DGAP-News: Genmab Announces Financial Results for the First Nine Months of 2011 and Updated 2011 Fin
(businesspress24) - Genmab A/S
02.11.2011 17:39
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November 2, 2011; Copenhagen, Denmark;
Interim Report for the 9 Months Ended September 30, 2011
-- Guidance for continuing operations improved due to reduction in expenses
-- Fair value of our manufacturing facility reduced by DKK 342 million and
expected sale moved into 2012; guidance updated with new projected cash
position
-- Arzerra(r) net sales increased by 45% over prior year nine month period
-- Positive top-line Phase II data from study of ofatumumab in second line
aggressive lymphoma
Financial Performance Nine Months Year to Date
-- Revenue decreased by DKK 233 million, 47%, from DKK 491 million in 2010 to
DKK 258 million. The decrease was mainly driven by non-recurring items
including two milestone payments from GSK of DKK 203 million in 2010.
-- Operating expenses decreased by DKK 121 million, 22%, from DKK 564 million
in 2010 to DKK 443 million.
-- An operating loss of DKK 185 million in 2011 compared to DKK 73 million in
2010. Despite the reduction in revenue of DKK 233 million the increase in
our operating loss was limited to DKK 112 million due to the continued
focus on cost control.
-- Due to the difficult general market conditions, worsening economic outlook
and other factors, the fair value less cost for a sale of the company's
manufacturing facility has been reduced from approximately USD 120 million
to USD 58 million, resulting in a non-cash impairment charge of DKK 342
million.
-- On September 30, 2011, Genmab had a cash position of DKK 1,221 million
compared to DKK 1,546 million as of December 31, 2010. This represented a
cash burn of DKK 325 million in the first nine months of 2011.
Business Progress Third Quarter to Present
-- August: Positive top-line results from a Phase II study of ofatumumab in
combination with salvage chemotherapy to treat relapsed or refractory
aggressive lymphoma, including Diffuse Large B-Cell Lymphoma (DLBCL).
-- October: Royalty income of DKK 20.3 million following GSK net sales for
Arzerra for the third quarter of 2011 of GBP 11.9 million (approximately
DKK 101.4 million).
Outlook
The 2011 financial guidance is updated to reflect the change in the fair value
assessment of a sale of the company's manufacturing facility and the movement
of the sale into 2012. Revenue in 2011 is expected to be in a narrower range of
DKK 340 - 350 million compared to the previous guidance at DKK 325 - 350
million. We are again reducing the 2011 operating expenses which are now
expected to be in the range of DKK 625 - 650 million (previously DKK 650 - 700
million) and the operating loss from continuing operations to be approximately
DKK 275 - DKK 300 million, an improvement of DKK 50 - 75 million from the
previous guidance of DKK 325 - 375 million.
'The execution of a sale of the manufacturing facility is still one of our top
priorities, but due to worsening market conditions we have decided to reduce
the fair value of the facility and move an anticipated sale into next year. We
continue to have a strict focus on cost control and have again reduced the
operating expenses for 2011 and are pleased to improve the cash burn rate from
the previous guidance,' said Jan van de Winkel, Ph.D.,Chief Executive Officer
of Genmab.
Conference Call
Genmab will hold a conference call in English to discuss the results for the
first nine months of 2011 tomorrow, Thursday, November 3, at 3.00 pm CET, 2.00
pm GMT or 10.00 am EST. The dial in numbers are:
+1 877 317 6789 (in the US) and ask for the Genmab conference call
+1 412 317 6789 (outside the US) and ask for the Genmab conference call
A live and archived webcast of the call and relevant slides will be available
at www.genmab.com.
About Genmab A/S
Genmab is a publicly traded, international biotechnology company specializing
in the creation and development of differentiated human antibody therapeutics
for the treatment of cancer. Founded in 1999, the company's first marketed
antibody, Arzerra(r) (ofatumumab), was approved to treat chronic lymphocytic
leukemia that is refractory to fludarabine and alemtuzumab after less than
eight years in development. Genmab's validated and next generation antibody
technologies are expected to provide a steady stream of future product
candidates. Partnering of innovative product candidates and technologies is a
key focus of Genmab's strategy and the company has alliances with top tier
pharmaceutical and biotechnology companies. For more information visit
www.genmab.com.
Contact:
Rachel Curtis Gravesen, Senior Vice President, Investor Relations&Communication
T: +45 33 44 77 20; M: +45 25 12 62 60; E: r.gravesen(at)genmab.com
This interim report 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. For a further discussion of these risks, please refer to the section
'Risk Management' in Genmab's annual report, which is available on
www.genmab.com and the 'Significant Risks and Uncertainties' section in this
interim report. Genmab does not undertake any obligation to update or revise
forward looking statements in this interim report nor to confirm such
statements in relation to actual results, unless required by law.
Genmab(r); the Y-shaped Genmab logo(r); HuMax(r); HuMax-CD20(r); HuMax(r)-EGFr;
HuMax(r)-IL8; HuMax(r)-TAC; HuMax(r)-CD38; HuMax(r)-TF; HuMax(r)-Her2; HuMax(r)-cMet,
HuMax(r)-CD74, DuoBody(tm) and UniBody(r) are all trademarks of Genmab A/S. Arzerra(r)
is a trademark of GlaxoSmithKline.
Company Announcement no. 30
CVR no. 2102 3884
Genmab A/S
Bredgade 34
1260 Copenhagen K
Denmark
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02.11.2011 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: Genmab A/S
Denmark
Phone:Fax:
E-mail:
Internet:
ISIN: DK0010272202
WKN:
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