MorphoSys AG — Earnings Release 1999

Aug 13, 1999

News Details

Ad-hoc | 13 August 1999 07:45

Ad hoc-Service: MorphoSys AG Q2.99eng

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Press Release Munich, Germany, 13 August, 1999 MORPHOSYS REPORTS FIRST HALF FINANCIAL RESULTS MorphoSys AG (Neuer Markt: MOR), the Munich-based combinatorial biology company, today announced financial results for the six-month period ended 30 June 1999. MorphoSys reported first half revenues of DM 2.57 million, compared to DM 3.24 million for the same period in 1998. During the second quarter of 1999, first payments were received under an agreement with GPC AG to develop human therapeutic antibodies against proprietary GPC targets. In addition, MorphoSys received its first payment from a substantial grant awarded to the Company by the Bavarian Research Foundation. The reduction in revenues for the first half is attributable to the conclusion of an agreement with Pharmacia & Upjohn on 6 February 1999. The majority of the shortfall has since been offset through the successful establishment of a number of other revenue-generating partnerships, such as those with LeukoSite, DuPont Pharmaceuticals, Chiron and GPC. Operating expenses for the first half were DM 6.48 million, compared to DM 4.78 million in 1998. The increase in expenditure is within budget and reflects MorphoSys’ additional investment in business development and marketing activities, as well as a rise in R&D expenditure. Net loss for the first half to 30 June 1999 was DM 4.66 million, compared to DM 868,000 in 1998. This difference reflects the changes in revenues and expenditure, outlined above, as well as increased interest expenses of DM 0.93 million associated with the repayment of a silent partnership to the Technologie Beteiligungsgesellschaft. As of 30 June 1999, MorphoSys had cash, cash equivalents and short-term investments of DM 55.3 million, versus DM 22.1 million in December 1998. Dr Simon Moroney, Chief Executive Officer of MorphoSys, said “MorphoSys has continued to make good progress during the second quarter. In the last three months we have entered into an agreement with one of the leading German pharmacogenomics companies, GPC AG, and have been awarded a substantial grant from a regional agency. Since the completion of our successful IPO in March, we have boosted our marketing efforts and anticipate significant commercial activity during the latter half of the year. During the second quarter, we took advantage of our strong cash position to clear most of the long-term debt from our balance sheet.” MorphoSys develops and applies innovative technologies for the production of synthetic antibodies which accelerate drug discovery and target characterisation. Founded in 1992, the Company’s proprietary Human Combinatorial Antibody Library (HuCAL) technology is used by researchers world-wide for human antibody generation. The Company has partnered with pharmaceutical companies such as Pharmacia & Upjohn and Boehringer Mannheim, and currently has licensing and research collaborations with DuPont Pharmaceuticals (Wilmington, Delaware) LeukoSite (Cambridge, Mass), and Chiron Corporation (Emeryville, California). This year the Company signed a further co-operation with GPC AG (Martinsried/ Munich). In March 1999, MorphoSys AG became the first biopharmaceutical company to list on Germany’s Neuer Markt. For more information, please contact: Simon Moroney, Chief Sarah Mehanna/Julia Executive Officer Phillips Dave Lemus, Chief Financial Noonan/Russo Ltd Officer Tel: +44 (0) 171 726 4452 MorphoSys AG Tel: +49 (0) 89 899 27 0 Fax: +49 (0) 89 899 27 222 Ende der Mitteilung