MorphoSys AG: MorphoSys AG Reports Results for the First Nine Months of 2013
MorphoSys AG / MorphoSys AG Reports Results for the First Nine Months of 2013
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Results Strongly Impacted by MOR202 Co-Development Agreement with Celgene
Conference call and webcast (in English) today at 2:00pm CET (1:00pm
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX; OTC: MPSYY) today
announced its financial results for the nine months ending 30 September 2013.
Group revenues from continuing operations increased by 80 % to EUR 63.6
million (9-months 2012: EUR 35.4 million). The increase was a result of the
license agreement with GlaxoSmithKline (GSK) for MorphoSys's clinical antibody
program MOR103, the co-development agreement with Celgene for the further
development of MOR202 as well as a fully paid-up license payment from Bio-Rad
for a non-exclusive license to use HuCAL in research and diagnostic
applications in connection with its acquisition of the Company's AbD Serotec
segment. Earnings before interest and taxes (EBIT) from continuing operations
amounted to EUR 14.6 million (9-months 2012: EUR -1.9 million). The net profit
including the profit from discontinued operations amounted to EUR 16.9
million. On 30 September 2013, the Company had EUR 401.9 million in cash, cash
equivalents, marketable securities and bonds as well as other financial
assets, compared to EUR 135.7 million as of 31 December 2012. The increase
compared to year-end 2012 resulted from the license agreements with GSK and
Celgene, the sale of the AbD Serotec segment to Bio-Rad and the capital
increase which was successfully concluded in September 2013.
In EUR million* 9-Months 2013 9-Months 2012
Group Revenues 63.6 35.4
Total Operating Expenses 49.1 37.6
Other Income/Expenses 0.2 0.3
Earnings Before Interest and Taxes - EBIT 14.6 (1.9)
Profit/(Loss) from Continuing Operations 10.9 (0.9)
Profit/(Loss) from Discontinued Operations 6.0 (0.4)
Consolidated Net Profit/(Loss) 16.9 (1.2)
Total EPS, diluted, in EURO 0.68 (0.05)
* Differences due to rounding
Summary of the Third Quarter 2013
*On 10 August 2013 the development alliance with Celgene for MOR202, which
was announced at the end of June 2013, received anti-trust clearance under
the US Hart-Scott-Rodino Act. On closure of the deal, Celgene acquired
797,150 new MorphoSys shares at EUR 57.90 per share representing a premium
of 5.0 % compared to the share'sclosing price on 9 August 2013. At the
end of Q3 2013, Celgene owned approximately 3 % of MorphoSys's registered
*As a result of the transactions with GSK for MOR103 in June 2013 and with
Celgene for MOR202, MorphoSys now expects more revenues in the Proprietary
Development operating segment than initially estimated. On 24 October
2013, MorphoSys raised its EBIT guidance for 2013 and further specified
its revenue guidance. Revenues are now expected to reach the upper end of
the guidance range of EUR 74 million to EUR 78 million. The EBIT guidance
was increased to EUR 7 million to EUR 10 million (from previously EUR 2
million to EUR 6 million).
*The phase 1/2a study of the CD19 antibody MOR208 in the area of chronic
lymphocytic leukemia (CLL) was completed. The final results of the study
show that MOR208 was well tolerated with an overall response rate of
around 30 %.
*By the end of the third quarter of 2013, MorphoSys's product pipeline
comprised 21 clinical programs, including two in pivotal studies, namely
bimagrumab (Novartis) and gantenerumab (Roche).
*MorphoSys executed a capital increase with gross proceeds of around EUR 84
million. Approximately 1.5 million new shares were issued to international
institutional investors at EUR 55.76 per share and thus at the closing
price of the day before the announcement.
"The third quarter brought impressive news from our broad therapeutic antibody
pipeline. We closed our alliance with Celgene for MOR202 and reported positive
headline data from the Phase 1/2a trial of MOR208 in CLL. Amongst the
partnered programs, bimagrumab became the first antibody based on our
technology platform to receive breakthrough therapy designation from the FDA.
It's now the second program in our pipeline to enter a pivotal clinical trial.
In addition, three partnered programs advanced into phase 2 clinical trials.
That adds up to a very productive quarter," stated Dr. Simon Moroney, Chief
Executive Officer of MorphoSys AG.
"The partnership deals with GSK and Celgene were the decisive events that will
lead to a clear out-performance of our original 2013 financial guidance.
MorphoSys is well positioned and well-funded to broaden and advance its
proprietary portfolio in 2014 and to continue to build significant value,"
commented Jens Holstein, Chief Financial Officer of MorphoSys AG.
Financial Review for the First Nine Months 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 nine months of 2013
amounted to EUR 63.6 million (9-months 2012: EUR 35.4 million), an increase of
80 % over the prior year. The strong increase resulted predominantly from
license payments received from Bio-Rad, GSK, and Celgene. The license payment
from Bio-Rad derived from a non-exclusive license to use HuCAL in research and
diagnostic applications in connection with their acquisition of MorphoSys's
AbD Serotec segment. The license agreement with GSK for MOR103, a
HuCAL-derived antibody against GM-CSF, included an upfront payment for
MorphoSys which was almost fully accounted for in 2013. The license agreement
with Celgene covers the joint development of MOR202 as well as the
co-promotion of the drug candidate in Europe and also includes an up-front
payment which was recognized pro rata in 2013. Revenues in the Partnered
Discovery segment comprised EUR 37.5 million in funded research and licensing
fees (9-months 2012: EUR 32.1 million) and EUR 3.0 million in success-based
payments (9-months 2012: EUR 1.9 million). The Proprietary Development segment
recorded revenues of EUR 23.0 million (9-months 2012: EUR 1.2 million). The
main reason for the increase over the prior year was the receipt of upfront
payments from GSK and Celgene.
Total operating expenses from continuing operations for the first nine months
of 2013 increased by 31 % to EUR 49.1 million (9-months 2012: EUR 37.6
million). Total research and development expenses increased by 24 % to EUR
35.9 million (9-months 2012: EUR 29.0 million). The increase in R&D expenses
mainly resulted from higher personnel costs as well as costs for external
laboratory services. Investment in proprietary product and technology
development amounted to EUR 24.1 million (9-months 2012: EUR 17.2 million).
Sales, general and administrative expenses increased by 53 % to EUR 13.2
million (9-months 2012: EUR 8.6 million) driven by higher expenses for
personnel and for external services.
Earnings before interest and taxes (EBIT) from continuing operations amounted
to EUR 14.6 million (9-months 2012: EUR -1.9 million). Partnered Discovery
showed a segment EBIT of EUR 22.4 million (9-months 2012: EUR 17.9 million),
while the Proprietary Development segment reported a segment EBIT of EUR 2.4
million (9-months 2012: EUR -13.1 million).
For the first nine months of 2013, MorphoSys recorded a net profit from
continuing operations of EUR 10.9 million compared to a net loss of EUR 0.9
million in the same period of 2012. The resulting diluted earnings per share
from continuing operations for the nine months ending 30 September 2013
amounted to EUR 0.45 (9-months 2012: EUR -0.04).
Results from 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 from
discontinued operations reflect only the first ten days of the quarter.
Revenues from discontinued operations were EUR 0.6 million (9-months 2012: EUR
Total operating costs from discontinued operations amounted to EUR 2.3 million
(9-months 2012: EUR 13.7 million), including cost of goods sold (COGS) in the
amount of EUR 0.2 million (9-months 2012: EUR 4.8 million) as well as
transaction-related costs in the amount of EUR 1.8 million.
During the nine months ending 30 September 2013, EBIT from discontinued
operations after deduction of all attributable transaction costs amounted to
EUR -1.7 million (9-months 2012: EUR -0.4 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 (9-months 2012: a loss
of EUR 0.5 million). The net profit from discontinued operations amounted to
EUR 6.0 million (9-months 2012: net loss of EUR 0.4 million).
Results for the Group
Group net profit amounted to EUR 16.9 million (9-months 2012: EUR -1.2
million). The resulting fully diluted Group earnings per share amounted to EUR
0.68 (9-months 2012: EUR -0.05).
On 30 September 2013, the Company had EUR 401.9 million in cash, cash
equivalents, marketable securities and bonds as well as other financial assets
(reported in the balance sheet under cash and cash equivalents; available for
sale financial assets; bonds, available for sale; and other receivables),
compared to EUR 135.7 million as of 31 December 2012. Net cash inflow from
operations in the first nine months of 2013 amounted to EUR 100.8 million
(9-months 2012: EUR 2.4 million). The number of shares issued at 30 September
2013 was 26,111,009 compared to 23,358,228 on 31 December 2012. The increase
of 2,752,781 shares resulted from the capital increase in August related to
the alliance with Celgene, from the capital increase in September and from the
exercise of stock options.
Third Quarter of 2013 (IFRS)
Results from Continuing Operations
In the third quarter of 2013, the Company generated revenues from continuing
operations in the amount of EUR 15.4 million, compared to EUR 11.0 million in
the same quarter of 2012. Total operating expenses amounted to EUR 18.0
million in Q3, compared to EUR 11.7 million in the same quarter of 2012. The
increase of operating expenses was mainly due to increased personnel expenses
and costs for external services. EBIT amounted to EUR -2.7 million (Q3 2012:
EUR -0.6 million). Net loss for the third quarter 2013 was EUR 2.1 million,
compared to a net loss of EUR 0.6 million in the third quarter of 2012.
Results from Discontinued Operations
During the third quarter of 2013, no revenues or expenses occurred within the
AbD Serotec segment, which was sold to Bio-Rad in January of 2013.
Results for the Group
For the third quarter of 2013, Group net loss amounted to EUR 2.1 million (Q3
2012: net loss of EUR 0.2 million). The resulting fully diluted Group earnings
per share amounted to
EUR -0.08 (Q3 2012: EUR -0.01).
Outlook for 2013
MorphoSys updated its guidance for 2013 on 24 October 2013 to reflect and
further specify the impact of the alliance with Celgene for the future
development of MOR202.
The Company's management expects revenues of approximately EUR 74 million to
EUR 78 million and an EBIT of EUR 7 million to EUR 10 million. Revenues are
expected to be at the upper end of the given range.
MorphoSys will hold a public conference call and webcast today at 02:00 pm CET
(01:00 pm GMT, 08:00 am EST) to present the Third 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
A live webcast, slides, webcast replay and transcript will be made available
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 3nd Interim Report 2013 (January - September) is available on our
website (HTML and PDF): http://www.morphosys.com/FinancialReports
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 80 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®, HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®, RapMAT®, arYla® and
Ylanthia® and 100 billion high potentials® are registered trademarks of
Slonomics® 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.
For more information, please contact:
Dr. Claudia Gutjahr-Löser
Head of Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-122
Associate Director Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-454
Specialist Corporate Communications & IR
Tel: +49 (0) 89 / 899 27-332
3rd Interim Report (PDF)
Media Release (PDF)
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(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: MorphoSys AG via Thomson Reuters ONE
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