MorphoSys Reports Preliminary Financial Results for 2004
Andrew Lloyd / Gilles Petitot
Tel: +33 1 56 54 07 00
MorphoSys Reports Preliminary Financial Results for 2004
MorphoSys Surpasses Forecast and Achieves Profitability
Martinsried/Munich, February 14, 2005 -- MorphoSys AG (Frankfurt Stock Exchange: MOR; Prime Standard Segment; TecDAX) today reported preliminary unaudited financial results according to U.S. GAAP and International Financial Reporting Standards (IFRS) accounting for the full year 2004.
· Net Profitability Achieved for 2004
· Revenue Growth 44% over prior year
· Cash position at year-end Eur 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.
MorphoSys develops and applies innovative technologies for the production of synthetic antibodies, which accelerate drug discovery and target characterization. Founded in 1992, the Company's proprietary Human Combinatorial Antibody Library (HuCAL(R)) technology is used by researchers worldwide for human antibody generation. The Company currently has licensing agreements and/or research collaborations with Bayer (Berkeley, California/USA), Boehringer Ingelheim (Ingelheim, Germany), Bristol-Myers Squibb (New Jersey/USA), Centocor Inc. (Malvern, Pennsylvania/USA), GPC Biotech AG (Munich/Germany), Hoffmann-La Roche AG (Basel/Switzerland), ImmunoGen Inc. (Cambridge, Massachusetts/USA), Novartis AG (Basel, Switzerland), Pfizer Inc. (Delaware/USA), ProChon Biotech Ltd. (Rehovot/Israel), Schering AG (Berlin/Germany) and Xoma Ltd. (Berkeley, California/USA). Additionally, MorphoSys is active in the antibody research market through its Antibodies by Design business unit. Antibodies by Design was founded in 2003 for the purpose of exploiting the MorphoSys non-therapeutic antibody markets.
MorphoSys' activities in the research antibody segment were significantly strengthened through the acquisition of the U.K. and U.S.-based Biogenesis Group in January 2005. For further information please visit the corporate website at: http://www.morphosys.com/.
Statements included in this press release which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbour provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Factors that may affect future operations and business prospects include, but are not limited to, clinical and scientific results and developments concerning corporate collaborations and the company's proprietary rights and other factors described in the prospectus relating to the company's recent public offering.
For more information, please contact MorphoSys:
Chief Financial Officer
Tel: +49 (0) 89 / 899 27-439
Fax: +49 (0) 89 / 899 27-5439
Dr. Claudia Gutjahr-Löser
Director Corporate Communications
Tel: +49 (0) 89 / 899 27-122
Fax: +49 (0) 89 / 899 27-5122
Tel: +49 (0) 89 / 899 27-454
Fax: +49 (0) 89 / 899 27-5454
Stéphanie CHANE CHICK TE
ANDREW LLOYD & ASSOCIATES
55 rue Boissonade
Tel : +33-1 56 54 07 00
Fax : +33-1 56 54 07 01
Brighton Business Centre
95 Ditchling Road
Brighton BN 1 4ST
Tel: +44-1273 675100
Fax: +44-1273 675400
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