DGAP-News: SYGNIS Pharma AG: DGAP-News: SYGNIS Pharma AG /

DGAP-News: SYGNIS Pharma AG / Key word(s): Half Year Results SYGNIS Pharma AG: 14.08.2013 / 11:13 --------------------------------------------------------------------- Press Release SYGNIS reports half-year results for the period ended 30 June 2013 * Significant decrease in total costs and expenses by 44% * Operating result improved by 65% * New shareholder loan granted * US patent for flagship product QualiPhi(R) * Further license agreement with Qiagen Madrid/Heidelberg, 14 August 2013 - SYGNIS Pharma AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the first six months ended 30 June 2013. Due to the business combination the new SYGNIS includes the total income and expenses of X-Pol and old SYGNIS for H1 2013 and only those of X-Pol in the prior-year period, due to accounting requirements based on the reverse acquisition. This affects equity in the consolidated balance sheet as of December 2012 accordingly. At year-end 2012, the balance sheet included the purchase price allocation and the recognition of fair values of the old SYGNIS, while values of X-Pol products were reflected only with their carrying amounts and not with their fair values. Therefore, the balance sheet items of June 30 2013 can be compared to those on 31 December 2012. However, the comparability of the financial results reported for the first six months 2013 with the corresponding prior-year data is very limited. Adjusted for this effect, i.e. assuming that the income and expenses of both parts of the business would have been fully taken into account already in H1 2012, the pro forma comparison of periods shows a significant decrease in total costs and expenses by 44% to EUR2.4 million (pro forma H1 2012: EUR4.2 million). Excluding non-recurring expenses of EUR0.4 million, the decrease of expenses would have been more than 50%. Revenues increased from EUR0.1 million to EUR0.3 million (including revenues of EUR150k for the licence agreement with Qiagen regarding an amplification buffer) and the operating result (EBIT) improved by 65% to -EUR2.0 million (pro forma H1 2012: -EUR5.8 million). In the first six months of 2013, the reported loss for the period was -EUR2.0 million (previous year: -EUR0.9 million). Operating expenses for the first six months totaled EUR2.4 million (previous year: EUR0.5 million), mainly resulting from personnel costs of EUR1.2 million, and other administrative costs. Total assets decreased by EUR0.6 million to EUR9.0 million, due to lower cash and other assets. Liabilities primarily increased due to a new shareholder loan. In the first six months of the current fiscal year, the liquidity level (incl. available-for-sale securities) decreased overall by EUR 0.4million to EUR0.2 million. The cash outflow from operating activities amounts to -EUR1.5 million. Net cash inflow from financing activities amounting to EUR1.3 million results from the payment of a public loan and the shareholder loan granted in March 2013. In January 2013, the Company has been granted the European and US patent for a new basic technology for the detection of protein-protein interactions (DoubleSwitch). This technology can be used as screening platform for the development of novel drugs. At the beginning of March 2013 SYGNIS was granted a shareholder loan for a total amount of up to EUR0.7 million by its main shareholders Genetrix Life Sciences, A.B. and dievini Hopp BioTech holding GmbH & Co. KG. The loan amount was fully paid out at the end of June 2013. The Company has reached a further milestone in strengthening the IP position for its products. In April 2013 a patent by the USPTO (US Patent and Trademark office) was granted for its key product QualiPhi(R). In May 2013, the Company completed a new licence agreement with Qiagen regarding an amplification buffer, a tool used in isothermal amplification and providing superior reaction performance. This agreement follows a global licence agreement for QualiPhi(R), completed with Qiagen in 2012. In the second quarter 2013, the Company has received a payment of EUR150k as consideration for this licence. Pilar de la Huerta, CEO / CFO, commented: 'In the first half of 2013, we were primarily focused on the development and marketing of new products in the field of molecular diagnostic and DNA tools. We have strengthened our activities in acquiring new funds from investors and new public loans. In addition, we worked on efficient integration of both sites in Heidelberg and Tres Cantos. We have already made good progress here. We are also delighted to have received patents for DoubleSwitch and QualiPhi(R), which proves our strategy and led to first revenues in 2013. Therefore, we developed as forecasted and are confident to generate further revenues in this year and in 2014. We expect further commercial agreements with partners in the course of the year, and, provided that we will receive new funds from investors in autumn, we continue to plan break-even in fiscal year 2014.' Outlook In the remaining months of the current fiscal year, SYGNIS expects further commercial agreements with partners and first revenues from product sales. In the mid-term, at least two new products shall be licensed annually in regional or global partnerships. The Company plans to reach break-even in fiscal year 2014. Due to the current operating expenses and extraordinary burdens from restructuring measures, the fiscal year 2013 will still show a loss. However, the Company assumes that the implemented cost saving measures will lead to significant effects in the rest of the year. With the available liquidity as of 30 June 2013 and additional funds from the new investors loan financing is secured until the end of Sepember 2013. For further financing and thus the continuation, the Company is dependent on new funding from end of September 2013 on. These shall be granted by new investors, further loans or by using the existing SEDA agreement. Figures for the six months ended 30 June 2013 and comparative figures in accordance with IFRS and pro forma figures (H1 2012 pro forma information includes SYGNIS old and X-Pol) [Numbers in EURmillion] H1 2013 H1 2012 pro forma H1 2012 Revenues 0.3 0.1 - Total Expenses -2.4 -4.2 -0.5 EBIT -2.0 -5.8 -0.9 Net results for the period -2.0 -2.2 -0.9 Operating Cash Flow -1.5 -3.6 -0.7 Liquidity as of 30 June 0.2 3.1 0.1 The interim report for the first six months, ended 30 June 2013, is available at www.sygnis.de. For further information please contact: SYGNIS Pharma AG Pilar de la Huerta CEO/CFO Tel: +34-918063089 Email: pdelahuerta@sygnis.es About SYGNIS Pharma AG: www.sygnis.de After the merger in 2012 between X-Pol Biotech, specialising in DNA amplification and sequencing, and SYGNIS Pharma AG, listed in the German Stock Exchange (Prime Standard segment, Tick: LIO1; ISIN: DE000A1RFM03), SYGNIS' new mission is to develop and distribute technologies and products from X-Pol, which has a commercial product in the DNA amplification segment, QualiPhi(R) and is currently developing other products in the field of Next Generation Sequencing. . ### Disclaimer Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of SYGNIS Pharma AG may deviate greatly from the established conclusions or implied predictions contained in such statements. SYGNIS does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. ### End of Corporate News --------------------------------------------------------------------- 14.08.2013 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: SYGNIS Pharma AG Im Neuenheimer Feld 515 69120 Heidelberg Germany Phone: 06221 454-6 Fax: 06221 454-700 E-mail: contact@sygnis.de Internet: www.sygnis.de ISIN: DE000A1RFM03 WKN: A1RFM0 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 225843 14.08.2013