Earnings Release • Oct 15, 2014
Earnings Release
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Corporate | 15 October 2014 07:21
WILEX AG publishes 9-month Financial Report 2014
WILEX AG / Key word(s): 9-month figures
15.10.2014 / 07:21
PRESS RELEASE
WILEX publishes 9-month Financial Report 2014
– Important licence agreement signed for MESUPRON (R) and the ADC technology
– UCB waives repayment of shareholder loan
– Reverse share split completed
– Guidance for 2014 adjusted
– Conference call to be held on 15 October at 3:00 p.m. CEST
Munich, 15 October 2014 – WILEX AG (ISIN DE000A11QVV0 / WL6 / FWB) today published its financial report on the first nine months of 2014 (1 December 2013 – 31 August 2014).
The first nine months have been dominated by consolidation and realignment. One important task was adjusting and/or terminating our licence agreements with existing partners and negotiations concerning the out-licensing of WILEX’s portfolio and the ADC technology.
– Licence agreement with RedHill Biopharma for MESUPRON (R) On 30 June 2014, a licence agreement was concluded with RedHill Biopharma and entails the exclusive development and marketing rights outside of China to MESUPRON (R) in all indications. WILEX has received an upfront payment of USD 1 million and is entitled to staged royalty payments ranging from the mid-teens up to 30%. RedHill will be responsible for the entire development, regulatory approval and marketing of MESUPRON (R) in its region.
– Reverse share-split: In accordance with a resolution adopted by the Annual General Meeting of WILEX AG, the Company’s share capital was reduced in July 2014. After cancelling three shares, the share capital was reduced from EUR 31,275,504.00 by EUR 23,456,628.00 to EUR 7,818,876.00 through the combination of the outstanding no par value shares in a ratio of 4:1, from 31,275,504 no par value bearer shares to 7,818,876 shares. The shares were converted on 18 July 2014.
– UCB waiver of repayment of shareholder loan: With effect of 31 August 2014 and as part of the consideration for the transfer of WX-554 and WX-037, UCB Pharma S.A. (a shareholder) waived its claim for repayment of the shareholder loan to WILEX AG in the amount of EUR 2.5 million as well as interest of EUR 100 k accrued in 2014. The shareholder loan had originally been granted in December 2010.
– Significant extension of the ADC licence agreement with Roche after the end of the reporting period: On 14 October, WILEX’s subsidiary Heidelberg Pharma GmbH and Roche, extended the existing 2013 licence agreement to apply the antibody drug conjugate (ADC) technology for the further development of Roche antibodies. Under the extended licence agreement, Heidelberg Pharma will receive an upfront payment and further regular payments for granting access to its technology and providing research services to Roche, which has the opportunity to exercise options for licenses to develop and market selected antibody amanitin conjugates (ATACs). Heidelberg Pharma will receive undisclosed milestone payments and royalties for each development candidate selected.
In addition, Heidelberg Pharma will grant Roche the exclusive rights to a further undisclosed target molecule that Heidelberg Pharma had licensed for its own research and development purposes. For the additional target molecule Heidelberg Pharma could potentially receive up to EUR 52 million in upfront and milestone payments for successful clinical development and regulatory approval plus royalties.
Dr Jan Schmidt-Brand, Spokesman of the Executive Management Board and Chief Financial Officer of WILEX AG, commented: “In recent months we have not only concentrated on the restructuring measures and tailored WILEX to the new strategy but also worked successfully on out-licensing MESUPRON (R) and the ADC technology. I am absolutely delighted to report that we succeeded in expanding our successful cooperation with Roche. We have adjusted our guidance for the current financial year to reflect various developments.”
Financial results for the first nine months of financial year 2014
The WILEX Group comprising WILEX AG and the subsidiary Heidelberg Pharma GmbH reports consolidated figures and on three segments Cx – Customer Specific Research, DX – Diagnostics and Rx – Therapeutics.
In the first nine months of the 2014 financial year, the WILEX Group generated sales revenue and income totalling EUR 6.1 million, down 46% on the previous year (EUR 11.4 million). This figure includes sales revenue of EUR 2.8 million (previous year: EUR 10.1 million) generated in the Cx and Rx segments. In line with planning, the Dx segment did not post any sales revenue. The previous year’s figure was mainly a reflection of individual components of the terminated licence agreement with Prometheus for RENCAREX (R) . At EUR 3.3 million, other income was significantly higher than the prior-year figure (EUR 1.3 million) and mainly stemmed from UCB’s waiver of the loan repayment and the reversal through profit or loss of provisions that were not required in the amounts planned. Furthermore, both the Rx segment and the Cx segment received grants from the Federal Ministry of Education and Research (BMBF) for research projects.
Operating expenses including depreciation and amortisation amounted to EUR 7.8 million in the reporting period, down 49% compared with the previous year (EUR 15.3 million). All cost items reported were reduced substantially year-on-year.
The net loss for the period was EUR 1.8 million, which is substantially lower than in the same period the previous year (EUR 4.0 million); it is due to reduced costs. Reflecting the net loss for the period, earnings per share rose by 46% to EUR -0.07 (previous year: EUR -0.13).
Cash and cash equivalents as of 31 August 2014 amounted to EUR 2.8 million (30 November 2013: EUR 8.9 million). This figure does not include inflows from terminated and newly signed licence agreements. WILEX’s average monthly funding requirement in the first nine months was EUR 0.7 million (previous year: EUR 1.5 million). Due to the follow-up costs of the restructuring, the significant reduction planned will not materialise until later quarters.
Total assets as of the end of the reporting period amounted to EUR 16.1 million (30 November 2013: EUR 22.3 million); equity amounted to EUR 13.2 million (30 November 2013: EUR 14.9 million). The equity ratio was 81.6% (30 November 2013: 67.0%).
Revised Guidance 2014
The guidance for the current financial year issued on 31 March 2014 has been adjusted as follows:
| Guidance 10/2014 EUR million |
Guidance 03/2014 EUR million |
Actual 2013 EUR million |
|
| Sales revenue and other income | 6.0 – 7.5 | 3.0 – 4.0 | 19.1 |
| Operating expenses | 8.0 – 11.0 | 8.0 – 11.0 | 24.1 |
| Operating result | (2.0) – (3.5) | (4.5) – (7.5) | (5.0) |
| Total funding requirement | 6.0 – 8.0 | 4.0 – 6.0 | 14.4 |
| Funds required per month | 0.5 – 0.7 | 0.3 – 0.5 | 1.2 |
Given the previous funding requirements, significantly lower costs in the second half and our current planning, WILEX’s cash reach is secured into the second quarter of 2015.
Key figures for the WILEX Group
| 9M 2014 1 EUR ‘000 |
9M 2013 1 EUR ‘000 |
|
| Earnings | ||
| Sales revenue | 2,836 | 10,090 |
| Other income | 3,286 | 1,295 |
| Operating expenses | (7,835) | (15,278) |
| of which research and development costs | (4,136) | (7,355) |
| Operating result | (1,712) | (3,893) |
| Earnings before taxes | (1,763) | (3,956) |
| Net loss for the period | (1,811) | (3,956) |
| Earnings per share in EUR | (0.07) | (0.13) |
| Balance sheet as of the end of the period | ||
| Total assets | 16,125 | 24,917 |
| Cash and cash equivalents | 2,821 | 9,876 |
| Equity | 13,162 | 16,043 |
| Equity ratio 2 in % | 81,6 | 64,4 |
| Cash flow statement | ||
| Cash flow from operating activities | (6,168) | (13,499) |
| Cash flow from investing activities | (143) | (111) |
| Cash flow from financing activities | (49) | (160) |
| Employees (number) | ||
| Employees as of 31.08.2014 3, 4 | 54 | 110 |
1 The reporting period begins on 1 December and ends on 31 August.
2 Equity / total assets
3 Including members of the Executive Management Board
4 WILEX Inc. is no longer included in 2014.
Rounding of exact figures may result in differences.
The full 9-month financial report including the segment reporting and the consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) was published at www.wilex.com .
Invitation to the conference call
On 15 October 2014, WILEX will hold a public conference call for media, analysts and investors in English at 3:00 p.m. CEST. Please dial in ten minutes before the conference call using the following dial-in numbers:
1. Germany: +49 69 71044 5598
2. UK: +44 20 3003 2666
3. USA: +1 212 999 6659
4. USA Freephone: +1 866 966 5335
You will be welcomed by an operator who will ask for the password (WILEX) and take your name and company. The presentation for the conference (in English) will be available for download at www.wilex.com from 2:30 p.m. CEST.
| Contact WILEX AG Sylvia Wimmer Corporate Communications Tel.: +49 (0)89-41 31 38-29 Email: investors[at]wilex.com Grillparzerstr. 10, 81675 Munich |
IR/PR support MC Services AG Katja Arnold (CIRO) Executive Director Tel.: +49 (0)89-41 31 38-126 Tel.: +49 (0)89-210 228-40 Email: katja.arnold[at]mc-services.eu |
About WILEX
WILEX AG is a biopharmaceutical company with a ready for out-licencing portfolio of antibody-based diagnostic and therapeutic Phase III product candidates for the detection and targeted treatment of clear cell renal cell carcinoma. Research and development now focus on the operations of its subsidiary Heidelberg Pharma GmbH in Ladenburg, which primarily advances the development of the innovative platform technology for antibody drug conjugates (ADC technology) and offers preclinical services. WILEX is listed at the Frankfurt Stock Exchange: ISIN DE000A11QVV0 / Symbol WL6. More information is available at www.wilex.com.
This communication contains certain forward-looking statements relating to the Company’s business, which can be identified by the use of forward-looking terminology such as “estimates”, “believes”, “expects”, “may”, “will”, “should”, “future”, “potential” or similar expressions or by a general discussion of the Company’s strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results of operations, financial position, earnings, achievements, or industry results, to be materially different from any future results, earnings or achievements expressed or implied by such forward-looking statements. Given these uncertainties, prospective investors and partners are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such forward-looking statements to reflect future events or developments.
15.10.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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| Language: | English |
| Company: | WILEX AG |
| Grillparzerstr. 10 | |
| 81675 München | |
| Germany | |
| Phone: | +49 (0)89 41 31 38 – 0 |
| Fax: | +49 (0)89 41 31 38 – 99 |
| E-mail: | [email protected] |
| Internet: | www.wilex.com |
| ISIN: | DE000A11QVV0 |
| WKN: | A11QVV |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart |
| End of News | DGAP News-Service |
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| 291648 15.10.2014 |
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