Genmab Announces Year End 2007 Financial Results
31/03/2008 23:30
PR Newswire
COPENHAGEN, Denmark, March 31 /PRNewswire/ --
- Genmab Reports Financial Results for the 12 Months Ended December 31,
2007.
Genmab A/S (OMX: GEN) announced today results for the financial year
ended December 31, 2007.
Revenues of DKK 530 million (approximately USD 104 million) compared to
DKK 136 million (approximately USD 27 million) in 2006.
An Operating Loss of DKK 437 million (approximately USD 86 million). This
compares to an Operating Loss of DKK 472 million (approximately USD 93
million) reported in 2006.
Net Financial Income totaled DKK 54 million (approximately USD 11
million) compared to Net Financial Income of DKK 34 million (approximately
USD 7 million) in 2006.
A Net Loss of DKK 383 million (approximately USD 76 million) compared to
a Net Loss in 2006 of DKK 438 million (approximately USD 86 million). The Net
Loss per share was DKK 8.72 (approximately USD 1.72) in 2007 compared to a
Net Loss per share of DKK 11.26 (approximately USD 2.22) in 2006. The 2007
Net Loss exceeded Genmab's guidance of DKK 260 to 310 million as a
development milestone payment projected for late 2007 was not received until
January 2008. The milestone payment of DKK 87 million was triggered by the
first patient receiving treatment in the HuMax-CD20 (ofatumumab) Phase III
rheumatoid arthritis (RA) program.
Genmab ended the year with a cash position of DKK 3.7 billion
(approximately USD 728 million), which is an increase of approximately DKK
2.0 billion (approximately USD 388 million) from the end of 2006.
USD 1.00 = DKK 5.075 (Danish Central Bank's spot rate on December 31,
2007)
2007 Highlights:
Genmab achieved a number of business and scientific milestones,
as follows:
Partnership progress:
Genmab and GlaxoSmithKline received antitrust clearance for the
HuMax-CD20 co-development and commercialization agreement; achieved first
two milestones in collaboration
Achieved three milestones in Roche collaboration
Gained rights to HuMax-CD4 and HuMax-TAC from Merck Serono and HuMax-IL8
through asset exchange with Medarex
Commenced seven new studies:
HuMax-EGFr - Phase III front line head and neck cancer study by DAHANCA
and Phase II non small cell lung cancer study
HuMax-CD20 - Phase II front line CHOP combination study in follicular
non-Hodgkin's lymphoma, 2 RA Phase III studies, Phase II relapsed
diffuse large B-cell lymphoma study
HuMax-CD38 Phase I/II multiple myeloma study
Achieved positive clinical trial results:
HuMax-CD20 Phase II RA data
Final HuMax-CD4 Phase II cutaneous T-cell lymphoma (CTCL) data
R1507 Phase I sarcoma data
Presented pre-clinical data:
Positive data for HuMax-HepC, HuMax-EGFr and HuMax-CD20
Unique mechanisms of action of HuMax-CD4 and HuMax-EGFr
Financial Highlights:
Cash position increased for fourth consecutive year
Achieved membership in OMXC20 index on the OMX Nordic Exchange
Copenhagen
2008 Guidance
COPENHAGEN, Denmark, March 31 /PRNewswire/ --
We expect to significantly expand development in 2008 in
our clinical and pre-clinical programs, including plans to initiate 17 new
clinical studies, filing our first biologics license application and
selecting two new clinical candidates. We will pay development costs for the
new and ongoing pivotal studies in HuMax-CD4 and HuMax-EGFr. Under our
collaboration with GSK, we will fund half the development costs for the
trials with HuMax-CD20. We expect to continue our increasing level of
discovery and pre-clinical work in 2008, developing antibody products for a
variety of new and existing disease targets. Finally, the 2008 projections
include operating costs from the newly acquired antibody manufacturing
facility.
Due to these expanded activities, Genmab's operating costs are expected
to be higher in 2008 than in 2007. In combination with increasing revenues in
2008, we are projecting an operating loss of DKK 900 to 1,000 million
compared to the DKK 437 million reported for 2007. Under the conditions
described above, the net loss for 2008 is expected to be in the range of DKK
800 to 900 million compared to the net loss of DKK 383 million reported for
2007.
As of December 31, 2007, Genmab had cash, cash equivalents and short-term
marketable securities of DKK 3.7 billion (approximately USD 728 million). We
expect the 2008 cash burn to consist of USD 240 million (approximately DKK
1.2 billion) paid for the acquisition of the manufacturing facility,
operational expenses of approximately DKK 750-800 million (approximately USD
148-158 million) and approximately DKK 40-50 million (approximately USD 8-10
million) in other capital expenditures. We expect to spend over 90% of our
2008 budget on research and development, including the operation of our
manufacturing facility and less than 10% on general and administrative
expenses. Of the research and development costs, we expect to spend
approximately DKK 500 million (approximately USD 98 million) on development
for the ofatumumab program.
Total projected revenues for 2008 are expected to be approximately DKK
1.0 billion (approximately USD 197 million), an increase of approximately DKK
470 million (approximately USD 93 million) over 2007 revenues, which were 530
million (approximately USD 104 million). Net financial income is expected to
be approximately DKK 70-75 million (approximately USD 14-15 million). Thus,
including the manufacturing acquisition and operational expenses, we are
projecting a 2008 year end cash position of DKK 1.7 to 1.8 billion
(approximately USD 335 to 355 million).
The estimates above are subject to possible change primarily due to the
timing and variation of development activities, related income and costs and
fluctuating exchange rates. Our projected 2008 revenues consist primarily of
milestone payments, for which we cannot always predict the exact timing.
Accordingly, any change from projected timing of milestones may directly
impact our estimates. The financial guidance also assumes that no further
agreements are entered into during 2008 that could materially affect the
results. Conversion of our 2008 financial guidance into USD has been made
using the Danish Central bank closing spot rate on December 31, 2007, which
was USD 1.00 = DKK 5.075.
Conference Call Genmab's management will hold a conference call to
discuss the Financial Results 2007, tomorrow, Tuesday April 1, 2008 at:
3:00 pm CEST
2:00 pm BST
9:00 am EDT
The dial in numbers are as follows: +1-877-741-4253 (in the US) and ask
for the Genmab conference call +1-719-325-4773 (outside the US) and ask for
the Genmab conference call
To listen to a live webcast of the call please visit
http://www.genmab.com.
The annual report for 2007 and slides relevant for the conference call
can be found on Genmab's website http://www.genmab.com. The conference call
will be held in English.
About Genmab A/S
Genmab is a leading international biotechnology company focused on
developing fully human antibody therapeutics for unmet medical needs. Using
cutting-edge antibody technology, Genmab's world class discovery, development
and manufacturing teams have created and developed an extensive pipeline of
products for potential treatment of a variety of diseases including cancer
and autoimmune disorders. As Genmab advances towards a commercial future, we
remain committed to our primary goal of improving the lives of patients who
are in urgent need of new treatment options. For more information on Genmab's
products and technology, visit http://www.genmab.com.
This press release contains forward looking statements. The words
"believe", "expect", "anticipate", "intend" and "plan" and similar
expressions identify forward looking statements. Actual results or
performance may differ materially from any future results or performance
expressed or implied by such statements. The important factors that could
cause our actual results or performance to differ materially include, among
others, risks associated with product discovery and development,
uncertainties related to the outcome and conduct of clinical trials including
unforeseen safety issues, uncertainties related to product manufacturing, the
lack of market acceptance of our products, our inability to manage growth,
the competitive environment in relation to our business area and markets, our
inability to attract and retain suitably qualified personnel, the
unenforceability or lack of protection of our patents and proprietary rights,
our relationships with affiliated entities, changes and developments in
technology which may render our products obsolete, and other factors. Genmab
is not under an obligation to up-date statements regarding the future
following the publication of this release; nor to confirm such statements in
relation to actual results, unless this is required by law.
Genmab(R); the Y-shaped Genmab logo(R); HuMax(R); HuMax-CD4(R);
HuMax-CD20(R); HuMax-EGFr(TM); HuMax-IL8(TM); HuMax-TAC(TM); HuMax-HepC(TM);
HuMax-CD38(TM); HuMax-CD32b(TM) and UniBody(R) are all trademarks of Genmab
A/S.
Contact:
Helle Husted, Sr. Director,
Investor Relations,
T: +45-33-44-77-30,
M: +45-25-27-47-13,
E: hth@genmab.com.
Contact: Helle Husted, Sr. Director, Investor Relations, T: +45-33-44-77-30, M: +45-25-27-47-13, E: hth@genmab.com.