On March 9, 2017 Agenus Inc. (NASDAQ: AGEN), an immuno-oncology (I-O) company with a pipeline of immune checkpoint antibodies and cancer vaccines, reported a corporate update and reported financial results for the fourth quarter and year ended December 31, 2016 (Filing, Q4/Annual, Agenus, 2016, MAR 9, 2017, View Source [SID1234518039]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"Actions we took last year put us on a path to register our lead antibodies that target CTLA-4 and PD-1 in the next four years. We also advanced programs directed at novel targets, such as 4-1BB and TIGIT, and upgraded our Berkeley manufacturing facility," said Garo H. Armen, Ph.D., Chairman and CEO of Agenus. "As we enter 2017, we have strengthened our balance sheet with our recently announced Incyte transaction resulting in a cash infusion of $80 million and a reduction of our cash burn rate for 2017 and beyond."

Incyte Collaboration

Earlier this year, Agenus amended its collaboration with Incyte, resulting in $80 million of cash to Agenus: $60 million from an equity investment at $6/share plus $20 million in accelerated clinical development milestones for the GITR and OX40 programs. In addition, these programs were converted from co-funded development and profit-share arrangements to royalty-bearing programs at a 15% royalty rate, with Agenus eligible for up to $510 million in future milestones.

UCB Collaboration

Agenus entered into a research collaboration with UCB to advance the development of multi-specific therapeutic antibodies. The collaboration presents a unique opportunity to discover novel therapeutics. This approach has the potential to expedite the development of Agenus’ portfolio of discovery programs focused on the next generation of I-O targets.

2017 Anticipated Milestones:

Start Phase 1 dose-escalation trial for anti-PD-1 antagonist AGEN2034 in H1.
Start Phase 1b combination trial with AGEN1884 (CTLA-4) and AGEN2034 (PD-1) in H2.
Start Phase 1 trial for AutoSynVax in H1.
Start cervical cancer trial for PD-1 monotherapy in H2.
Readouts of AutoSynVax immunogenicity in H2.
Execute additional strategic transactions.
2016 Select Highlights:

Research & Development

Started Phase 1 dose escalation trial of AGEN 1884, Agenus’ proprietary anti-CTLA-4 antibody.
Started Phase 1 trial for INCAGN1876, anti-GITR antibody in partnership with Incyte.
Started Phase 1 trial for INCAGN1949, anti-OX40 antibody in partnership with Incyte.
Advanced collaboration with Merck with the selection of a lead product candidate.
GlaxoSmithKline filed for regulatory approval of Shingrix vaccine containing Agenus’ QS-21 Stimulon.
Leadership

Appointed Ulf Wiinberg to Board of Directors, bringing three decades of leadership experience in the global biopharmaceutical industry to our governance team.
Appointed Dr. Jean-Marie Cuillerot as Vice President and Global Head of Clinical Development, who has since assumed the role of a Chief Medical Officer. Dr. Cuillerot has been integral to the development of Yervoy and Avelumab during his tenure at BMS and Merck Serono.
Fourth Quarter 2016 Financial Results
Cash, cash equivalents and short-term investments were $76.4 million as of December 31, 2016. Subsequent to the end of the year, Agenus received $80 million in cash as part of the amended partnership and stock purchase agreement with Incyte. The increased cash combined with substantially reduced clinical development expense obligations under the prior Incyte agreement, will significantly reduce our cash burn and extend our cash runway through the second quarter of 2018.

For the fourth quarter, Agenus reported a net loss of $26.1 million, or $0.30 per share, compared with a net loss for the fourth quarter of 2015 of $15.6 million, or $0.18 per share. The company’s cash burn for the quarter was approximately $19.0 million compared to approximately $27.9 million during the third quarter.

The increased net loss for the quarter ended December 31, 2016, compared to the same period in 2015, was due primarily to the expansion and growth of the research activities at the Company partially offset by non-cash income for the quarter ended December 31, 2016 of $9.4 million, due to the fair value adjustment of the contingent purchase price considerations compared to $623,000 for the same period in 2015. In addition, during the quarter ended December 31, 2015 we recorded a $5.4 million income tax benefit recognized as a result of our 2015 acquisitions.

For the year ended December 31, 2016, the Company incurred a net loss of $127 million, or $1.46 per share, compared with a net loss of $88 million, or $1.13 per share, in the same period in 2015.

The increase in net loss for the year ended December 31, 2016, compared to the net loss for the same period in 2015, was primarily due to the Company’s growth and to the advancement of our programs, and increased interest expense on our long-term debt partially offset by the decreased non-cash expense for fair value adjustments to our contingent obligations.

On March 9, 2017 Servier, together with Pfizer Inc. (NYSE:PFE) and Cellectis (Alternext: ALCLS; Nasdaq: CLLS), reported that the U.S. Food and Drug Administration (FDA) has granted Servier with an Investigational New Drug (IND) clearance to proceed in the U.S. with the clinical development of UCART19, an allogeneic, gene-edited cellular therapy candidate to treat relapsed/refractory acute lymphoblastic leukemia (Press release, Cellectis, MAR 9, 2017, View Source [SID1234518037]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Servier is sponsoring the CALM Phase 1 study on UCART19. In 2015, Servier acquired exclusive rights from Cellectis for UCART19, which is being co-developed by Servier and Pfizer.

The CALM study was initiated in the UK in August 2016. CALM is an open label, dose-escalation study designed to evaluate safety, tolerability and antileukemic activity of UCART19 in patients with relapsed or refractory CD19-positive B-cell acute lymphoblastic leukemia (B-ALL).

The allogeneic UCART19 candidate and CALM protocol were reviewed at the National Institutes of Health’s Recombinant DNA Advisory Committee (RAC) meeting on December 14, 2016. Servier submitted an IND application on February 1, 2017, with Pfizer’s support. With this IND clearance, the CALM study will be expanded to include several centers in the U.S., including the MD Anderson Cancer Center in Houston (Texas).

"We are very pleased that Servier’s first IND approval has been granted for such an innovative approach as allogeneic CAR T therapy", said Dr Patrick Thérasse, Director of Clinical Development Oncology at Servier. "B-ALL is a devastating disease and this study is key to gaining greater insight into the efficacy and safety profile of this new immune-oncology approach in patients with B-ALL."

"Pfizer is excited by the potential of this investigational CAR T approach to treating ALL and other B-Cell malignancies," said Barbara Sasu, Vice President, CAR T Research at Pfizer. "We are looking forward to having the opportunity to investigate this approach in the U.S."

About UCART19

UCART19 is an allogeneic CAR T-cell product candidate being developed for treatment of CD19-expressing hematological malignancies, gene edited with TALEN. UCART19 is initially being developed in acute lymphoblastic leukemia (ALL) and is currently in Phase I. The current approach with UCART19 is based on the preliminary positive results from clinical trials using autologous products based on the CAR technology. UCART19 has the potential to overcome the limitation of the current autologous approach by providing an allogeneic, frozen, "off-the-shelf" T cell based medicinal product.

In November 2015, Servier acquired the exclusive rights to UCART19 from Cellectis. Following further agreements, Servier and Pfizer began collaborating on a joint clinical development program for this cancer immunotherapy. Pfizer has been granted exclusive rights by Servier to develop and commercialize UCART19 in the United States, while Servier retains exclusive rights for all other countries.

On March 9, 2017 Merck, a leading science and technology company, reported finishing 2016 with record figures and continues to grow profitably (Press release, Merck KGaA, MAR 9, 2017, View Source [SID1234518059]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Sales and earnings rose significantly. Major strategic advances were made in all three business sectors.

"2016 was a successful year for Merck. In Healthcare, two of our compounds are in registration. In our Life Science business sector, we made rapid progress with the integration of Sigma-Aldrich. We have moved ahead faster and even better than expected with the realization of synergies. At the same time, the business generated notable organic growth. With its four strong businesses, Performance Materials showed robustness in a challenging market environment. We maintained our strategically important market leadership in display materials and purposefully drove new technologies forward," said Stefan Oschmann, Chairman of the Executive Board and CEO of Merck.
Net sales of the Merck Group increased sharply by 17.0% to € 15.0 billion in 2016 (2015: € 12.8 billion). All regions contributed to organic sales growth of 3.2%. The purchase of Sigma-Aldrich was responsible for an acquisition-related sales increase of 16.4%. By contrast, negative exchange rate effects, which were mainly attributable to Latin American currencies, lowered Group sales by -2.6%.

The operating result (EBIT) rose by 34.6% to € 2.5 billion (2015: € 1.8 billion). EBITDA pre exceptionals, the company’s key earnings indicator, climbed 23.7% to € 4.5 billion. Thanks to the Healthcare and Life Science business sectors, this figure was considerably higher than in the previous year (2015: € 3.6 billion).

Net income rose by 46.1% to € 1.6 billion in 2016 (2015: € 1.1 billion). This positive development was also due to the gain from the return of the rights to Kuvan to BioMarin Pharmaceutical at the beginning of 2016.

Earnings per share pre exceptionals rose by 27.5% to € 6.21 (2015: € 4.87). The proposal to the Annual General Meeting on April 28, 2017 will be to increase the dividend by € 0.15 to € 1.20 per share. Merck will have thus increased its dividend every year since 2009.

The figures for sales, EBITDA pre exceptionals and earnings per share pre exceptionals were within the upgraded target corridor that Merck had most recently announced in its report on the third quarter in November 2016.

Net financial debt, which mainly stems from the Sigma-Aldrich acquisition, decreased to € 11.5 billion at the end of 2016 (December 31, 2015: € 12.7 billion). Merck will resolutely continue along this path. As of December 31, 2016, Merck had 50,414 employees worldwide (December 31, 2015: 49,613).

Healthcare and Life Science drive Group organic sales growth in the fourth quarter
In the fourth quarter of 2016, Group sales rose by 10.6% to € 3.8 billion (Q4 2015: € 3.5 billion). This was driven not only by organic growth attributable to Healthcare and Life Science, but also by strong acquisition-related sales growth from the purchase of Sigma-Aldrich. EBITDA pre exceptionals grew by 15.1% to € 1.1 billion in the fourth quarter of 2016 (Q4 2015: € 933 million). Earnings per share pre exceptionalsincreased significantly by 26.5% in the fourth quarter of 2016 to € 1.43 (Q4 2015: € 1.13).

Healthcare grows organically and makes progress with registrations
Net sales of the Healthcare business sector rose organically by 4.6% in 2016. Organic growth was canceled out by negative exchange rate effects of –4.6%, as well as a negative portfolio effect of -1.1% from the sale of the rights to Kuvan. Consequently, Healthcare sales declined in 2016 by –1.1%, amounting to € 6.9 billion (2015: € 6.9 billion).

Sales of Rebif, which is used to treat relapsing forms of multiple sclerosis, declined organically by only –1.7% in 2016 despite continued competitive pressure from oral formulations. Amid currency headwinds of -1.5%, Rebif sales amounted to € 1.7 billion (2015: € 1.8 billion). In 2016, sales of the oncology drug Erbitux totaled € 880 million (2015: € 899 million). Organic growth of 1.1% was canceled out by negative foreign exchange effects of -3.2%. With Gonal-f, the leading recombinant hormone used in the treatment of infertility, in 2016 Merck generated strong organic sales growth of 12.4%, also benefiting from the competitive environment in the United States. Including negative foreign exchange effects of -2.5%, sales rose to € 753 million (2015: € 685 million).

Despite higher research and development expenses mainly in connection with clinical development projects in immuno-oncology, EBITDA pre exceptionals of Healthcare grew by 6.3% to € 2.1 billion (2015: € 2.0 billion).

Currently, both the multiple sclerosis treatment cladribine tablets and the oncology drug avelumab are in registration.

Life Science delivers strong organic growth despite Sigma-Aldrich integration
In 2016, net sales of the Life Science business sector soared by 68.6% to € 5.7 billion (2015: € 3.4 billion) and profitability rose. At 6.3%, Life Science again delivered strong organic growth, outpacing the market. The acquisition-related increase of 63.1% from the purchase of Sigma-Aldrich had a very strong impact on sales amid slightly negative exchange rate effects of -0.8%. Life Science made good progress with the integration of Sigma-Aldrich, including the realization of synergies. At the end of 2016, annually recurring cost synergies of € 105 million had already been leveraged as compared with the originally planned amount of € 90 million for this period. In addition, thanks to previously unplanned top-line synergies, by the end of 2018 total synergies from the acquisition will amount to € 280 million instead of the originally planned € 260 million per year, as previously announced at Capital Market Day in October 2016.

The Process Solutions business area, which markets products and services for the entire pharmaceutical production value chain, generated organic sales growth of 10.5%. The Research Solutions business area, which focuses on academia and pharmaceutical research institutions, delivered organic sales growth of 1.2%. Sales by Applied Solutions, which serves clinical and diagnostic testing laboratories as well as the food and environmental industries, grew organically by 4.3%.

EBITDA pre exceptionals of Life Science rose in 2016 by 93.0% to € 1.7 billion (2015: € 856 million), reflecting the strong development of the combined Life Science business.

Performance Materials remains robust in a difficult market environment
Net sales by the Performance Materials business sector declined in 2016 by -1.8% to € 2.5 billion (2015: € 2.6 billion). This was mainly due to the -4.7% organic decrease in sales. Acquisition-related growth of 2.7% from the SAFC Hitech business of Sigma-Aldrich acquired in 2015 and exchange rate effects of 0.2% could only partly offset this.

The Display Materials business unit, which comprises the business with liquid crystals and complementary materials, saw a sharp organic decline in sales in 2016 yet still maintained its market leadership position. The decline in sales resulted from a strong previous year as well as destocking by display industry customers. One exception was the energy-saving UB-FFS technology used in the latest generation of smartphones. Here, double-digit growth was achieved along with record sales in the fourth quarter. The Integrated Circuit Materials business unit also showed strong organic sales growth. The Pigments & Functional Materials business unit delivered solid organic sales growth in 2016. Growth in the Advanced Technologies business unit was driven by double-digit sales increases for OLED materials; a new OLED production unit was opened in Darmstadt in September 2016.

EBITDA pre exceptionals of Performance Materials fell by -2.3% to € 1.1 billion (2015: €  1.1 billion).

Sales growth and stable EBITDA pre exceptionals forecast for 2017
For the Group, Merck expects slight to moderate organic sales growth in 2017 in comparison with the previous year. EBITDA pre exceptionals of the Merck Group should remain about stable compared with 2016; this encompasses a slightly positive or negative percentage fluctuation around the previous year’s level.
Merck Group – Key figures
€ million
2016
2015
Change
in %
Q4 2016
Q4 2015
Change
in %
Net sales
15,024
12,845
17.0
3,830
3,464
10.6
Operating result (EBIT)
2,481
1,843
34.6
405
298
36.0
Margin (% of net sales)
16.5
14.3
10.6
8.6
EBITDA
4,415
3,354
31.6
953
803
18.7
Margin (% of net sales)
29.4
26.1
24.9
23.2
EBITDA pre exceptionals
4,490
3,630
23.7
1,075
933
15.1
Margin (% of net sales)
29.9
28.3
28.1
26.9
Earnings per share (€)
3.75
2.56
46.5
0.62
0.29
113.8
Earnings per share pre exceptionals (€)
6.21
4.87
27.5
1.43
1.13
26.5
Net income
1,629
1,115
46.1
269
126
113.8
Dec. 31, 2016
Dec. 31, 2015
Net financial debt
11,513
12,654
– 9.0

On March 9, 2017 MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX; OTC: MPSYY), a leader in the field of therapeutic antibodies, reported results for the financial year 2016, as well as a financial and operational outlook on 2017 (Press release, MorphoSys, MAR 8, 2017, View Source [SID1234518045]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"2016 was a rewarding year for us. The first therapeutic antibody from our platform was filed for market approval by our pharma partner Janssen, which is a major milestone in our company’s history. We expect the decision on regulatory filing of guselkumab in the second half of 2017," said Dr. Simon Moroney, Chief Executive Officer of MorphoSys AG. "In parallel, we made significant progress with our own drug candidates in 2016. Across our pipeline we see many programs which have the potential to transform the treatment of the diseases they address and thus to create value and benefit for all our stakeholders, including our partners, investors and patients."

"With a record-high of 114 programs in R&D, MorphoSys’s portfolio is one of the broadest in the biopharmaceutical industry. This pipeline is supported by financial resources of close to EUR 360 million at year-end 2016. We strengthened our financial position by a successful capital increase with gross proceeds of EUR 115.4 million in November 2016. Our financial strength enables us to invest strongly in the development of our own drug candidates to grow the Company’s value, without losing sight of our prudent and efficient use of resources," commented Jens Holstein, Chief Financial Officer of MorphoSys AG.

Financial Review for the Fiscal Year 2016 (IFRS)

In 2016 MorphoSys continued to focus on the research and development of drug candidates both for partners and on its own account. Group revenues came in at EUR 49.7 million, fully in line with expectations (2015: EUR 106.2 million). Adjusted for a 2015 one-off income of approximately EUR 59 million, 2016 revenues rose by 5% compared to the previous year.

In the Proprietary Development segment, MorphoSys focuses on the research and clinical development of its own drug candidates in the fields of cancer and inflammation. In 2016, this segment recorded revenues of EUR 0.6 million, an almost flat revenue development compared to 2015, as previous year’s numbers (2015: EUR 59.9 million) included a one-off effect of approximately EUR 59 million from the termination of the MOR202 co-development and co-promotion agreement with Celgene.

In the Partnered Discovery segment, MorphoSys applies its proprietary technology to discover new antibodies for pharmaceutical companies, benefitting from the partners’ development advancements through success-based milestone payments and royalties. In 2016, revenues were up 6% to EUR 49.1 million (2015: EUR 46.3 million). The increase was mainly driven by milestone payments from partners. Segment revenues in 2016 comprised EUR 43.6 million in funded research and license fees (2015: EUR 42.3 million) and EUR 5.6 million in success-based payments (2015: EUR 4.0 million).

Total operating expenses came in at EUR 109.8 million, exceeding last year’s numbers by 17% (2015: EUR 93.7 million). While general and administrative expenses were reduced by 7% to EUR 14.1 million (2015: EUR 15.1 million), research and development expenses were increased by 22% to EUR 95.7 million (2015: EUR 78.7 million). Intensified clinical trials with MorphoSys’s proprietary drug candidates, in particular the start of three phase 2 studies with the lead compound MOR208 in selected blood cancer indications, were the main area of focus. Proprietary R&D expenses, including technology development, rose by 39% to EUR 78.5 million (2015: EUR 56.6 million), fully meeting the Company’s guidance.

Earnings before interest and taxes (EBIT) stood at EUR -59.9 million (2015: EUR 17.2 million). Adjusted for the one-off effect in 2015, the operating loss for 2016 rose by approximately 43%, mainly based on the planned expansion of R&D activities. The Proprietary Development segment reported an EBIT of EUR -77.6 million (2015: EUR 10.7 million). EBIT in the Partnered Discovery segment was up by 52% to EUR 31.0 million (2015: EUR 20.4 million), mainly based on the increase in success-based milestone payments from partners and lower costs incurred in the segment.

In 2016, the consolidated net result amounted to EUR -60.4 million (2015: EUR 14.9 million). The diluted net result per share for 2016 was EUR -2.27 (2015: EUR 0.57).

At year-end 2016, the Company had a cash position of EUR 359.5 million compared to EUR 298.4 million on December 31, 2015. On the balance sheet, this cash position is reported under the items: cash and cash equivalents; available-for-sale financial assets; bonds, available-for-sale; financial assets classified as loans & receivables; and financial assets classified as loans & receivables, net of current portion.

The number of shares issued totaled 29,159,770 at year-end 2016 (year-end 2015: 26,537,682). The increase in the number of shares resulted from the capital increase on November 15, 2016 with gross proceeds of EUR 115.4 million, in which 2,622,088 shares were issued.

Financial Guidance and operational outlook for 2017

For the financial year 2017, MorphoSys expects to generate Group revenues in the range of EUR 46 to 51 million. R&D expenses for proprietary drug development are anticipated in a corridor of EUR 85 to 95 million. The Company expects earnings before interest and taxes (EBIT) of EUR -75 to -85 million. This guidance does not include any additional revenue from potential future collaborations and/or licensing partnerships nor effects from potential in-licensing or co-development deals for new development candidates.

"We continue to invest in our growing portfolio of highly promising proprietary drug candidates which are nearing the decisive stages of clinical development. In 2017 we will start a phase 3 study with our lead candidate MOR208 in the blood cancer indication diffuse large B cell lymphoma (DLBCL), where we see a high unmet medical need. This will be the first pivotal trial with one of our own antibodies. This marks another important step on our way to becoming a fully-integrated biopharmaceutical company, that will be increasingly based on product-based revenue streams," commented Dr. Simon Moroney.

In the Proprietary Development segment, MorphoSys expects the following events in 2017:

MOR208: Completion of the phase 2 safety run-in of the B-MIND study and initiation of the pivotal phase 3 part of the study, in which MOR208 will be tested in combination with bendamustine in comparison to rituximab and bendamustine in DLBCL.
MOR208: Presentation of first preliminary data of the phase 2 trial of MOR208 in combination with lenalidomide in DLBCL (L-MIND study).
MOR208: Initiation of another study arm of the ongoing phase 2 COSMOS trial with MOR208 in CLL in order to test MOR208 with a further combination drug. Currently, the Company is investigating the combination of MOR208 and idelalisib in this study.
MOR202: Completion of the phase 1/2a dose-escalation trial in multiple myeloma, including the results of MOR202 in the highest dose of 16 mg/kg alone and in combinations with pomalidomide and with lenalidomide.
MOR209/ES414: Continuation of the phase 1 trial of MOR209/ES414 with adapted dose regimen in prostate cancer (mCRPC) as part of the collaboration with Aptevo.
MOR106: Completion of the phase 1 trial of MOR106, co-developed with Galapagos, in atopic dermatitis.
MOR107: Completion of a phase 1 study in healthy volunteers.
MOR103/GSK3196165: For this HuCAL antibody, which has been fully out-licensed to GSK, MorphoSys expects data from a phase 2b study in rheumatoid arthritis and from a phase 2a study in hand osteoarthritis, both conducted by GSK.
In its Partnered Discovery segment, MorphoSys expects the following events in 2017:

Guselkumab: the first partner-developed therapeutic antibody based on MorphoSys’s HuCAL technology could receive market approval in 2017. MorphoSys expects that the US regulatory authority FDA should make a decision in the second half of 2017 on Janssen’s application for the approval of guselkumab to treat adults with moderate to severe psoriasis. In addition, a regulatory filing for guselkumab in Europe has been submitted.
Anetumab ravtansine, a HuCAL antibody drug conjugate developed by Bayer, is expected to report results in 2017 from a pivotal phase 2 trial in the cancer indication mesothelioma. Favourable results could support a regulatory filing of the compound.
Novartis collaboration: As previously communicated and as reflected in the Company’s 2017 guidance, MorphoSys expects the collaboration with Novartis to end at the end of November 2017 in accordance with the contract. The Company does not believe that Novartis will exercise its option to extend the contract.
In total, results may be disclosed from up to 31 different clinical studies in various phases conducted by partners with antibodies based on MorphoSys technology.
MorphoSys plans to establish additional collaborations with pharmaceutical and biotechnology companies based on the Ylanthia technology, similar to its partnership with LEO Pharma established in 2016.

MorphoSys Group Key Figures (IFRS, end of financial year: December 31)

in EUR million 2016 2015 Change Q4/2016 Q4/2015 Change
Revenues 49.7 106.2* -53% 13.0 12.3 +6%
Operating expenses 109.8 93.7 +17% 40.7 30.1 +35%
R&D expenses 95.7 78.7 +22% 36.9 25.6 +44%
Proprietary R&D expenses 78.5 56.6 +39% 32.3 16.7 +93%
G&A expenses 14.1 15.1 -7% 3.8 4.5 -16%
EBIT -59.9 17.2* >-100% -27.6 -17.5 +58%
Net result -60.4 14.9 >-100% -28.7 -13.3 >100%
Net result per share (diluted) (in EUR) -2.27 0.57 >-100% -1.04 -0.58 +79%
Cash position (end of period) 359.5 298.4 +20% 359.5 298.4 +20%
Equity ratio (end of period) (in %) 90% 91% -1 PP** 90% 91% -1 PP**
No of R&D programs (end of period) 114 103 +11 114 103 +11
No of clinical programs (end of period) 29 25 +4 29 25 +4
No of proprietary clinical programs (end of period) 5 4 +1 5 4 +1
* Adjusted by a positive one-off effect of approximately EUR 59 million in revenue and EBIT of 2015, total Group revenues reached approximately EUR 47 million and the total Group EBIT approximately EUR -42 million in 2015.
** Percentage point

MorphoSys will hold its conference call and webcast today to present the annual financial results 2016 and the outlook 2017.