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NeuroSearch A/S – H1 report 2018
30 August 2018
Below please find the H1 report 2018. The full report is available in the enclosed PDF file.
NeuroSearch posted an operating loss of DKK 2.8 million in H1 2018 (H2 2017: a loss of DKK 2.3 million).
NeuroSearch posted a net loss of DKK 3.0 million in H1 2018 (H1 2017: a net loss of DKK 2.5 million).
At 30 June 2018, cash and cash equivalents totalled DKK 70.4 million (30 June 2017: DKK 65.9 million).
On 15 May 2018 (company announcement no. 9-18), 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 now 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.
In May and June, Nordic Transport Group Holding A/S (“NTG Holding”) and Gefion Group Investments A/S (“Gefion”) announced takeover offers to the shareholders of NeuroSearch (announcements 10-18, 11-18 and 12-18). The final outcome hereof is described in the section on events after the balance sheet date.
As of 31 December 2017, NeuroSearch calculated the value of its unrecognised tax loss carry forwards in the parent company at approximately DKK 1,714 million, and deductible timing differences at approximately DKK 77 million, or a total of approximately DKK 1,791 million. Under certain conditions, a potential buyer of NeuroSearch may be able to utilise the unrecognised tax assets in full or in part.
Financial outlook for 2018
On the basis of realised and expected costs in connection with NTG Holding’s and Gefion’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 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 USD 450,000.
Events after the balance sheet date
On 2 July 2018 (announcement no. 14-18), the Board of Directors of NeuroSearch published its statement relating to the two takeover offers from Gefion and NTG Holding, respectively.
On 9 August 2018 (announcement no. 15-18), Gefion announced that the acceptances of their conditional, voluntary takeover offer to the shareholders of NeuroSearch had been counted, and on the basis of the final counting of acceptances Gefion’s offer had lapsed.
On 13 August 2018 (announcement no. 17-18), NTG Holding announced the final results of its takeover offer. On the basis of the final calculation of received acceptances, NTG Holding had received acceptances representing 17.83 percent of the share capital and voting rights in NeuroSearch. Together with NTG Holding’s existing shareholding in NeuroSearch, after settlement of its offer NTG Holding held 5,534,028 shares corresponding to 22.54 percent of the entire share capital and all voting rights in NeuroSearch. The trading day for settlement of NTG Holding’s offer was 16 August 2018.
On 23 August 2018 (announcement no. 21-18), the Board of Directors convened an extraordinary general meeting in order to elect new board members. The extraordinary general meeting will take place on Friday, 14 September 2018 at 11 a.m. at Kromann Reumert, Sundkrogsgade 5, DK-2100 Copenhagen Ø.
Karin Garre Allan Andersen
Chairman of the Board CEO
Allan Andersen, CEO, mobile+45 4016 3864
NeuroSearch A/S (NEUR) is listed on NASDAQ Copenhagen A/S.