MorphoSys AG Reports Financial Results for Fiscal Year 2004
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MorphoSys AG Reports Financial Results for Fiscal Year 2004
Martinsried/Munich, February 25, 2005 -- MorphoSys AG (Frankfurt Stock Exchange: MOR; Prime Standard Segment; TecDAX) today announced its financial results according to International Financial Reporting Standards (IFRS) for the three-months' period and fiscal year ending December 31, 2004.
Operational Highlights of the Year 2004:
- Conclusion of major therapeutic antibody collaboration with Novartis AG
- Expansion of the Company's research antibody business unit, "Antibodies by Design", which was further strengthened through the acquisition of the Biogenesis Group in the U.K. and U.S.A. in January 2005
- Regulatory approval for first HuCAL(R) -derived antibody to enter human clinical trials: Commencement of Phase 1 in January 2005
- Presentation of promising animal data from pre-clinical studies for MOR202, MorphoSys' latest proprietary antibody therapeutic focused on the treatment of multiple myeloma
- Conclusion of a collaboration with Novoplant GmbH for wholly new applications of MorphoSys antibodies in veterinary medicine
- Signing of a marketing agreement with GeneFrontier Corp. to access the Japanese life science market for antibody research reagents and antibody therapeutics
- Commencement of a new therapeutic antibody program with Boehringer Ingelheim in cardiovascular diseases
- Early extension of existing agreement with Centocor (Johnson & Johnson) to the end of 2007
- Extension of existing collaboration with Schering AG until up to 2007
- Granting of U.S. Patent for proprietary CysDisplay(TM) screening technology
Financial Highlights of the Year 2004:
- Attainment of first full year of profitability
- Improvement of revenues by 44% over prior year
- Cash position increase of over 60% compared to prior year
- Novartis purchased an equity stake of approximately 10% in MorphoSys
- Inclusion in the Frankfurt Stock Exchange TecDAX Index
- MorphoSys awarded for Corporate Governance Excellence
"The conclusion of the fiscal year 2004 sees MorphoSys stronger than ever before", stated Dr. Simon Moroney, Chief Executive Officer, MorphoSys AG. "Operationally, we have made major progress in our two areas of focus, namely therapeutic and research antibodies. We have continued to develop our pipeline of therapeutic antibodies, which culminated in the first HuCAL antibody entering the clinic early this year. Through the acquisition of Biogenesis, we took an important step forward in building our presence in the research antibody market. The prospects for further growth are excellent."
"The year 2004 was an outstanding year in many respects," commented Dave Lemus, Chief Financial Officer of MorphoSys AG. "We intend to further build the Company on the foundations established this year."
Financial Review for the fiscal year 2004 (IFRS):
Under International Financial Reporting Standards (IFRS), revenues for the year 2004 amounted to EUR 22.0 million (2003: EUR 15.3 million), an increase of 44%. Total operating expenses for the year 2004 were EUR 21.3 million (2003: EUR 18.4 million), representing an increase of 16% over the prior year. Research and Development expenses rose by EUR 3.4 million to EUR 12.4 million in 2004 (2003: EUR 9.0 million). The increase in R&D expenses resulted from higher personnel and material costs resulting mainly from new collaborations recently signed. Sales, General & Administrative expenses increased by EUR 0.3 million to EUR 7.5 million (2003: EUR 7.2 million). Non-cash charges related to stock-based compensation decreased by EUR 0.8 million to EUR 1.4 million (2003: EUR 2.2 million). Non-operating profit in 2004 amounted to EUR 0.6 million (2003: Non-operating loss of EUR 3.1 million).
For the full year 2004 MorphoSys posted a net profit of EUR 0.3 million compared to a net loss of EUR 3.1 million in the same period of the previous year. The resulting earnings per share for the year 2004 amounted to EUR 0.05 (2003: loss per share of EUR 0.72).
On December 31, 2004, the Company had EUR 37.2 million in cash, cash equivalents, and marketable securities, an increase of more than 60%, compared to the EUR 23.2 million balance at December 31, 2003. The number of outstanding shares at December 31, 2004 was 5,408,790 shares, compared to 4,841,570 at December 31, 2003.
Notes to editor:
MorphoSys will hold a public conference call today at 10:30 CET to present the Annual Financial Results 2004 and report on current developments.
Dial-in number for the Conference Call (listen-only): +49 69 2222 2245
Please dial in 10 minutes before the beginning of the conference.
In addition, MorphoSys offers participants the opportunity to follow the presentation through a simultaneous slide presentation online at http://www.morphosys.com.
Approximately two hours after the press conference, a slide-synchronized audio replay of the conference will be available on http://www.morphosys.com.
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 AG:
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
Juliette dos Santos
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