AGX) (XETRA: AGX) today announced financial results
for the third quarter and first nine months ended September 30, 2009.
Agennix AG was formed by the combination of GPC Biotech AG and Agennix
Incorporated. The accounting for the business combination will be based on
the acquisition method specified in IFRS 3, Business combinations (revised
2008). Based on that accounting treatment, GPC Biotech AG has been
identified as the acquirer and Agennix Incorporated as the acquiree in this
transaction. Therefore, the historical financial information of Agennix AG,
including the information presented below, is that of GPC Biotech AG.
Furthermore, for future financial reports, the comparative historical
financial information will be that of GPC Biotech AG for the respective
comparative periods.
First nine months of 2009 compared to first nine months of 2008
Revenues decreased 98% to EUR 0.3 million for the nine months ended
September 30, 2009, compared to EUR 12.3 million for the same period in
2008. The decrease in revenues is due to the termination of the
co-development and license agreement for satraplatin with Celgene
Corporation. The termination became effective in September 2008 and
resulted in the recognition as revenue of the unamortized portion of the
original upfront license fees of EUR 7.2 million and EUR 1.9 million of
the aggregate
pre-payments for R&D expenses in the third quarter of 2008.
Research and development (R&D) expenses for the nine months ended September
30, 2009, decreased 71% to EUR 3.9 million compared to EUR 13.4 million
for the same period in 2008. The decrease in R&D expenses is primarily due
to 1) a decrease in clinical trial costs due to reduced clinical trial
volumes; 2) staff reductions as a result of the restructuring plans
implemented in the first quarter of 2008 and 2009; and 3) a credit to
compensation cost totalling EUR (1.5) million as a result of the
forfeiture of convertible bonds and stock options.
In the first nine months of 2009, administrative expenses decreased 22% to
EUR 8.0 million compared to EUR 10.3 million for the same period in
2008. The decrease in administrative expenses is primarily due to staff
reductions and other associated activities as a result of restructuring
plans. The total decrease of EUR (2.3) million is net of a credit to
compensation cost totaling EUR (1.7) million as a result of the forfeiture
of convertible bonds and stock options, as well as an increase of
approximately EUR 3.3 million in one-time costs relating to banking fees,
legal services, audit and other related services in connection with the
merger into Agennix AG, which closed on November 5, 2009.
Net loss for the first nine months of 2009 improved 13% to EUR (10.6)
million compared to EUR (12.2) million for the first nine months of 2008.
Basic and diluted loss per share was EUR (0.29) for the first nine months
of 2009 compared to EUR (0.33) for the same period in 2008.
Cash position and net cash burn
As previously disclosed, the Company reported that Agennix AG's cash and
cash equivalents position (pro forma) at September 30, 2009 was EUR 17.9
million.
As of September 30, 2009 cash, cash equivalents, and available-for-sale
investments for GPC Biotech AG totaled EUR 2.9 million (December 31, 2008:
EUR 32.0 million), including EUR 0.2 million in restricted cash.
Net cash burn for the first nine months of 2009 was EUR 15.5 million, with
net cash burn of EUR 4.9 million in the first quarter, EUR 6.5 million in
the second quarter and EUR 4.1 in the third quarter of 2009. The decrease
in net cash burn for the third quarter compared to the second quarter was
mainly due to payments made in the second quarter totaling EUR 2.7 million
for amounts accrued in the first quarter of 2009 relating to the merger.
Net cash burn is derived by adding net cash used in operating activities
and purchases of property, equipment and intangible assets. The figures
used to calculate net cash burn are contained in the Company's interim
consolidated cash flow statement for the respective periods.
Comparison to previous year: third quarter 2009 compared to third quarter
2008
Revenues for the three months ended September 30, 2009, decreased 98% to
EUR 0.2 million compared to EUR 9.3 million for the same period in 2008.
R&D expenses decreased 58% for the three months ended September 30, 2009,
to EUR 1.3 million compared to EUR 3.1 million for the same period in
2008. Administrative expenses for the third quarter of 2009 decreased 45%
to EUR 1.6 million compared to EUR 2.9 million for the same quarter in
2008. Net loss for the third quarter of 2009 was EUR (2.1) million
compared to net income of EUR 3.5 million for the third quarter of 2008.
Basic and diluted (loss)/income per share was EUR (0.06) and EUR 0.10 for
the third quarter of 2009 and 2008, respectively.
Quarter over quarter results: third quarter 2009 compared to second quarter
2009
Revenues increased 100% to EUR 0.2 million for the third quarter of 2009
compared to EUR 0.1 for the previous quarter. R&D expenses decreased 7% to
EUR 1.3 million for the third quarter of 2009 compared to EUR 1.4 million
in the second quarter of 2009. Administrative expenses for the third
quarter of 2009 decreased 33% to EUR 1.6 million compared to EUR 2.4
million for the previous quarter. The Company's net loss was EUR (2.1)
million in the third quarter of 2009, compared to a net loss of EUR (4.2)
million for the previous quarter. Basic and diluted loss per share was EUR
(0.06) for the third quarter of 2009 compared to a loss per share of EUR
(0.11) for the previous quarter.
Torsten Hombeck, Ph.D., Chief Financial Officer, said: "We are very
excited that the merger has closed and we are now operating as a single
company, working together as one team to develop our product candidates to
treat cancer. With the merger successfully completed, we are focused on
pursuing partnerships for our drug development programs, particularly
talactoferrin, as well as considering different possible near-term
financing options in order to ensure that we have sufficient funding to
advance these programs."
Financial guidance
The Company updated its guidance for the full year 2009 and 2010 as
follows:
Revenues: The Company does not expect to generate substantial cash revenues
for the remainder of 2009 nor for 2010. This assumption does not consider
cash revenue from potential partnership(s) for the Company's product
candidates due to the uncertainty of the completion and timing of such
events.
R&D expenses: For the remainder of 2009 and for 2010, the Company expects
R&D expenses to significantly increase compared to 2008 due to an expected
steady increase in clinical trial-related costs as the Company's Phase 3
trials with talactoferrin progress.
Administrative expenses: Excluding one-time expenses associated with the
merger, the Company believes that administrative expenses for the remainder
of 2009 and for 2010 will increase slightly compared to 2008, primarily due
to the slight increase in G&A headcount as a result of the merger.
Cash position: The Company believes it will have sufficient cash to fund
operations into the second quarter of 2010.
Conference call scheduled
The Company has scheduled a conference call to which participants may
listen via live webcast, accessible through the Agennix Web site at
www.agennix.com or via telephone. A replay will be available on the Web
site following the live event. The call, which will be conducted in
English, will be held on November 23rd at 15:00 CET/9:00 AM ET. The dial-in
numbers for the call are as follows:
Participants in Europe: 0049 69 667775756
0044 20 3003 2666
Participants in the U.S.: 1-646-843-4608
Please dial in 10 minutes before the beginning of the call.
About Agennix
Agennix AG is a publicly traded biopharmaceutical company focused on
developing novel anti-cancer therapies. The Company was formed by the
combination of GPC Biotech AG and Agennix Incorporated. The Company's most
advanced program is talactoferrin, an oral targeted therapy that is in
Phase 3 clinical trials in non-small cell lung cancer. Other clinical
development programs include RGB-286638, a multi-targeted kinase inhibitor
in Phase 1 testing; the oral platinum-based compound satraplatin; and a
topical gel form of talactoferrin for wound healing. Agennix is a
transatlantic company with sites in Munich, Germany; Princeton, New Jersey
and Houston, Texas. For additional information, please visit the Agennix
Web site at www.agennix.com.
This press release contains forward-looking statements, which express the
current beliefs and expectations of the management of Agennix AG, including
statements about the Company's future cash position. Such statements are
based on current expectations and are subject to risks and uncertainties,
many of which are beyond our control, that could cause future results,
performance or achievements to differ significantly from the results,
performance or achievements expressed or implied by such forward-looking
statements. Actual results could differ materially depending on a number of
factors, and we caution investors not to place undue reliance on the
forward-looking statements contained in this press release. Forward-looking
statements speak only as of the date on which they are made and Agennix
undertakes no obligation to update these forward-looking statements, even
if new information becomes available in the future.
- Financials follow -
For the full interim management report and interim condensed consolidated
financial statements and accompanying notes for the third quarter and first
nine months of 2009, please visit the Investor Relations section of the
Agennix website at
http://www.agennix.com/index.php?option=com_content&view=article&id=14&Itemid=33&lang=en.
GPC Biotech AG (predecessor to Agennix AG)
Interim consolidated statement of operations
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
EUR 000 EUR 000 EUR 000 EUR 000
Revenue 171 9,336 274 12,341
Research and
development
expenses (1,332) (3,128) (3,862) (13,410)
Administrative
expenses (1,623) (2,913) (7,983) (10,301)
Amortization of
intangible assets (41) (50) (129) (164)
Impairment of
intangible assets - - (407) (2,306)
Other income 1,007 610 2,348 1,845
Other expenses (739) (702) (1,853) (1,482)
Finance income 437 407 1,189 1,486
Finance costs (21) (35) (185) (251)
------------ ------------ ------------ ------------
Net (loss) income
before tax (2,141) 3,525 (10,608) (12,242)
Income taxes - - - -
------------ ------------ ------------ ------------
Net (loss) income
for the period (2,141) 3,525 (10,608) (12,242)
============ ============ ============ ============
Basic and diluted
(loss) income per
share (EUR 0.06) EUR 0.10 (EUR 0.29) (EUR 0.33)
Average number of
shares used in
computing basic
and diluted (loss)
income per share 36,836,853 36,836,853 36,836,853 36,836,853
See accompanying notes to unaudited interim condensed consolidated
financial statements
GPC Biotech AG (predecessor to Agennix AG)
Interim consolidated statements of financial position
as of September 30, 2009
September 30, December 31,
2009 2008
(unaudited)
EUR 000 EUR 000
Assets
Non-current assets
Note receivable 13,479 -
Conversion component of note receivable 1,594 -
Property and equipment 322 524
Intangible assets 3,060 3,584
Other financial assets 429 146
------------ ------------
Total non-current assets 18,884 4,254
Current assets
Trade receivables 222 6
Prepayments 388 432
Other current assets 1,407 2,209
Available-for-sale investments 38 136
Cash and cash equivalents 2,708 31,686
------------ ------------
Total current assets 4,763 34,469
Total Assets 23,647 38,723
============ ============
Equity and Liabilities
Equity attributable to the equity holders
Issued capital 36,837 36,837
Share premium 366,464 369,654
Other reserves (3,782) (3,918)
Retained loss (389,557) (378,949)
------------ ------------
Total equity 9,962 23,624
Non-current liabilities
Convertible bonds 206 1,705
Deferred revenue, net of current portion 7,380 7,380
------------ ------------
Total non-current liabilities 7,586 9,085
Current liabilities
Trade payables 240 1,221
Accruals and other current liabilities 2,799 4,750
Short term loan payable 3,017 -
Deferred revenue, current portion 43 43
------------ ------------
Total current liabilities 6,099 6,014
------------ ------------
Total liabilities 13,685 15,099
Total equity and liabilities 23,647 38,723
============ ============
See accompanying notes to unaudited interim condensed consolidated
financial statements
GPC Biotech AG
Selected Financial Data
From Interim Consolidated Cash Flow Statement
Nine months ended June 30
2009 2008
(unaudited) (unaudited)
EUR 000 EUR 000
------------ ------------
Net cash used in operating activities (15,468) (24,804)
------------ ------------
Net cash (used in) provided by investing
activities (14,946) 15,013
------------ ------------
------------ ------------
Net cash provided by (used in) financing
activities 1,288 (1,455)
------------ ------------
Effect of exchange rate changes on cash and
cash equivalents 148 (254)
Changes in restricted cash - (32)
------------ ------------
Net decrease in cash and cash equivalents (28,978) (11,532)
Cash and cash equivalents at beginning of
period 31,686 49,681
------------ ------------
Cash and cash equivalents at end of period 2,708 38,149
============ ============
