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MorphoSys AG Reports Results for the First Nine Months of 2015

MARTINSRIED and MUNICH, Germany, Nov. 4, 2015 (GLOBE NEWSWIRE) -- MorphoSys AG (FSE: MOR; Prime Standard Segment; TecDAX, OTC: MPSYY) today announced its financial results for the nine months ending September 30, 2015. Group revenues were EUR 93.9 million (9-months 2014: EUR 46.9 million). Earnings before interest and taxes (EBIT) amounted to EUR 34.7 million (9-months 2014: EUR -3.7 million). The increase in revenues and EBIT is caused by the full realization of deferred revenues from an up-front payment received from Celgene in 2013 together with a one-time termination payment that the Company received with the ending of the MOR202 collaboration. On September 30, 2015, MorphoSys held cash and cash equivalents, marketable securities, and financial assets classified as loans and receivables of EUR 317.7 million in comparison to EUR 352.8 million on December 31, 2014.

In EURO million* 9-Months 2015 9-Months 2014
Group Revenues 93.9 46.9
Total Operating Expenses 63.6 51.1
Other Income/Expenses 4.5 0.4
Earnings Before Interest and Taxes - EBIT 34.7 (3.7)
Consolidated Net Profit 28.2 (2.0)
Total EPS, diluted, in EURO 1.07 (0.08)

* Differences due to rounding

Highlights of the Third Quarter 2015

  • In September, MorphoSys published an updated overview of its proprietary drug pipeline and reaffirmed its plans to increase investment in development with MOR208 set to become the first proprietary drug candidate in a phase 3 study, which is aimed to start in 2017.
  • At the 15th International Myeloma Workshop in September, MorphoSys published an update on the safety and preliminary efficacy data of MOR202 from an ongoing phase 1/2a study. The clinical data confirmed a very good overall safety profile and promising efficacy data from the highest monotherapy cohort and the first combo-therapy cohorts.
  • In August, MorphoSys and G7 Therapeutics AG announced a new collaboration to support MorphoSys's activities in developing novel antibody therapeutics targeting G protein-coupled receptors (GPCRs) and other potentially disease-related transmembrane proteins such as ion channels.
  • Also in August, MorphoSys announced a strategic alliance with Immatics Biotechnologies GmbH. This alliance was formed for the development of novel antibody-based therapeutics against tumor-associated peptides derived from intracellular proteins.
  • In July, MorphoSys announced that its partner, Heptares Therapeutics, exercised an option to initiate its own therapeutic antibody program under the research alliance entered into by the companies in February 2013.
  • After the end of the quarter, MorphoSys announced that it had reached a clinical milestone associated with the IND filing of an antibody being developed in the field of bleeding disorders by its partner Bayer HealthCare.
  • MorphoSys's product pipeline comprised a total of 104 therapeutic antibodies, including 25 clinical programs. Three partnered programs are currently in phase 3 trials.

"Our lead product candidate MOR208 has demonstrated impressive single-agent activity in NHL and CLL, and we are on track to initiate additional trials shortly. We are also working towards taking MOR208 into a pivotal study in DLBCL which could potentially support a registration pathway," stated Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "During the quarter, we added two more collaborations to our network of relationships, thereby opening up new product opportunities."

"MorphoSys is progressing well in 2015," commented Jens Holstein, Chief Financial Officer of MorphoSys AG. "Our financial strength, together with a promising pipeline of proprietary drug candidates, allows us to scale our investment in R&D to ensure that we capture the full value of our portfolio."

Financial Review for the First Nine Months of 2015 (IFRS)
Group revenues for the first nine months of 2015 amounted to EUR 93.9 million (9-months 2014: EUR 46.9 million). Reasons for the increase were one-time effects in connection with the full realization of deferred revenues from an up-front payment received from Celgene in 2013 together with a one-time termination fee. The Proprietary Development segment recorded revenues of EUR 59.9 million (9-months 2014: EUR 11.5 million), originating mainly as a result of the termination of the co-development activities with Celgene. Revenues in the Partnered Discovery segment comprised EUR 31.5 million in funded research and licensing fees (9-months 2014: EUR 33.1 million) and EUR 2.5 million in success-based payments (9-months 2014: EUR 2.4 million).

Total operating expenses for the first nine months of 2015 amounted to EUR 63.6 million (9-months 2014: EUR 51.1 million). Total research and development expenses were EUR 53.1 million (9-months 2014: EUR 40.8 million). R&D expenses mainly consisted of costs for external lab services and personnel costs. Expenses for proprietary product and technology development amounted to EUR 39.9 million (9-months 2014: EUR 26.1 million). General and administrative expenses increased slightly to EUR 10.6 million (9-months 2014: EUR 10.3 million) driven by higher expenses for personnel.

Earnings before interest and taxes (EBIT) amounted to EUR 34.7 million (9-months 2014: EUR -3.7 million). The Proprietary Development segment reported a segment EBIT of EUR 26.5 million (9-months 2014: EUR -12.7 million), while Partnered Discovery showed a segment EBIT of EUR 18.1 million (9-months 2014: EUR 18.3 million).

For the first three quarters of 2015, MorphoSys realized a net profit of EUR 28.2 million compared to EUR -2.0 million in the same period of the previous year. The resulting diluted earnings per share for the nine months ending September 30, 2015 amounted to EUR 1.07 (9-months 2014: EUR -0.08).

On September 30, 2015, the Company held liquid funds and marketable securities, as well as other financial assets (reported in the balance sheet under cash and cash equivalents, available for sale financial assets, bonds available for sale and financial assets classified as loans and receivables), in the amount of EUR 317.7 million, compared to EUR 352.8 million on December 31, 2014. The net cash outflow from operations in the first nine months of 2015 was EUR 3.8 million (9-months 2014: net cash outflow of EUR 3.3 million). The number of shares issued at September 30, 2015 was 26,479,334, compared to 26,456,834 on December 31, 2014.

Third Quarter of 2015 (IFRS)
In the third quarter of 2015, the Company generated revenues in the amount of EUR 11.3 million, compared to EUR 16.4 million in the same quarter of 2014. Total operating expenses amounted to EUR 22.7 million in Q3 2015, compared to EUR 21.0 million in the same quarter of 2014. EBIT amounted to EUR -11.3 million (Q3 2014: EUR -4.2 million). Net loss for the third quarter 2015 was EUR 8.3 million, compared to a net loss of EUR 2.6 million in the third quarter of 2014.

Outlook for 2015
MorphoSys re-confirmed its guidance for 2015. MorphoSys anticipates total Group revenues of EUR 101 million to EUR 106 million and anticipates a positive EBIT in the range of EUR 9 million to EUR 16 million in 2015. Expenses for proprietary product and technology development are expected to amount to EUR 56 million to EUR 63 million.

MorphoSys will hold a public conference call and webcast today at 02:00 p.m. CET (08:00 a.m. EST, 01:00 p.m. GMT) to present the Q3 Results 2015 and report on current developments.

Dial-in number for the analyst conference call (listen-only):
Germany: +49 (0) 89 2444 32975
For UK residents: +44 (0) 20 3003 2666
For US residents: +1 202 204 1514

Please dial in 10 minutes before the beginning of the conference.
A replay and transcript will be made available at http://www.morphosys.com.

The complete Nine Months Finance Report 2015 (January - September) is available on our website (HTML and PDF): http://www.morphosys.com/FinancialReports


About MorphoSys:
MorphoSys developed HuCAL, the most successful antibody library technology in the pharmaceutical industry. By successfully applying this and other patented technologies, MorphoSys has become a leader in the field of therapeutic antibodies, one of the fastest-growing drug classes in human healthcare.
Together with its pharmaceutical partners, MorphoSys has built a therapeutic pipeline of more than 100 human antibody drug candidates for the treatment of cancer, rheumatoid arthritis, and Alzheimer's disease, to name just a few. With its ongoing commitment to new antibody technology and drug development, MorphoSys is focused on making the healthcare products of tomorrow. MorphoSys is listed on the Frankfurt Stock Exchange under the symbol MOR. For regular updates about MorphoSys, visit http://www.morphosys.com.

HuCAL®, HuCAL GOLD®, HuCAL PLATINUM®, CysDisplay®, RapMAT®, arYla®, Ylanthia®, 100 billion high potentials®, Slonomics®, Lanthio Pharma® and LanthioPep® are registered trademarks of the MorphoSys Group.

This communication contains certain forward-looking statements concerning the MorphoSys group of companies, The forward-looking statements contained herein represent the judgment of MorphoSys as of the date of this release and involve risks and uncertainties, Should actual conditions differ from the Company's assumptions, actual results and actions may differ from those anticipated, MorphoSys does not intend to update any of these forward-looking statements as far as the wording of the relevant press release is concerned.

For more information, please contact:
MorphoSys AG
Dr. Claudia Gutjahr-Löser
Head of Corporate Communications & IR

Alexandra Goller
Manager Corporate Communications & IR

Tel: +49 (0) 89 / 899 27-404
investors@morphosys.com

Media Release (PDF) http://hugin.info/130295/R/1963800/716631.pdf
Q3 2015 Report (PDF) http://hugin.info/130295/R/1963800/716632.pdf

HUG#1963800

Source:MorphoSys AG