HELLERUP, Denmark, April 30, 2014 (GLOBE NEWSWIRE) -- The NeuroSearch Group (NEUR) posted an operating loss of DKK 2 million (Q1 2013: a loss of DKK 12 million) and a loss after tax of DKK 2 million (Q1 2013: a loss of DKK 16 million). As at 31 March 2014, cash and cash equivalents totalled DKK 87 million (31 March 2013: DKK 68 million).
Update on the Company's activities
The operation of the Company is continued at the lowest possible cost.
In July 2013, the Company was charged by the Public Prosecutor for Special Economic and International Crime (SEIC) with respect to an incident in the spring of 2010. The charge against the Company is for share price manipulation, which the Company denies. Court proceedings are set to begin in May 2014. Until a final judgment is rendered in the case, NeuroSearch does not expect any sale or merger of the Company as the consequences of a judgment will be largely unknown to a potential buyer or merger partner. For the same reason, the Company is unable to declare any dividend or file for liquidation of the Company. However, the Company may still seek to sell certain individual assets.
Update on the Company assets
The Company is currently in the process of exploring the possibility of a controlled disposal of some of the remaining assets. The potential of a merger or a similar solution is also being investigated.
Clinical projects - NeuroSearch does not conduct any further development, but is trying to identify opportunities to divest the projects on an "as is" basis:
- Tesofensine for the treatment of obesity (completed Phase II)/NS2359 (completed Phase I)
- Seridopidine for the treatment of CNS disorders (completed Phase I)
- Ordopidine for the treatment of CNS disorders (completed Phase I)
Moreover the Company has investments in:
- NsGene: 26.8%
- Atonomics: 17.4%
- Potential milestone payments from Teva Pharmaceuticals of up to DKK 55 million relating to the development of Huntexil(r)
- Potential milestone payments and royalties from Saniona
The value of the assets listed above is subject to substantial uncertainty as no established market exists for such assets.
In addition, NeuroSearch calculated the value as of 31 December 2013 of its unrecognised tax losses carried forward at approximately DKK 1.8 billion, and deductible temporary differences at approximately DKK 0.5 billion, or a total of DKK 2.3 billion. Under certain conditions, the unrecognised tax assets may be exploited in full or in part by a potential buyer of NeuroSearch.
Outlook for 2014
In 2014, NeuroSearch expects an operating loss of approximately DKK 10 million.
This does not include any loss or profit arising out of a potential sale NeuroSearch's remaining assets.
CEO, mobile +45 4016 3864.
NeuroSearch A/S (NEUR) is listed on NASDAQ OMX Copenhagen A/S.