MorphoSys AG / MorphoSys AG Reports Six Months 2010 Results processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Full Year Guidance 2010 Reconfirmed
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today announced its
financial results for the six months ending June 30, 2010 according to
International Financial Reporting Standards (IFRS). Group revenues increased by
15Â % to EURÂ 43.5 million (H1Â 2009: EURÂ 37.9 million) and operating profit
increased by 26Â % to EURÂ 8.3 million (H1 2009: EURÂ 6.6 million). Net profit
amounted to EURÂ 5.9 million (H1Â 2009: EURÂ 5.0 million), a gain of 18Â % over the
same period of the previous year. As planned, MorphoSys further increased its
investment in proprietary research and development to EURÂ 11.1 million (H1Â 2009:
EURÂ 8.5 million). MorphoSys's cash position on June 30, 2010 was EURÂ 152.1
million (December 31, 2009: EURÂ 135.1 million). The cash position at balance
sheet date still includes the outstanding up-front payment of approx. EURÂ 10.5
million, which was paid to Xencor in early July. The Company re-confirmed its
full year guidance for 2010.
| In EURO million | H1 2010 | H1 2009 | Q2 2010 | Q2 2009 |
| Group Revenues | 43.5 | 37.9 | 22.9 | 18.7 |
| Â Â hereof AbD Serotec | 10.6 | 9.7 | 5.1 | 4.9 |
| Total Operating Expenses | 35.2 | 31.3 | 19.3 | 16.4 |
| Operating Profit | 8.3 | 6.6 | 3.6 | 2.4 |
| Net Profit | 5.9 | 5.0 | 2.7 | 1.5 |
Highlights of the Second Quarter of 2010
* MorphoSys and US-based biopharmaceutical company Xencor signed a worldwide
exclusive license and collaboration agreement for an anti-CD19 antibody in
Phase 1 clinical development. The agreement provides MorphoSys with an
exclusive worldwide license to XmAb5574 (now MOR208), a high potency
monoclonal antibody developed by Xencor for the treatment of B-cell
* MorphoSys's drug pipeline now comprises 72 therapeutic antibody programs in
total, of which eleven are currently in clinical development, 26 are in
preclinical development and 35 are in the discovery phase. Eight of these
are MorphoSys's proprietary programs, including a joint pre-development
program with Novartis. MOR103, currently in a Phase 1b/2a clinical study in
rheumatoid arthritis patients, is the most advanced proprietary program.
* In May 2010, a first HuCAL antibody, developed by Novartis, achieved
clinical proof of concept in an undisclosed indication.
* During the second quarter of 2010, MorphoSys received two phase 1
milestones, namely from Centocor and Novartis, for two partnered antibodies
commencing clinical development.
* In June 2010, MorphoSys received a grant from the German Federal Ministry of
Education and Research, BMBF. The funding of approximately EURÂ 1 million
supports MorphoSys in accelerating the development of its HuCAL-based cancer
program MOR202 for the treatment of multiple myeloma. The program is part of
Munich's biotechnology initiative "m4 - Personalized Medicine and Targeted
Therapies - A New Dimension in Drug Development in the Munich Region".
* MorphoSys's annual shareholder meeting, which took place in Munich on
Friday, May 21, 2010, approved all management proposals put to vote at the
meeting, including an authorization to repurchase shares.
"MorphoSys has become a credible development organization with a unique
financial profile over the course of the last 18 months," commented Dave Lemus,
Chief Financial Officer of MorphoSys AG. "Our goal has been, and remains, to
build a sustainable portfolio of antibody drug candidates, while maintaining our
"Our therapeutic antibody pipeline continues to expand and mature. By
in-licensing a promising, highly innovative Phase 1 antibody from Xencor, we
took a significant step in the execution of our plan to build a strong portfolio
of proprietary therapeutic antibodies to complement those being developed by our
partners," commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG.
"Our exceptionally strong cash-flow is enabling us to drive a substantial
proprietary research and development effort, which is a very important value
driver for the Company. We're on track to achieving the goals we set ourselves
at the beginning of the year, in both the therapeutic and AbD Serotec business
Financial Review for the First Six Months of 2010 (IFRS)
Group revenues for the first six months of 2010 amounted to EURÂ 43.5 million
(H1Â 2009: EURÂ 37.9Â million), an increase of 15Â % over the prior year. Segment
revenues arising from the Partnered Discovery segment accounted for EURÂ 32.8
million of the total (H1Â 2009: EURÂ 28.1 million) and included success-based
payments in the amount of EURÂ 3.6 million (H1Â 2009: EURÂ 5.4Â million). The
Proprietary Development segment, comprising the Company's own and joint drug
development activities contributed EURÂ 0.6 million to total revenues (H1Â 2009:
EURÂ 0.5Â million). These revenues arise from Novartis's funding of a joint
pre-development program. Revenues in the Research and Diagnostics segment AbD
Serotec increased by 9Â % to EURÂ 10.6 million (H1Â 2009: EURÂ 9.7Â million).
Measured at constant foreign exchange rates as of H1 2009, segment revenues in
the Partnered Discovery and Proprietary Development segments would have remained
unchanged and revenues in the AbD Serotec segment would have amounted to
EURÂ 10.4 million.
Total operating expenses for the first six months of 2010 amounted to
EURÂ 35.2Â million (H1Â 2009: EURÂ 31.3 million), representing an increase of 12Â %
over the prior year, which was mainly the result of a higher level of investment
in proprietary drug development, as planned. Cost of goods sold (COGS) increased
in comparison to the first six months of 2009 by 15Â % to EURÂ 3.8 million.
Research and development expenses increased by 14Â % to EURÂ 20.5 million
(H1Â 2009: EURÂ 18.0Â million). These R&D expenses comprised costs for proprietary
product and technology development in the amount of EURÂ 11.1Â million (H1Â 2009:
EURÂ 8.5Â million) as well as costs incurred on behalf of partners. Sales, general
and administrative expenses increased by 9Â % to EURÂ 10.9Â million (H1Â 2009:
EURÂ 10.0 million). Non-cash charges related to stock-based compensation are
embedded in COGS, S,Â G&A and R&D expenses and amounted to EURÂ 1.0 million
(H1Â 2009: EURÂ 0.8 million). Total operating profit amounted to EUR 8.3 million
(H1Â 2009: EUR 6.6 million).
The segment income for the Partnered Discovery segment amounted to EURÂ 22.2
million (H1Â 2009: EURÂ 18.0Â million), while the Proprietary Development segment
showed a segment loss of EURÂ 10.5 million (H1Â 2009: segment loss of EURÂ 8.0
million). In the AbD Serotec segment, operating profit decreased to
EURÂ 0.9Â million (H1Â 2009: EURÂ 1.1Â million) and would have amounted to
â‚¬Â 0.9Â million under the assumption of constant foreign exchange rates at the
average rate of H1 2009. Unallocated corporate costs in the first six months of
2010 amounted to EURÂ 4.3 million (H1Â 2009: EURÂ 4.4 million).
For the first six months of 2010, non-operating income amounted to
EURÂ 0.4Â million (H1Â 2009: non-operating income of EURÂ 1.1Â million). Profit
before taxes amounted to EURÂ 8.7Â million (H1Â 2009: EURÂ 7.7Â million).
For the first six months of 2010, the Company reported income tax expenses in
the amount of EURÂ 2.9Â million (H1Â 2009: EUR 2.7 million).
Net profit for the first six months of 2010 amounted to EURÂ 5.9 million
(H1Â 2009: EURÂ 5.0 million). The resulting diluted earnings per share for the
first six months of 2010 amounted to EURÂ 0.26 (H1Â 2009: Diluted earnings per
share of EURÂ 0.22).
On June 30, 2010, the Company had EURÂ 152.1 million in cash, cash equivalents,
and marketable securities, compared to EURÂ 135.1 million as of December
31, 2009. Net cash inflow from operations in the first six months of 2010
amounted to EURÂ 28.5Â million (H1Â 2009: cash inflow of EURÂ 6.6Â million). The
number of issued shares at June 30, 2010 was 22,677,078, compared to 22,660,557
shares at December 31, 2009.
Financial Review for the Second Quarter of 2010 (IFRS)
In the second quarter of 2010, revenues increased by 22Â % to EURÂ 22.9 million,
compared to EURÂ 18.7 million in the same quarter of 2009. Total operating
expenses amounted to EURÂ 19.3 million, compared to EURÂ 16.4 million in the same
period of 2009. The resulting profit from operations for the second quarter of
2010 amounted to EURÂ 3.6 million, compared to EURÂ 2.4 million in the same period
of 2009. A net profit of EURÂ 2.7 million was achieved in the second quarter of
2010, compared to EURÂ 1.5 million during the same period in 2009.
Financial Outlook for 2010
MorphoSys re-confirmed its financial guidance for 2010 as previously
communicated in February. The Company anticipates total group revenues between
EURÂ 89 million and EURÂ 93 million, and an operating profit of EURÂ 5 million to
EURÂ 9 million. In line with its plans to expand the Company's proprietary
pipeline, MorphoSys anticipates making investments in technology and product
development of between EURÂ 26 million and EURÂ 29 million, compared to EUR 19.3
million in the previous year.
MorphoSys will hold a public conference call today at 02:00 p.m. CEST (08:00
a.m. EST, 01:00Â p.m. BST) to present the Six Months Results 2010 and report on
Dial-in number for the Conference Call (listen-only):
Germany:Â Â Â Â Â Â Â Â Â Â +49 (0) 89 2444 32975
For U.K. residents:Â Â Â +44 (0) 20 3003 2666
For U.S. residents:Â Â Â +1 212 999 6659
Please dial in 10 minutes before the beginning of the conference.
Approximately two hours after the press conference, an audio replay of the
conference will be available on http://www.morphosys.com.
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 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, visithttp://www.morphosys.com/
HuCAL(Â®), HuCAL GOLD(Â®), HuCAL PLATINUM(Â®), CysDisplay(Â® )and RapMAT(Â®) are
registered trademarks of MorphoSys AG.
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:
Dr. Claudia Gutjahr-LÃ¶ser, 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
--- End of Message ---
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WKN: 663200;ISIN: DE0006632003;Index:TecDAX,Prime All Share,CDAX,TECH All Share,HDAX,MIDCAP;
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Press Release: http://hugin.info/130295/R/1434287/379951.pdf
Quarterly Report Q2 2010: http://hugin.info/130295/R/1434287/379952.pdf
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