Revenues up 16 %, Operating Profit More Than Doubled
MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX) today announced its financial results according to International Financial Reporting Standards (IFRS) for the first six months ending June 30, 2008. Group revenues increased by 16 % to EUR 33.3 million (H1 2007: EUR 28.6 million) and operating profit more than doubled to EUR 8.0 million (H1 2007: EUR 3.5 million). Net profit amounted to EUR 6.3 million (H1 2007: EUR 2.0 million). At the end of the second quarter of 2008 MorphoSys's cash position amounted to EUR 126.4 million (December 31, 2007: EUR 106.9 million).
Highlights of the Second Quarter of 2008:
The phase 1 trial for MOR103 continues according to plan and is on track for completion and final reporting in Q1 2009.
Partnered pipeline comprises 54 active therapeutic antibody projects (up from 50 at the end of 2007); number of pre-clinical candidates increased to 27.
Extension of therapeutic partnerships with Schering-Plough and OncoMed.
Boehringer Ingelheim exercised a pre-existing option to use MorphoSys's proprietary RapMAT technology for faster antibody optimization.
Expansion of target sourcing network through research collaboration with the Berlin-based Leibniz-Institut für Molekulare Pharmakologie (FMP).
'We remain committed to expanding our existing proprietary pipeline, and as a consequence of our financial health, are ideally positioned to do so,' commented Dave Lemus, Chief Financial Officer of MorphoSys AG. 'Looking ahead, the growth of our pipeline will stem from three sources: de novo program starts based on our HuCAL technology, co-development projects and in-licensing activities.'
Financial Review for H1 2008 (IFRS):
Group revenues for the first six months of 2008 amounted to EUR 33.3 million (H1 2007: EUR 28.6 million), an increase of 16 % over the prior year. Revenues arising from the Therapeutic Antibodies segment accounted for 73 % or EUR 24.3 million of total revenues (H1 2007: EUR 18.7 million). The AbD Research Antibody segment generated 27 % or EUR 9.0 million of total revenues (H1 2007: EUR 9.9 million). Measured at constant foreign exchange rates, revenues in the TAB and AbD segments would have amounted to EUR 24.3 million and EUR 9.8 million, respectively. MorphoSys's overall revenue growth was driven primarily by higher levels of funded research and licensing fees in the Therapeutic Antibodies segment, in large part from the strategic partnership with Novartis signed in December 2007.
Group revenues for the first six months of 2008 amounted to EUR 33.3 million (H1 2007: EUR 28.6 million), an increase of 16 % over the prior year. Revenues arising from the Therapeutic Antibodies segment accounted for 73 % or EUR 24.3 million of total revenues (H1 2007: EUR 18.7 million). The AbD Research Antibody segment generated 27 % or EUR 9.0 million of total revenues (H1 2007: EUR 9.9 million). Measured at constant foreign exchange rates, revenues in the TAB and AbD segments would have amounted to EUR 24.3 million and EUR 9.8 million, respectively. MorphoSys's overall revenue growth was driven primarily by higher levels of funded research and licensing fees in the Therapeutic Antibodies segment, in large part from the strategic partnership with Novartis signed in December 2007.
Total operating expenses for the first six months of 2008 amounted to EUR 25.3 million (H1 2007: EUR 25.1 million), representing a slight increase of 1 % over the prior year. Cost of goods sold (COGS) decreased to EUR 3.5 million (H1 2007: EUR 4.2 million), mainly a result of lower sales levels and reduced amortization charges on acquired inventories. Research and development expenses rose by EUR 1.0 million to EUR 11.5 million in H1 2008 (H1 2007: EUR 10.5 million). In the first six months of 2008, the Company incurred costs for proprietary product and technology development in the amount of EUR 2.3 million (H1 2007: EUR 2.6 million). Sales, general and administrative expenses slightly decreased to EUR 10.2 million (H1 2007: EUR 10.5 million). Non-cash charges related to stock-based compensation are embedded in COGS, S,G&A and R&D expenses and amounted to EUR 0.6 million (H1 2007: EUR 0.7 million).
Total operating profit more than doubled and amounted to EUR 8.0 million (H1 2007: EUR 3.5 million). The segment result for the Therapeutic Antibodies segment amounted to EUR 12.0 million (H1 2007: EUR 8.1 million). The AbD segment result amounted to EUR 0.2 million (H1 2007: loss of EUR 0.7 million). Unallocated corporate costs in the first half of 2008 amounted to EUR 4.2 million (H1 2007: EUR 3.9 million).
For the first six months of 2008, non-operating income amounted to EUR 1.1 million (H1 2007: EUR 0.2 million). Profit before taxes amounted to EUR 9.1 million (H1 2007: EUR 3.7 million).
For the first six months of 2008, the Company reported income tax expenses in the amount of EUR 2.8 million (H1 2007: 1.7 million).
Net profit more than tripled for the first half of 2008 amounting to EUR 6.3 million compared to a net profit of EUR 2.0 million in the same period of the previous year. The resulting diluted earnings per share for the first six months of 2008 amounted to EUR 0.85 (H1 2007: Diluted earnings per share of EUR 0.29).
On June 30, 2008, the Company had EUR 126.4 million in cash, cash equivalents, and marketable securities, compared to EUR 106.9 million as of December 31, 2007. Cash inflow from operations in the first six months of 2008 amounted to EUR 18.0 million (H1 2007: EUR 4.2 million). The number of issued shares at June 30, 2008 was 7,426,818, compared to 7,386,753 shares at December 31, 2007.
Financial Outlook for 2008:
MorphoSys left its financial outlook 2008 for the Group unchanged. MorphoSys anticipates total revenues of EUR 73 million to EUR 77 million. Additionally, MorphoSys expects to achieve an operating profit of EUR 9 million to EUR 11 million, which includes consideration of investments in technology and product development in the amount of approximately EUR 13 million.
MorphoSys left its financial outlook 2008 for the Group unchanged. MorphoSys anticipates total revenues of EUR 73 million to EUR 77 million. Additionally, MorphoSys expects to achieve an operating profit of EUR 9 million to EUR 11 million, which includes consideration of investments in technology and product development in the amount of approximately EUR 13 million.