DGAP-News: WILEX AG plans extensive cost-cutting measures

DGAP-News: WILEX AG plans extensive cost-cutting measures

DGAP-News: WILEX AG / Key word(s): Strategic Company Decision
WILEX AG plans extensive cost-cutting measures

29.01.2014 / 17:01



WILEX AG plans extensive cost-cutting measures

  - Focus on contract research and ADC technology
  - Activities on marketing of advanced clinical programmes to continue
  - All development activities to be scaled back with a significant
    reduction in the workforce from 51 to 10 employees in Munich
  - Executive Management Board reduced
  - Cash reach extended to the second half of 2015
  - Publication of annual financial statements postponed to 31 March 2014
    at the latest
  - Conference call on January 30, 2014 at 02:00 pm CET

Munich, Germany, 29 January 2014 - WILEX AG (ISIN DE0006614720 / WL6 / FSE)
today resolved to implement extensive cost-cutting measures and focus on
contract research and the ADC technology at its subsidiary Heidelberg
Pharma. This decision was taken with the approval of the company's
Supervisory Board. Clinical development activities will be discontinued
stepwise, and the workforce will be reduced by 80% to 10 employees in
Munich. Work will continue on the commercial exploitation of the company's
advanced clinical programmes. These measures became necessary to extend the
company's cash reach. At the moment, WILEX's financing is sufficient to
take the company into the third quarter of 2014. With the measures
announced today, the cash reach will be extended to at least the second
half of 2015.

Despite intensive efforts to obtain project funding and licensing
partnerships, WILEX AG has been unable to generate sufficient cash to
justify and guarantee maintaining its current scope of business activities.
The financing required to start the Phase III trials for RENCAREX(R) and
REDECTANE(R) has not been secured.

After the above measures are implemented, a core team will remain in Munich
to continue ongoing negotiations on marketing or financing the MESUPRON(R),
RENCAREX(R) and REDECTANE(R) projects. Heidelberg Pharma in Ladenburg will
continue to develop and market customer-specific contract research
operations, and the ADC technology in particular, and thus generate revenue
for the Group.

Decreased external costs for research and development, internal savings and
lower staff costs will reduce operating expenses in the next months. Cash
and cash equivalents as of 30 November 2013 totalled approximately EUR 8.9
million, subject to the annual financial statements audit. Due to the
restructuring, the publication of annual financial statements will
postponed to 31 March 2014 at the latest.

Dr Thomas Borcholte, who has been WILEX AG's Chief Business Officer since
2007, stepped down from this position after his employment contract ended
on 31 December 2013. However, Dr Borcholte will continue to contribute his
many years of expertise to WILEX AG as a consultant on specific ongoing and
future projects.

Statement by Professor Olaf Wilhelm: 'In recent months we have reviewed
with the help of the Supervisory Board and our consultants all options that
would have ensured continuation of our clinical activities and commercial
exploitation of our advanced clinical product candidates. We are in
continuous negotiations with potential partners, but to date we have been
unable to close a contract. In order to secure a promising future for our
company, we have been forced to drastically streamline the WILEX Group's
costs and re-define our future direction. This has resulted in painful
workforce reductions. We would like to sincerely thank all of our
colleagues affected by these cuts for their many years of dedication and
their professional contributions to WILEX AG.'

Invitation to the conference call
On 30 January 2014, WILEX will hold a public conference call for media,
analysts and investors at 2:00 p.m. CET in English. Please dial in ten
minutes before the conference call using the following dial-in numbers:

1. Germany: +49 69 71044 5598
2. UK: +44 20 3003 2666
3. USA: +1 212 999 6659
4. USA Freephone: +1 866 966 5335

You will be welcomed by an operator taking the password (WILEX), your name
and company.

About WILEX 
WILEX AG is a biopharmaceutical company based in Munich, Germany. Focused
on oncology, the Company develops diagnostic and therapeutic product
candidates for the specific detection and targeted treatment of various
types of cancer based on antibodies and small molecules. The subsidiary
Heidelberg Pharma GmbH offers preclinical contract research services and an
antibody drug conjugate (ADC) technology platform. Our customers and
partners include leading international pharmaceutical companies. WILEX AG
is listed at the Frankfurt Stock Exchange. ISIN DE0006614720 / WKN 661472 /
Symbol WL6. More information is available at www.wilex.com.

Contact                                 For press enquiries
WILEX AG                                MC Services AG
Corporate Communications                Katja Arnold (CIRO)
Sylvia Wimmer                           Tel.: +49-89-210 228-40
Tel.: +49 (0)89-41 31 38-29             Mobil: +49 160 9360 3022
Email: investors[at]wilex.com           E-Mail: katja.arnold[at]mc-
Grillparzerstr. 10, 81675 Munich,       services.eu

This communication contains certain forward-looking statements relating to
the Company's business, which can be identified by the use of
forward-looking terminology such as 'estimates', 'believes', 'expects',
'may', 'will' 'should' 'future', 'potential' or similar expressions or by a
general discussion of the Company's strategy, plans or intentions. Such
forward-looking statements involve known and unknown risks, uncertainties
and other factors, which may cause our actual results of operations,
financial position, earnings, achievements, or industry results, to be
materially different from any future results, earnings or achievements
expressed or implied by such forward-looking statements. Given these
uncertainties, prospective investors and partners are cautioned not to
place undue reliance on such forward-looking statements. We disclaim any
obligation to update any such forward-looking statements to reflect future
events or developments.

End of Corporate News


29.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                                
Company:     WILEX AG                                               
             Grillparzerstr. 10                                     
             81675 München                                          
Phone:       +49 (0)89 41 31 38 - 0                                 
Fax:         +49 (0)89 41 31 38 - 99                                
E-mail:      info@wilex.com                                         
Internet:    www.wilex.com                                          
ISIN:        DE0006614720                                           
WKN:         661472                                                 
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, München, Stuttgart  
End of News    DGAP News-Service  
250084 29.01.2014                                                      
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