INTERIM REPORT FOR THE PERIOD 1 JANUARY - 30 JUNE 2011 (UNAUDITED)
Reported figures are for the full reporting period unless otherwise stated. Figures for the comparable reporting period last year is stated in parenthesis after realized figures. Comparative numbers in the statement of comprehensive income and the statement of financial position does not include numbers from discontinued operations.
Continued growth in life science research product sales and EBITDA improvement
Exiqon A/S (NASDAQ OMX Copenhagen: “EXQ”) today announced results for the first six months of 2011 ending 30 June 2011. Revenue increased 21% to DKK 54.2 million. Total operating expenses were unchanged at DKK 44.7 million and EBITDA improved 27% to DKK -11.8 million in the first half-year. The financial outlook for 2011 on the ongoing business that excludes special items remains unchanged. Exiqon has initiated litigation against Santaris Pharma A/S for breach of contract and patent violation. Neither income nor reservations or costs associated with the litigation are included in the outlook for 2011.
Financial highlights
- Revenue increased 21% to DKK 54.2 million (DKK 44.8 million). In the second quarter of 2011, revenue increased 11% to DKK 26.7 million (DKK 24.1 million).
- Organic growth in research product sales was 19% when excluding OEM sales and reagent sales associated with license agreements. When excluding OEM sales and reagent sales associated with license agreements, the organic growth in life science research product sales was 7% in the second quarter of 2011, affected by a periodic deviation in recognized service revenue.
- Total operating expenses were unchanged at DKK 44.7 million (DKK 44.6 million) and affected by one-time litigation cost in the second quarter. In the second quarter of 2011, total operating expenses increased 16% to DKK 26.3 million compared to DKK 22.6 million in the same period last year. When excluding one-time litigation costs, total operating costs decreased 14% in the first half-year.
- Gross profit improved 21% to DKK 28.4 million (DKK 23.5 million).
- EBITDA improved 27% to DKK -11.8 million (DKK -16.1 million) including non-cash cost of share-based payment of DKK 2.1 million.
- Net loss was DKK 17.7 million (DKK 22.8 million). EPS amounted to DKK -0.53 (DKK -0.71).
Operational highlights
- On 4 April 2011 Exiqon reported positive results on early detection of colorectal cancer in blood generated on the company’s proprietary miRCURY LNA™ Universal RT microRNA PCR platform.
- On 3 May 2011 the company announced the expansion of its qPCR product offer by launch of its highly flexible Pick & Mix microRNA PCR Panels for sensitive and specific quantification of custom selected microRNAs in both 96 and 384 well array formats.
- On 30 June 2011 Exiqon announced the registration of a capital increase of 1,666,777 new shares with a nominal value of DKK 1 each following which the nominal value of the share capital of Exiqon A/S amounts to DKK 35,002,026 divided into 35,002,026 shares with a nominal value of DKK 1 each.
In a comment, CEO Lars Kongsbak said: “The ongoing business is on track. We continue to see strong organic growth in our kit sales, driven primarily by our miRCURY LNA™ qPCR offering. Operating costs are temporarily affected by one-time litigation costs but otherwise under control. We expect to conclude the litigation successfully before year end.”
See the full interim report in the attached PDF or at www.exiqon.com/investor/portal
Additional information:
Lars Kongsbak, CEO, phone +45 4566 0888 (cell: +45 4090 2101)
Hans Henrik Chrois Christensen, CFO, phone +45 4566 0888 (cell: +45 4090 2131)
