Heidelberg Pharma concludes very successful financial year 2022 and reports on course of business
EQS-News: Heidelberg Pharma AG
/ Key word(s): Annual Report
PRESS RELEASE Heidelberg Pharma concludes very successful financial year 2022 and reports on course of business
Ladenburg, Germany, 24 March 2023 – Heidelberg Pharma AG (FSE: HPHA) today published its financial results and Annual Report for fiscal year 2022 (1 December 2021 – 30 November 2022) and its outlook for 2023. Prof. Dr. Andreas Pahl, Chief Scientific Officer, commented: "With the treatment of the first patient in February 2022, we achieved our most important goal of the past year, the start of the clinical development with the world's first ATAC candidate, our HDP-101. The study is on track, patients have been treated in three dose cohorts and so far HDP-101 has been shown to be safe and well tolerated." Dr. Schmidt-Brand, CEO and CFO, further commented: "Another highlight was marked by the strategic partnership with Huadong. The license and option agreements for various ATAC candidates and the investment totaling EUR 105 million underline Huadong's strategic interest in Heidelberg Pharma and significantly strengthen our financial position. Huadong is now the second largest shareholder after dievini with 35% and supports our ambition to successfully develop the ATAC technology and become a global ADC player. We are pleased with the newly signed partnership with Chiome and the license agreement with Takeda for one ATAC candidate each. We can speak of a very successful fiscal year 2022, operationally and financially. In early 2023, we received unfortunate news from our ATAC collaboration partner Magenta. After serious adverse events occurred in the study with the ATAC candidate MGTA-117, Magenta immediately and voluntarily paused dosing in the clinical trial. The company reported in early February 2023 that all ongoing programs were being halted and strategic alternatives were being evaluated. At the end of February, the Amanitin linker supply contract was terminated by Magenta, which will result in a loss of sales in the low single-digit millions in 2023. Further consequences for the contract situation depend on the course of Magenta's strategic realignment and cannot be estimated at present. However, we assume that our partnership will not be continued." Key events in fiscal year 2022
Events after the reporting period
Key financial figures of the Heidelberg Pharma Group for fiscal year 2022 The 2022 fiscal year concerns the period from 1 December 2021 to 30 November 2022. The Heidelberg Pharma Group includes two entities, Heidelberg Pharma AG and Heidelberg Pharma Research GmbH. The Heidelberg Pharma Group generated sales revenue and other income totaling EUR 19.9 million in fiscal year 2022. The sharp increase compared with the previous year (EUR 2.3 million) is due in particular to higher sales revenue totaling EUR 8.2 million arising from the strategic partnership concluded with Huadong during the year, which involves out-licensing HDP-101 and HDP-103 for parts of Asia. Sales revenue totaling EUR 18.5 million (previous year: EUR 1.7 million) comprised revenue from collaboration agreements for the ATAC technology (EUR 17.5 million; previous year: EUR 1.2 million) and the service business (unchanged at EUR 0.5 million) and one milestone payment for a previous out-licensing (EUR 0.5 million). Other income amounted to EUR 1.4 million (previous year: EUR 0.6 million) and largely comprised exchange rate gains of EUR 1.0 million as a result of the appreciation of the US Dollar against the Euro in the period under review. There was no significant other income in the previous year. Operating expenses including depreciation and amortization increased to EUR 37.0 million in 2022 compared with EUR 27.9 million in the previous year. Research and development (R&D) costs rose considerably year-over-year to EUR 26.4 million (previous year: EUR 18.7 million) due to the cost-intensive external manufacturing for the ATAC projects and the on-going clinical trial with HDP-101. The production of antibodies for HDP-102 and HDP-103 also contributed to the result. At 71% of operating expenses, R&D remained the largest cost item. The cost of sales amounted to EUR 4.7 million, representing 13% of operating expenses. Administrative costs were EUR 4.8 million, an increase on the prior year (EUR 4.0 million) and accounted for 13% of operating expenses. Other expenses for business development, marketing and commercial market supply activities, which mainly comprise staff and travel costs, were EUR 1.1 million. They were higher than in the previous year (EUR 0.5 million) and represented 3% of operating expenses. The Heidelberg Pharma Group recognized comprehensive income of EUR -19.7 million (previous year: EUR -26.1 million) in the 2022 fiscal year. Basic earnings per share rose from EUR -0.80 in the previous year to EUR -0.53. Monthly cash use increased to EUR 0.7 million exclusive of the capital increase (previous year: EUR 2.3 million). The Group had cash of EUR 81.3 million at the close of the fiscal year (30 November 2021: EUR 6.1 million). The addition resulted mainly from the strategic partnership with Huadong relating to the outlicensing of HDP-101 and HDP-103 for parts of Asia and from the capital increase implemented in the third quarter, which combined more than compensated for the outflow of liquidity due to the expanded operating activities. In addition, a further tranche of EUR 5 million was drawn down from the dievini shareholder loan in February 2022. At the end of the fiscal year, total assets at EUR 100.6 million were several times higher than the prior-year figure (EUR 21.7 million), which is mainly attributable to the higher levels of cash and inventories. Equity of the Heidelberg Pharma Group at the end of the reporting period was EUR 66.6 million (30 November 2021: EUR 6.7 million). This corresponds to an equity ratio of 66.3% (30 November 2021: 30.8%). Financial outlook for 2023 and strategy The Executive Management Board expects the Heidelberg Pharma Group to generate between EUR 7.0 million and EUR 10.0 million in sales revenue and other income (2022: EUR 19.9 million) in the 2023 fiscal year. Sales revenue generated by Heidelberg Pharma Research GmbH (especially from ATAC technology), as well as deferred revenue and potential milestone payments to Heidelberg Pharma AG will contribute to this figure in roughly equal measure. Sales revenue from major potential license agreements was not included in this planning. Based on current planning, operating expenses are expected to be in the range of EUR 37.0 million to EUR 41.0 million, slightly higher than in the reporting year (EUR 37.0 million). Earnings before interest and taxes (EBIT) in the 2023 fiscal year are expected to be between EUR -28.5 million and EUR -32.5 million (2022: EUR -17.2 million). Funds used will be in the range of EUR 32.5 million to EUR 36.5 million. This corresponds to an average monthly use of cash of EUR 2.7 million to EUR 3.1 million (2022: EUR 0.7 million). The Group’s financing is secured until mid-2025 based on current planning. Heidelberg Pharma believes that Amanitin is an innovative toxin with attractive properties for the development of ATACs and will continue its strategy for the development and marketing of proprietary ATAC technology. The strategy’s core elements are the expansion of the Company’s own project pipeline, the development of the pipeline projects until clinical proof of concept, the initiation of further research and option agreements and their extension to include long-term license agreements, as well as the broadening of the technology base. Invitation to the financial results press conference On Monday, 27 March 2023, Heidelberg Pharma will hold a conference call for media, analysts, and investors in English at 3:00 pm CEST/9:00 am EDT. Please register at least 10 minutes in advance using the following link: https://us06web.zoom.us/webinar/register/WN_YmSObiktT4qmb5kjSZ0Lvg You will receive an e-mail with your registration confirmation, which contains the link to participate in the audio webcast as well as dial-in numbers for participation by phone. Please note that asking oral or written questions is only possible for online participants. Key figures for the Heidelberg Pharma Group
1) The reporting period begins on 1 December and ends on 30 November. 2) Equity / total assets 3) Including members of the Executive Management Board Rounding of exact figures may result in differences. The Annual Report, including the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), is available at https://heidelberg-pharma.com/en/press-investors/announcements/financial-reports. About Heidelberg Pharma Heidelberg Pharma is an oncology specialist and the first company to develop the toxin Amanitin into cancer therapies using its proprietary ATAC technology and to advance the biological mode of action of the toxin as a novel therapeutic principle. The proprietary technology platform is being applied to develop the Company’s own therapeutic ATACs as well as in third-party collaborations. The lead candidate HDP-101 is a BCMA ATAC in clinical development for multiple myeloma. Further ATAC candidates are being developed against different targets such as CD37, PSMA or GCC each in the indications non-Hodgkin's lymphoma, metastatic castration-resistant prostate cancer or gastrointestinal tumors such as colorectal cancer. Heidelberg Pharma AG is based in Ladenburg, Germany, and is listed on the Frankfurt Stock Exchange: ISIN DE000A11QVV0 / WKN A11QVV / Symbol HPHA. More information is available at http://www.heidelberg-pharma.com/. ATAC® is a registered trademark of Heidelberg Pharma Research GmbH in the EU and the USA.
This communication contains certain forward-looking statements relating to the Company's business, which can be identified by the use of forward-looking terminology such as "estimates", "believes", "expects", "may", "will" "should" "future", "potential" or similar expressions or by a general discussion of the Company's strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results of operations, financial condition, performance, or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, prospective investors and partners are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such forward-looking statements to reflect future events or developments. [1] Parts of Asia: (excl. Japan, India, Pakistan, Sri Lanka): PR China, Hong Kong, Macao, Taiwan, South Korea, Indonesia, Singapur, The Philippines, Thailand, Bangladesh, Bhutan, Brunei, Myanmar, Kambodia, Laos, Malaysia, Maledives, Mongolia, Nepal und Vietnam.[2] dievini Hopp BioTech holding GmbH & Co. KG [3] Magenta press release, 12 December 2022: https://investor.magentatx.com/news-releases/news-release-details/magenta-therapeutics-presents-positive-mgta-117-clinical-data [4] Magenta press release, 25 January 2023: https://investor.magentatx.com/news-releases/news-release-details/magenta-therapeutics-voluntarily-pauses-mgta-117-phase-12-dose
24.03.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | Heidelberg Pharma AG |
Gregor-Mendel-Str. 22 | |
68526 Ladenburg | |
Germany | |
Phone: | +49 (0)89 41 31 38 - 0 |
Fax: | +49 (0)89 41 31 38 - 99 |
E-mail: | investors@hdpharma.com |
Internet: | www.heidelberg-pharma.com |
ISIN: | DE000A11QVV0 |
WKN: | A11QVV |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1591141 |
End of News | EQS News Service |
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