MorphoSys AG Reports Results for the First Six Months of 2014 - Seite 2

"We are pleased with the first half of 2014 and are on track to meet our goals for the full year. With the first-time disclosure of a royalty rate for our HuCAL antibody gantenerumab we are able to provide more visibility on the long-term revenue potential of our partnered compounds," commented Jens Holstein, Chief Financial Officer of MorphoSys AG.

Financial Review for the First Half of 2014 (IFRS)

Group revenues from continuing operations for the first six months of 2014 amounted to EUR 30.5 million (H1 2013: EUR 48.2 million). Reasons for the decrease of 37 % were one-time effects in H1 2013 in connection with the license agreement with GlaxoSmithKline for MOR103 as well as the license payment from Bio-Rad in connection with their acquisition of MorphoSys's AbD Serotec segment. Revenues in the Partnered Discovery segment comprised EUR 21.4 million in funded research and licensing fees (H1 2013: EUR 27.0 million) and EUR 1.4 million in success-based payments (H1 2013: EUR 0.9 million). The Proprietary Development segment recorded revenues of EUR 7.7 million (H1 2013: EUR 20.3 million). Those revenues were recorded in connection with the co-development agreement with Celgene.

Total operating expenses from continuing operations for the first six months of 2014 amounted to EUR 30.1 million (H1 2013: EUR 31.2 million). Total research and development expenses were EUR 23.4 million (H1 2013: EUR 22.7 million). R&D expenses mainly consisted of personnel costs and costs for external lab services. Investment in proprietary product and technology development amounted to EUR 14.9 million (H1 2013: EUR 14.6 million). Selling, general and administrative expenses decreased to EUR 6.7 million (H1 2013: EUR 8.4 million) driven by lower expenses for personnel and for external services.

Earnings before interest and taxes (EBIT) from continuing operations amounted to EUR 0.4 million (H1 2013: EUR 17.3 million). Partnered Discovery showed a segment EBIT of EUR 12.4 million (H1 2013: EUR 15.6 million), while the Proprietary Development segment reported a segment EBIT of EUR -5.8 million (H1 2013: EUR 8.2 million).

For the first half of 2014, MorphoSys realized a net profit from continuing operations of EUR 0.6 million compared to EUR 13.0 million in the same period of the previous year. The resulting diluted earnings per share from continuing operations for the six months ending 30 June 2014 amounted to EUR 0.02 (H1 2013: EUR 0.56). Group net profit amounted to EUR 0.6 million (H1 2013: EUR 19.0 million). The resulting diluted Group earnings per share amounted to EUR 0.02 (H1 2013: EUR 0.81).