NeuroSearch A/S
NeuroSearch A/S releasing Annual Report 2013

DGAP-News: NeuroSearch A/S /

23.01.2014 / 13:08

---------------------------------------------------------------------

Company announcement

23 January 2014

The full version of the Annual Report 2013 for NeuroSearch is available in the
enclosed PDF file. 


In 2013, the NeuroSearch Group (NEUR) posted an operating loss on continuing
operations of DKK 10 million (2012: 290 million), which was on a level with the
Company's previously announced expectations of an operating loss of DKK 10
million. 

The Company posted a profit of DKK 16 million on discontinued operations (2012:
DKK 57 million). The income was primarily related to the sale of laboratory
equipment and office equipment. 

NeuroSearch posted a loss after tax on continuing operations of DKK 3 million
(2012: DKK 333 million). 

Consolidated profit was DKK 12 million (2012: a loss of DKK 276 million).

At the end of 2013, cash and cash equivalents totalled DKK 89 million (2012:
DKK 81 million). 

For a complete description of performance in the 2013 financial year, we refer
to the Annual Report 2013 of NeuroSearch accompanying this announcement, and
which is also available on our website as from today. 

Events in 2013 and until today:

Huntexil(R)

  -- On 25 April 2013, the escrow account of DKK 29 million regarding Huntexil(R)
     was released, marking the completion of the transfer of Huntexil(R) to Teva,
     who will handle the further clinical development of the project.


The Public Prosecutor for Special Economic and International Crime

  -- On 17 July 2013, the Public Prosecutor for Special Economic and
     International Crime announced that it had charged the Company with alleged
     qualified share price manipulation of a particularly gross nature.
     NeuroSearch denies the charge. Court proceedings are set to begin in May
     2014. Until a final judgment is available in the case, NeuroSearch does not
     expect any sale or merger of the company as the consequences of a judgment
     will be largely unknown to a potential buyer or merger partner. For the
     same reason, the company is unable to declare any dividend or file for
     liquidation of the company. However, the company may still seek to sell
     certain individual assets.

Financial statements review dispute

  -- The Danish Business Authority has reviewed our Annual Report for the 2012
     financial year, and has in a draft decision stated that it was a
     misstatement to classify the proceeds from the sale of the Huntexil(R)
     project as revenue. The Danish Business Authority states that the proceeds
     must be classified as profit on the sale of an intangible asset. Management
     and its auditor believe that the proceeds have been accounted for correctly
     within the framework of IFRS as well as it is in accordance with biotech
     accounting practice. The Danish Business Authority is expected to present
     the case to the Danish Financial Council by mid-February 2014, after which
     the Danish Business Authority will make a final decision. It is expected
     that a final decision will have been made before our Annual General Meeting
     to be held in March 2014 when the Annual Report is to be approved. If the
     decision goes against the Company, the Annual Report will be restated
     accordingly.
Any such restatement would have no impact on profit, equity or cash flows.
     It would solely be a reclassification of the sale of the Huntexil(R) project
     from revenue to other operating income in 2012 and 2013.

  Management change

  -- Allan Andersen was appointed CEO on 1 December 2013, until further notice
     on a part-time basis.
  -- At the extraordinary general meeting held on 9 December 2013, the Company's
     Board of Directors was changed as Torbjörn Bjerke announced that he wanted
     to retire from the Board.

Karin Garre was elected new member of the Board of Directors, and the Board met
immediately thereafter and elected Karin Garre as Chairman. 

The Board of Directors thereafter consists of three members elected by the
shareholders: Karin Garre, Allan Andersen and Christian Lundgren. 

Other events

  -- On 18 March, NeuroSearch adjusted the organisation and most of the
     remaining employees were given notice of termination. There are currently
     two employees in the Company, Allan Andersen, CFO, and Anita Milland, CFO.
  -- On 6 May 2013, NeuroSearch announced the sale of its land and buildings
     with 1 July 2013 as the date of takeover. The purchase price was DKK 112.5
     million.


Outlook for 2014

In 2014, NeuroSearch expects an operating loss of approximately DKK 10 million.
This does not include any loss or profit arising out of a potential sale of
NeuroSearch's remaining assets. 

NeuroSearch will provide an update of its outlook no later than on 26 March
2014 when the Annual General Meeting will be held. 


Allan Andersen
CEO




Contact
Allan Andersen, CEO, mobile +45 4016 3864.

About NeuroSearch
NeuroSearch A/S (NEUR) is listed on NASDAQ OMX Copenhagen A/S.


APPENDIX

Financial highlights for the NeuroSearch Group*




(DKK millions)                          2009     2010     2011     2012     2013
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Income statement and comprehensive                                              
 income****                                                                     
--------------------------------------------------------------------------------
Revenue                                   84.6        -        -    120.7   28.8
--------------------------------------------------------------------------------
Research costs                           217.0        -        -        -      -
--------------------------------------------------------------------------------
Development costs                        184.6    144.4    259.1    457.2   21.7
--------------------------------------------------------------------------------
General and administrative costs          38.8     23.2    123.4   (46.7)   16.7
--------------------------------------------------------------------------------
Operating profit/(loss)                (355.8)  (167.6)  (382.5)  (289.8)  (9.6)
--------------------------------------------------------------------------------
Net financials                            24.6     21.8     33.5   (37.2)    5.1
--------------------------------------------------------------------------------
Profit/(loss) of continuing            (331.2)  (145.8)  (349.1)  (327.1)  (4.5)
 operations before tax                                                          
--------------------------------------------------------------------------------
Net profit/(loss) of discontinued            -  (160.4)  (329.3)     57.4   15.6
 operations                                                                     
--------------------------------------------------------------------------------
Profit/(loss) for the period           (287.1)  (259.0)  (678.4)  (275.6)   12.4
--------------------------------------------------------------------------------
Comprehensive income***                (276.9)  (216.7)  (694.8)  (243.5)    6.6
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Balance sheet                                                                   
--------------------------------------------------------------------------------
Total assets                           1,630.0  1,391.5    840.8    207.5   92.2
--------------------------------------------------------------------------------
Cash and cash equivalents and            808.5    480.6    220.6     81.4   88.8
 securities                                                                     
--------------------------------------------------------------------------------
Equity                                 1,173.8    994.1    320.6     81.1   88.0
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Investments                                                                     
--------------------------------------------------------------------------------
Investments in property, plant and        19.8     10.8      3.6        -      -
 equipment                                                                      
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Per share ratios** (DKK)                                                        
--------------------------------------------------------------------------------
Earnings per share                     (16.39)  (10.56)  (27.63)  (11.22)   0.50
--------------------------------------------------------------------------------
Diluted earnings per share             (16.39)  (10.56)  (27.63)  (11.22)   0.50
--------------------------------------------------------------------------------
Net asset value                          48.15    40.49    13.06     3.30   3.58
--------------------------------------------------------------------------------
Market price at year-end                  77.0     95.0     17.7     3.74   3.10
--------------------------------------------------------------------------------
Market price/net asset value              1.60     2.35     1.36     1.13   0.87
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Average number of employees                235      235      222       88     18
--------------------------------------------------------------------------------
Number of employees at 31 December         226      243      189       29      2
--------------------------------------------------------------------------------

*     Only the comparative figures for 2010 and 2011 have been restated to
reflect the continuing operations. It has not been possible to make the same
split between continuing and discontinued operations for years prior to 2010 as
the company has only had more than one organisational segment since 2011. 

**    The ratios are stated in accordance with 'Recommendations and Financial
Ratios' issued by the Danish Society of Financial Analysts. 

***  Comprehensive income includes unrealised currency translation adjustment
and fair value adjustment of the hedge of the net investment in NeuroSearch
Sweden AB. 

**** See the section on financial statements review dispute on page 11
concerning classification of the proceeds from the sale of the Huntexil(R) as
revenue.
News Source: NASDAQ OMX


End of Corporate News

---------------------------------------------------------------------

23.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English          
Company:     NeuroSearch A/S  
 
 
             Denmark          
ISIN:        DK0010224666     
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
249301 23.01.2014