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Martinsried/Munich (Germany), Princeton, NJ and Houston, TX, November
23, 2009 - Agennix AG (Frankfurt Stock Exchange: 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 ? 0.3 million for the nine months ended
September 30, 2009, compared to ? 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 ? 7.2 million and ? 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 ? 3.9 million compared to ? 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 ? (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 ? 8.0 million compared to ? 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 ? (2.3) million is
net of a credit to compensation cost totaling ? (1.7) million as a
result of the forfeiture of convertible bonds and stock options, as
well as an increase of approximately ? 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 ? (10.6)
million compared to ? (12.2) million for the first nine months of
2008.
Basic and diluted loss per share was ? (0.29) for the first nine
months of 2009 compared to ? (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 ?
17.9 million.
As of September 30, 2009 cash, cash equivalents, and
available-for-sale investments for GPC Biotech AG totaled ? 2.9
million (December 31, 2008: ? 32.0 million), including ? 0.2 million
in restricted cash.
Net cash burn for the first nine months of 2009 was ? 15.5 million,
with net cash burn of ? 4.9 million in the first quarter, ? 6.5
million in the second quarter and ? 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 ? 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 ? 0.2 million compared to ? 9.3 million for the same period in
2008. R&D expenses decreased 58% for the three months ended September
30, 2009, to ? 1.3 million compared to ? 3.1 million for the same
period in 2008. Administrative expenses for the third quarter of 2009
decreased 45% to ? 1.6 million compared to ? 2.9 million for the same
quarter in 2008. Net loss for the third quarter of 2009 was ? (2.1)
million compared to net income of ? 3.5 million for the third quarter
of 2008. Basic and diluted (loss)/income per share was ? (0.06) and ?
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 ? 0.2 million for the third quarter of
2009 compared to ? 0.1 for the previous quarter. R&D expenses
decreased 7% to ? 1.3 million for the third quarter of 2009 compared
to ? 1.4 million in the second quarter of 2009. Administrative
expenses for the third quarter of 2009 decreased 33% to ? 1.6 million
compared to ? 2.4 million for the previous quarter. The Company's
net loss was
? (2.1) million in the third quarter of 2009, compared to a net loss
of ? (4.2) million for the previous quarter. Basic and diluted loss
per share was ? (0.06) for the third quarter of 2009 compared to a
loss per share of ? (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.
For further information, please contact:
Agennix AG
Investor Relations & Corporate Communications
Phone: +49 (0)89 8565 2693
ir@agennix.com
In the U.S.: Laurie Doyle
Director, Investor Relations & Corporate Communications
Phone: +1 609 524 5884
laurie.doyle@agennix.com
Additional media contacts for Europe:
MC Services AG
Phone: +49 (0) 89 210 228 0
Raimund Gabriel
raimund.gabriel@mc-services.eu
Hilda Juhasz
hilda.juhasz@mc-services.eu
Additional investor contact for Europe:
Trout International LLC
Lauren (Rigg) Williams, Vice President
Phone: +44 207 936 9325
lwilliams@troutgroup.com
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Agennix AG
Fraunhoferstr. 20 Martinsried Germany
ISIN:
DE000A1A6XX4;
Listed: Regulierter Markt in Frankfurter Wertpapierbörse, Prime
Standard in Frankfurter Wertpapierbörse;
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