SYGNIS reports half-year results for the period ended 30 June 2013
- Significant decrease in total costs and expenses by 44%
- Operating result improved by 65%
- New shareholder loan granted
- US patent for flagship product QualiPhi®
- Further license agreement with Qiagen
Madrid/Heidelberg, 14 August 2013 – SYGNIS Pharma AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the first six months ended 30 June 2013. Due to the business combination the new SYGNIS includes the total income and expenses of X-Pol and old SYGNIS for H1 2013 and only those of X-Pol in the prior-year period, due to accounting requirements based on the reverse acquisition. This affects equity in the consolidated balance sheet as of December 2012 accordingly. At year-end 2012, the balance sheet included the purchase price allocation and the recognition of fair values of the old SYGNIS, while values of X-Pol products were reflected only with their carrying amounts and not with their fair values. Therefore, the balance sheet items of June 30 2013 can be compared to those on 31 December 2012. However, the comparability of the financial results reported for the first six months 2013 with the corresponding prior-year data is very limited.
Adjusted for this effect, i.e. assuming that the income and expenses of both parts of the business would have been fully taken into account already in H1 2012, the pro forma comparison of periods shows a significant decrease in total costs and expenses by 44% to €2.4 million (pro forma H1 2012: €4.2 million). Excluding non-recurring expenses of €0.4 million, the decrease of expenses would have been more than 50%. Revenues increased from €0.1 million to €0.3 million (including revenues of €150k for the licence agreement with Qiagen regarding an amplification buffer) and the operating result (EBIT) improved by 65% to -€2.0 million (pro forma H1 2012: -€5.8 million).
In the first six months of 2013, the reported loss for the period was
-€2.0 million (previous year: -€0.9 million). Operating expenses for the first six months totaled €2.4 million (previous year: €0.5 million), mainly resulting from personnel costs of €1.2 million, and other administrative costs.
Total assets decreased by €0.6 million to €9.0 million, due to lower cash and other assets. Liabilities primarily increased due to a new shareholder loan.
In the first six months of the current fiscal year, the liquidity level (incl. available-for-sale securities) decreased overall by € 0.4million to €0.2 million. The cash outflow from operating activities amounts to -€1.5 million. Net cash inflow from financing activities amounting to €1.3 million results from the payment of a public loan and the shareholder loan granted in March 2013.
In January 2013, the Company has been granted the European and US patent for a new basic technology for the detection of protein-protein interactions (DoubleSwitch). This technology can be used as screening platform for the development of novel drugs.
At the beginning of March 2013 SYGNIS was granted a shareholder loan for a total amount of up to €0.7 million by its main shareholders Genetrix Life Sciences, A.B. and dievini Hopp BioTech holding GmbH & Co. KG. The loan amount was fully paid out at the end of June 2013.
The Company has reached a further milestone in strengthening the IP position for its products. In April 2013 a patent by the USPTO (US Patent and Trademark office) was granted for its key product QualiPhi®.
In May 2013, the Company completed a new licence agreement with Qiagen regarding an amplification buffer, a tool used in isothermal amplification and providing superior reaction performance. This agreement follows a global licence agreement for QualiPhi®, completed with Qiagen in 2012. In the second quarter 2013, the Company has received a payment of €150k as consideration for this licence.
Pilar de la Huerta, CEO / CFO, commented: “In the first half of 2013, we were primarily focused on the development and marketing of new products in the field of molecular diagnostic and DNA tools. We have strengthened our activities in acquiring new funds from investors and new public loans. In addition, we worked on efficient integration of both sites in Heidelberg and Tres Cantos. We have already made good progress here. We are also delighted to have received patents for DoubleSwitch and QualiPhi®, which proves our strategy and led to first revenues in 2013. Therefore, we developed as forecasted and are confident to generate further revenues in this year and in 2014. We expect further commercial agreements with partners in the course of the year, and, provided that we will receive new funds from investors in autumn, we continue to plan break-even in fiscal year 2014.”
In the remaining months of the current fiscal year, SYGNIS expects further commercial agreements with partners and first revenues from product sales. In the mid-term, at least two new products shall be licensed annually in regional or global partnerships. The Company plans to reach break-even in fiscal year 2014. Due to the current operating expenses and extraordinary burdens from restructuring measures, the fiscal year 2013 will still show a loss. However, the Company assumes that the implemented cost saving measures will lead to significant effects in the rest of the year. With the available liquidity as of 30 June 2013 and additional funds from the new investors loan financing is secured until the end of Sepember 2013. For further financing and thus the continuation, the Company is dependent on new funding from end of September 2013 on. These shall be granted by new investors, further loans or by using the existing SEDA agreement.
|Figures for the six months ended 30 June 2013 and comparative figures in accordance with IFRS and pro forma figures (H1 2012 pro forma information includes SYGNIS old and X-Pol):
|[Numbers in €million] :
|Total Expenses :
|Net results for the period
|Operating Cash Flow
|Liquidity as of 30 June
The interim report for the first six months, ended 30 June 2013, is available at www.sygnis.de.
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