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NeuroSearch announces change to financial outlook for 2018
14 August 2018
In Annual Report 2017, NeuroSearch announced a financial outlook, on a going concern assumption, of an operating loss in the range of DKK 3.5-4.5 million.
In May 2018, NeuroSearch entered into an agreement with, among others, Teva Pharmaceutical International GmbH (Teva), to release Teva from all outstanding obligations pursuant to the agreement from 2012 concerning the transfer of NeuroSearch's rights in and to Pridopidine. According to the agreement entered into, in the event that Teva prior to 31 October 2018 enters into an agreement with an identified third party relating to the sale and transfer of Teva's rights in and to Pridopidine, then NeuroSearch will receive a cash payment of USD 450,000 (DKK 2.7 million). This agreement follows from Teva’s decision not to develop Pridopidine further following the failure by Pridopidine to meet its primary endpoints in Huntington’s Disease in a Phase II trial conducted by Teva, and potential interest in the asset by an identified third party.
On the basis of realised and expected costs in connection with Nordic Transport Group Holding A/S’ (NTG) and Gefion Group Investments A/S' takeover offers and winding-up and transfer costs and costs for maintaining NeuroSearch’s stock exchange listing etc. until the end of 2018, the operating loss is now estimated to be approximately DKK 5 million without completion of the agreement with Teva. Provided the agreement with Teva is finally completed, the financial performance will improve by approximately DKK 2.7 million.
As a result of the completion of NTG’s takeover offer, NeuroSearch will as soon as possible give notice of an extraordinary general meeting with the purpose of electing new members to the board of directors. The earnings forecast does not take into consideration any resolutions adopted by a new board in light of NTG’s plans for NeuroSearch.
Karin Garre Allan Andersen
Chairman of the Board of Directors CEO
Allan Andersen, CEO, mobile phone +45 4016 3864.
NeuroSearch A/S (NEUR) is listed on Nasdaq Copenhagen A/S.