Highlights included:
- Net Profitability Achieved for 2004
- Revenue Growth 44% over prior year
- Cash position at year-end € 37 million
The Company exceeded its goals for 2004, and achieved under U.S. GAAP, revenues of EUR 22.0 million (2003: EUR 15.3 million) and total operating expenses of EUR 21.7 million (2003: EUR 18.8 million), resulting in an operating profit of EUR 0.2 million for the fiscal year 2004 (2003: operating loss of EUR 3.5 million). MorphoSys also reported a net income of EUR 0.5 million (2003: net loss of 4.1 million), surpassing both revenue and net income guidance given by management earlier in the year. Cash and equivalents amounted to EUR 37.2 million at yearend, up from EUR 23.2 million in 2003.
In line with current EU legislation, it is mandatory that European publicly traded companies prepare their accounts from 2005 onwards in conformity with IFRS accounting standards. As previously communicated, the Company will publish its audited financial statements for 2004 under IFRS accounting standards. Under IFRS revenues for 2004 amounted to EUR 22.0 million (2003: EUR 15.3 million) and total operating expenses of EUR 21.3 million (2003: EUR 18.4 million), resulting in an operating profit of EUR 0.6 million for the fiscal year 2004 (2003: operating loss of EUR 3.1 million). MorphoSys also reported a net income of EUR 0.3 million (2003: net loss of 3.1 million) under IFRS standards.
A key driver for the higher than expected revenues was stronger than expected demand for MorphoSys’ technologies. In 2004, MorphoSys concluded two new collaborations, extended partnerships with two of its top five existing partners, and increased the number of active partnered therapeutic antibody programs from 17 to 24. Expenses were in part lower due to the accounting treatment of M&A costs in connection with the successful acquisition of the Biogenesis Group companies in the UK and USA.
All numbers reported today are unaudited and preliminary. MorphoSys will publish its audited financial statements on February 25, 2005.
“We are pleased to have hit our goal of bottom line profitability, one year ahead of schedule”, commented Dave Lemus, Chief Financial Officer of MorphoSys AG.