SYGNIS Reports Financial Results for Fiscal Year 2012
News May 01, 2013
SYGNIS Pharma AG reported results for the fiscal year 2012 ending on December 31, 2012. The reverse acquisition of X-Pol Biotech led to a change in the fiscal year. Due to the business combination the new SYGNIS includes the total income and expenses of X-Pol for 2012 and those of old SYGNIS only for December 2012, which affects equity in the fully consolidated balance sheet accordingly. In addition, the prior year figures published relate to X-Pol Biotech fiscal year 2011, due to accounting requirements based on the reverse acquisition. Thus, the changes in financial statements primarily result from the purchase price allocation and the recognition of fair values of the old SYGNIS, while values of X-Pol products are reflected in the balance sheet only with their carrying amounts and not with their fair values. The comparability of the financial results reported with the corresponding prior-year data is therefore very limited.
In 2012, SYGNIS was focussed on the strategic realignment. In this context, activities in the area of drug development for diseases of the central nervous system have been stopped and extensive restructuring measures were initiated to significantly reduce the Company’s cost basis. As a result of the business combination with the Spanish company X-Pol Biotech, which was successfully completed in December 2012, SYGNIS now owns an entirely new business model focussed on the development and marketing of novel technologies in the area of molecular diagnostics, e.g. in DNA amplification and sequencing. In July 2012, SYGNIS granted an exclusive global license to QIAGEN N.V. for the key product QualiPhi®, an improved polymerase for amplifying DNA. On this basis the Company received a one-time payment and will receive sales-dependent royalties. First revenues are expected in 2013.
Pilar de la Huerta, CEO / CFO, commented: “The fiscal year 2012 of SYGNIS was marked by the successful business combination of SYGNIS and X-Pol Biotech. As a consequence, important steps for the future and restructuring measures were taken that have already been implemented. We were able also, to show first commercial success. We are delighted to have signed an exclusive worldwide license agreement with the market leader QIAGEN for our flagship product QualiPhi®. We will generate first revenues in the current year and plan break-even in fiscal year 2014.”
In financial year 2012, the reported loss for the period was -€2.4 million (previous year: -€0.9 million). The decrease primarily resulted from impairments of intangible assets of €1.0 million (previous year: €0.0 million) which were necessary due to a lack of probability of the future commercialisation of assets for various projects of X-Pol Biotech. Furthermore, operating expenses of old SYGNIS are included for December. R&D expenses increased to €1.0 million (previous year: €0.5 million).
Revenue was €0.2 million (previous year: €0.0 million), mainly resulting from the marketing of QualiPhi®.
Total assets rose from €2.2 million to €9.6 million, primarily due to the goodwill resulting from the business combination of €5.9 million, as the market value of the old SYGNIS was higher than the fair values of its assets at the acquisition date. In addition, other intangible assets increased from €1.1 million to €2.3 million. Here the major effects were the development program DoubleSwitch and the Caco2 licence business, both capitalized on the old SYGNIS business. Equity was strengthened accordingly by €5.8 million to €6.3 million.
Cash outflow from operating activities was up from €0.6 million in the previous year to €1.3 million. This was especially due to the higher net loss for the period which was partly offset by increased amortization and imparments of intangible assets. Cash inflow from investing activities rose to €0.5 million (previous year: cash outflow of €0.7 million), primarily according to the cash inflow based on the reverse acquisition of €0.5 million. Based on a lower raising of non-current loans, cash flow from financing activities was reduced to €0.5 million (previous year: €1.9 million).
At the end of the period, cash and cash equivalents were €0.5 million (previous year: €0.9 million).