MorphoSys AG (Prime Standard, Frankfurt/Germany: MOR) today announced its financial results for the three-months’ period and fiscal year ending December 31, 2003.
Financial Highlights of the Year 2003:
Operational Highlights of the Year 2003:
“Our strategy is paying off. We continue to build a strong pipeline of therapeutic antibodies through our own and our joint programs with high quality partners. As these compounds advance, the value which accrues to MorphoSys will increase significantly”, stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG.
Dave Lemus, Chief Financial Officer of MorphoSys AG commented: “The year 2003 was a transforming one for MorphoSys, in which cash flow from operations was positive for the first time in our Company’s history. We have now established a solid basis from which to expand our business looking ahead.”
Financial Review for the fourth quarter and the fiscal year 2003:
Revenues for the year 2003 amounted to € 15.3 million (2002: € 16.8 million), a decrease of 9%. Using constant exchange rates, MorphoSys 2003 revenues would have been € 15.9 million. Total operating expenses for the year 2003 were € 18.8 million (2002: € 42.3 million), representing a reduction of 56% over the prior year. Research and Development expenses fell by € 10.6 million to € 9.0 million in 2003 (2002: € 19.6 million). The decrease in R&D expenses resulted chiefly from lower licensing costs as a result of licensing and settlement agreements closed in prior years, a change in accounting estimate, and a refocusing of the Company’s proprietary drug development plans. Sales, General & Administrative expenses decreased by € 11.1 million to € 7.6 million (2002: € 18.7 million), largely due to lower patent litigation costs and other cost savings associated with the Company’s restructuring plan implemented during the year. Non-cash charges related to stock based compensation decreased by € 1.7 million to € 2.2 million (2002: € 3.9 million). Amortization of intangibles and depreciation amounted to € 1.6 million and 0.9 million, respectively for the full year 2003 (2002: € 1.2 million and € 0.9 million). EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), not including stock-based compensation, amounted to EUR 1.2 million (2002: -18.7 million). Non-operating loss in 2003 amounted to € 0.7 million (2002: non-operating income of € 1.1 million).
For the full year 2003 MorphoSys posted a net loss of € 4.1 million compared to € 24.4 million in the same period of the previous year. The resulting loss per share for the year 2003 amounted to € 0.96 (2002: € 6.35).
For the three-months’ period ending December 31, 2002, MorphoSys posted revenues of € 4.4 million. Total operating expenses for the fourth quarter 2003 amounted to € 2.5 million, comprising Research and Development costs of € 0.5 million, Sales, General and Administrative expense of € 1.4 million, and stock-based compensation of € 0.6 million.
On December 31, 2003, the Company had € 23.2 million in cash, cash equivalents, and marketable securities, an increase of more than 20%, or € 4.1 million, compared to the € 19.1 million balance at December 31, 2002. For the first time, MorphoSys achieved a positive cash flow from operating activities of € 5.8 million, in comparison to net cash used in operating activities of € 15.2 million in 2002. The number of outstanding shares at December 31, 2003 was 4,841,570 shares, compared to 3,889,944 at December 31, 2002.
Financial Highlights of the Year 2003:
- Achievement of first-ever positive cash-flow from operations
- Substantial increase of cash position by over 20% compared to prior year
- Significant improvement of Net Result by more than 80% over prior year
- Attainment of a positive EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), not including stock based compensation, of EUR 1.2 million, compared to a EUR -18.7 million in the prior year
- Successful clearance of XOMA’s shareholding in MorphoSys arising from the two companies’ cross-licensing and settlement agreement in 2002
Operational Highlights of the Year 2003:
- Signature of a therapeutic antibody collaboration with Pfizer, Inc., with a potential value of more than US$ 50 million over the next five years
- Conclusion of a therapeutic antibody collaboration and cross license agreement with Boehringer Ingelheim. Boehringer Ingelheim exercised its first option to develop a therapeutic antibody during the year.
- Presentation of promising animal data from pre-clinical studies for MOR101 and MOR102
- Publication of successful in vivo results of the collaboration with Roche in Alzheimer’s disease at the annual Meeting of the Society for Neuroscience
- Achievement of the third milestone in therapeutic antibody collaboration with Centocor
- Completion of an antibody manufacturing agreement with Lonza Biologics for the production of clinical grade antibody drugs providing access to manufacturing capacities for MorphoSys and for its partners
“Our strategy is paying off. We continue to build a strong pipeline of therapeutic antibodies through our own and our joint programs with high quality partners. As these compounds advance, the value which accrues to MorphoSys will increase significantly”, stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG.
Dave Lemus, Chief Financial Officer of MorphoSys AG commented: “The year 2003 was a transforming one for MorphoSys, in which cash flow from operations was positive for the first time in our Company’s history. We have now established a solid basis from which to expand our business looking ahead.”
Financial Review for the fourth quarter and the fiscal year 2003:
Revenues for the year 2003 amounted to € 15.3 million (2002: € 16.8 million), a decrease of 9%. Using constant exchange rates, MorphoSys 2003 revenues would have been € 15.9 million. Total operating expenses for the year 2003 were € 18.8 million (2002: € 42.3 million), representing a reduction of 56% over the prior year. Research and Development expenses fell by € 10.6 million to € 9.0 million in 2003 (2002: € 19.6 million). The decrease in R&D expenses resulted chiefly from lower licensing costs as a result of licensing and settlement agreements closed in prior years, a change in accounting estimate, and a refocusing of the Company’s proprietary drug development plans. Sales, General & Administrative expenses decreased by € 11.1 million to € 7.6 million (2002: € 18.7 million), largely due to lower patent litigation costs and other cost savings associated with the Company’s restructuring plan implemented during the year. Non-cash charges related to stock based compensation decreased by € 1.7 million to € 2.2 million (2002: € 3.9 million). Amortization of intangibles and depreciation amounted to € 1.6 million and 0.9 million, respectively for the full year 2003 (2002: € 1.2 million and € 0.9 million). EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization), not including stock-based compensation, amounted to EUR 1.2 million (2002: -18.7 million). Non-operating loss in 2003 amounted to € 0.7 million (2002: non-operating income of € 1.1 million).
For the full year 2003 MorphoSys posted a net loss of € 4.1 million compared to € 24.4 million in the same period of the previous year. The resulting loss per share for the year 2003 amounted to € 0.96 (2002: € 6.35).
For the three-months’ period ending December 31, 2002, MorphoSys posted revenues of € 4.4 million. Total operating expenses for the fourth quarter 2003 amounted to € 2.5 million, comprising Research and Development costs of € 0.5 million, Sales, General and Administrative expense of € 1.4 million, and stock-based compensation of € 0.6 million.
On December 31, 2003, the Company had € 23.2 million in cash, cash equivalents, and marketable securities, an increase of more than 20%, or € 4.1 million, compared to the € 19.1 million balance at December 31, 2002. For the first time, MorphoSys achieved a positive cash flow from operating activities of € 5.8 million, in comparison to net cash used in operating activities of € 15.2 million in 2002. The number of outstanding shares at December 31, 2003 was 4,841,570 shares, compared to 3,889,944 at December 31, 2002.