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  ---------------------------------------------------------------------  PRESS RELEASE  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     substantially    - 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     Group.    - 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 confidence."  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 projects.  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 expenses.  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 Earnings 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 www.wilex.com.  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. CEST.   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   About WILEX 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  ---------------------------------------------------------------------  15.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement.  DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de  ---------------------------------------------------------------------   Language:    English                                                 Company:     WILEX AG                                                             Grillparzerstr. 10                                                   81675 München                                                        Germany                                                 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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