SYGNIS Reports Nine-Month Results for the Period ended 30 September 2014 and announces new product and commercialisation strategy
- Operating result improved by 20%
- Operating expenses decreased by 21%.
- Net loss in 9M 2014 reduced by 17%
- Corporate strategy now focusing on proprietary product development and sales
- First SYGNIS kit developed and currently evaluated by an industry leading partner and potential distributor
Madrid, Spain and Heidelberg, Germany, November 11, 2014 – SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the first nine months ended 30 September 2014.
Revenues in the first nine months 2014 amounted to € 0.3 million (9M 2013: € 0.4 million). The operating result improved by 20% to -€ 2.3 million (9M 2013: -€ 2.8 million). Research & development expenses decreased by € 0.6 million to € 1.2 million. Total operating expenses improved to € 2.7 million (9M 2013 € 3.4 million). Next to R&D costs they include selling, general & administrative costs of € 1.5 million (9M 2013: € 1.6 million). The net loss for the period amounted to € 2.4 million, 17% better compared to the prior-year period.
As of 30 September 2014, cash and cash equivalents decreased to € 0.4 million (31 December 2013: € 2.2 million). Total current assets reduced to € 0.7 million (31 December 2013: € 2.5 million). Cash outflow from operating activities was € 2.6 million (9M 2013: € 2.1 million); net cash inflow from financing activities amounted to € 1.0 million (9M 2013: € 1.9 million).
In the light of delays in launch and sales activities of licensing partners, SYGNIS decided to focusing its corporate product and commercialization strategy on the development of an own portfolio of kits based on its proprietary PrimPol technologies. The decision was driven by the need to decrease dependency on dominant strategic partners and the intention to keep control over projected revenue streams, as well extending the value participation in its technologies and products. During the third quarter, SYGNIS made significant progress in implementing key building blocks of the new strategy and initiated the development of the first product kit.
Based on its proprietary PrimPol technology SYGNIS`s first kit TruePrime™ for whole genome DNA amplification from single cells for use in NGS applications is expected to enter the market in January 2015. This initial kit is also being evaluated by one of the industry leading partners with the aim to integrate it into the workflow of his own NGS platform. In addition, SYGNIS is developing a series of further applications for its TruePrime™ range of products as well as new technologies for new kits addressing a multitude of applications for the amplification of various DNA or RNA species. These kits are planned to be launched throughout 2015 and 2016. The products will be sold directly as well as through regional and international distributors focusing on gene sequencing and NGS. In addition, SYGNIS is in negotiations with international companies to market its products through OEM (Original Equipment Manufacturer) agreements.
“The third quarter of 2014 was characterized by the strategic change from a technology towards a product company in the booming NGS industry. This is a major change in our corporate product and commercialization strategy. By adding an own portfolio of newly developed kits based on our proprietary PrimPol technology to our established licensing business we will significantly increase the control of the Company’s sales channels and revenue streams”, Pilar de la Huerta, CEO and CFO of SYGNIS commented.
“I am very proud of our researchers who completed the development of the first SYGNIS product, TruePrime™, in just 6 months, which expresses their strong commitment and enthusiasm to bring our own product portfolio for whole genome DNA and RNA amplification to the market”, she added. “Based on the proven superiority of our products and technologies and given that our products address a highly unmet need to standardize workflows in NGS applications, we are convinced that developing and selling our own products will position us in a strong strategic position. In our new role as a product company, we can actively participate from expected growth rates in NGS and therewith maximize the value of our technology portfolio in the full interest of our shareholders.”
Today, NGS is seen as the fastest-growing and most lucrative segment in the genomics market with estimated annual growth rates of more than 20% in the years to come. While still mostly used in research institutions, ongoing developments for higher throughput, increased accuracy, and cost efficiency as well as value creating data management will make NGS more and more attractive for commercial applications in clinical laboratories, hospitals and in pharma companies. Market experts see huge potential with estimated global market volumes beyond US$ 8.7 billion in 2020 with an increased adoption of NGS for diagnostics, drug discovery, biomarker discovery, personalized medicine, but also in agriculture and animals research
Early September 2014, SYGNIS presented a newly characterized thermo-stable member of the recently discovered family of PrimPol polymerases at Zing DNA Polymerases Conference 2014, in Cambridge, UK. This highly recognized conference is one of the key platforms for scientific players in the field of polymerases worldwide. This year’s main topic was “DNA Polymerases: Biology, Diseases and Biomedical Applications”, discussing the discovery of new DNA polymerases and their potential biotechnological applications mainly in the next generation sequencing (NGS) market.
At the Annual General Meeting of SYGNIS held on July 17th, 2014 shareholders representing about 83 percent of the capital approved all proposals of the Management. Main decisions were related to the discharge of the members of the Supervisory and the Management Board for the past fiscal year, the election of new members of the Supervisory Board, and the creation of new authorized capital. Mr. Werner-Friedrich Knuth Schaefer has left the Supervisory Board. Mrs. Maria Jesús Sabatés was elected as new member of the Supervisory Board.
Based on the revenues and grants realized during the first nine months 2014, SYGNIS reaffirms the outlook for fiscal year 2014 updated on August 14th, 2014. Revenues (including grants) for full fiscal year 2014 are expected to be in the range of € 0.5 million and € 0.7 million.
The Company expects to further improve its operating results (EBIT) significantly compared to the previous year.
The financial resources available as of 30 September 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. In addition the Company is currently evaluating future financing options for 2015 and onwards.
Press Release as PDF
For further information please contact:
Pilar de la Huerta, CEO/CFO