EANS-News: SYGNIS Pharma AG SYGNIS reports financial results for fiscal year
2011/2012
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annual report/annual result
Heidelberg (euro adhoc) - SYGNIS reports financial results for fiscal year
2011/2012
* Completion of EUR6.2million capital increase
* Acquisition of an outstanding loan of EUR8.0 million
* Net loss of EUR17.4 million
* Impairment loss of EUR20.2 million
* Financing secured until March 2013
* Strategic realignment successfully initiated
Heidelberg, July 25, 2012 - SYGNIS Pharma AG (Frankfurt: LIOK; ISIN
DE000A1E9B74; Prime Standard); today reported results for the fiscal year
2011/2012 ending on March 31, 2012. In the past twelve months, focus of the
business operations was on the clinical development of its drug candidate AX200
for the treatment of acute stroke and further development of the pre-clinical
KIBRA project. Additionally, SYGNIS examined options to extend its pipeline,
possibly with strategic partnerships or business transactions. Following the
negative AXIS 2 results and termination of the development project AX200 these
activities were intensified. In this context, SYGNIS has signed a binding term
sheet with GENETRIX, after period end, to combine SYGNIS with GENETRIX's
subsidiary X-Pol Biotech S.L. X-Pol Biotech is active in the field of DNA
sequencing. The goal is to further develop and market X-Pol Biotech's DNA
sequencing technologies and products.
Peter Willinger, Chief Financial Officer, comments: "The fiscal year 2011/2012
was characterized by the completion of the AXIS 2 trial in December 2011. Data
published did not show sufficient efficacy of AX200 in the treatment of stroke
patients. Since this ruled out the commercialization of AX200, we had to
completely write off the project. At the same time, we explored different
opportunities for a strategic realignment of the Company and were able to
announce a first success in July. After the planned merger with X-Pol Biotech,
SYGNIS will continue to operate in the biotech sector, but with a new focus, a
lower risk profile and the opportunity to generate revenues already in the short
term."
Net loss in fiscal 2011/2012 amounted to -EUR17.4 million (2010/11: -EUR12.4
million). This further decline in net loss resulted mainly from an impairment
loss of goodwill and other intangible assets of EUR20.2 million in connection
with the discontinuation of the AX200 project. This was partially offset by
income from the purchase of an outstanding loan. With effect as of March 31,
2012, SYGNIS had purchased the claims combined with the loan amounting to EUR8.0
million for a price of EUR1.00 from BASF SE and thus realized gains of EUR8.0
million.
R&D expenditure was down by EUR3.9 million to EUR6.6 million (2010/11:
EUR10.5million). The decrease in R&D expenses mainly resulted from a higher
level of investment in the AXIS 2 trial in the previous year and reduced
personnel expenditure due to restructuring measures executed in the previous
year.
Results from available-for-sale financial investments increased to EUR0.8
million (2010/11: -EUR0.1 million). This was mainly due to realized gains from
the sale of shares in Noema Life S.p.A.
Income taxes include income of EUR2.0 million due to the reversal of deferred
tax liabilities (2010/11: EUR0.3 million). Impairment losses on intangible
assets, following termination of the AX200 project, led to a reduction of
corresponding deferred tax liabilities.
Cash outflow from operating activities was up from EUR8.3 million in the
previous year to EUR8.7 million. Though other operating expenses were reduced in
the reporting period, a part of the expenditure of the previous year only
affected liquidity in fiscal year 2011/2012. Cash flow from investing activities
was positive and amounted to EUR2.4 million (2010/11: EUR0.9 million), mainly
caused by the sale of securities. Due to the capital increase, cash flow from
financing activities increased to EUR6.1 million (2010/11: EUR0.0million).
Cash and cash equivalents including available-for-sale securities were EUR4.2
million (2010/11: EUR6.8 million) as at March 31, 2012. Long-term debt was
reduced from EUR10.8 million to EUR0.6 million as a result of the loan acquired
from BASF SE and the reduction of deferred tax liabilities. Short-term debt was
also down, decreasing from EUR3.8 million to EUR2.2 million.
Compared to the previous year, the balance sheet total was down from EUR32.3
million to EUR8.6 million, primarily due to the impairment losses of intangible
assets. As a result of the net loss for the year, equity was down to EUR5.7
million (2010/11: EUR17.7million). Equity ratio was 66%, accordingly (2010/11:
55%).
Outlook
For the current financial year 2012/2013 emphasis is being placed on securing
sufficient funding and the further implementation of the strategic realignment
through the proposed merger with X-Pol Biotech. With this merger and the
marketing of existing products and technologies, SYGNIS expects to generate
initial revenues.
For the KIBRA project SYGNIS is looking for a pharma partner. The Company has
therefore started a systematic partnering process and is in ongoing discussions
with potential partners for the project. However, should the Company not succeed
in winning a partner for KIBRA, the management will have to reconsider the
future of this project.
The Company's available financial assets as of March 31, 2012 secure the
liquidity of SYGNIS until approximately March 2013. This estimation does not
include revenues that may result from potential research co-operations for the
KIBRA project. To further finance its business activities, the Company will have
to rely on further funding from March 2013 on.
Key financial figures for the fiscal year 2011/2012 ended March 31, 2012 and
corresponding figures (IFRS)
Numbers in EURmillion
2011/12 2010/11
Revenues 0.4 0.2
Total expenses 28.5 13.0
EBIT -28.2 -12.8
Net results for the period -17.4 -12.4
Other intangible assets 2.3 20.8
Liquidity at year-end 4.2 6.8
Equity (equity ratio in %) 5.7(66) 17.7(55)
Long-term financial liabilities 0.0 8.0
Operating Cash Flow -8.7 -8.3
For further information please contact:
SYGNIS Pharma AG
Peter Willinger
Chief Financial Officer
SYGNIS Pharma AG
Tel.: +49 6221 454 836
E-mail: peter.willinger@sygnis.de
About SYGNIS Pharma AG: www.sygnis.de
SYGNIS Pharma AG (Heidelberg, Germany) is currently a specialty drug development
company, focusing on innovative treatments for underserved human diseases. Early
in 2012 the company decided to discontinue its Phase II lead program AX200 in
stroke. While the company continued research activities in the field of
cognitive disorders, it started at the same time a systematic M&A process, to
add new operational assets and activities to SYGNIS Pharma AG. SYGNIS Pharma AG
is listed in the Prime Standard of the Frankfurt Stock Exchange under the
ticker: LIOK; and ISIN: DE000A1E9B74.
### Disclaimer
This publication is intended for information only and constitutes neither an
offer to sell nor an invitation to buy securities. Some statements included in
this press release, relating neither to proven financial results nor other
historical data, should be viewed as forward-looking, i.e. not definite. Such
statements are mainly predictions of future results, trends, plans or goals.
These statements should not be considered to be total guarantees since given
their very nature they are subject to known and unknown risks and
imponderability and can be affected by other factors as a consequence of which
the actual results, plans and goals of SYGNIS Pharma AG may deviate greatly from
the established conclusions or implied predictions contained in such statements.
SYGNIS does not undertake to publicly update or revise these statements in the
light of new information or future results or for any other reason.
###
Further inquiry note:
Michael Wolf
Telefon: +49 (6221) 454 - 6
E-Mail: Michael.Wolf@sygnis.de
end of announcement euro adhoc
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company: SYGNIS Pharma AG
Im Neuenheimer Feld 515
D-69120 Heidelberg
phone: +49 (0)6221 454-6
FAX: +49 (0)6221 454-777
mail: contact@sygnis.de
WWW: http://www.sygnis.de
sector: Biotechnology
ISIN: DE000A1E9B74
indexes: CDAX, Prime All Share
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English