SYGNIS announces nine months results of fiscal year 2011/2012

Heidelberg, February 14, 2012 – SYGNIS Pharma AG (Frankfurt: LIOK; ISIN DE000A1E9B74; Prime Standard) today reports its financial results for the third quarter and the first nine months of the fiscal year 2011/2012 ended December 31, 2011.

Financials 

The net loss in the third quarter was €-18.4 million (€-3.7 million Q3 2010/2011). The net loss for the first nine months of the fiscal year 2011/2012 amounted to €-21.7 million (€-9.0 million nine months 2010/2011).

• The increase of net loss is due to non-cash write-downs of the AX200 development project for the treatment of acute stroke and goodwill with a total amount of €18.7 million. The reduction of deferred tax liabilities led to a tax income of €2.0 million.
• Total operating expenses (without write-downs) for the first nine months were significantly down at €6.0 million (€9.3 million nine months 2010/2011). Financial result was €0.8 million (€0.0 million nine months 2010/2011).
• Cash including marketable securities amounted to €5.6 million as of December 31, 2011 (€9.0 million December 31, 2010).
• In mid August 2011 SYGNIS completed a capital increase. At the end of the subscription period, 3,076,623 new shares have been subscribed and correspondingly the share capital increased from €13,752,881 to €16,829,504. As a result, the Company received gross proceeds of €6.2 million.

 
Operational summary

• Even after a thorough analysis of the AXIS 2 data, which have been first published in mid December 2011, no hints for efficacy have been found with regard to a clinical improvement of stroke patients treated with AX200 relative to placebo-treated patients. The study missed all of its endpoints. As a result, the activities with regard to the clinical development of AX200 for the treatment of stroke will be ceased.
• Based on its "proof of concept" studies and by using one of its proprietary assays, SYGNIS completed a programme designed to identify suitable compounds that could have an effect on KIBRA activity. The results of this screening programme are currently under further development in order to identify drug candidates which can be protected by new intellectual property rights and optimized chemically as well as pharmacologically. Furthermore, the patent situation for the KIBRA project has also been improved. In September 2011 SYGNIS filed new patent applications, which include new pharmacological pathways to KIBRA.   

 

Outlook
 
Due to the write-downs of the AX200 development project and Goodwill the net loss for the current 2011/2012 fiscal year is expected to be significantly higher than originally planned. With the current liquidity the Company is financed approximately until the end of calendar year 2012.

Considering the termination of the clinical development of AX200 for the treatment of acute stroke, the key operational focus for the upcoming months is the protection as well as the sustainable expansion of the remaining assets of the Company. Accordingly, the Company actually evaluates potential M&A-options and financing opportunities.

With regard to the KIBRA project the results of the substance-screening will be further optimized. The identified drug candidates should enable SYGNIS to either enter into a research partnership or further develop the compounds with its own resources.

The report on the third quarter which ended on December 31, 2011 is available at the SYGNIS webpage at www.sygnis.de.

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