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Santhera Pharmaceuticals Holding AG: Santhera Reports Financial Figures for 2013 and Progress towards Turnaround

 Santhera Pharmaceuticals Holding AG: Santhera Reports Financial Figures for                      2013 and Progress towards Turnaround  Santhera Pharmaceuticals Holding AG / Santhera Reports Financial Figures for 2013 and Progress towards Turnaround . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.  Liestal, Switzerland, April8, 2014 - Santhera Pharmaceuticals (SIX:SANN) announced today financial results for 2013 and marked reductions in cash burn and liabilities. The cash position at year end 2013 amounted to CHF5.0 million. The operating result improved to CHF-7.3 million and the net result to CHF-5.8 million. The Company's financial situation has been strengthened by a Standby Equity Distribution Agreement (SEDA) for up to CHF10 million signed with YA Global Master SPV Ltd. (YA Global) and a recent private placement of CHF1 million with new investor IGLU Group. At the end of the first quarter 2014, Santhera had cash reserves of CHF 5.3 million slightly above year-end 2013.  Key achievements for the past 15 months:    oSuccessful operational and financial restructuring resulting in reduced     cash burn and liabilities   oSupportive efficacy data for Raxone^® in Leber's Hereditary Optic     Neuropathy (LHON)   oPreparation of Marketing Authorization Application (MAA) for Raxone^® in     LHON to be filed shortly with the European Medicines Agency (EMA)   oTemporary authorization for use (autorisation temporaire d'utilisation     dite de cohorte) forRaxone^® in LHON granted by the French National Agency     for the Safety of Medicines and Health Products (ANSM)   oSuccessful futility analysis of the PhaseIII DELOS trial with     Raxone^®/Catena^® in Duchenne Muscular Dystrophy (DMD)   oAgreement for exclusive patent license signed with US National Institutes     of Health (NIH) for Catena^®/Raxone^® in the treatment of primary     progressive Multiple Sclerosis (ppMS)   oUS patent granted protecting the use of the oromucosal administration     route for fipamezole in the field of neurodegenerative diseases   oFinancing of operations and going concern secured by a SEDA for a maximum     of CHF10 million with YA Global and a private placement of CHF1 million     with new investor IGLU Group  Key Financial Figures 2013  (IFRS, consolidated, in CHF thousands)    2013                    2012                                                restated due to IAS 19R Cash and cash equivalents                5,044                  12,283 Net change in cash and cash equivalents -7,239                 -11,123 Net sales                                1,319                   3,538 Operating expenses                      -8,744                 -34,698 Operating result                        -7,309                 -31,152 Net result                              -5,755                 -31,445  "We are glad to report very positive progress, both financially and operationally, towards a successful turnaround of Santhera," commented Thomas Meier, Chief Executive Officer of Santhera. "After a difficult start at the beginning of 2013 we have now obtained the necessary funding to allow the continuation of our business operations well into 2015. In line with the mandate given at the Annual Shareholders' Meeting in 2013, we preserved our assets, advanced their development and increased their value." He continued: "The temporary authorization in France for Raxone^® for the treatment of LHON is an important milestone in our efforts to make this treatment available to patients whose disease could not be treated until now. We continue to work towards a full market approval with the European regulatory authorities."  CHF5.0 million cash at year-end 2013 and significant reduction in net cash burn As of December31, 2013, Santhera had cash and cash equivalents of CHF5.0 million (2012: CHF12.3 million). Net change in cash was CHF-7.2 million (2012: CHF-11.1 million) driven by a reduction in average monthly net cash burn from CHF0.7 million in the first quarter to CHF0.3 million in the fourth quarter of 2013 as a result of rigorous cost control and use of the SEDA. Operational and financial restructuring measures reduced current and non-current liabilities from CHF6.9 million to CHF2.6 million. Total equity at year-end 2013 was CHF7.1 million (2012: CHF11.4 million).  Revenues from product sales In 2013, Catena^® generated net sales of CHF1.3 million (2012: CHF3.5 million) primarily in Canada in the indication Friedreich's Ataxia. Sales from the Named Patient Program increased to TCHF467 (2012: TCHF352). In line with the sharp reduction in operating expenses (CHF8.7 million in 2013 vs. CHF34.7 million in 2012), the operating result improved to CHF-7.3 million (2012: CHF-31.2 million including substantial impairments on intangibles and the write-down of inventories). Expenses in Development were CHF4.7 million (2012: CHF28.7 million). Marketing and sales expenses were halved to CHF0.9 million (2012: CHF1.8 million) while expenses for general and administrative were reduced to CHF3.1 million (2012: CHF4.1 million). As a result, Santhera reduced the net loss to CHF5.8 million in 2013 (2012: CHF31.4 million).  Outlook In the coming weeks, the MAA for Raxone^® for the treatment LHON will be filed with the EMA whose decision is expected in the first half of 2015. Meanwhile Raxone^® is made available to LHON patients in France under the cohort ATU granted by the ANSM in January 2014, allowing Santhera to generate product sales. In the second quarter of 2014, pivotal data of the DELOS PhaseIII study with Catena^®/Raxone^® in DMD will become available from the cohort of patients not using steroids. The results will clarify the development and regulatory path forward for this program. In ppMS, Santhera continues its collaboration with the NIH in a randomized, placebo-controlled PhaseII trial (IPPoMS) with Catena^®/Raxone^® followed by a 12-months open-label extension study.  Santhera closed the first quarter 2014 with cash of CHF5.3 million, slightly above year-end 2013 reflecting inflows of funds from the SEDA and a private placement with IGLU Group in February 2014.  Despite the SEDA and the recent capital increase, Santhera's ability to continue business operations into 2015 and beyond remains contingent on the availability of additional financial resources. The Board of Directors and Management of Santhera therefore continue their efforts to secure adequate financing, including through further use of the SEDA, and to explore M&A opportunities and/or sale or licensing of assets.  2013 Financial Information  The complete financial statements of Santhera and the report on corporate governance are available on the Company's Web site www.santhera.com.  Condensed Balance Sheets  (IFRS, consolidated, in CHF          December31, 2013 December 31, 2012 thousands)                                             restated due to IAS 19R Cash and cash equivalents            5,044             12,283 Noncurrent assets                    4,349             5,157 Other current assets                 343               845 Total assets                         9,736             18,285 Equity                               7,106             11,365 Noncurrent liabilities               997               3,992 Current liabilities                  1,633             2,928 Total equity and liabilities         9,736             18,285  Condensed Income Statements (based on going concern values)  (IFRS, consolidated, in CHF thousands)    2013   2012                                                  restated due to IAS19R) Net sales                                 1,319  3,538 Total revenue                             1,319  3,538 Gross profit                              1,179  3,189 Other operating income                    256    357 Development                               -4,709 -28,722 Marketing and sales                       -926   -1,841 General and administrative                -3,109 -4,079 Other operating expenses                  0      -56 Operating expenses                        -8,744 -34,698  whereof non-cash-relevant items     -837   -20'535 Operating result                          -7,309 -31,152 Net financial result                      1,549  -136 Result before taxes                       -5,760 -31,288 Income taxes                              5      -157 Net result                                -5,755 -31,445 Basic and diluted loss per share (in CHF) -1.55  -8.55  Condensed Cash Flow Statements  (IFRS, consolidated, in CHF thousands)   2013   2012                                                 restated due to IAS 19R Operating cash flow                      -6,976 -11,039 Cash and cash equivalents at January1   12,283 23,406 Cash and cash equivalents at December31 5,044  12,283 Net change in cash and cash equivalents  -7,239 -11,123  Share Capital  (as of December31)                           2013      2012 Number of shares issued (nominal value CHF1) 3,934,049 3,677,538 Conditional capital for stock options         684,414   695,925 Conditional capital for convertible rights    355,000   600,000 Authorized capital                            1,800,000 1,800,000  Corporate Calendar 2014  Tuesday, May20 Annual Shareholders' Meeting, Liestal, Switzerland                                      * * *  About Santhera Santhera Pharmaceuticals (SIX:SANN) is a Swiss specialty pharmaceutical company focused on the development and commercialization of innovative pharmaceutical products for the treatment of orphan mitochondrial and neuromuscular diseases, such as Leber's Hereditary Optic Neuropathy, Duchenne Muscular Dystrophy and primary progressive Multiple Sclerosis, all of them areas of high unmet medical need with no current therapies. For further information, please visit the Company's website www.santhera.com.  Raxone^® and Catena^® are trademarks of Santhera Pharmaceuticals.  For further information, contact Thomas Meier, Chief Executive Officer Phone: +41 61 906 89 64 thomas.meier@santhera.com  Disclaimer / Forward-looking statements This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Santhera Pharmaceuticals Holding AG. This publication may contain certain forward-looking statements concerning the Company and its business. Such statements involve certain risks, uncertainties and other factors which could cause the actual results, financial condition, performance or achievements of the Company to be materially different from those expressed or implied by such statements. Readers should therefore not place undue reliance on these statements, particularly not in connection with any contract or investment decision. The Company disclaims any obligation to update these forward-looking statements.  News release 2013  ------------------------------------------------------------------------------  This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Santhera Pharmaceuticals Holding AG via Globenewswire HUG#1775339  --- End of Message ---  Santhera Pharmaceuticals Holding AG Hammerstrasse 49 Liestal Switzerland  ISIN: CH0027148649;  
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