MorphoSys AG — Earnings Release 1999

May 28, 1999

News Details

Ad-hoc | 28 May 1999 08:21

Ad hoc-Service: MorphoSys AG 1.q e

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Press Release Munich, Germany, 28 May, 1999 MorphoSys Reports First Quarter Financial Results And Reviews Progress MorphoSys AG (Neuer Markt: MOR), the Munich-based combinatorial biology company today announced financial results for the first quarter ended 31 March 1999. Revenues for the first three months of 1999 were DM 1.207 million compared to DM 1.485 million for the same period last year. Revenues received in both periods consisted primarily of income from collaborative agreements and investment grants from governmental agencies. The modest reduction in revenues for the first quarter this year is attributable to the conclusion of the Pharmacia & Upjohn agreement signed in 1997. The Company has been able to negate the majority of this loss through successfully establishing a number of new revenue-generating partnerships, including LeukoSite, DuPont Pharmaceuticals and Chiron Corporation. Operating loss for the quarter amounted to DM (1.735) million, an increase of DM 1.007 million over 1998. This loss reflects an increase in total operating expenses from DM 2.213 million for the first three months of 1998, to DM 2.942 million in 1999. This increase is in line with budget and comprises a 23% rise in R&D expenditure coupled with a 63% rise in general and administrative spending, signifying MorphoSys’ intention to grow the business. MorphoSys reported a net loss of DM (1.733) million for the three months to 31 March 1999 compared to a loss of DM (257,000) for the same period last year. As a result of the Initial Public Offering which was successfully completed on 9 March 1999, MorphoSys realised a net cash inflow of approximately DM 37.1 million. As of 31 March 1999, MorphoSys had cash, cash equivalents and short- term investments of DM 59.2 million, versus DM 22 million in December 1998. “We have made significant progress during this quarter on a number of fronts,” commented Dr Simon Moroney, Chief Executive Officer of MorphoSys. “We achieved an important corporate milestone in March with the successful completion of our IPO, raising DM 48.9 million. We also entered an important agreement with Chiron who acquired a non-exclusive license to our HuCAL technology. The strong financial position that MorphoSys has will enable us to develop our position as a leading company in antibody technology and to exploit new opportunities for growth.” 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 cutting-edge 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 (Genome Pharmaceuticals 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: Julia Phillips/Claire Plaskett Investor/Media Relations Noonan/Russo Ltd Tel: +44 (0) 171 726 4452 Fax: +44 (0) 171 726 4453 Dave Lemus Chief Financial Officer MorphoSys AG Tel. +49 89 899 27-0 Fax. +49 89 899 27 222 Ende der Mitteilung