SYGNIS AG reports results for the first quarter 2016
- Promotion activities enhanced
- Further expansion of direct sales capacities
- Revenues increased year-on-year by 20%
- Net loss reduced year-on-year by 7%
- Company plans to acquire profitable proteomics player Expedeon Holdings
Ltd. (after period-end)
Madrid, Spain and Heidelberg, Germany, 12 May 2016 – SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today announced its financial results for the first quarter of 2016, ended 31 March 2016.
Financials first quarter 2016:
In the first quarter of 2016, revenues were up by 20% to €91 thousand, after €76 thousand in the previous year. This increase is primarily due to higher kit sales. These were up 50% compared to the previous year, and thus able to balance lower revenues from Caco-2 licensing rights in the US.
Operating loss improved by 7% to €673 thousand (Q1 2015: €721 thousand). Operating expenses included sales, general & administrative costs of €456 thousand as well as research & development costs of €318 thousand. The decrease of operating costs is mainly due to lower administrative expenses as a result of the optimization efforts regarding the cost structure in 2015.
As of 31 March 2016, cash and cash equivalents amounted to €3.4 million (31 December 2015: €4.6 million). Total short term assets were €816 thousand (December 31, 2015: €883 thousand). Cash outflow from operating activities amounted to –€1,062 thousand (Q1 2015: –€1,176 thousand).
In the first quarter 2016 the business focus was on advancing the commercialization of SYGNIS’ own six kits that were successfully launched in 2015. Furthermore, the Company concentrated on the development of additional innovative and highly competitive kits for core applications to be launched during 2016, most importantly a cell-free DNA amplification kit, targeting the oncology market, and a liquid biopsy kit. During 2015 and continued in the first quarter of 2016, SYGNIS made big progress in expanding its direct sales capacities and started to promote its own products. Moreover, the Company is in advanced discussions for outlicensing products under non-exclusive conditions, in order to have agreements in place.
Enhanced marketing activities: In the first quarter 2016, SYGNIS participated and presented its products at the Festival of Genomics in London, UK, in January. This congress is an assembly of leaders in the sector who discussed the future of medicine in the European genetics community and the participants shared their thoughts on the knowledge, skills and experience in using genomic medicine. In addition, SYGNIS boosted its marketing activities presenting at two renowned scientific conferences in Europe and the U.S. In March 2016, the Company presented its revolutionary novel multiple displacement amplification (MDA) technology TruePrime™ at the 23rd Molecular Medicine Tri Conference (Molecular Med TRI-CON) in San Francisco, CA, USA, and at the 10th International Symposium on Minimal Residual Cancer: Liquid Biopsy in Cancer Diagnostics and Treatment (ISMRC) in Hamburg, Germany.
Planned acquisition of Expedeon Holdings Ltd. (after period-end): On 9 May 2016, SYGNIS resolved, with the approval of the Supervisory Board, to acquire Expedeon Holdings Ltd., a privately held UK proteomics company with sales offices in the US, UK and Singapore. Expedeon develops, manufactures and commercializes proteomics reagents and tools, marketed worldwide by Expedeon’s direct sales force and via distributors. The acquisition shall provide a well-established direct sales force in the US and Europe and broaden the Company’s product portfolio. For this transaction, SYGNIS plans a capital increase by way of a rights offering of up to 20.5 million shares. The Company intends to acquire Expedeon by issuing approximately 80% of the new shares against contributions in kind (Expedeon shares). Expected proceeds from the capital increase of up to €5 million will be used for transaction-related expenses, including €1.7 million cash payments to Expedeon shareholders, one-off integration costs and financing working capital. The transaction will be subject to the approval by the Annual General Meeting on 20 June 2016. The subscription price for the allocation in cash will be defined subsequently.
“In the first quarter 2016 we focused on advancing commercialization as well as on expanding our direct sales and marketing activities. We will launch three more kits in the course of 2016, especially the liquid biopsy kit will be very promising. Furthermore, in Q1 we were successful in finding an attractive acquisition target: the planned acquisition of Expedeon Holdings Ltd. was just published on 9 May 2016”, Pilar de la Huerta, CEO and CFO of SYGNIS commented. “The company perfectly fits our business model. As Expedeon has a strong sales force and already generates profitable sales, the combination of the two companies will match our innovative products with Expedeon’s experienced sales force covering all significant markets. With approximately 30% of the revenues generated from the US, Expedeon has a particularly strong foothold in this important market. Following the successful acquisition, each company will benefit from the other’s experience and established processes. I am convinced that we will become a leading life sciences reagents and tools company, covering both the genomics and proteomics markets.”
|Figures Q1 2016 and comparative figures in accordance with IFRS|
|[Numbers in € thousand]||Q1/2016||Q1/2015|
|NET results for the period||-677||-735|
|31 March 2016||31 March 2015|
|Liquidity at period-end||3,369||2,515|
|Long-term financial liabilities||1,913||2,912|
The interim report for the first quarter, ended 31 March 2016, is available for download from the Company’s webpage at www.sygnis.com.
For further information please contact:
Pilar de la Huerta
Phone: +34 91 192 36 50
MC Services AG
Phone: +49 89 210228 30