CORRECTION: Topotarget announces financial results for the year ended December 31, 2011
Annual report/ annual accounts
CORRECTION: Topotarget announces financial results for the year ended December
To NASDAQ OMX Copenhagen A/S
Announcement No. 04-12 / Copenhagen, March 14, 2012
Copenhagen, Denmark – March 14, 2012 – Today Topotarget A/S (NASDAQ OMX: TOPO)
announced the financial results for the year ended December 31, 2011.
Financial review 2011
The annual report comprises the Parent Company Topotarget A/S and the five
wholly owned subsidiaries.
Unless otherwise stated, the financial review is based on the Group’s
consolidated financial information for the year ended December 31, 2011 as
included in this annual report with comparative figures for the Group in 2010
A loss on continued operations before write-down activities of DKK 29.0 million
(2010: Loss of DKK 84.8 million) was recorded for the year.
The Group’s net cash and cash equivalents as of December 31, 2011 totaled DKK
114.3 million (2010: DKK 205.0 million.) and equity stood at DKK 330.7 million
(2010: DKK 360.2 million).
Consolidated income statement
Topotarget recognized revenues of DKK 65.6 million in 2011 (2010: DKK 107.8
million). Revenues are primarily composed of income of DKK 62.8 million from
the Spectrum Pharmaceuticals upfront payment of USD 30 million as well as
income from partnership.
Production costs, which amounted to DKK 1.8 million (2010: DKK 5.4 million),
include Topotarget personnel costs related to the Spectrum Pharmaceuticals
Research and development costs were DKK 54.3 million (2010: DKK 71.6 million).
The reduction is primarily due to the near completion of most studies. The
finalization of data and study reports are ongoing.
Write-down of research and development projects acquired from third parties
amounted to DKK 0 million (2010 DKK 189.5 million).
Sales and distribution costs for the Group have been reclassified to
discontinued operations due to the divestiture of the US subsidiary including
the IP for Totect®.
Administrative expenses were DKK 40.8 million (2010: DKK 38.8 million). The
small increase is mainly due to increased support for partnering activities.
Net financial income was DKK 1.1 million (2010: Net income of DKK 68.8
million), primarily consisting of exchange rate adjustments in subsidiaries.
(2010: Primarily consisting of the reversal of the APO provision for debt with
the amount of DKK 66.5 million).
The tax income was DKK 1.2 million (2010: 44.0 million) and relates solely to
Topotarget Switzerland S.A.
Net loss from discontinued operations DKK 4.0 million (2010: Profit 29.1
million). The loss from discontinued operations consists of all costs relating
to the sales activities of Totect® for the year as well as the sale transaction
of the IP and subsidiary in the amount of DKK 9.1 million. The comparative 2010
number also includes all elements of the year’s activities as well as the sale
proceeds of Savene®.
Topotarget recorded a net loss of DKK 33.0 million (2010: DKK 55.7 million).
Consolidated balance sheet
Total assets amounted to DKK 370.5 million (2010: DKK 465.8 million.), which
primarily consist of acquired research and development projects, cash and cash
equivalents, while the Group’s liabilities mainly comprise equity and trade
Cash and cash equivalents were DKK 114.3 million (2010: DKK 205.0 million).
Current liabilities have reduced from DKK 91.5 million to DKK 26.2 million due
to the finalization of the deferred income release in the year.
Equity amounted to DKK 330.7 million (2010: DKK 360.2 million). The change in
equity consists of the loss for the year of DKK 33.0 million and share-based
payment of DKK 3.5 million.
Consolidated cash flow
Topotarget’s cash flow from operating activities for 2011 was an outflow of DKK
88.4 million (2010: In-flow DKK 40.1 million). The Group’s 2011 cash flow from
investing activities excluding the buying and selling of securities was an
outflow of DKK 1.9 million (2010: Inflow DKK 34.7 million). The Group’s cash
flow from financing activities was DKK 0.0 million (2010: Inflow of DKK 0.1
Comparing the actual financial performance with financial guidance
The Group recorded a loss on continued operations before write-down activities
of DKK 29.0 million. The financial performance is in line with our guidance
announced at the annual general meeting on April 5, 2011.
Topotarget expects an estimated pre-tax loss in the range of DKK 75-95 million
for the full year financial result of 2012. The expected net cash and cash
equivalents will be around DKK 35-55 million at yearend 2012.
Parent Company financial statements
The Parent Company recorded a loss of DKK 33.0 million (2010: DKK 55.7
million). The Parent Company’s equity amounted to DKK 330.7 million (2010: DKK
360.2 million). The change in equity consists of the loss for the year of DKK
33.0 million and share-based payment of DKK 3.5 million.
Treatment of loss
The Board of Directors proposes that the loss for the year be carried forward
to next year.
A teleconference will be held on March 14, 2012 at 2:00 pm CET. CEO Francois
Martelet, CFO Anders Vadsholt, and CMDO Axel Mescheder will present the 2011
annual report and answer questions. The teleconference will be conducted in
A presentation will be available on Topotarget’s website, www.topotarget.com,
before the start of the conference call. To participate in the conference call
- From Denmark: 70 26 50 40 or 70 27 90 09
- Outside Denmark: +44 208 817 9301
A replay of the conference call will be available approximately two hours after
the conference call and until May 13, 2012 at: +45 70 25 26 01 or +35 314 364
267, pass code: 6944 049#. A replay will also be available on Topotarget's
For further information, please contact:
Francois Martelet, CEO: Direct: +45 39178343; Cell: +45 51328341
Anders Vadsholt, CFO: Direct: +45 39178345; Cell: +45 28989055
Axel Mescheder, CMDO: Direct: +45 39178314; Cell: +45 51557166
About Topotarget A/S
Topotarget (NASDAQ-OMX: TOPO) is an international biopharmaceutical company
headquartered in Copenhagen, Denmark, dedicated to clinical development and
registration of oncology products. Topotarget focuses, in collaboration with
Spectrum Pharmaceuticals, Inc., on the development in pivotal studies of its
lead drug candidate, belinostat, which has shown positive results as a
monotherapy treating hematological malignancies and positive results in solid
tumors. Belinostat may be used in combination with full doses of chemotherapy,
and is in a pivotal trial within PTCL (peripheral T-cell lymphoma). For more
information, please refer to www.topotarget.com.
Topotarget A/S Safe Harbor Statement
This announcement may contain forward-looking statements, including statements
about our expectations of the progression of our preclinical and clinical
pipeline including the timing for commencement and completion of clinical
trials and with respect to cash burn guidance. Such statements are based on
management's current expectations and are subject to a number of risks and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. Topotarget A/S cautions investors
that there can be no assurance that actual results or business conditions will
not differ materially from those projected or suggested in such forward-looking
statements as a result of various factors, including, but not limited to, the
following: The risk that any one or more of the drug development programs of
Topotarget A/S will not proceed as planned for technical, scientific or
commercial reasons or due to patient enrolment issues or based on new
information from non-clinical or clinical studies or from other sources; the
success of competing products and technologies; technological uncertainty and
product development risks; uncertainty of additional funding; Topotarget A/S'
history of incurring losses and the uncertainty of achieving profitability;
Topotarget A/S' stage of development as a biopharmaceutical company; government
regulation; patent infringement claims against Topotarget A/S' products,
processes and technologies; the ability to protect Topotarget A/S' patents and
proprietary rights; uncertainties relating to commercialization rights; and
product liability exposure. We disclaim any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, unless required by law.