NeuroSearch A/S
NeuroSearch A/S – H1 report 2013

NeuroSearch A/S 

29.08.2013 08:38
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Below please find the H1 report 2013. The full report is available in the
enclosed PDF file. 

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Announcement
29.08.2013


The NeuroSearch group (NEUR) realised an operating profit of DKK 13 million in
Q2 2013 (a loss of DKK 408 million in the same period 2012). The operating
result after tax was a profit of DKK 24 million in Q2 (a loss of DKK 387
million in the same period 2012). 

The operating profit in Q2 is primarily due to a revenue of DKK 29 million
relating to the release of the escrow regarding Huntexil(R), which was sold to
Teva Pharmaceuticals Inc. 

The NeuroSearch group realised an operating profit of DKK 2 million in H1 2013
(a loss of DKK 430 million in the same period 2012). The financial result after
tax was a profit of DKK 18 million in H1 (a loss of DKK 414 million in the same
period 2012). 

On 30 June 2013, the company's cash and cash equivalents totalled DKK 63
million (DKK 88 million at 30 June 2012). Cash and cash equivalents have
increased further by DKK 37 million in July as a consequence of a positive net
effect relating to the release of the sales price for the land and building as
well as settlement of remaining mortgage debts. 


Important events in Q2 and until today

  -- On 23 April 2013, NeuroSearch announced that Teva had given notification
     that the escrow of 28.7 million could be released.

  -- On 6 May 2013, NeuroSearch announced that the company had signed an
     agreement with PKA regarding the sale of the company's land and building at
     a cash price of DKK 112.5 million and for take-over on 1 July.

  -- On 17 July 2013, NeuroSearch announced that the company is being prosecuted
     by the Danish Public Prosecutor for Special Economic and International
     Crimes (SEIC) for alleged qualified share price manipulation. The charges
     relate to an announcement issued on 3 February 2010. On the present basis,
     NeuroSearch is denying the charges and is awaiting the court's ruling of
     the case.

  -- On 31 July 2013, the company announced that the Board of Directors has
     given notice to its CEO, RenÃ(c) Schneider. The notice is a natural
     consequence of the strategy to wind down the company's activities and in
     this connection a wish to limit the operating costs of the company's
     day-to-day business. RenÃ(c) Schneider will continue as the company's CEO
     until further notice, however, the parties have agreed that RenÃ(c) Schneider
     will be released from his duties no later than 30 November 2013.
     In the period from RenÃ(c)'s taking up his duties as CEO in July 2012 until
     today, the company has sold important assets, including Huntexil(R) and the
     company's land and building. Consequently, NeuroSearch has been able to pay
     off debts, to re-establish the equity capital and to build up significant
     cash resources.

Update on the company's activities
The Board of Directors and the Executive Management are working on realising
the value of the other remaining assets in NeuroSearch. 

NeuroSearch is in dialogue with several companies with a view to investigating
the possibility of a merger or similar kind of transaction. However, such
transactions have been complicated by the prosecution by SEIC just as
considerations of a liquidation of the company or distribution to shareholders
of the company's cash and cash equivalents will have to await the outcome of
the case. 

In connection with the H1 report, Chairman of the Board, Allan Andersen,
comments as follows: 
'We are satisfied that we are now almost done with the operational wind down of
the company, and that we have succeeded in increasing the equity capital by DKK
161 million within the last year. Today, the equity capital almost amounts to
DKK 100 million and all debts have been repaid to the banks. 

As a natural consequence, the company agreed with CEO RenÃ(c) Schneider that he
will resign from his position by the end of November this year. RenÃ(c) is now in
a position to say: 'mission completed'. 

There is good reason to thank RenÃ(c) and his employees for a unique, efficient
and dedicated effort for NeuroSearch, and the Board of Directors sends on RenÃ(c)
to a new career with its very best recommendations. 


Financial expectations to 2013
For 2013, NeuroSearch still expects an operating loss of approximately DKK 15
million. For H2, a loss on operating results is expected as a consequence of
continued obligations to dismissed employees. 

The above expectations do not take into account any loss or profit arising out
of a potential sale of the remaining NeuroSearch assets. 


Allan Andersen                      RenÃ(c) Schneider
Chairman of the Board of Directors  CEO           


Contact person
RenÃ(c) Schneider, CEO, telephone: +45 2911 2097


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



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Language:     English
Company:      NeuroSearch A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010224666
WKN:          
 
End of Announcement                             DGAP News-Service
 
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