Corporate Banner
Satellite Banner
Immunology
Scientific Community
 
Become a Member | Sign in
Home>News>This Article
  News
Return

MorphoSys Reports Results for the First Quarter of 2013

Published: Friday, May 03, 2013
Last Updated: Friday, May 03, 2013
Bookmark and Share
First quarter positively impacted by sale of AbD Serotec.

MorphoSys AG has announced its financial results for the three months ending 31 March 2013. Group revenues from continuing operations increased by 44 % to EUR 16.9 million compared to the same period of the previous year.

The reason for the increase was a fully paid-up license payment from Bio-Rad for a non-exclusive license for HuCAL in research and diagnostic applications in connection with the sale of the Company's AbD Serotec segment to Bio-Rad.

Earnings before interest and taxes (EBIT) from continued operations amounted to EUR 2.5 million (Q1 2012: EUR -0.7 million).

On 31 March 2013, MorphoSys's cash, securities and interest-bearing assignable loans amounted to EUR 177.4 million (31 December 2012: EUR 135.7 million).

Highlights of the First Quarter
• MorphoSys completes sale of AbD Serotec to Bio-Rad. With the divestment of AbD Serotec completed, MorphoSys can devote 100% of its attention to building value in its core therapeutics business.
• MorphoSys and Heptares sign alliance to develop antibody therapeutics targeting G protein-coupled receptors (GPCRs). The collaboration opens up new target space for therapeutic antibodies from the MorphoSys Ylanthia platform.
• MorphoSys receives first patent on novel antibody platform Ylanthia in the US.
• MorphoSys achieves first clinical milestone in a partnered program in 2013 as Novartis completes clinical trial application for a phase 1 study using a HuCAL antibody in ophthalmology.
• At the end of the first quarter of 2013, the MorphoSys partnered and proprietary pipeline comprises 21 clinical programs.
• Shortly after the end of the first quarter, MorphoSys initiates a share buy-back program, and plans to acquire up to 85,000 shares. The Company intends to use the shares primarily for its long-term incentive programs for its management.

"We expect 2013 to be a very exciting year for MorphoSys with our pipeline being once again the main newsflow and value driver," stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "With the sale of AbD Serotec successfully completed, we can now focus on advancing our proprietary and partnered development pipeline."

"The Q1 2013 results again highlight the attractive terms we were able to secure in the AbD Serotec divestment. With the sale of AbD Serotec we strengthened our financial resources, allowing us to increase our investments in proprietary research and development," commented Jens Holstein, Chief Financial Officer of MorphoSys AG.

Financial Review for the First Quarter of 2013 (IFRS)
On 10 January 2013, MorphoSys completed the sale of its research and diagnostic antibody segment AbD Serotec to Bio-Rad Laboratories, Inc. As a consequence, substantially all of the AbD Serotec segment was classified as discontinued operations. The operating segments Partnered Discovery and Proprietary Development as well as the part of AbD Serotec which remained with MorphoSys are presented as continuing operations.

Results from Continuing Operations
Group revenues from continuing operations for the first quarter of 2013 amounted to EUR 16.9 million (Q1 2012: EUR 11.7 million), an increase of 44 % over the prior year. The strong increase resulted predominantly from a license payment from Bio-Rad for a non-exclusive license for HuCAL in research and diagnostic applications in connection with their purchase of MorphoSys's research and diagnostic segment AbD Serotec.

Revenues in the Partnered Discovery segment comprised EUR 16.5 million in funded research and licensing fees (Q1 2012: EUR 10.7 million) and EUR 0.4 million in success-based payments (Q1 2012: EUR 0.4 million). The Proprietary Development segment did not record revenues, as a result of the waiver of the existing co-development options with Novartis (Q1 2012: EUR 0.5 million).

Total operating expenses from continuing operations for the first quarter of 2013 increased by 17 % to EUR 14.6 million (Q1 2012: EUR 12.5 million). Total research and development expenses increased by 11 % to EUR 11.0 million (Q1 2012: EUR 9.9 million).

The increase in R&D expenses mainly resulted from higher personnel and material costs. Investment in proprietary product and technology development amounted to EUR 7.0 million (Q1 2012: EUR 6.4 million). Sales, general and administrative expenses increased by 44 % to EUR 3.6 million (Q1 2012: EUR 2.5 million) driven by higher expenses for personnel and for external services. Non-cash charges related to share-based payments are embedded in S,G&A and R&D expenses and amounted to EUR 1.1 million (Q1 2012: EUR 0.3 million).

Earnings before interest and taxes (EBIT) from continuing operations amounted to EUR 2.5 million (Q1 2012: EUR -0.7 million). Partnered Discovery showed a segment EBIT of EUR 10.9 million (Q1 2012: EUR 6.2 million), while the Proprietary Development segment reported a segment EBIT of EUR -5.5 million (Q1 2012: EUR -5.1 million) due to investments in proprietary development.

For the first quarter of 2013, MorphoSys realized a net profit from continuing operations of EUR 1.9 million compared to a net loss of EUR 0.3 million in the same period of the previous year. The resulting diluted earnings per share from continuing operations for the first three months of 2013 amounted to EUR 0.08 (Q1 2012: EUR -0.01).

Results from the AbD Serotec segment (discontinued operations)
The sale of the research and diagnostic antibody segment AbD Serotec to Bio-Rad Laboratories, Inc. was completed on 10 January 2013. Results under discontinued operations reflect only the first 10 days of the quarter. Sales from discontinued operations decreased to EUR 0.6 million (Q1 2012: EUR 4.5 million). The revenues from discontinued operations are not included in the Group revenues from continuing operations.

Total operating costs for discontinued operations amounted to EUR 2.3 million (Q1 2012: EUR 4.6 million), including cost of goods sold (COGS) in the amount of EUR 0.1 million (Q1 2012: EUR 1.7 million) as well as transaction-related costs in the amount of EUR 1.8 million (Q1 2012: 0.02 million).

During the first three months of 2013, EBIT of discontinued operations after deduction of all attributable transaction costs amounted to EUR -1.7 million (Q1 2012: EUR -0.1 million). In connection with the deconsolidation, a disposal gain of EUR 8.0 million was accounted for, resulting in a profit before taxes of EUR 6.3 million (Q1 2012: EUR -0.1 million). The net profit of the discontinued operations amounted to EUR 6.0 million (Q1 2012: EUR -0.2 million).

Results for the Group
Group net profit amounted to EUR 7.9 million (Q1 2012: EUR -0.5 million). The resulting diluted Group earnings per share amounted to EUR 0.33 (Q1 2012: EUR -0.02).

On 31 March 2013, the Company had EUR 177.4 million in cash, cash equivalents and marketable securities, including an interest-bearing assignable loan in the amount of EUR 15.0 million, compared to EUR 135.7 million as of 31 December 2012. Net cash inflow from operations in Q1 2013 amounted to EUR 5.8 million (Q1 2012: EUR 2.3 million). The number of issued shares at 31 March 2013 was 23,358,228, unchanged from 31 December 2012.

Outlook for 2013
MorphoSys re-confirmed its guidance for 2013. Without taking into account a successful out-licensing of one of its proprietary compounds, MorphoSys anticipates total Group revenues of EUR 48 million to EUR 52 million and anticipates an EBIT in the range of EUR -18 to EUR -22 million in 2013.

Total operating expenses will amount to EUR 70 million to EUR 74 million, of which EUR 32 million to EUR 37 million represent investments in proprietary products and technologies. Additional income from an out-licensing deal in 2013, which is not included in the current guidance, could lead to out-performance of the guidance.


Further Information
Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 2,500+ scientific posters on ePosters
  • More than 3,800+ scientific videos on LabTube
  • 35 community eNewsletters


Sign In



Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into TechnologyNetworks.com you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

MorphoSys to Receive Milestone Payment for Guselkumab Program
Company initiates phase 2 clinical trial in psoriatic arthritis with the HuCAL antibody.
Tuesday, April 14, 2015
MorphoSys Nominates Three New Candidates for Supervisory Board
Company has nominated Ms. Wendy Johnson, Mr. Klaus Kühn and Dr. Frank Morich.
Tuesday, March 31, 2015
MorphoSys and Celgene Mutually Agree to End MOR202 Collaboration
MorphoSys regains rights to MOR202 antibody against CD38 and updates its financial guidance for 2015.
Friday, March 27, 2015
MorphoSys Provides Update on the Company's Proprietary Drug Portfolio
Early-stage portfolio now fully Ylanthia-based, includes programs with Merck Serono as well as first anti-GPCR programs.
Tuesday, July 29, 2014
MorphoSys Strengthens Clinical Development Organization with Three Management Appointments
Appointment of Dr. Gabriele Elbl, Dr. Ludger Langer and Dr. Steffen Heeger.
Monday, December 23, 2013
MorphoSys Announces Additional Clinical Trial of MOR208
Phase 2 study in CLL will evaluate MOR208 in combination with lenalidomide.
Wednesday, December 11, 2013
MorphoSys Strengthens European Patent Position on Anti-CD19 Cancer Program MOR208
New patent has a scheduled expiry date in 2027.
Tuesday, December 03, 2013
MorphoSys Strengthens Patent Position on anti-CD19 Cancer Program MOR208
New patent covers the antibody's protein sequence.
Tuesday, October 22, 2013
MorphoSys and Xencor Provide Update on Phase 1/2a Trial in CLL/SLL for MOR208
Extended treatment resulted in higher overall response rate.
Tuesday, October 08, 2013
MorphoSys Collaborator to Start Pivotal Study with Bimagrumab
MorphoSys to receive clinical milestone payment.
Thursday, October 03, 2013
MorphoSys Receives Two Phase 2 Milestone Payments from Janssen
MOR202 in phase 1/2a trial for multiple myeloma.
Tuesday, September 17, 2013
MorphoSys Closes on the Alliance with Celgene for MOR202 and Increases Financial Guidance
Celgene acquires 3.4 % equity stake via a capital increase.
Monday, August 12, 2013
MorphoSys AG Reports Results for the First Six Months of 2013
Results strongly impacted by MOR103 licensing agreement with GSK.
Monday, August 05, 2013
MorphoSys and Celgene Create Strategic Alliance
Development of novel therapeutic antibody approach being evaluated in clinical trials for patients with multiple myeloma.
Thursday, June 27, 2013
MorphoSys Signs Global License Agreement with GSK
MorphoSys to receive committed and success-based payments of up to EUR 445 million and double-digit royalties on net sales.
Tuesday, June 04, 2013
Scientific News
Health Risks of Saturated Fats Aggravated by Immune Response
Research shows that the presence of saturated fats resulted in monocytes migrating into the tissues of vital organs.
Inciting an Immune Attack On Cancer Cells
A new minimally invasive vaccine that combines cancer cells and immune-enhancing factors could be used clinically to launch a destructive attack on tumors.
Inciting an Immune Attack on Cancer Cells
A new minimally invasive vaccine that combines cancer cells and immune-enhancing factors could be used clinically to launch a destructive attack on tumors.
Inflammation Linked to Colon Cancer Metastasis
A new Arizona State University research study led by Biodesign Institute executive director Raymond DuBois has identified for the first time the details of how inflammation triggers colon cancer cells to spread to other organs, or metastasize.
New Strategy for Combating Adenoviruses
Using an animal model they developed, Saint Louis University and Utah State university researchers have identified a strategy that could keep a common group of viruses called adenoviruses from replicating and causing sickness in humans.
Major Advance Toward More Effective, Long-Lasting Flu Vaccine
Collaboration shows vaccine candidate can produce powerful ‘broadly neutralizing antibodies’ in animal models.
Immune System: Help for Killer Cells
A study from the University of Bonn may show the way to more effective vaccines.
Protein Found to Control Inflammatory Response
A new Northwestern Medicine study shows that a protein called POP1 prevents severe inflammation and, potentially, diseases caused by excessive inflammatory responses.
A Leap Forward in Vaccinating Against HIV
A team of scientists has developed an experimental vaccine candidate that successfully stimulates the immune system activity in animal models necessary to stop HIV infection.
MRI Scanners Can Steer Therapeutics to Specific Target Sites
Scientists from the University of Sheffield have discovered MRI scanners, normally used to produce images, can steer cell-based, tumour busting therapies to specific target sites in the body.
SELECTBIO

Skyscraper Banner
Go to LabTube
Go to eposters
 
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
2,500+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
3,800+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FREE!