MorphoSys AG Reports Results for the First Quarter of 2013

MorphoSys AG Reports Results for the First Quarter of 2013 
MARTINSRIED, GERMANY and MUNCHEN, GERMANY -- (Marketwired) --
05/03/13 --  MorphoSys AG / MorphoSys AG Reports Results for the
First Quarter of 2013 
Processed and transmitted by Thomson Reuters ONE. 
The issuer is solely responsible for the content of this
announcement. 
First Quarter Positively Impacted by Sale of AbD Serotec 
Conference call and webcast (in English) today at 2:00pm CET (1:00pm
GMT/8:00am
EST) 
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today
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). 


 
| In EUR million*                           | Q1 2013 | Q1 2012 |
+-------------------------------------------+---------+---------+
|                                           |         |         |
+-------------------------------------------+---------+---------+
|                                           |         |         |
|                                           |         |         |
| Continuing Operations:                    |         |         |
+-------------------------------------------+---------+---------+
| Group Revenues                            | 16.9    | 11.7    |
+-------------------------------------------+---------+---------+
| Total Operating Expenses                  | 14.6    | 12.5    |
+-------------------------------------------+---------+---------+
| Other Income/Expenses                     | 0.2     | 0.1     |
+-------------------------------------------+---------+---------+
| Earnings Before Interest and Taxes (EBIT) | 2.5     | (0.7)   |
+-------------------------------------------+-----
----+---------+
| Profit/Loss from Continuing Operations    | 1.9     | (0.3)   |
+-------------------------------------------+---------+---------+
| Profit/Loss from Discontinued Operations  | 6.0     | (0.2)   |
+-------------------------------------------+---------+---------+
| Consolidated Net Profit                   | 7.9     | (0.5)   |
+-------------------------------------------+---------+---------+
| Total EPS (diluted) in EURO               | 0.33    | (0.02)  |
+-------------------------------------------+---------+---------+
|                                           |         |         |
|                                           |         |         |
 
* Differences due to rounding

 
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 f
rom
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. 
MorphoSys will hold a public conference call and webcast today at
02:00 p.m.
CEST (08:00 a.m. EST, 01:00 p.m. BST) to present the First
Quarter Results 2013
and report on current developments. 
Dial-in number for the analyst conference call (in English) at 02:00
pm CET;
01:00 pm GMT; 08:00 am EST (listen-only): 
Germany: +49 (0) 89 2444 32975 
For UK residents: +44 (0) 20 3003 2666 
For US residents: +1 202 204 1514 
Please dial in 10 minutes before the beginning of the conference. 
In addition, MorphoSys offers participants the opportunity to follow
the presentation through a simultaneous slide presentation online at
http://www.morphosys.com. 
A live webcast, slides, webcast replay and transcript will be made
available at http://www.morphosys.com. 
Approximately two hours after the press conference, a
slide-synchronized audio
replay of the conference will be available on
http://www.morphosys.com. 
The complete 1st Interim Report 2013 (January - March) is available
on our website (HTML and PDF):
http://www.morphosys.com/FinancialReports 
About MorphoSys: 
MorphoSys developed HuCAL, the most successful antibody library
technology in
the pharmaceutical industry. By successfully applying
this and other patented
technologies, MorphoSys has become a leader
in the field of therapeutic antibodies, one of the fastest-growing
drug classes in human healthcare. Together with its pharmaceutical
partners, MorphoSys has built a therapeutic
pipeline of more than 70
human antibody drug candidates for the treatment of
cancer,
rheumatoid arthritis, and Alzheimer's disease, to name just a few.
With
its ongoing commitment to new antibody technology and drug
development, MorphoSys is focused on making the healthcare products of
tomorrow. MorphoSys is listed on the Frankfurt Stock Exchange under
the symbol MOR. For regular updates
about MorphoSys, visit
http://www.morphosys.com. 
HuCAL(R), HuCAL GOLD(R), HuCAL PLATINUM(R), CysDisplay(R), RapMAT(R),
arYla(R), Ylanthia(R) and 100 billion high potentials(R) are
registered trademarks of MorphoSys AG. Slonomics(R) is a registered
trademark of Sloning BioTechnology GmbH, a subsidiary
of MorphoSys
AG. 
This communication contains certain forward-looking statements
concerning the
MorphoSys group of companies. The forward-looking
statements contained herein
represent the judgment of MorphoSys as of
the date of this release and involve
risks and uncertainties. Should
actual conditions differ from the Company's assumptions, actual
results and actions may differ from those anticipated. MorphoSys does
not intend to update any of these forward-looking statements as
far
as the wording of the relevant press release is concerned. 
Media
Release (PDF): http://hugin.info/130295/R/1698905/560247.pdf 
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(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: MorphoSys AG via Thomson Reuters ONE 
[HUG#1698905] 
For more information, please contact:
MorphoSys AG
Dr. Claudia Gutjahr-Loser
Head of Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-122 
Mario Brkulj
Associate Director Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-454 
Alexandra Goller
Specialist Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-332 
investors@morphosys.com
 
 
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