MorphoSys AG Reports Strong Results for the First Quarter of 2011
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MorphoSys AG Reports Strong Results for the First Quarter of 2011
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Technology Milestone Payment Drives Revenues and Profits
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today announced its
financial results for the three months ending March 31, 2011 according to
International Financial Reporting Standards (IFRS). Group revenues more than
doubled to EUR 48.6 million (Q1 2010: EUR 20.6 million). This significant
increase was mainly due to a technology milestone payment from Novartis in
connection with the completion of the installation of MorphoSys's HuCAL antibody
platform at Novartis Institutes for BioMedical Research in Basel, Switzerland.
Group operating profit increased to EUR 28.8 million (Q1 2010: EUR 4.7 million)
and net profit amounted to EUR 18.8 million (Q1 2010: EUR 3.2 million). As
planned, MorphoSys further increased its investment in proprietary research and
development, to EUR 7.2 million (Q1 2010: EUR 5.0 million). MorphoSys's cash
position on March 31, 2011 was EUR 119.8 million (December 31, 2010: EUR 108.4
million) and the Company re-confirmed its full year guidance for 2011.
+--------------------------+---------+---------+
| In EURO million | Q1 2011 | Q1 2010 |
+--------------------------+---------+---------+
| Group Revenues | 48.6 | 20.6 |
+--------------------------+---------+---------+
| hereof AbD Serotec | 4.4 | 5.5 |
+--------------------------+---------+---------+
| Other Operating Income | 0.1 | 0.01 |
+--------------------------+---------+---------+
| Total Operating Expenses | 19.9 | 15.9 |
+--------------------------+---------+---------+
| Operating Profit | 28.8 | 4.7 |
+--------------------------+---------+---------+
| Net Profit | 18.8 | 3.2 |
+--------------------------+---------+---------+
| EPS (diluted) in EURO | 0.81 | 0.14 |
+--------------------------+---------+---------+
Highlights of the First Quarter
* Alliances: MorphoSys completed installation of its HuCAL technology at
Novartis, triggering a double-digit million Euro payment from the
pharmaceutical partner.
* Pipeline: At the end of the first quarter of 2011, MorphoSys's partnered and
proprietary pipeline comprised 74 programs, of which 17 were in clinical
development. Based on the number of programs in the clinic, MorphoSys's
HuCAL is now the most successful antibody library technology in the
pharmaceutical industry.
* Proprietary Development: At the end of Q1 2011, nine proprietary programs
were active, including two co-development programs with Novartis.
* MOR103: A US patent was granted covering MorphoSys's HuCAL antibody against
GM-CSF. The patent has a scheduled expiry date in 2026, not including any
potential extensions.
* Management: MorphoSys announced a change in its Executive Management Board
with Jens Holstein joining MorphoSys as Chief Financial Officer from
Fresenius Kabi.
"The successful installation of our HuCAL technology at Novartis was the most
significant event during the first quarter" stated Dr. Simon Moroney, Chief
Executive Officer of MorphoSys AG. "Financially, the double digit million Euro
payment associated with this milestone led us to a record quarter and will help
us to achieve more than 20 % revenue growth in 2011. Overall, our pipeline is
stronger than ever, and based on the number of antibodies in clinical
development, HuCAL is the industry's most successful antibody library
technology. This underlines the point that HuCAL has truly become an industry
standard for therapeutic antibody generation."
Financial Review for First Quarter of 2010 According to IFRS
Group revenues for the first quarter of 2011 were EUR 48.6 million (Q1 2010:
EUR 20.6 million), an increase of 136 % over the same period of the previous
year. This large increase was mainly due to the successful installation of the
HuCAL technology at the Novartis Institutes for BioMedical Research in Basel,
Switzerland. Revenues in the Partnered Discovery segment comprised
EUR 13.3 million in funded research and licensing fees (Q1 2010:
EUR 13.7 million) and EUR 30.4 million in success-based payments (Q1 2010:
EUR 1.3 million), including the technology transfer milestone from Novartis. The
Proprietary Development segment recorded funded research revenues of
EUR 0.6 million (Q1 2010: EUR 0.3 million). Assuming constant foreign exchange
rates at the average rate of Q1 2010, segment revenues in the Partnered
Discovery and Proprietary Development segments would have totaled EUR
43.6 million. The AbD Serotec segment provided 9 % or EUR 4.4 million of total
revenues (Q1 2010: EUR 5.5 million), a decrease of 20 %. The unfavorable
comparison with the prior year's revenue is due to a large OEM order which was
placed in Q1 2010. Assuming constant foreign exchange rates at the average rate
of Q1 2010, revenues in the AbD Serotec segment would have amounted to
EUR 4.3 million. Other operating income amounted to EUR 0.1 million (Q1 2010:
EUR 0.01 million), comprising grant income from governmental agencies.
Total operating expenses for the first quarter of 2011 increased by 25 % to
EUR 19.9 million (Q1 2010: EUR 15.9 million). The increase of EUR 4.0 million
was mainly caused by increased proprietary research and development (R&D)
expenses in line with the Company's plans. Cost of goods sold (COGS), a line
item specific to AbD Serotec, increased by 6 % to EUR 1.8 million (Q1 2010:
EUR 1.7 million). The gross margin for the segment decreased to 58 %, in
comparison to 68 % in the first quarter of 2010, due to a less favorable sales
mix in Q1 2011. Total research and development expenses rose by EUR 3.4 million
or 37 % to EUR 12.7 million (Q1 2010: EUR 9.3 million). The increase in R&D
expenses mainly resulted from a higher level of investment in proprietary
product and technology development (including segment allocations) amounting to
EUR 7.2 million (Q1 2010: EUR 5.0 million). Sales, general and administrative
expenses increased by 8 % to EUR 5.3 million (Q1 2010: EUR 4.9 million). Non-
cash charges related to stock-based compensation are embedded in COGS, S,G&A and
R&D expenses and amounted to EUR 0.5 million (Q1 2010: EUR 0.4 million).
Total Group operating profit increased to EUR 28.8 million (Q1 2010:
EUR 4.7 million). Partnered Discovery showed a segment operating profit of
EUR 37.6 million (Q1 2010: operating profit of EUR 10.0 million) while the
increased investment in proprietary development led to negative segment result
of EUR 6.2 million (Q1 2010: negative segment result of EUR 4.3 million). The
AbD Serotec segment showed an operating loss of EUR 0.2 million (Q1 2010:
operating profit of EUR 0.9 million).
Non-operating items, including taxes, resulted in expense of EUR 10.0 million
(Q1 2010: non-operating expense of EUR 1.5 million). For the first quarter of
2011, MorphoSys realized a net profit of EUR 18.8 million compared to a net
profit of EUR 3.2 million in the same period of the previous year. The resulting
diluted earnings per share for the first three months of 2011 increased to
EUR 0.81 (Q1 2010: EUR 0.14).
Another highlight was the Company's strong cash position. On March 31, 2011, the
Company had EUR 119.8 million in cash, cash equivalents, and marketable
securities, not including the technology milestone payment from Novartis,
compared to EUR 108.4 million as of December 31, 2010. The accounts receivable
position increased to EUR 38.4 million (Q1 2010: 15.0 million), due to the
outstanding milestone payment from Novartis at the balance sheet due date. Net
cash inflow from operations in Q1 2011 amounted to EUR 11.7 million (Q1 2010:
net cash inflow EUR 13.1 million). The number of issued shares at March
31, 2011 was 22,938,167, compared to 22,890,252 shares at December 31, 2010.
Outlook for 2011
As presented in February of this year, for 2011, MorphoSys anticipates total
Group revenues of between EUR 105 million and EUR 110 million and anticipates an
operating profit in the range of EUR 10 million to EUR 13 million. Backed by its
sound financial position, MorphoSys will make investments into proprietary
research and development of between EUR 40 million and EUR 45 million during
2011. For 2011, MorphoSys anticipates major progress across its product pipeline
and specifically, by the end of the year the partnered and proprietary pipeline
is expected to comprise up to 22 programs in clinical trials.
Conference Call
MorphoSys will hold a public conference call and webcast today at 02:00 p.m.
CEST (08:00 a.m. EST, 01:00 p.m. BST) to present the First Quarter Results 2011
and report on current developments.
Dial-in number for the Conference Call (listen-only):
Germany: +49 89 2444 32975
For U.K. residents: +44 20 3003 2666
For U.S. residents: +1 212 999 6659
Please dial in 10 minutes before the beginning of the conference.
In addition, MorphoSys offers participants the opportunity to follow the
presentation through a simultaneous slide presentation online
athttp://www.morphosys.com.
A live webcast, slides, webcast replay and transcript will be made available at
http://www.morphosys.com.
Approximately two hours after the press conference, a slide-synchronized audio
replay of the conference will be available on http://www.morphosys.com.
About MorphoSys:
MorphoSys is an independent biotechnology company that develops novel antibodies
for therapeutic, diagnostic and research applications. The Company's HuCAL
technology is one of the most powerful methods available for generating fully
human antibodies. By successfully applying this and other proprietary
technologies, MorphoSys has become a leader in the field of therapeutic
antibodies, one of the fastest-growing drug classes in human health-care.
Through its alliances with some of the world's leading pharmaceutical companies,
MorphoSys has created a pipeline of more than 60 drug candidates. The Company is
expanding its drug pipeline by adding new partnered programs, and by building a
portfolio of fully-owned therapeutic antibodies. For its proprietary portfolio,
the Company is focused on the areas of oncology and inflammation. Its most
advanced program MOR103, a first-in-class, fully human antibody against GM-CSF,
is currently being tested in a Phase Ib/IIa trial in rheumatoid arthritis
patients. Via its business unit AbD Serotec, MorphoSys is expanding the reach of
its technologies in the diagnostics and research markets. MorphoSys is
headquartered in Munich, Germany and listed on the Frankfurt Stock Exchange
under the symbol "MOR". For further information, visit http://www.morphosys.com/
HuCAL(®), HuCAL GOLD(®), HuCAL PLATINUM(®), CysDisplay(®) and RapMAT(®) are
registered trademarks of MorphoSys; arYla(TM) is a trademark of MorphoSys.
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
Tel: +49 (0) 89 / 899 27-122
Mario Brkulj
Senior Manager Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-454
Jessica Kulpi
Specialist Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-332
investors(at)morphosys.com
--- End of Message ---
MorphoSys AG
Lena-Christ-Str. 48 Martinsried / München Germany
WKN: 663200;ISIN: DE0006632003;Index:TecDAX,CDAX,Prime All Share,TECH All Share,HDAX,MIDCAP;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;
Q1 Press Release (PDF) :
http://hugin.info/130295/R/1510460/445642.pdf
1st Interim Report 2011 (PDF):
http://hugin.info/130295/R/1510460/445644.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: MorphoSys AG via Thomson Reuters ONE
[HUG#1510460]
Unternehmensinformation / Kurzprofil:
Datum: 29.04.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 54037
Anzahl Zeichen: 14604
contact information:
Town:
Martinsried / München
Kategorie:
Business News
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