MorphoSys AG (Frankfurt Stock Exchange: MOR; Prime Standard Segment) today reported financial results for the first six months ending June 30, 2004, and at the same time, increased its full year revenue and cash projections. Revenues for the first six months increased by 22% over the prior year to € 8.8 million, and in the same period total operating expenses decreased by 8% to € 9.9 million. The Company increased its projections of year-end revenues to € 21 million (previously € 19 million). The new guidance represents an increase of sales of almost 40% compared to the prior year (2003: € 15.3 million), and resulted from MorphoSys´ strong deal flow during the last months. EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization), excluding stock-based compensation, was positive and amounted to € 1.3 million in the first half of 2004 (2003: € ɸ.0 million). As a result the Company reduced its net loss by 84% to € 0.8 million. Additionally, MorphoSys’ cash position increased by 29% and amounted to € 29.9 million at the end of the second quarter 2004, compared to € 23.2 million at year-end 2003. On this basis, the Company raised its year-end cash position guidance predicting that the Company’s cash position at year-end 2004 would be at least at € 28 million (previously € 20 million).
First Half Year - 2004:
In the first six months of 2004, revenues increased to € 8.8 million (2003: € 7.2 million). Total operating expenses including stock-based compensation for the first six months of 2004 amounted to € 9.9 million, compared to € 10.8 million in the same period of 2003. Research and development costs amounted to € 5.6 million (2003: € 5.7 million); sales, general & administrative expenses decreased to € 3.7 million (2003: € 4.1 million), and stock-based compensation fell to € 0.6 million (2003: € 1.1 million). Amortization of intangibles and depreciation amounted to € 1.5 million for the first six months of 2004 (2003: € 1.1 million). Non-operating income in the first six months of 2004 amounted to € 0.3 million (2003: expense of € 1.3 million). For the first six months of 2004, the Company posted a net loss of € 0.8 million compared to € 4.9 million in the same period of the previous year. The number of outstanding shares at June 30, 2004 was 5,349,203 shares, compared to 4,841,570 at December 31, 2003. The resulting net loss per share for the first six months of 2004 amounted to € 0.15 (2003: € ɷ.22 per share).
Second Quarter - 2004:
In the second quarter of 2004, the Company generated revenues of € 4.5 million, compared to € 3.5 million in the same quarter of 2003. Total operating expenses amounted to € 5.5 million, compared to € 5.4 million in the same quarter of 2003. The resulting net loss for the second quarter was € 1.2 million, compared to € 3.1 million in the second quarter of 2003.
At the end of the second quarter, MorphoSys employed 120 people, compared to 95 at year-end 2003. The increase in number of employees was attributed to recently signed collaborations.
Highlights of the Second Quarter 2004 Included:
Conclusion of a major therapeutic antibody collaboration with Novartis AG; Novartis purchased an equity stake of approx. 10% in MorphoSys
Full year revenue projections met during the second quarter of 2004, resulting in a upwards revision of revenue guidance for the full year
Granting of an U.S. patent for proprietary CysDisplay™ screening technologies
MorphoSys awarded for Corporate Governance Excellence
Appointment of Dr. Metin Colpan, cofounder and former Chief Executive Officer of QIAGEN N.V., to the Supervisory Board of MorphoSys
“Our core partnering business is developing very well”, commented Dave Lemus, Chief Financial Officer of MorphoSys AG. “As a result, we have upgraded our revenue guidance and remain optimistic about our prospects.”
“We have had an excellent first half year ”, commented Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. “Our core partnering business is generating strong cash flow, as evidenced by the financial results. Most importantly, the good progress with partners continues to strengthen our therapeutic antibody pipeline. More than twenty active programs based on our HuCAL® technology represent substantial future value in the form of milestones and royalties.”