4basebio AG: 4basebio AG Reports positive Financial Results for Fiscal Year 2019 - Financial Guidance Met
DGAP-News: 4basebio AG
/ Key word(s): Annual Results
4basebio AG Reports positive Financial Results for Fiscal Year 2019 -
Conference call to be held today, 24 April 2020, 3:00pm CET/2:00pm BST
- 4basebio meets full year financial guidance:
- Revenues for 2019 of EUR 15.7 million up 19% (2018: EUR 13.1 million)
- EUR 120 million proceeds on 2 January 2020 from sale of proteomics and immunology businesses to Abcam plc
Heidelberg, Germany and Cambridge, UK, 24 April 2020 - 4basebio AG (Frankfurt: 4BSB; ISIN: DE000A2YN801; Prime Standard) today reported positive results for the fiscal year ending December 31, 2019.
"Importantly, the sale of our proteomics and immunology businesses to Abcam for €120m signed in November 2019 confirmed management's long held view of the Company's genuine enterprise value and has also reshaped the focus of the group: Our exciting retained genomics technology is highly relevant to the development of synthetic DNA for application in gene therapy and gene vaccine markets, two rapidly emerging seismic trends in personalised medicine. Over the next two years, the development of synthetic DNA manufacturing capacity will become the principal focus of our business," Dr Lanckriet continued.
David Roth, CFO of 4basebio, noted: "The Abcam transaction represented a highly successful implementation of our buy and build strategy which the company undertook between 2016 and 2018, with the sale of the assets acquired through the purchases of Expedeon, Innova and TGR. This means that 4basebio has now significant cash resources to support its ongoing growth strategy."
2019 Financial Results:
Total net operating expenses increased to EUR 17.4 million in 2019 (2018: EUR 13.7 million) with the expansion of the Group. This included other operating expenses of EUR 1.4 million (2018: income of EUR 1.2 million) from a revaluation of acquisition earn outs at year end. Excluding this item, the increase in operating expenses of EUR 1.3 million was mainly driven by increasing business scale.
Reported EBITDA was EUR 1.1 million for the year (2018: EUR 1.8 million), this change was driven by the year on year change in acquisition earn outs of -EUR 2.4 million. Adjusted EBITDA for the year was EUR 2.9 million (2018: EUR 1.0 million); this is in line with the revised market guidance issued in October 2019 of EUR 2.5 to 3.0 million for adjusted EBITDA. Prior to the sale of assets to Abcam, the Company has considered, as in previous years, adjusted EBITDA to be a key metric. This excludes charges and income relating to depreciation, amortisation and acquisition accounting as well as equity settled share compensation; it also excludes EUR 360 thousand of accrued expenses relating to the 2020 Abcam transaction.
Loss before taxes (EBT) in 2019 was EUR 2.6 million (2018: EUR 503 thousand). The reported net loss for 2019 was EUR 2.6 million (2018: EUR 301 thousand). This is primarily a consequence of the year on year change in acquisition earn outs of -EUR 2.4 million, and EUR 360 thousand of Abcam transaction related accrued expenses.
Non-current assets at EUR 52.2 million were broadly consistent with the previous year (EUR 51.8 million) and reflect primarily goodwill and intangible assets arising on recent acquisitions. Current assets reduced to EUR 10.0 million compared with EUR 12.4 million in 2018. This is directly due to a reduction in cash balances following settlement of certain financial obligations.
Underlying net cash outflows from operating activities further improved from an outflow of EUR 158 thousand in 2018 to an inflow of EUR 1.1 million in 2019. Cash outflow from investing activities amounted to EUR 925 thousand, compared to EUR 6.7 million in the previous year. Cash flows from financing activities changed to an EUR 2.9 million outflow due to repayment of debt obligations, compared with a EUR 11.2 million inflow in the year 2018. The company closed the year with cash balances of EUR 3.7 million
4basebio is now primarily focussed on the development of commercial quantities of synthetic DNA for use in gene therapy and gene vaccine markets. The synthetic biology market is expected to reach US$38.7 billion in 2020 with a CAGR of 44.2%. DNA synthesis is the largest segment of this market with a CAGR of 57.8%.
Synthetic DNA is a new technology, with very clear performance, safety and cost benefits in comparison to current DNA bio fermentation manufacturing processes.
Over the next two years, 4basebio expects to invest up to EUR 15.0 million in the ongoing development of its proprietary technology for DNA manufacture, the subsequent scaling of its business and the development of a DNA manufacturing facility to produce commercial quantities of synthetic, clinical grade DNA. Alongside this we will continue our buy and build strategy with the aim of acquiring assets and technologies in gene therapy and vaccine workflows which are complementary to the core synthetic DNA production technology.
Management believes the pursuit of this strategy offers a value creation opportunity that can in due course significantly exceed the EUR 120 million disposal of the immunology and proteomics assets.
Conference call details:
Interested parties may pre-register and will receive dedicated dial-in details to easily and quickly access the call.
The conference call will be accompanied by a slide presentation which can be accessed during the call by following this Link: https://78449.choruscall.com/dataconf/productusers/4basebio/mediaframe/37444/indexl.html (Presentation only, no sound - advised for participants on the phone)
Please dial in 5 minutes before the beginning of the event.
An audio recording of the conference call will be available the next day on the Company's website at www.investors.4basebio.com
Consolidated Financial Statements (IFRS):
Within the group financial statements, the consolidated cash flow statement includes cash inflows and outflows attributable to both discontinued operations and continuing operations. In the following table, the cash flows of the 4basebio Group is presented both with regard to the discontinued operations and with regard to the continuing operations of the 4basebio Group.
The Company's 2019 Annual Report will be available online in the 4basebio website investors' section from April 30, 2020.
For further information, please contact:
Dr. Robert Mayer, Manager IR
MC Services AG
About 4basebio AG:
4basebio AG, formerly operating under the name of Expedeon AG, is an enabler of exciting advances in medical science and patient care. After divestment of its immunology and proteomics products portfolio on January 1 2020, the Company changed its name to 4basebio AG reflecting the enhanced focus on technologies and products centered around DNA. The Company is focusing on DNA manufacturing to supply DNA products for therapeutic and other uses requiring large amounts of high-purity DNA, such as the fast-growing market of novel gene therapies and gene vaccines. Besides DNA manufacturing, 4basebio aims at providing research and diagnostic products based on its RNA reverse transcriptase, DNA polymerase and DNA primase enzymes, addressing the research tools and diagnostic products markets.
4basebio AG has offices in Germany, Spain, UK, and the US. The Company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (Ticker: 4BSB; ISIN: DE000A2YN801).
More information: www.investors.4basebio.com
# # # This publication is intended for information only and constitutes neither an offer to sell nor an invitation to buy securities. Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of 4basebio AG may deviate greatly from the established conclusions or implied predictions contained in such statements. 4basebio does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. # # #
 Allied Market Research: "Global Synthetic Biology Market (Products, Technologies, Applications and Geography) - Global Opportunity Analysis and Forecast - 2013 - 2020"
24.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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