Agennix AG Reports Financial Results For Third Quarter and First Nine
Months of 2009
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Martinsried/Munich (Germany), Princeton, NJ and Houston, TX, November23, 2009 - Agennix AG (Frankfurt Stock Exchange: AGX) today announcedfinancial results for the third quarter and first nine months endedSeptember 30, 2009.Agennix AG was formed by the combination of GPC Biotech AG andAgennix Incorporated. The accounting for the business combinationwill be based on the acquisition method specified in IFRS 3, Businesscombinations (revised 2008). Based on that accounting treatment, GPCBiotech AG has been identified as the acquirer and AgennixIncorporated as the acquiree in this transaction. Therefore, thehistorical financial information of Agennix AG, including theinformation presented below, is that of GPC Biotech AG. Furthermore,for future financial reports, the comparative historical financialinformation will be that of GPC Biotech AG for the respectivecomparative periods.First nine months of 2009 compared to first nine months of 2008Revenues decreased 98% to ? 0.3 million for the nine months endedSeptember 30, 2009, compared to ? 12.3 million for the same periodin 2008. The decrease in revenues is due to the termination of theco-development and license agreement for satraplatin with CelgeneCorporation. The termination became effective in September 2008 andresulted in the recognition as revenue of the unamortized portion ofthe original upfront license fees of ? 7.2 million and ? 1.9 millionof the aggregate pre-payments for R&D expenses in the third quarterof 2008.Research and development (R&D) expenses for the nine months endedSeptember 30, 2009, decreased 71% to ? 3.9 million compared to ? 13.4million for the same period in 2008. The decrease in R&D expenses isprimarily due to 1) a decrease in clinical trial costs due to reducedclinical trial volumes; 2) staff reductions as a result of therestructuring plans implemented in the first quarter of 2008 and2009; and 3) a credit to compensation cost totalling ? (1.5) millionas a result of the forfeiture of convertible bonds and stock options.In the first nine months of 2009, administrative expenses decreased22% to ? 8.0 million compared to ? 10.3 million for the sameperiod in 2008. The decrease in administrative expenses is primarilydue to staff reductions and other associated activities as a resultof restructuring plans. The total decrease of ? (2.3) million isnet of a credit to compensation cost totaling ? (1.7) million as aresult of the forfeiture of convertible bonds and stock options, aswell as an increase of approximately ? 3.3 million in one-time costsrelating to banking fees, legal services, audit and other relatedservices in connection with the merger into Agennix AG, which closedon November 5, 2009.Net loss for the first nine months of 2009 improved 13% to ? (10.6)million compared to ? (12.2) million for the first nine months of2008.Basic and diluted loss per share was ? (0.29) for the first ninemonths of 2009 compared to ? (0.33) for the same period in 2008.Cash position and net cash burnAs previously disclosed, the Company reported that Agennix AG's cashand cash equivalents position (pro forma) at September 30, 2009 was ?17.9 million.As of September 30, 2009 cash, cash equivalents, andavailable-for-sale investments for GPC Biotech AG totaled ? 2.9million (December 31, 2008: ? 32.0 million), including ? 0.2 millionin restricted cash.Net cash burn for the first nine months of 2009 was ? 15.5 million,with net cash burn of ? 4.9 million in the first quarter, ? 6.5million in the second quarter and ? 4.1 in the third quarter of2009. The decrease in net cash burn for the third quarter comparedto the second quarter was mainly due to payments made in the secondquarter totaling ? 2.7 million for amounts accrued in the firstquarter of 2009 relating to the merger. Net cash burn is derived byadding net cash used in operating activities and purchases ofproperty, equipment and intangible assets. The figures used tocalculate net cash burn are contained in the Company's interimconsolidated cash flow statement for the respective periods.Comparison to previous year: third quarter 2009 compared to thirdquarter 2008Revenues for the three months ended September 30, 2009, decreased 98%to ? 0.2 million compared to ? 9.3 million for the same period in2008. R&D expenses decreased 58% for the three months ended September30, 2009, to ? 1.3 million compared to ? 3.1 million for the sameperiod in 2008. Administrative expenses for the third quarter of 2009decreased 45% to ? 1.6 million compared to ? 2.9 million for the samequarter in 2008. Net loss for the third quarter of 2009 was ? (2.1)million compared to net income of ? 3.5 million for the third quarterof 2008. Basic and diluted (loss)/income per share was ? (0.06) and ?0.10 for the third quarter of 2009 and 2008, respectively.Quarter over quarter results: third quarter 2009 compared to secondquarter 2009Revenues increased 100% to ? 0.2 million for the third quarter of2009 compared to ? 0.1 for the previous quarter. R&D expensesdecreased 7% to ? 1.3 million for the third quarter of 2009 comparedto ? 1.4 million in the second quarter of 2009. Administrativeexpenses for the third quarter of 2009 decreased 33% to ? 1.6 millioncompared to ? 2.4 million for the previous quarter. The Company'snet loss was? (2.1) million in the third quarter of 2009, compared to a net lossof ? (4.2) million for the previous quarter. Basic and diluted lossper share was ? (0.06) for the third quarter of 2009 compared to aloss per share of ? (0.11) for the previous quarter.Torsten Hombeck, Ph.D., Chief Financial Officer, said: "We are veryexcited that the merger has closed and we are now operating as asingle company, working together as one team to develop our productcandidates to treat cancer. With the merger successfully completed,we are focused on pursuing partnerships for our drug developmentprograms, particularly talactoferrin, as well as consideringdifferent possible near-term financing options in order to ensurethat we have sufficient funding to advance these programs."Financial guidanceThe Company updated its guidance for the full year 2009 and 2010 asfollows:Revenues: The Company does not expect to generate substantial cashrevenues for the remainder of 2009 nor for 2010. This assumption doesnot consider cash revenue from potential partnership(s) for theCompany's product candidates due to the uncertainty of the completionand timing of such events.R&D expenses: For the remainder of 2009 and for 2010, the Companyexpects R&D expenses to significantly increase compared to 2008 dueto an expected steady increase in clinical trial-related costs as theCompany's Phase 3 trials with talactoferrin progress.Administrative expenses: Excluding one-time expenses associated withthe merger, the Company believes that administrative expenses for theremainder of 2009 and for 2010 will increase slightly compared to2008, primarily due to the slight increase in G&A headcount as aresult of the merger.Cash position: The Company believes it will have sufficient cash tofund operations into the second quarter of 2010.Conference call scheduledThe Company has scheduled a conference call to which participants maylisten via live webcast, accessible through the Agennix Web site atwww.agennix.com or via telephone. A replay will be available on theWeb site following the live event. The call, which will be conductedin English, will be held on November 23rd at 15:00 CET/9:00 AM ET.The dial-in numbers for the call are as follows:Participants in Europe: 0049 69 667775756 0044 20 3003 2666Participants in the U.S.: 1-646-843-4608Please dial in 10 minutes before the beginning of the call.About AgennixAgennix AG is a publicly traded biopharmaceutical company focused ondeveloping novel anti-cancer therapies. The Company was formed by thecombination of GPC Biotech AG and Agennix Incorporated. The Company'smost advanced program is talactoferrin, an oral targeted therapy thatis in Phase 3 clinical trials in non-small cell lung cancer. Otherclinical development programs include RGB-286638, a multi-targetedkinase inhibitor in Phase 1 testing; the oral platinum-based compoundsatraplatin; and a topical gel form of talactoferrin for woundhealing. Agennix is a transatlantic company with sites in Munich,Germany; Princeton, New Jersey and Houston, Texas. For additionalinformation, please visit the Agennix Web site at www.agennix.com.This press release contains forward-looking statements, which expressthe current beliefs and expectations of the management of Agennix AG,including statements about the Company's future cash position. Suchstatements are based on current expectations and are subject to risksand uncertainties, many of which are beyond our control, that couldcause future results, performance or achievements to differsignificantly from the results, performance or achievements expressedor implied by such forward-looking statements. Actual results coulddiffer materially depending on a number of factors, and we cautioninvestors not to place undue reliance on the forward-lookingstatements contained in this press release. Forward-lookingstatements speak only as of the date on which they are made andAgennix undertakes no obligation to update these forward-lookingstatements, even if new information becomes available in the future.For further information, please contact:Agennix AGInvestor Relations & Corporate CommunicationsPhone: +49 (0)89 8565 2693ir(at)agennix.comIn the U.S.: Laurie DoyleDirector, Investor Relations & Corporate CommunicationsPhone: +1 609 524 5884laurie.doyle(at)agennix.comAdditional media contacts for Europe:MC Services AGPhone: +49 (0) 89 210 228 0Raimund Gabrielraimund.gabriel(at)mc-services.euHilda Juhaszhilda.juhasz(at)mc-services.euAdditional investor contact for Europe:Trout International LLCLauren (Rigg) Williams, Vice PresidentPhone: +44 207 936 9325lwilliams(at)troutgroup.comhttp://hugin.info/142386/R/1356524/329629.pdf --- End of Message ---Agennix AGFraunhoferstr. 20 Martinsried GermanyISIN: DE000A1A6XX4; Listed: Regulierter Markt in Frankfurter Wertpapierbörse, Prime Standard in Frankfurter Wertpapierbörse;
Datum: 23.11.2009 - 08:36 Uhr
Sprache: Deutsch
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