SYGNIS Reports Half-year Results for the Period ended June 30, 2014
- Operating result in H1 2014 improved by more than 25%
- Operating expenses decreased by 29%
- Net loss in H1 2014 decreased by 22%
- Technology patent deal with SYSTASY Bioscience GmbH signed
- SYGNIS provides update on its financial outlook
Madrid, Spain and Heidelberg, Germany, August 14, 2014 – SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the first six months ended June 30, 2014.
In the first half of 2014, revenues amounted to € 0.2 million (H1 2013: € 0.3 million). The operating result (EBIT) significantly improved by more than 25% to -€ 1.5 million in H1 2014 (H1 2013: -€ 2.0 million), reflecting a decrease in operating expenses of more than 29% to € 1.7 million (H1 2013: € 2.4 million). Operating expenses included sales, general & administrative costs of € 0.9 million and research & development expenses of € 0.8 million. The resulting net loss for the period was € 1.6 million, an improvement of 22% compared to the previous year (H1 2013: € 2.0 million).
As of June 30, 2014, cash and cash equivalents were € 0.8 million (December 31, 2013: € 2.2 million). Total short term assets were € 1.1 million (December 31, 2013: € 2.5 million). Cash outflow from operating activities amounted to € 2.0 million; net cash inflow from financing activities was € 0.8 million.
In February 2014, SYGNIS announced that its licensing partner QIAGEN had launched the first two products of a series of kits based on SYGNIS’ proprietary amplification technology QualiPhi® – now renamed SensiPhi®. The two kits, REPLI-g WTA Single Cell Kit and REPLI-g Cell WGA & WTA Kit, are commercialized globally through QIAGEN’s established distribution channels. The product launches are the result of a global exclusive license agreement with QIAGEN signed in 2012.
In May 2014, SYGNIS announced that it has signed a patent transfer agreement for some patents linked to the Double Switch project with SYSTASY Bioscience GmbH, a service provider in drug discovery. The transferred IP is part of a broader IP family covering SYGNIS’ proprietary Double Switch technology for the qualitative and quantitative detection of the interactions of proteins. SYGNIS retains patents linked to this technology for potential non-exclusive licensing agreements or for the development of its own products
Pilar de la Huerta, CEO and CFO of SYGNIS commented: “In many ways, we experienced a successful first half of fiscal 2014. We were able to increase our operational efficiency and achieved important milestones with the launch of the first products based on our SensiPhi® technology and with the announcement of a second technology deal for our proprietary Double Switch technology. We also made good progress in the further development of our technology portfolio. With PrimPol, a new polymerase with completely innovative characteristics, and a program with several mutants of QualiPhi we have added two very promising product families in the field of Next Generation Sequencing (NGS).”
Pilar de la Huerta added: “We were very delighted to learn from our partners that they have been experiencing a strong increase in customer demand for kits for single cell processing for NGS. However, the related order volume could not be fully translated into product sales revenues so far due to delays in our partners’ launch and selling activities. Accordingly we needed to lower our financial outlook in terms of revenues and we are currently also reviewing our commercialization, distribution and marketing strategy in order to increase our independence from third parties. It is our firm objective to establish a self-sustaining business model and to increase control of our revenue streams. In order to fully exploit our freedom to operate and to maximize our flexibility we have also changed the terms for our future licensing activities. We are planning to develop and commercialize our own product kits on the basis of our PrimPol technology. In this regard, we are currently evaluating future commercialization strategies and partners and expect to have a first PrimPol product available at the beginning of 2015.”
Due to delays in the launch and sales activities of partners, revenues for the full fiscal year 2014 will be lower than originally anticipated. The anticipated change in the Company’s terms of licensing strategy will, in 2014, also likely result in lower revenues from license or co-development agreements. As a consequence, the Company is reducing its revenue forecast for full fiscal year 2014 to a range of € 0.5 to € 0.7 million.
Expenditure for the second half of 2014 are estimated to remain on the level of the first six months. Despite the revised revenue guidance, the Company expects to improve its operating results (EBIT) significantly compared with the previous year.
The financial resources available as of 30 June 2014 and the expected cash inflow during the remaining fiscal year 2014 will provide SYGNIS with liquidity that extends until the end of the year.
Press Release as PDF
For further information please contact:
Pilar de la Huerta, CEO/CFO