DGAP-News: WILEX AG publishes Half-yearly Financial Report 2014

DGAP-News: WILEX AG publishes Half-yearly Financial Report 2014

DGAP-News: WILEX AG / Key word(s): Half Year Results
WILEX AG publishes Half-yearly Financial Report 2014

15.07.2014 / 07:25



WILEX AG publishes Half-yearly Financial Report 2014

  - Capital reduction resolved and implemented 

  - Licence agreements with IBA Pharma and UCB Pharma terminated

  - New licence agreement signed for MESUPRON(R)

  - Sales revenue and earnings in line with expectations, costs reduced

  - Public conference call on 15 July 2014 at 3:00 p.m. CEST

Munich, 15 July 2014 - WILEX AG (ISIN DE0006614720 / WL6 / FSE) today
published its financial report on the first six months of 2014 (1 December
2013 - 31 May 2014).

The second quarter has been dominated by consolidation and realignment. One
important task was adjusting and/or terminating our licence agreements with
existing partners and conducting negotiations concerning the out-licensing
of WILEX's portfolio.

  - Termination of the licence agreement with IBA: At the end of April
    2014, WILEX and its partner IBA Pharma SPRL agreed to terminate their
    licence agreement for REDECTANE(R) dating back to 2008 and retransfer
    all rights granted to IBA under the licence agreement with immediate
    effect to WILEX, particularly the exclusive licence granted for the
    production and global marketing of this diagnostic antibody. WILEX is
    now in a position to contact new partners for the external development,
    financing, production and marketing of REDECTANE(R).

  - Termination of the licence agreement with UCB: At the end of May 2014,
    WILEX ended its development partnership with UCB Pharma S.A. for the
    small molecule programmes WX-554 and WX-037 as well as the three
    preclinical antibody programmes and agreed a final payment for the
    development services provided by WILEX. As part of this arrangement,
    UCB, as a shareholder of WILEX, agreed that it would waive repayment of
    the EUR 2.5 million shareholder loan extended to WILEX plus any
    outstanding interest after the proper transfer of all rights and data
    for the programmes has been concluded. This would be a great help and
    an improved basis for the liquidity planning and financing of the WILEX

  - Licence agreements for MESUPRON(R): After signing the licence agreement
    with the Chinese company Link Health Group at the end of March for
    China, Hong Kong, Macao and Taiwan, great efforts were made to secure a
    second partnership for MESUPRON(R). In late June - i.e. after the
    reporting period - WILEX succeeded in concluding a licence agreement
    with the Israeli biopharmaceutical company RedHill Biopharma Ltd. Under
    this licence agreement, RedHill will acquire the exclusive development
    and marketing rights to MESUPRON(R) in all indications outside of the
    Greater China regions. WILEX will receive an upfront payment of USD 1
    million as well as staged royalty payments ranging from the mid-teens
    up to 30%. RedHill will be responsible for the entire development,
    regulatory approval and marketing of MESUPRON(R).

  - Capital reduction: On 23 May 2014, the Annual General Meeting of WILEX
    AG approved by a majority of 99.87% the proposal of the Executive
    Management Board and the Supervisory Board to reduce the Company's
    share capital in accordance with Sections 222 ff. German Stock
    Corporation Act. The share capital was reduced - after cancelling three
    shares - from then EUR 31,275,504.00 by EUR 23,456,628.00 to EUR
    7,818,876.00 through the combination of the outstanding no par value
    shares in a ratio of 4:1. The new share capital has been entered in the
    Commercial Register. The conversion of the shares in the deposit
    accounts and on the stock exchanges is to take place on 18 July 2014.

Dr Jan Schmidt-Brand, Spokesman of the Executive Management Board and Chief
Financial Officer of WILEX AG, commented: "In recent months, we worked hard
on consolidating and realigning our company and achieved important
objectives. We are especially delighted about the partnerships for
MESUPRON(R) as this will enable both the advancement of this novel
anti-metastatic approach and WILEX to participate by way of payments made
by partners and royalties in the event of successful clinical development
and approval. As regards the other programmes - and our ADC technology
platform in particular - we are also working on commercialising them
further and we look ahead to the next months with both excitement and

Financial results for the first six months of financial year 2014
The WILEX Group comprising WILEX AG and the subsidiary Heidelberg Pharma
GmbH reports consolidated figures and on three segments (Rx-Therapeutics,
Dx-Diagnostics and Cx-Customer Specific Research).

In the first six months of the 2014 financial year, the WILEX Group
generated sales revenue and income totalling EUR 1.7 million, down 78% on
the previous year (EUR 7.6 million). This figure includes sales revenue of
EUR 1.2 million from the Rx and Cx segment (previous year: EUR 6.6
million). Prior year's sales revenue were mainly generated from individual
components of the terminated licence agreement with Prometheus for
RENCAREX(R). In line with planning, the Dx segment did not post any sales
revenue. At EUR 0.5 million, other income also came in below the prior-year
figure (EUR 1.0 million) and mainly stemmed from the reversal through
profit or loss of provisions that were not required in the amounts planned.
Furthermore, both the Rx segment and the Cx segment received grants from
the Federal Ministry of Education and Research (BMBF) for research

Operating expenses including depreciation and amortisation amounted to EUR
6.0 million in the reporting period, down 46% compared with the previous
year (EUR 11.1 million). Cost of sales fell to EUR 0.9 million (previous
year: EUR 2.7 million) in the reporting period and accounts for 15% of
operating expenses. Research and development costs, which were EUR 5.4
million the previous year, fell by EUR 2.1 million to EUR 3.3 million, as a
result of the restructuring programme initiated and the phasing out of the
R&D activities at the Munich site. Administrative costs were reduced to EUR
1.5 million (previous year: EUR 1.9 million) and account for 26% of
operating expenses. Other expenses for activities in the areas of business
development, marketing and commercial market supply amounted to EUR 0.3
million (previous year: EUR 1.1 million). They account for 5% of operating

The WILEX Group reported an improved financial result of EUR -33 k
(previous year:
EUR -50 k). The net loss for the period was EUR 4.4 million (previous year:
EUR 3.5 million) and is attributable to lower sales revenue and income.
Reflecting the net loss for the period, earnings per share fell by 27% to
EUR -0.14 (previous year: EUR -0.11).

Cash and cash equivalents as of 31 May 2014 amounted to EUR 2.8 million (30
November 2013: EUR 8.9 million). This figure does not yet include inflows
from terminated and newly signed licence agreements. WILEX's average
monthly funding requirement in the first six months was EUR 1.0 million
(previous year: EUR 1.7 million). Due to the follow-up costs of the
restructuring, the significant reduction planned will not materialise until
later quarters.

Total assets as of the end of the reporting period amounted to EUR 16.6
million (30 November 2013: EUR 22.3 million); equity amounted to EUR 10.6
million (30 November 2013: EUR 14.9 million). The equity ratio was 63.8%
(30 November 2013: 67.0%).

There is no change to the guidance for the current financial year issued on
31 March 2014.

Key figures for the WILEX Group

                                                H1 2014 1         H1 2013 1
                                                  EUR'000           EUR'000
Sales revenue                                       1,189             6,595
Other income                                          475             1,038
Operating expenses                                (5,974)          (11,123)
of which research and development costs           (3,253)           (5,415)
Operating result                                  (4,310)           (3,490)
Earnings before tax                               (4,344)           (3,540)
Net loss for the year                             (4,391)           (3,540)
Earnings per share in EUR                          (0.14)            (0.11)

Balance sheet as the end of the period
Total assets                                       16,574            27,983
Cash and cash equivalents                           2,832            12,894
Equity                                             10,569            16,439
Equity ratio2 in %                                   63.8              58.7

Cash flow statement
Cash flow from operating activities               (6,017)          (10,504)
Cash flow from investing activities                 (129)              (43)
Cash flow from financing activities                  (49)             (115)

Employees (number)
Employees as of 31.05.2014 3, 4                        67               111

1 The reporting period begins on 1 December and ends on 31 May
2 Equity / total assets
3 Including members of the Executive Management Board 
4 WILEX Inc. is no longer included in 2014. 
Rounding of exact figures may result in differences.

The full half-yearly financial report including the segment reporting and
the consolidated financial statements prepared in accordance with
International Financial Reporting Standards (IFRS) was published at

Invitation to the conference call
On 15 July 2014, WILEX will hold a public conference call in English for
media, analysts and investors at 3:00 p.m. CEST. 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 who will ask for the password (WILEX)
and take your name and company. The presentation for the conference (in
English) will be available for download from www.wilex.com at 2:30 p.m.

Contact                               IR/PR support
WILEX AG                              MC Services AG
Corporate Communications              Katja Arnold (CIRO)
Sylvia Wimmer                         Executive Director
Tel.: +49 (0)89-41 31 38-29           Tel.: +49 (0)89-41 31 38-126
Email: investors[at]wilex.com         Tel.: +49 (0)89-210 228-40
Grillparzerstr. 10, 81675 Munich      Email: katja.arnold[at]mc-services.eu

WILEX AG is a biopharmaceutical company based in Munich, Germany. Focused
on oncology, the Company develops diagnostic and therapeutic product
candidates based on antibodies and small molecules, which are available for
out-licensing. 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. More information is available at www.wilex.com

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


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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  
277852 15.07.2014                                                      
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