous year. Stock-based compensation, reported as components within COGS, R&D and S,G&A expenses, increased to EUR 0.7 million (H1 2006: EUR 0.6 million). Operating profit for the first six months of 2007 reached EUR 3.5 million (H1 2006: EUR 5.6 million). Non-operating expenses, including tax expenses, in the first six months of 2007 rose from EUR 1.0 million in H1 2006 to EUR 1.4 million in 2007.
In the first half of 2007, MorphoSys achieved a net income of EUR 2.0 million, compared to a net income of EUR 4.5 million in the same period of the previous year. Diluted net income per share for the first six months of 2007 amounted to EUR 0.29 (H1 2006: EUR 0.70).
On June 30, 2007, MorphoSys held cash, cash equivalents and available-for-sale financial assets of EUR 102.1 million, compared to EUR 66.0 million on December 31, 2006.
The number of shares issued at June 30, 2007 was 7,376,890, compared to 6,715,322 at December 31, 2006, reflecting the Company's private placement successfully concluded in May 2007.
Second Quarter - 2007: In the second quarter of 2007, the Company generated revenues of EUR 14.5 million, compared to EUR 11.7 million in the same quarter of 2006. Total operating expenses amounted to EUR 12.4 million, compared to EUR 10.8 million in the same period of 2006. The resulting profit from operations for the second quarter of 2007 amounted to EUR 2.1 million, compared to EUR 0.9 million in the second quarter of 2006. A net profit of EUR 1.4 million resulted for the second quarter of 2007, compared to net loss of EUR 0.4 million during the same period of 2006.
Financial Outlook MorphoSys left its financial guidance for 2007 unchanged at the Group level for revenues. However, the Company reduced its AbD segment profit goal from up to 10% of segment operating profit to up to 5% of segment operating profit. Company projects total revenues of EUR 60 to 65 million, and profit from operations of EUR 7 to 10 million for fiscal year 2007.
MorphoSys will hold a public conference call today at 10:00 am CEST to present the financial results of the first six months 2007.
Dial-in number for the Conference Call: +49 (0)69 9897 2623 (listen-only) U.K. residents: +44 (0)20 7138 0843 (listen-only)
Please dial in 10 minutes before the beginning of the conference. A replay and the manuscript of the conference call will be available on http://www.morphosys.com/conferencecalls
For further information please contact: Dr. Claudia Gutjahr-Löser, Head of Corporate Communications, Tel: +49 (0) 89 / 899 27-122, firstname.lastname@example.org or Mario Brkulj, Manager Public Relations, Tel: +49 (0) 89 / 899 27-454, email@example.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) technology is used by researchers worldwide for human antibody generation. The Company currently has licensing agreements and/or research collaborations with Astellas (Japan), Bayer-Schering (USA/Germany), Boehringer Ingelheim (Germany), Bristol-Myers Squibb (USA), Centocor Inc. (USA), Daiichi Sankyo & Co., Ltd. (Japan), GPC Biotech AG (Germany), Hoffmann-La Roche AG (Switzerland), ImmunoGen Inc. (USA), Merck & Co., Inc. (USA), Novartis AG (Switzerland), Novoplant GmbH (Germany), OncoMed Pharmaceuticals, Inc. (USA), Pfizer Inc. (USA), ProChon Biotech Ltd. (Israel), Schering-Plough (USA), Shionogi & Co., Ltd. (Japan), Xoma Ltd. (USA) and others. Additionally, MorphoSys is active in the antibody research market through its AbD Serotec business unit. The business unit 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 and Serotec Group in 2006. For further information please visit the corporate website at: http://www.morphosys.com/
HuCAL® and HuCAL GOLD® are registered trademarks of MorphoSys AG
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.