MorphoSys AG (Frankfurt: MOR; Prime Standard Segment, TecDAX) today reported financial results according to IFRS for its first six months ended June 30, 2005.
Revenues increased by 73% in the first six months of 2005 to € 15.4 million (June 30, 2004: € 8.9 million). The Research Antibody segment, comprising Antibodies by Design as well as Biogenesis, contributed 1.8 million to total revenues. Revenue growth was driven by higher revenues from existing cooperations, as well as through the achievement of collaboration milestones. Cost of goods sold amounted to € 1.1 million (June 30, 2004: € 0.4 million), representing cost of sales for goods sold by the research antibody segment. Gross profit amounted to € 14.3 million, compared to € 8.5 million in the first six months of the previous year.
Total other operating expenses for the first six months of 2005 amounted to € 12.2 million, compared to € 9.3 million in the same period of 2004. Research and development costs increased to € 6.8 million from € 5.2 million, mainly from increases on the Therapeutic Antibody segment; Sales, general & administrative expenses amounted to € 4.9 million compared to € 3.5 million in the previous year, and were impacted by the Biogenesis acquisition. Stock-based compensation remained unchanged compared to the prior year at € 0.6 million. The operating profit for the first six months of 2005 summed to € 2.0 million (June 30, 2004: loss from operations of € 0.7 million).
Non-operating expenses in the first six months of 2005 amounted to € 0.2 million (June 30, 2004: non-operating expenses of € 0.5 million). In the first half of 2005, MorphoSys achieved a net income of € 1.8 million, compared to a net loss in the previous year (June 30, 2004: € 1.2 million loss).
The number of shares outstanding at June 30, 2005 was 5,930,448, compared to 5,408,790 at December 31, 2004. Earnings per share for the first six months of 2005 amounted to € 0.32 (June 30, 2004: loss per share of € 0.24).
Events of the Second Quarter 2005 Included:
• Conclusion of new agreement with ImmunoGen: ImmunoGen licensed access to HuCAL GOLD® library for its internal target research programs
• Update on MOR102 Comparison Study in Psoriasis: Results were inconclusive due to the high rate of spontaneous healing witnessed in the control group
• Dr. Robert Friesen, Director of Pre-Clinical Development and Dr. Bernhard Erning, Director of Treasury & Corporate Development, were appointed
• MorphoSys was awarded for good Corporate Governance
Dave Lemus, Chief Financial Officer of MorphoSys AG commented: “We are pleased with the financial results presented today, which mirror solid operational progress made during the quarter.”