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Half Year financial report
NeuroSearch A/S – H1 report 2015
31 August 2015
Below please find the H1 report 2015. The full report is available in the enclosed PDF file.
The NeuroSearch Group posted an operating loss of DKK 3 million in H1 2015 (H1 2014: a loss of DKK 10 million) and a loss after tax of DKK 3 million (H1 2014: a loss of DKK 6 million).
At 30 June 2015, cash and cash equivalents totalled DKK 80 million (30 June 2014: DKK 84 million).
Update on the company’s assets
The company is currently in the process of exploring the possibility of a controlled disposal of some of the remaining assets. The potential of a merger or a similar solution is also being investigated.
Clinical projects – NeuroSearch does not conduct any further development, but is trying to identify opportunities to divest the projects on an “as is” basis:
Seridopidine for the treatment of CNS disorders (completed Phase I)
Ordopidine for the treatment of CNS disorders (completed Phase I)
Moreover the company has shareholdings in:
Potential milestone payments from Teva Pharmaceuticals of up to DKK 55 million relating to the development of Huntexil®
Potential milestone payments and royalties from Saniona
The value of the assets listed above is subject to substantial uncertainty as no established market exists for such assets.
In addition, NeuroSearch calculated the value as of 31 December 2014 of its unrecognised tax losses carried forward at approximately DKK 2.0 billion, and deductible temporary differences at approximately DKK 0.2 billion, or a total of DKK 2.2 billion. Under certain conditions, the unrecognised tax assets may be exploited in full or in part by a potential buyer of NeuroSearch.
The current litigation
In August 2014, NeuroSearch was convicted by the City Court of Copenhagen of share price manipulation in violation of the rules of the Danish Securities Trading Act in an action brought by the Public Prosecutor for Special Economic and International Crime (SEIC) as a result of the conviction of the Company’s then CEO for share price manipulation. NeuroSearch appealed the decision of the City Court of Copenhagen to the Eastern High Court as the Board of Directors as the Board of Directors believed there is no basis for convicting the Company of share price manipulation. The Eastern High Court has set the hearing of the case for late September 2015. NeuroSearch expects the Eastern High Court's conviction in Q4 2015.
Outlook for 2015
In 2014, NeuroSearch expects an operating loss in the range of DKK 7-9 million The outlook does not include any income from the possible sale of Company assets, potential income from the company’s agreements with Teva, Saniona or others, and neither does the outlook take into account a potential reversal of the provision of DKK 5 million made to cover the fine the Company in 2014 was ordered by The City Court of Copenhagen to pay.
Allan Andersen, CEO, mobile+45 4016 3864
NeuroSearch A/S (NEUR) is listed on NASDAQ OMX Copenhagen A/S.