MediGene AG Reports Financial Results for the 2009 Fiscal Year
EBITDA loss EUR 18.8 million
MediGene AG reported its results for the fiscal year 2009, and gave an outlook for the fiscal year 2010. According to the forecast, MediGene reduced the loss on an EBITDA basis in 2009, from approximately 25 million euros to approximately 19 million euros, with unchanged revenue of approximately 40 million euros. The net loss also improved significantly in 2009, from approximately 31 million euros in 2008 to 22 million euros this year.
In 2010 MediGene expects increasing revenue and is planning to conclude one or more partnerships which will probably have a significant impact on the result of the ongoing year. These results are reported pursuant to IFRS (International Financial Reporting Standards).
Dr. Frank Mathias, Chief Executive Officer of MediGene AG, commented: "Following my taking office in May 2009, we have analyzed MediGene's assets, opportunities and risks, defined the company's core competence and focused our efforts accordingly. We prepared concrete business and development plans for the next five years, in order to reach our corporate objectives. In 2009 we also made significant progress with our drug development projects: for Veregen® we obtained the first market approval in Europe, and concluded partnerships for the commercialization of the drug in key European markets. The clinical development of EndoTAGTM-1 made progress, and we initiated the optimization of the manufacturing process. We are delighted about the increase in sales of our two marketed drugs, Eligard® and Veregen®, and expect this trend to continue in 2010. Our major goal for 2010 is the conclusion of a partnership for EndoTAGTM-1 in Europe and the USA to ensure the uninterrupted development of this drug candidate."
Revenues in the current reporting period totalled EUR 39.5 million (2008: EUR 39.6 million). Whereas total revenue remained unchanged in 2009 compared to the previous year, its composition changed in favour of product sales. As in preceding years, the rise in proceeds from product sales and license payments was mainly generated by increasing Eligard® sales, but towards the end of the year, noteworthy US Veregen® sales were posted for the first time. All in all, product sales and proceeds from license agreements increased by 23% to EUR 37.7 million (2008: EUR 30.1 million). Other income in 2009 was reduced to EUR 1.6 million (2008: EUR 6.1 million), due mainly to a one-time receipt in 2008 in connection with the return of the European marketing rights to Oracea®.
Compared to last year, selling, general and administrative expenses decreased by 13% from EUR 10.5 million (2008) to EUR 9.1 million (2009). This amount is comprised EUR 2.2 million (2008: EUR 2.8 million) selling expenses and EUR 6.9 million (2008: EUR 7.7 million) general and administrative expenses.
Total research and development (R&D) expenses decreased by 33% to EUR 18.5 million (2008: EUR 27.5 million). Most of the R&D expenses were driven by clinical trials with the drug candidate EndoTAGTM-1 in triple receptor-negative breast cancer. Remaining R&D expenses are allocated to the other development projects.
The loss on an EBITDA basis was reduced to EUR 18.8 million in 2009, compared to EUR 24.6 million in 2008. MediGene uses the term EBITDA as earnings before interest, tax, foreign currency gains/losses, and depreciation of fixed and intangible assets. The use of this cash-flow-related parameter instead of EBIT provides comparability of actual operating results before depreciation in the individual reporting periods.
Total depreciation decreased from EUR 7.1 million (2008) to EUR 0.8 million (2009). Planned depreciation is related to intangible assets such as patents and product licenses, and property, plant & equipment. In last year's reporting period, impairment of intangible assets pursuant to IAS 36 totalling EUR 6 million accrued in the course of the spin-off of the mTCR program into an independent company.
The financial result, which is mainly composed of foreign currency losses and interest income, amounted to EUR -0.7 million (2008: EUR -1.2 million).
The net loss per share decreased from last year's EUR 0.91 (weighted average number of shares: 34,008,289) to EUR 0.64 in fiscal year 2009 (weighted average number of shares: 34,231,294).
Taking into account the exchange rate fluctuations, net cash decreased by EUR 12.9 million in the period under review (2008: EUR 21.4 million). Cash and cash equivalents at the end of the 2009 totalled EUR 12.3 million (2008: EUR 25.1 million). Liquidity cover ratio, calculated as the share of cash in the balance sheet total, was 19% at the reporting date (2008: 31%).
From the consolidated cash flow statements, net cash used by operating activities was EUR 18.9 million in 2009 (2008: EUR 27.4 million), yielding an average monthly cash burn rate of EUR 1.6 million (2008: EUR 2.3 million).
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