PharmiWeb.com - Global Pharma News & Resources
06-May-2020

CO.DON AG reports good first quarter 2020, adjustment to preliminary figures for 2019, forcast for 2020 and other planned developments

DGAP-News: CO.DON AG / Key word(s): Preliminary Results
06.05.2020 / 13:27
The issuer is solely responsible for the content of this announcement.

CO.DON AG reports good first quarter 2020, adjustment to preliminary figures for 2019, forcast for 2020 and other planned developments

Berlin / Teltow / Leipzig, 06 May 2020

Good first quarter 2020

CO.DON AG (the "company") increased revenue year on year by 27% in the first quarter according to provisional figures, which is due to double-digit growth in domestic revenue, and above all to the increase in foreign revenue. This positive performance was interrupted by the increasing spread of the corona virus. CO.DON AG implemented emergency plans as a result and took steps to safeguard its continued production capacities. The global response to the pandemic and the resulting lockdown measures have also impacted the sales markets of CO.DON AG, however, particularly as hospitals are currently reducing the number of operations they carry out.

Adjustment to provisional figures for the financial year 2019

The main financial performance indicators for financial year 2019 (all figures unaudited): In the course of preparing the consolidated financial statements for financial year 2019 the unaudited figures have been altered compared with the preliminary figures published in January. According to the unaudited consolidated financial statements, group revenue came to EUR 6.9 million (2018: EUR 5.7 million). This means the company missed its revenue target of EUR 8.8 million, but achieved an increase of 21% over financial year 2018.

The loss under commercial accounting rules was EUR 11.5 million (2018: EUR 8.8 million). Not including the costs of the capital increase in October 2019, the loss for the year came to EUR 10.4 million. Net income under IFRS was EUR -12.6 million (2018: EUR -6.3 million). The significant difference between net income 2019 and the preliminary figures published in January 2020 is particularly due to the follow-up valuation by an external expert of the convertible bond and warrant issued in 2018, which on balance resulted in higher expenses from the fair value measurement of financial instruments at amortised cost and their derivatives. The complete, final and audited figures for the 2019 financial year will be published at the end of May 2020.

Items of the consolidated income statement 2019

We have summarised the main items of the income statement in the table below (all figures unaudited):

Items of the consolidated income statement

EUR k 2019 2018
Revenue 6,856 5,654
Own work capitalised 51 42
Cost of materials -555 -656
Staff expenses -8,556 -7,042
Balance of other operating income and expenses -6,414 -5,841
Depreciation & amortisation -829 -718
Operating earnings -9,447 -8,561
Financial earnings (balance of financial income and expenses) -3,713 3,565
Income tax 531 -1,275
Net income -12,629 -6,271


Net assets

EUR k or % 31 December 2019 31 December 2018 Change
Current assets 6,391 11,950 -47%
Non-current assets 18,439 15,471 19%
Total assets 24,830 27,421 -9%
Current liabilities 3,570 4,698 -24%
Non-current liabilities 9,751 10,055 -3%
Total liabilities 13,321 14,753 -10%
Total equity 11,509 12,668 -9%


Financial position

EUR k 2019 2018
Cash flow from operating activities -9,529 -8,138
Cash flow from investing activities -3,863 -7,449
Cash flow from financing activities 7,216 13,186
Change in cash and cash equivalents -6,176 -2,401
 

Other planned developments

CO.DON AG restructured its business at the start of the current financial year, in order to reduce its monthly cash burn and streamline its organisational structure. The result of the company-wide evaluation was to determine the potential savings from restructuring, reorganisation and a sharper focus. Under the heading of absolute cost awareness, CO.DON's business model was revised to focus on product sales and expanding European market share. Marketing of the company's main product, which has EU central marketing authorisation, will initially be limited to countries already active or in preparation (Germany, Austria, Switzerland, England, Netherlands, Italy, France, Belgium). The aims are to increase user numbers and boost revenue. Other markets outside Europe and technology partnerships outside Europe will not or no longer be pursued. Contract manufacturing will initially only be pursued within the existing framework, but not actively advertised, since staff resources are to be used for manufacturing proprietary products and the ongoing development of the new production site in Leipzig. Product-related projects, such as the development of an in-house software basis for the end-to-end digitalisation of pharmaceutical processes will be temporarily suspended for cost reasons. The Research and Development department has been closed and the existing scientific know-how will be use to support the sales function. A comprehensive change of key personnel has taken place. These activities were implemented by the end of the first quarter of the current financial year and form a solid foundation for a realistic company strategy.

Forecast for 2020

The economic and social developments in connection with the corona virus (covid-19) meant that since mid-March 2020 the situation has been increasingly difficult in the company's core markets. In addition to the more difficult working conditions for field sales staff resulting from these circumstances, the first effects began to be felt of the request from the Federal Health Ministry to postpone elective surgery (i.e. non-essential operations). This requirement caused a sharp fall in new orders compared with the previous year as early as April.

The treatment of cartilage damage in joints is not an essential operation and so many users have postponed surgery during the strict lockdown measures taken to protect against the covid-19 pandemic. The company therefore assumes that new orders will decline significantly in the second quarter of the financial year. In view of the covid-19 pandemic, and despite expanding its foreign activities, the company is only expecting group revenue, and revenue for the separate financial statements, to be moderately higher than the previous year. This assumes that due to a lack of new orders, there will be a revenue shortfall of up to 100% for a period of three months.

Taking the restructuring expenses planned for 2020 and the impact of the covid-19 pandemic as described above into account, IFRS net income in 2020 is expected to be moderately more negative than in the previous year. The net loss for CO.DON AG under German commercial law in 2020 is projected to be significantly higher than in the previous year. Given the unpredictable developments in the covid-19 pandemic in the weeks and months ahead, we cannot rule out that the risks for the company may increase and the company's performance may differ from these forecasts.

CO.DON AG develops, produces and distributes autologous cell therapies for the minimally invasive repair of cartilage defects. The product being marketed is a cell therapy product for the minimally invasive treatment of cartilage damage in the knee joint that uses only the patient's own cartilage cells ("autologous chondrocytes"). CO.DON's method is currently used in over 200 clinics in Germany and more than 15,000 patients have already been treated. In July 2017 CO.DON AG received central EU marketing authorisation for this product from the European Medicines Agency (EMA). At its site in Leipzig CO.DON has built one of the world's largest and most modern plants for the industrial-scale production and contract manufacturing of human cells. The shares in CO.DON AG are listed on the Frankfurt Stock Exchange (ISIN: DE000A1K0227). Executive Board: Tilmann Bur.

Further information is available from www.codon.de.

Contact

Matthias Mei├čner
Director Corporate Communications
Investor Relations / Public Relations
T: +49 (0)30 240352330
F: +49 (0)30 240352309
E: ir@codon.de



06.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: CO.DON AG
Warthestra├če 21
14513 Teltow
Germany
Phone: 03328 43460
Fax: 03328 434643
E-mail: info@codon.de
Internet: www.codon.de
ISIN: DE000A1K0227
WKN: A1K022
Listed: Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange
EQS News ID: 1037331

 
End of News DGAP News Service

Editor Details

Last Updated: 06-May-2020