Hoersholm, Denmark, March 23, 2018 - Medical Prognosis Institute A/S ("MPI") publishes the Annual Report for 2017. The complete report is available in the attached document. A summary of the Annual Report is presented below. MPI has for 2017 upgraded accounting policies to IFRS and prepared its first consolidated financial statements. The main changes when compared to previous used standard (DK GAAP) are an addition of the recognition of share-based payments (such as granted shares, share options, or share appreciation rights) which were not subject to previously accounting standard, investment in associates and development costs. After IFRS the loss for the year 2017 is affected negatively by share-based payments of DKK 15 million due to an extraordinary granting of warrants to board members and executive management to compensate for the cancellation of warrants issued in 2014 and 2016. The share-based payments have no cash effect and the result is in line with what is expected.
"I'm proud to announce this Annual Report which is in line with expectations and has been prepared on the basis of IFRS. The upgrading of the reporting standard is a step towards the ambition to move to the main market on Nasdaq, Stockholm. The change of reporting rules gives a better insight of the resources spent and the values gained", said Peter Buhl Jensen, M.D., DMSc and CEO of Medical Prognosis institute. "The ambition of moving to the main market is driven by the fact that we are producing encouraging data in our drug pipeline - beginning with LiPlaCis as well as our recent ability to attract significant and high quality projects from big pharma," Peter Buhl Jensen further commented.
Revenue amounted to TDKK 5 145 in 2017 (TDKK 4 384 for the corresponding period in 2016). Revenue for the 2nd half of 2017 amounted to TDKK 2 085 (TDKK 3 140 for the corresponding period in 2016).
Loss before depreciation amounted to TDKK -23 794 of which TDKK 12 975 is share based payments with no cash effect but accounted for due to IFRS requirement (Loss before depreciation in 2016 were TDKK -13 769 where TDKK 461 was share based payment with no cash effect). The share-based payment is reflecting an extraordinary granting of warrants to board members and executive management to compensate for the cancellation of warrants issued in 2014 and 2016.
The development in profit margin amounted to -463 % (last year -315 %). Gross loss before depreciation for the 2nd half of 2017 amounted to TDKK -7 712 (TDKK -8 417 for the corresponding period in 2016). The development in gross profit margin for the 2nd half of 2017 amounted to -370 % (last year -268 %).
Staff expenses amounted to TDKK -18 577 (last year TDKK -6 274). Eliminating for share-based payment TDKK 12 975 salaries and wages would be TDKK 5 602. Staff expenses for the 2nd half of 2017 amounted to TDKK -3 387 (TDKK -5 099 for the corresponding period in 2016).
Profit/loss before financial income and expenses showed a loss of TDKK -23 848 (last year a loss of TDKK -13 814). This loss is in line with the guidance in the half year interim report.
Loss before tax amounted to TDKK -30 980 (last year a loss of TDKK -13 958). Tax amounted to TDKK 590 (last year TDKK 2 650) and relates to tax refund of the tax losses from research and development costs.
The Company realized a net loss of TDKK -30 390 affected by the non-cash share based payment (last year a net loss of TDKK -11 308). Net loss for the 2nd half of 2017 amounted to TDKK -11 022 (TDKK -6 992 for the corresponding period in 2016).
Total assets amounted to TDKK 12 654 (last year TDKK 16 364) and primarily consist of cash and investments and warrants in associates. Total liabilities amounted to TDKK 10 209 (last year TDKK 5 056) and primarily consist of the Company's trade payables and deferred income.
The Company's cash flow was a negative TDKK -1 959 (last year a negative TDKK -30).
Outlook for 2018
The EBITDA as a stand-alone company is expected to be in the range of DKK -10 to -12 million.
No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.
Distribution of profit
The Board of Directors proposes that the loss for the year is transferred to retained earnings.
Capital resources and liquidity
As a development company, and like other similar companies, MPI over the years has shown negative cash flow why the company is dependent on being recapitalized until reaching the point where a positive cash flow begins. The Board of Directors and Management are constantly monitoring MPI's financial position and are prepared to take the adequate measures to secure the ongoing activities of the company.
To further optimize and secure the financial position of the company the management is continuously considering relevant improvement initiatives, e.g. sales of the company's share position in Oncology venture Sweden AB, partnering deals, capital increases or loan facilities. The Board of Directors and Management have confidence in the company as a going concern (stand alone or as merged), and consequently, the Financial Statements have been prepared in accordance with the going concern principles.
Selected announcements and news in 2017
Announcements after the end of 2017
For further information, please contact:
CEO, Peter Buhl Jensen, MD, Ph.D. Ulla Hald Buhl, IR & Communications
E-mail: firstname.lastname@example.org E-mail: email@example.com
Telephone: +45 21 60 89 22 Telephone +45 21 70 10 49
This information is information that Medical Prognosis Institute A/S is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication on March 23, 2018.
About MPI's multiple biomarker called Drug Response Predictor - DRP®
MPI's DRP® is a tool for developing tumor-derived genetic signatures to predict which cancer patients are high likely to respond to a given anti-cancer product. The DRP® has been tested in 37 trials, where 29 trials showed that drug-specific DRP® Biomarkers could predict which patients responded well to the treatment. The DRP® platform has amongst others been externally validated and published in collaboration with leading statisticians at the MD Anderson Cancer Center. The DRP® method can be used to design the Clinical Development Plan, i.e. to select which indications are relevant for a given anti-cancer drug. In addition to this, the individual genetic patterns of patients can be analyzed as part of a screening procedure for a clinical trial to ensure inclusion of patients with a high likelihood of response to the drug. DRP® builds on comparison between sensitive and resistant human cancer cell lines, including genomic information from cell lines combined with clinical tumor biology and clinical correlates in a systems biology network. The DRP® is a Big Data tool based on messenger RNA. The DRP® platform can be used in all cancer types, and has been patented for more than 70 anti-cancer drugs in the US.
Medical Prognosis Institute is a publicly traded international company specialized in improving cancer patients' lives by developing Personalized Medicine using its unique DRP® technology. MPI's exceptional opportunity to personalize cancer treatment begins with Breast Cancer moving on to Multiple Myeloma and Prostate Cancer as the first steps. MPI's DRP® tool has shown its ability to separate patients who benefit and who do not benefit from a specific cancer treatment. This has been shown in as many as 29 out of 37 trials, and covers more than 80 anti-cancer treatments in a wide range of cancer indications. MPI has built a significant large database with over 1,400 screened breast cancer patients and is building up a database in Multiple Myeloma to be followed by Prostate cancer in collaboration with oncologists and hematologists throughout Denmark. MPI has ownership of Oncology Venture (Publ) a spinout with three anti-cancer drugs in pipeline entered and of the privately hold Special Purpose Vehicles, 2X Oncology Inc. and OV-SPV2 Aps with four products in pipeline.
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