mondoBIOTECH holding AG announced its financial results for 2010 as well as the candidates for election to its Board of Directors
mondoBIOTECH holding AG (SIX: RARE) announces that its 4th ordinary shareholders' meeting will be held on 26 May 2011 at 11.00 a.m. (CET) at the Company's headquarters at Muergstrasse 18, in 6370 Stans, Switzerland.
- (1888PressRelease) May 03, 2011 - The invitation to the ordinary shareholders' meeting is available on the Company's website. The Board of Directors proposes to the shareholders, inter alia, to carry forward the accumulated loss of CHF 17’093’274 and to re-allocate the free reserves in the amount of CHF 5’078’520 to the legal reserves. The reason for this proposal is the fact that the balance sheet as at 31 December 2010 shows that half of the share capital and the legal reserves of the Company are no longer covered and that therefore, the Board of Directors would be obliged to propose reorganization measures to the shareholders' meeting. Since the Company as at 31 December 2010 has sufficient reserves against which the accumulated loss could at any time be completely set off by way of a resolution of a shareholders' meeting and in order to preserve the potential for future distributions to shareholders from the capital contribution reserves that are free of withholding tax, the Board of Directors proposes not to set off the accumulated loss against the legal reserves for the time being. Further, the Board of Directors also proposes to extend the current authorization to issue new shares out of authorized share capital from currently 30 April 2012 to 26 May 2013.
Financial Results 2010
Global overview
The Group generated operating revenues of CHF 0.38 million in the year ended 31 December 2010 (2009: CHF 13.74 million), mainly from clinical development services related to our licensing agreements, against operating expenses of CHF 19.62 million (2009: CHF 25.84 million) for the same period, 75% of which was derived from research and development activities which in accordance with IFRS were not capitalized, 17% to sales and marketing and 8% to management and administration. The net loss for the year 2010 amounts to CHF 19.39 million (2009: CHF 12.21 million), representing a basic and diluted loss per Common Share of CHF 3.046 (2009: CHF 1.868) and a basic and diluted loss per Voting Right Share of CHF 0.288 (2009: CHF 0.187). The Group raised net proceeds of CHF 14.95 million during 2010 from private and public placements of new shares and as of 31 December 2010 the Group held CHF 2.39 million of cash and cash equivalents.
On 13 April 2011, the Company closed a round of fundraising by issuing 165’042 new Common Shares from its authorized share capital for a gross contribution of about CHF 8.08 million. The Group has sufficient cash and cash equivalents necessary to finance its actual level of activities for at least twelve months. The operations during 2011 will continue to focus on the economic exploitation of the pipeline on medicinal product candidates and on strengthening the expected economic potentials of the Group’s other business areas (mainly development services and a further improvement of the activities in the genetic field), the effects of which will be recognized, if any, only during the next coming years.
Nevertheless, the Group remains subject to various risks and uncertainties, including but not limited to the timing of achieving profitability. In addition, to continue operations and its growth strategy, the Group depends on its ability to raise additional capital until revenues reach a level to sustain positive cash flows.
Revenues
The revenues for the year ended 31 December 2010 were CHF 0.38 million, resulting from the performance of services in the segment “Development Services”. In 2009, the revenues in this segment were CHF 13.13 million and the revenues from licensing activities (segment “Projects”) were CHF 0.61 million, amounting to total revenues for the year 2009 of CHF 13.74 million. The significant decrease in the operating revenues, which for the last three years are to be exclusively attributed to the “Development Services” segment, is due to the termination in 2009 of clinical phase II services supplied to third parties in connection to one of our out-licensed MPCs. It is worth noticing that revenues arising from the “Development Services” segment are not necessarily recurrent, as such services are only ancillary to the core business of the Company. In relation to that, it is of notice that the operating costs have also been significantly reduced, as in 2009 the Company paid in excess of CHF 9 million for development services related to the above mentioned business segment.
Research and development
Research and development expenses decreased from CHF 20.14 million in 2009 to CHF 14.54 million in 2010. Compared to the previous period, the Company had a strong reduction of costs in the segment “Development Services” from 11.05 million down to 2.14 million, which is fully in line with the reduction of activities in this segment, but on the other side there was a significant increase of costs in the segment “Projects” of about CHF 3.19 million during 2010 in respect of the previous year, which mainly derives from the net effect of increased intellectual property costs (CHF 2.85 million, mainly driven by the entrance into the nationalization phase on the Company’s intellectual properties in the first six months of 2010), employee benefit expenses (CHF 1.02 million, mainly due to the increase of the resources in the last part of the year), facilities cost (CHF 0.64 million, mainly driven by the de-recognition of the capitalized expenses incurred until 30 September 2010 related to the project of renovation of the Company's headquarter in Stans for globally CHF 0.94 million, of which CHF 0.61 million classified under “Research and development”, CHF 0.28 million under “Sales and Marketing” and CHF 0.05 million under “Management and Administration”) and information technology and travel costs (CHF 0.34 million) against reduced third party services on the further development of projects (CHF 0.8 million) and a lover charge of impairments on assets classified by the group as held for sale and therefore evaluated at fair value (CHF 1.23 million).
Sale and Marketing
Sales and marketing expenses were not subject to material changes (small decrease from CHF 3.63 million during 2009 to CHF 3.40 million in 2010) mainly - except for the quote of derecognized capitalized expenses mentioned above - reflecting a stabilization of the activities of the Group in this function.
Management and administration
Management and administration expenses were CHF 2.07 million during 2009 and CHF 1.68 million in 2010. The decrease is the result of the further rationalization process in the function leading to an overall reduction of cost, in particular from general consulting services.
Elections to the Board of Directors
The Board of Directors of mondoBIOTECH holding AG nominates Dr. Marc Häsler for election as new member of its Board of Directors. Marc Häsler is an independent attorney in Morges and Zurich and admitted to the bar since 1993. He is specialized in corporate and commercial law, employment law and mergers & acquisitions. Prior to being an independent attorney, he acted as a senior manager in the legal department of a major audit and accounting firm in Zurich. Mr. Häsler is a member of the board of directors of various pharmaceutical and biotechnology companies, such as Alexion Pharma International Sàrl, Lausanne, the headquarters of Alexion Inc.'s EMEA operations, and Stemedica International SA, Morges, the European branch of Stemedica, a U.S. company based in San Diego that specializes in the stem cell technology.
Further, the Board of Directors proposes the current board members Prinz Michael von Liechtenstein, Graf Francis von Seilern-Aspang, Fabio Cavalli and Ruggero Gramatica for re-election. Prof. Dr. Robert Huber, Prof. Dr. Thomas Cerny and Prof. Dr. Roland Maclean du Bois, reaffirming their strong commitment to support the scientific model of mondoBIOTECH holding AG, will be invited to join the Scientific Advisory Board which is currently being set-up by the Company and therefore do not stand for re-election as members of the Board of Directors. Vera Cavalli has declared that she will not stand for re-election to the Board of Directors.
About mondoBIOTECH
mondoBIOTECH holding AG (SIX Swiss Exchange ticker symbol: RARE), an independent Swiss biotech company, discovers drugs for patients suffering from rare diseases through its internally developed Search&Match methodology. In Search&Match mondoBIOTECH's scientists combine their unique knowledge of biologically active human peptides with advanced technology solutions delivering medicinal product candidates for rare diseases to licensing partners.
Furthermore, mondoBIOTECH has built and is expanding a continuous growing Community of high-level physicians and researchers who dedicate their life to rare diseases. This Rare Community is made up of biologists, biochemists, physicians, patients and patient advocacy organizations as well as other persons and organizations who share their experiences, know-how, expertise and skills with mondoBIOTECH to reach out to people who will benefit the most from an effective treatment, the patients.
Contact:
mondoBIOTECH holding AG
Investor Relations, Mr. Paolo Bassanini
Das Kloster
Muergstrasse 18
CH-6370 Stans
Tel.: +41 (0) 840 200 010
Fax: +41 (0) 840 200 011
investor ( @ ) mondobiotech dot com
Disclaimer
The foregoing release may contain forward-looking statements. The words “anticipates”, “believes”, “estimates”, “expects”, “intends”, “may”, “plans”, “projects”, “will”, “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. mondoBIOTECH holding AG may not achieve the plans, intentions or expectations disclosed in its forward-looking statements and prospective investors should not place reliance on mondoBIOTECH holding AG’s forward looking statements. There can be no assurance that results of the activities and results of operations will not differ materially from the expectations. Forward-looking statements are subject to inherent risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward looking statements. mondoBIOTECH holding AG is providing the information in this press release as of this date and does not undertake any obligation to update any forward looking statements contained in this press release as a result of new information, future events or otherwise.
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