Corporate | 7 November 2013 07:31
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4SC AG / Key word(s): Quarter Results/Miscellaneous
Press Release 4SC announces improved financial results for the third quarter and first nine months of 2013 Planegg-Martinsried, Germany, 7 November 2013 – 4SC AG (Frankfurt, Prime Standard: VSC), a discovery and development company of targeted small molecule drugs for cancer and autoimmune diseases, today announced the financial results for the 4SC Group in accordance with International Financial Reporting Standards (IFRS) for the third quarter and first nine months of 2013. Operating highlights in Q3 (1 July – 30 September 2013): – Resminostat: Expression of ZFP64 biomarker and other patient characteristics strongly correlate with patient survival in liver cancer (HCC) and Hodgkin’s lymphoma; study results presented at ILCA (Washington) and ECCO (Amsterdam) research conferences – Resminostat: Partner Yakult Honsha starts clinical development in non-small-cell lung cancer (NSCLC) in Japan, making this the fourth tumour indication – 4SC-202: Patent protection in China, Hong Kong and the USA expanded significantly – 4SC Discovery: Partnership with Panoptes Pharma initiated in the field of inflammatory eye diseases – Process of focusing the development strategy and adjusting the corporate structure completed Financial highlights for the first nine months (1 January – 30 September 2013): – Revenue increases by 262% to EUR 3.72 million (9M 2012: EUR 1.03 million) – Operating result improves by 33% to EUR -8.25 million and by 41% to EUR -7.23 million after adjusting for one-off extraordinary factors (9M 2012: EUR -12.32 million) – Earnings per share improve by 41% to EUR -0.16 (9M 2012: EUR -0.27) – Liquid funds amounting to EUR 6.75 million secure the Company’s financing into the third quarter of 2014
Enno Spillner, CEO of 4SC AG, commented:
Telephone conference
+49-6103-485-3001 (Germany)
Conference-ID: 4647613 After the conference call, an audio replay will be available at www.4sc.com under Investors / Events & Presentations / Conference Calls & Webcasts. Detailed financial review (9 months 2013 and Q3 2013) The 4SC Group, which comprises 4SC AG and its wholly-owned subsidiary 4SC Discovery GmbH, reports consolidated figures for the Group and financial figures for the two operating segments Development (the clinical development of the compounds resminostat, 4SC-202, 4SC-205 and vidofludimus consolidated within 4SC AG) and Discovery & Collaborative Business (drug discovery and early-stage research activities as well as their commercialisation through the service business and research collaborations of 4SC Discovery GmbH). The figures for the 4SC Group are reported below; for more information on segment reporting, see the full 9-month consolidated financial report at http://4sc.de/investors/financial-reports .
9 months 2013:
The Company’s loss from operating activities improved by 33% to EUR 8.25 million in the first nine months of the year on the back of higher revenue and a 10% reduction in operating expenses (9M 2012: EUR -12.32). After adjusting for one-off extraordinary factors of EUR 1.02 million associated with the change in the development strategy and corporate structure implemented in the second quarter of 2013, the operating loss in the first nine months of the year was EUR 7.23 million, down 41% on the prior-year figure. The loss for the period decreased by 33% to EUR 8.19 million in the first nine months (9M 2012: EUR -12.14 million). Earnings per share improved by 41% to EUR -0.16 (9M 2012: EUR -0.27) because there was also a higher average number of shares in the 9-month comparison due to the capital increase completed in July 2012. This results in an average monthly outflow of cash from operations amounting to EUR 0.59 million in the first nine months of 2013 (9M 2012: EUR 1.31 million). As at 30 September 2013, the Company thus had cash and available-for-sale securities totalling EUR 6.75 million, compared with EUR 12.06 million as at 31 December 2012. Based on the current planning, 4SC expects these funds to be sufficient to secure the Company’s financing into the third quarter of 2014. The start of a registration trial in advanced liver cancer (HCC) has not been taken into account in this planning.
Q3 2013:
Detailed review of operations (Q3 2013): In the third quarter of 2013, 4SC completed the process of focusing its development strategy and adjusting its corporate and personnel structures. The Company advanced its defined research and development activities and achieved key operating milestones. Operations at 4SC mainly focused on further developing its epigenetic lead compound resminostat in the indication of advanced liver cancer (HCC). Development segment (clinical development activities of 4SC AG)
Resminostat:
Yakult Honsha Co., Ltd., 4SC’s exclusive partner for the development and marketing of resminostat in Japan since 2011, commenced a clinical Phase I/II trial in the indication of non-small-cell lung cancer (NSCLC) in July 2013. Alongside liver cancer, colorectal cancer and Hodgkin’s lymphoma, this marks the clinical development of resminostat in a fourth tumour indication.
4SC-202:
Discovery & Collaborative Business segment (early-stage research and collaborations of 4SC Discovery GmbH) In September 2013, the 4SC subsidiary 4SC Discovery GmbH transferred the patent for a compound discovered in-house for combating inflammatory eye diseases to the Austrian biotech company Panoptes Pharma Ges.m.H. In return, 4SC Discovery received a 24.9% share in Panoptes Pharma and will participate in future development successes in the form of milestone and royalty payments. Operational and financial Outlook for 2013 and beyond:
Resminostat:
Anti-cancer compounds 4SC-202 and 4SC-205:
Vidofludimus:
4SC Discovery GmbH:
Financial outlook:
4SC expects its loss situation to continue in the short to medium term. Taking into account the expected contribution to earnings of the activities of 4SC Discovery GmbH and lower research and development costs, the consolidated operating loss for 2013 – before extraordinary effects – should improve further compared with the previous year. The one-off effects from the adjustment of the Company’s development strategy will increase the consolidated loss by slightly less than EUR 1.0 million in 2013. As a result of the restructuring, 4SC expects a significant reduction in annual staff costs in the high six-digit euro range starting from the 2014 financial year. The assumptions do not take into account the execution of the planned pivotal liver cancer study. In this case, development costs can be anticipated to rise substantially, which would in turn cause the cash burn rate and operating loss to increase again. Based on the operating performance of 4SC Discovery GmbH to date, the Management Board of 4SC AG continues to expect this subsidiary to be able to achieve a balanced cash flow from operating activities in the current financial year. End of press release About 4SC The Group managed by 4SC AG (ISIN DE0005753818) discovers and develops targeted, small-molecule drugs for treating diseases with high unmet medical needs in various cancer and autoimmune indications. These drugs are intended to provide innovative treatment options that are more tolerable and efficacious than existing therapies, and provide a better quality of life. The Company’s pipeline comprises promising products that are in various stages of clinical development. 4SC’s aim is to generate future growth and enhance its enterprise value by entering into partnerships with leading pharmaceutical and biotech companies. Founded in 1997, 4SC had a headcount of 78 employees (57 FTEs) at 30 September 2013. 4SC AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since December 2005. Cautionary statement regarding forward-looking statements This press release contains certain forward-looking statements. Any forward-looking statement applies only on the date of this press release. By their nature, forward-looking statements are subject to a number of known and unknown risks and uncertainties that may or may not occur in the future and as a result of which the actual results and performance may differ substantially from the expected future results or performance expressed or implied in the forward looking statements. No warranties or representations are made as to the accuracy, achievement or reasonableness of such statements, estimates or projections, and 4SC AG has no obligation to update any such information or to correct any inaccuracies herein or omission herefrom which may become apparent. For more information please visit www.4sc.com or contact:
4SC AG
MC Services
The Trout Group
End of Corporate News 07.11.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | 4SC AG | |
| Am Klopferspitz 19a | ||
| 82152 Martinsried | ||
| Germany | ||
| Phone: | +49 (0)89 7007 63-0 | |
| Fax: | +49 (0)89 7007 63-29 | |
| E-mail: | public@4sc.com | |
| Internet: | www.4sc.de | |
| ISIN: | DE0005753818 | |
| WKN: | 575381 | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart | |
| End of News | DGAP News-Service |
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