Below please find the H1 report 2013. The full report is available in the enclosed PDF file.
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Announcement 29.08.2013 The NeuroSearch group (NEUR) realised an operating profit of DKK 13 million in Q2 2013 (a loss of DKK 408 million in the same period 2012). The operating result after tax was a profit of DKK 24 million in Q2 (a loss of DKK 387 million in the same period 2012). The operating profit in Q2 is primarily due to a revenue of DKK 29 million relating to the release of the escrow regarding Huntexil®, which was sold to Teva Pharmaceuticals Inc. The NeuroSearch group realised an operating profit of DKK 2 million in H1 2013 (a loss of DKK 430 million in the same period 2012). The financial result after tax was a profit of DKK 18 million in H1 (a loss of DKK 414 million in the same period 2012). On 30 June 2013, the company's cash and cash equivalents totalled DKK 63 million (DKK 88 million at 30 June 2012). Cash and cash equivalents have increased further by DKK 37 million in July as a consequence of a positive net effect relating to the release of the sales price for the land and building as well as settlement of remaining mortgage debts. Important events in Q2 and until today
- On 23 April 2013, NeuroSearch announced that Teva had given notification that the escrow of 28.7 million could be released.
- On 6 May 2013, NeuroSearch announced that the company had signed an agreement with PKA regarding the sale of the company's land and building at a cash price of DKK 112.5 million and for take-over on 1 July.
- On 17 July 2013, NeuroSearch announced that the company is being prosecuted by the Danish Public Prosecutor for Special Economic and International Crimes (SEIC) for alleged qualified share price manipulation. The charges relate to an announcement issued on 3 February 2010. On the present basis, NeuroSearch is denying the charges and is awaiting the court's ruling of the case.
- On 31 July 2013, the company announced that the Board of Directors has given notice to its CEO, René Schneider. The notice is a natural consequence of the strategy to wind down the company's activities and in this connection a wish to limit the operating costs of the company's day-to-day business. René Schneider will continue as the company's CEO until further notice, however, the parties have agreed that René Schneider will be released from his duties no later than 30 November 2013. In the period from René's taking up his duties as CEO in July 2012 until today, the company has sold important assets, including Huntexil® and the company's land and building. Consequently, NeuroSearch has been able to pay off debts, to re-establish the equity capital and to build up significant cash resources.
Update on the company's activities The Board of Directors and the Executive Management are working on realising the value of the other remaining assets in NeuroSearch. NeuroSearch is in dialogue with several companies with a view to investigating the possibility of a merger or similar kind of transaction. However, such transactions have been complicated by the prosecution by SEIC just as considerations of a liquidation of the company or distribution to shareholders of the company's cash and cash equivalents will have to await the outcome of the case. In connection with the H1 report, Chairman of the Board, Allan Andersen, comments as follows: ”We are satisfied that we are now almost done with the operational wind down of the company, and that we have succeeded in increasing the equity capital by DKK 161 million within the last year. Today, the equity capital almost amounts to DKK 100 million and all debts have been repaid to the banks. As a natural consequence, the company agreed with CEO René Schneider that he will resign from his position by the end of November this year. René is now in a position to say: ”mission completed”. There is good reason to thank René and his employees for a unique, efficient and dedicated effort for NeuroSearch, and the Board of Directors sends on René to a new career with its very best recommendations. Financial expectations to 2013 For 2013, NeuroSearch still expects an operating loss of approximately DKK 15 million. For H2, a loss on operating results is expected as a consequence of continued obligations to dismissed employees. The above expectations do not take into account any loss or profit arising out of a potential sale of the remaining NeuroSearch assets.
| Allan Andersen Chairman of the Board of Directors | René Schneider CEO |
Contact person René Schneider, CEO, telephone: +45 2911 2097 About NeuroSearch NeuroSearch A/S (NEUR) is listed on NASDAQ OMX Copenhagen A/S.
