NeuroSearch A/S
NeuroSearch A/S releasing Annual Report 2014

DGAP-News: NeuroSearch A/S

2015-02-27 / 08:37

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Company announcement
27 February 2015

The full version of the Annual Report 2014 for NeuroSearch is available in the
enclosed PDF file. 

In 2014, the NeuroSearch Group (NEUR) posted an operating loss on continuing
operations of DKK 13 million (2013: 10 million), which was on a level with the
Company's previously announced expectations of an operating loss of DKK 15
million. 

The realised loss includes DKK 5 million, which represents the fine NeuroSearch
was ordered to pay by the City Court of Copenhagen on 8 August 2014 for
violating the rules on share price manipulation of the Danish Securities
Trading Act (see company announcement no. # 10-14). NeuroSearch has decided to
make a provision for the amount in the financial statements for 2014.
NeuroSearch has appealed the decision of the City Court to the Eastern High
Court, and the case has been scheduled for hearing in late September 2015. The
fine is going to be paid only if the judgment is upheld by the Eastern High
Court. 

The Company posted a profit of DKK 2 million on discontinued operations (2013:
DKK 16 million). The income in 2014 was payments regarding some of the
agreements made in 2011 and 2012 regarding the wind down of the research
division NsDiscovery. A number of projects were at that time agreed transferred
to spin-offs in the hope they would generate future income from there. 

NeuroSearch posted a loss after tax on continuing operations of DKK 9 million
(2013: DKK 3 million). 

Consolidated profit was a loss of DKK 8 million (2013: a profit of DKK 12
million). 

At the end of 2014, cash and cash equivalents totalled DKK 83 million (2013:
DKK 89 million). 

For a complete description of performance in the 2014 financial year, we refer
to the Annual Report 2014 of NeuroSearch accompanying this announcement, and
which is also available on our website as from today. 

After signing the agreement with Saniona ApS in October 2014 (see company
announcement no. # 13-14) regarding the transfer of our rights to the two
development candidates NS2359 and NS2330 (tesofensine) our patent portfolio
contains only the two dopidines (both of which are related to the compound
Huntexil(R) which was sold in 2012 and is now being developed by Teva
Pharmaceuticals), namely 


*     Seridopidine (completed Phase I)

*     Ordopidine (completed Phase I)


both of which have potential to be developed for the treatment of CNS
disorders. NeuroSearch will seek to divest the two compounds 'as is' as we are
not in a position to handle the further clinical development of the compounds. 

Outlook for 2015
In 2015, NeuroSearch expects an operating loss in the range of DKK 7-9 million.
The outlook does not include any income from the possible sale of Company
assets, potential income from the Company's agreements with Teva, Saniona or
others, and neither does the outlook take into account a potential reversal of
the provision of DKK 5 million made to cover the fine the Company has been
ordered to pay. 

NeuroSearch will provide an update of its outlook on 15 April 2015 when the
Annual General Meeting will be held. 


Karin Garre                                                                    
  Allan Andersen 
Chairman                                                                       
 CEO 


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


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


APPENDIX

Financial highlights for the NeuroSearch Group



(DKK millions)                           2010     2011     2012     2013   2014 
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Income statement and comprehensive                                              
 income                                                                         
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Gain from divestment of intellectual          -        -    120.7   28.8       -
 property                                                                       
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Research costs                                -        -        -      -       -
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Development costs                         144.4    259.1    457.2   21.7       -
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General and administrative costs           23.2    123.4   (46.7)   16.7    13.3
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Operating profit/(loss)                 (167.6)  (382.5)  (289.8)  (9.6)  (13.3)
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Net financials                             21.8     33.5   (37.2)    5.1     2.7
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Profit/(loss) of continuing operations  (145.8)  (349.1)  (327.1)  (4.5)  (10.6)
 before tax                                                                     
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Net profit/(loss) of discontinued       (160.4)  (329.3)     57.4   15.6     1.6
 operations                                                                     
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Profit/(loss) for the period            (259.0)  (678.4)  (275.6)   12.4   (7.7)
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Comprehensive income**                  (216.7)  (694.8)  (243.5)    6.6  (10.2)
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Balance sheet                                                                   
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Total assets                            1,391.5    840.8    207.5   92.2    84.0
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Cash and cash equivalents and             480.6    220.6     81.4   88.8    83.4
 securities                                                                     
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Equity                                    994.1    320.6     81.1   88.0    77.7
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Investments                                                                     
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Investments in property, plant and         10.8      3.6        -      -       -
 equipment                                                                      
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Per share ratios* (DKK)                                                         
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Earnings per share                      (10.56)  (27.63)  (11.22)   0.50  (0.32)
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Diluted earnings per share              (10.56)  (27.63)  (11.22)   0.50  (0.32)
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Net asset value                           40.49    13.06     3.30   3.58    3.17
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Market price at year-end                   95.0     17.7     3.74   3.10    2.59
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Market price/net asset value               2.35     1.36     1.13   0.87    0.82
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Average number of employees                 235      222       88     18       2
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Number of employees at 31 December          243      189       29      2       2
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*     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.
News Source: NASDAQ OMX



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Language:    English          
Company:     NeuroSearch A/S  
 
 
             Denmark          
ISIN:        DK0010224666     
 
 
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327655 2015-02-27