HEIDELBERG, Germany, November 13 /PRNewswire/ --
- Financials Above Projections, Lower Net Loss for the Six-Month Period
- Forecast for the Current Fiscal Year Raised
Financials of SYGNIS Pharma AG (Frankfurt: LIO; ISIN DE0005043509; Prime Standard) for the first six months of the fiscal year 2007/08 were above projections. This is due to a one-time tax income and lower project costs during the current fiscal year.
The most important milestone of the first six months in FY 2007/08 was the successful completion of the phase IIa trial of AX200 in the indication stroke. All primary and secondary endpoints were achieved; to some extent expectations were even exceeded. Beyond safety and tolerability, the compound has shown clear indications for the efficacy of AX200 in stroke patients. The other projects of the product pipeline have progressed on schedule. Furthermore, the Company is in discussion with regard to the expansion of its product pipeline.
The second quarter 2007/08 (1 July 2007 - 30 September 2007) was closed with an expected result of EUR -1.5 million (previous year: EUR -0.1 million). The revenues equaled EUR 0.1 million as in the same period of the previous year. The operational expenses increased to a total of EUR 2.3 million (previous year: EUR 0.5 million). The main reason for this was the increase of the research and development expenses up to EUR 1.7 million. As a positive effect, the result contains a tax income of EUR 0.6 million, which is due to the revaluation of the Company's deferred tax liabilities. Operating expenses of the subsidiary SYGNIS Bioscience GmbH & Co. KG were included with effect of the first time consolidation (28 September 2006); due to this, the result of the recently ended second quarter is not comparable with the previous year.
Liquid funds, including marketable securities added up to EUR 23.3 million at the end of the second quarter, EUR 3.4 million less than at the beginning of the fiscal year. The Company's long-term financial liabilities as at 30 September 2007 amounted to EUR 8.0 million representing a loan, which is not due for repayment before 2015.
The Management Board anticipates the continued development of the third quarter according to the plan.
The Company considers itself to be well positioned for a sustainable positive development and growth. Based on its current liquidity of EUR 23.3 million, investments in the existing clinical and pre-clinical programs and the expansion of business development shall be increased in the next twelve months. In addition, the investment companies of the Hopp family and BASF Aktiengesellschaft have already committed an additional EUR 18.3 million, for which the Company has already reserved the corresponding conditional capital.
SYGNIS now expects an adjusted net loss and a liquidity outflow of less than EUR -10.0 million for FY 2007/08. Based on earlier projections, the Company expected for FY 2007/08 a net loss of EUR -11.0 million and a liquidity outflow of EUR -10.5 million.
The Company's focus for the upcoming months is to continue the development of AX200 in multiple indications, and to extend its product pipeline with the acquisition of external projects and licenses. Furthermore, the Company is currently evaluating the possibility of increasing its liquidity via the capital markets. Any costs that may arise for the extension of the product pipeline beyond AX200 and a capital market transaction have not yet been considered in the net loss for the year and in the liquidity outflow.
Key figures for Q2 of fiscal year 2007/08 ended September 30, 2007 and comparables (IFRS) in EUR million Q2 2007/08 Q2 2006/07 Revenues 0.1 0.1 Total expenses 2.3 0.5 EBIT -2.1 -0.4 Net results for the period -1.5 -0.1 Intangible assets 17.9 0.0 Liquidity at the end of the quarter 23.3 33.1 Equity 33.6 24.5 (Equity ratio in %) (74) (67) Long-term financial liabilities 8.0 8.0 Operating cash flow -1.5 -0.3
Key figures for the first six months of fiscal year 2007/08 ended September 30, 2007 and comparables (IFRS) in EUR million H1 2007/08 H1 2006/07 Revenues 0.2 0.1 Total expenses 3.8 1.1 EBIT -3.6 -0.9 Net results for the period -2.9 -0.4 Operating cash flow -2.5 -0.5
For the interim report regarding the first six months of fiscal year 2007/08, please visit the Company's website at http://www.sygnis.de.
About SYGNIS Pharma
SYGNIS Pharma AG, with head offices in Heidelberg, is a specialty pharmaceutical Company listed on the Prime Standard of the German stock exchange. The Company is focused on the research, development and marketing of innovative therapies for the treatment of neurodegenerative diseases. These include stroke, Amyotrophic Lateral Sclerosis (ALS), Huntington's Disease and neurological disorders resulting from injury, such as trauma of the brain or spinal cord. All these disorders are characterized by the fact that, as the disease progresses, nerve cells are damaged and die. Although there is great medical demand, there are currently no or only inadequate treatment options available.
One of the central elements in this value-creation chain is the continued development of the existing product pipeline. This is achieved by testing the Company's proprietary compounds, which are already under development, in a number of further CNS indications and forms of administration ("line extension"). By means of specific R&D programs at SYGNIS, new pre-clinical drug candidates are identified and evaluated and suitable CNS product candidates are also systematically tested for the purpose of acquisition or in-licensing.
Except for the historical information contained herein, the matters set forth in this press release are forward looking. These forward-looking statements may include projections, assumptions, estimates, targets, and descriptions of future events. Such statements are based on currently available information and on SYGNIS' current expectations as to future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Many factors could cause the actual results, performance or achievements of SYGNIS to be materially different from those that may be projected, expected, targeted, expressed or implied by such statements. All roll-out plans and future dates with respect to completion of development of SYGNIS products are target dates only based on the Company's current planning and may change in the future.
For more information, please contact: Dr. Franz-Werner Haas Vice President Operations +49(0)6221-454-812 email@example.com
For more information, please contact: Dr. Franz-Werner Haas, Vice President Operations, +49(0)6221-454-812, firstname.lastname@example.org