Innovation in bone healing and tissue repair
29 Sep 16
Kuros Biosciences Reports Financial Results for First Half-Year of 2016

Schlieren (Zurich), Switzerland, September 29, 2016

Kuros Biosciences Reports Financial Results for First Half-Year of 2016

•  Merger successfully completed: Cytos Biotechnology and Kuros Biosurgery Holding have combined their businesses to create Kuros Biosciences, a future leader in tissue repair and regeneration.

•  Lead products progressing: KUR-023 is being readied for CE mark submission while development of orthobiologics assets continues apace.

•  Key positions filled and staff significantly expanded: Industry expert elected as new Board member, Chief Medical Officer and Chief Development Officer appointed and employees increased substantially.

 

Kuros Biosciences today announced for the first time financial figures after the merger of Cytos Biotechnology and Kuros Biosurgery on January 18, 2016. For the first six months of 2016, the Company reported revenues of CHF 1.1 million primarily from a milestone payment. Net operating costs increased to CHF 15.1 million as a result of an impairment and modifications of share-based payments in connection with the merger. Net loss for the first half-year 2016 rose to CHF 13.3 million. Cash reserves at the end of the reporting period amounted to CHF 17.5 million.

“We are pleased to report that we have now successfully combined the two businesses, as well as substantially increased our employee base, while continuing to progress our lead programs. We acquired new talent and industry expertise for the Board of Directors, the Executive Board and other key functions and now have a staff of 14 employees and growing”, commented Didier Cowling, Chief Executive Officer of Kuros Biosciences.

 

“The reverse merger between Cytos Biotechnology and Kuros Biosurgery Holding closed on January 18, 2016. For accounting purposes in accordance to IFRS 3, the legal acquiree Kuros Biosurgery Holding was identified as the acquiring entity. As a consequence, the interim financial figures for 2016 of the merged company are a continuation of those of Kuros Biosurgery Holding and not comparable to the published figures of former Cytos for the same period in 2015”, explained Harry Welten, Chief Financial Officer of Kuros Biosciences.

 

Key figures

in TCHF, IFRS

Six months ended
June 30, 2016

Six months ended
June 30, 2015

Revenue

1,055

30

Research and development

(5,215)

(149)

General and administrative

(11,054)

(972)

Other income

1,161

Net operating costs

(15,108)

(1,121)

Net financial result

955

(413)

Net loss

(13,255)

(1,458)

Cash reserves

17,446

764

Number of employees (FTE)

14

5

 

The Interim Report 2016 can be downloaded at www.kuros.ch/investors/reports-presentations.html.

 

Higher cash reserves due to exercise of conversion rights

Cash available for financing the operations of Kuros Biosciences amounted to CHF 17.4 million as per June 30, 2016. This is CHF 1.5 million higher than on December 31, 2015 (CHF 15.9 million) as a result of the exercise of conversion rights before the closing of the merger. The gross cash burn for operating activities, as calculated on the cash flow statement, was CHF 3.8 million during the first six months of 2016 or CHF 0.6 million per month, compared to CHF 0.8 million and CHF 0.1 million on average per month in the previous year.

 

First Checkmate milestone payments results in increased revenues

Revenues amounted to CHF 1.1 million (first half-year 2015: TCHF 30) and originated primarily from a milestone payment from Checkmate after a first melanoma patient was dosed in a Phase 1b multi-center, open-label study with CMP-001.

 

Impairment and modifications of share-based payments impact net result

Net operating costs increased to CHF 15.1 million (first half-year 2015: CHF 1.1 million). Expenses for research and development of CHF 5.2 million included a full impairment of the Arbutus agreement (CHF 3.1 million) and costs associated with the preparation of filing for CE mark ahead of market approval of KUR-023. Expenses for general and administrative amounted to CHF 11.1 million primarily due to costs associated with the modification of share-based payments in connection with merger (exchange of options of former Kuros Biosurgery Holding for options of Kuros Biosciences) of CHF 6.1 million. Other income was CHF 1.1 million (first half-year 2015: CHF 0) and included proceeds from sublease agreements.

 

The net financial result was CHF 1.0 million (first half-year 2015: CHF –0.4 million). Since the increase of expenses significantly outpaced the growth of revenues and the financial result, Kuros Biosciences reports a net loss of CHF 13.3 million for the first half-year 2016 (first half-year 2015: CHF 1.5 million).

 

Outlook and news flow

Preparations for the submission of KUR-023 to be CE marked are advancing according to plan. The potential approval and commercial launch of the sealant in the European Union is expected in 2017. Kuros Biosciences is planning a second clinical study to support approval of the product in the United States of America. Furthermore, preparations are underway to advance KUR-111 and KUR-113 towards Phase III development after their successful Phase IIb clinical trials.

 

Kuros Biosciences is financed with sufficient cash reserves to launch KUR-023 in the European markets. In addition, funds available will allow Kuros Biosciences to prepare for a pivotal study of its lead orthobiologic product candidate.



Kuros Biosciences AG
Wagistrasse 25, 8952 Schlieren, Switzerland
Tel: +41 44 733 47 47   Fax: +41 44 733 47 40   Email: info@kuros.ch

About Kuros

  1. Overview
  2. Management
  3. Board

Products

  1. Pipeline
  2. Orthobiologics
    Fracture repair
    KUR-111
    KUR-113
    MagnetOs
    Spinal fusion
    KUR-113
    MagnetOs
    Solitary Bone Cysts
    KUR-112
  3. Sealants
    Neuroseal (KUR-023)

Technologies

  1. Overview
  2. Surface Science Technology
  3. Synthetic Cross-Linking Technology
  4. Fibrin-Based
  5. Immune Modulation
  6. Publications

Partnerships

  1. Collaborations
  2. Business development

Investors

  1. Share price
  2. Regulatory filings
  3. Reports & presentations
  4. Calendar
  5. Corporate governance
  6. Stay informed

News

  1. Press releases
  2. Conferences & Events

Contact

  1. Location
Article
29 Sep 16
Kuros Biosciences Reports Financial Results for First Half-Year of 2016

Schlieren (Zurich), Switzerland, September 29, 2016

Kuros Biosciences Reports Financial Results for First Half-Year of 2016

•  Merger successfully completed: Cytos Biotechnology and Kuros Biosurgery Holding have combined their businesses to create Kuros Biosciences, a future leader in tissue repair and regeneration.

•  Lead products progressing: KUR-023 is being readied for CE mark submission while development of orthobiologics assets continues apace.

•  Key positions filled and staff significantly expanded: Industry expert elected as new Board member, Chief Medical Officer and Chief Development Officer appointed and employees increased substantially.

 

Kuros Biosciences today announced for the first time financial figures after the merger of Cytos Biotechnology and Kuros Biosurgery on January 18, 2016. For the first six months of 2016, the Company reported revenues of CHF 1.1 million primarily from a milestone payment. Net operating costs increased to CHF 15.1 million as a result of an impairment and modifications of share-based payments in connection with the merger. Net loss for the first half-year 2016 rose to CHF 13.3 million. Cash reserves at the end of the reporting period amounted to CHF 17.5 million.

“We are pleased to report that we have now successfully combined the two businesses, as well as substantially increased our employee base, while continuing to progress our lead programs. We acquired new talent and industry expertise for the Board of Directors, the Executive Board and other key functions and now have a staff of 14 employees and growing”, commented Didier Cowling, Chief Executive Officer of Kuros Biosciences.

 

“The reverse merger between Cytos Biotechnology and Kuros Biosurgery Holding closed on January 18, 2016. For accounting purposes in accordance to IFRS 3, the legal acquiree Kuros Biosurgery Holding was identified as the acquiring entity. As a consequence, the interim financial figures for 2016 of the merged company are a continuation of those of Kuros Biosurgery Holding and not comparable to the published figures of former Cytos for the same period in 2015”, explained Harry Welten, Chief Financial Officer of Kuros Biosciences.

 

Key figures

in TCHF, IFRS

Six months ended
June 30, 2016

Six months ended
June 30, 2015

Revenue

1,055

30

Research and development

(5,215)

(149)

General and administrative

(11,054)

(972)

Other income

1,161

Net operating costs

(15,108)

(1,121)

Net financial result

955

(413)

Net loss

(13,255)

(1,458)

Cash reserves

17,446

764

Number of employees (FTE)

14

5

 

The Interim Report 2016 can be downloaded at www.kuros.ch/investors/reports-presentations.html.

 

Higher cash reserves due to exercise of conversion rights

Cash available for financing the operations of Kuros Biosciences amounted to CHF 17.4 million as per June 30, 2016. This is CHF 1.5 million higher than on December 31, 2015 (CHF 15.9 million) as a result of the exercise of conversion rights before the closing of the merger. The gross cash burn for operating activities, as calculated on the cash flow statement, was CHF 3.8 million during the first six months of 2016 or CHF 0.6 million per month, compared to CHF 0.8 million and CHF 0.1 million on average per month in the previous year.

 

First Checkmate milestone payments results in increased revenues

Revenues amounted to CHF 1.1 million (first half-year 2015: TCHF 30) and originated primarily from a milestone payment from Checkmate after a first melanoma patient was dosed in a Phase 1b multi-center, open-label study with CMP-001.

 

Impairment and modifications of share-based payments impact net result

Net operating costs increased to CHF 15.1 million (first half-year 2015: CHF 1.1 million). Expenses for research and development of CHF 5.2 million included a full impairment of the Arbutus agreement (CHF 3.1 million) and costs associated with the preparation of filing for CE mark ahead of market approval of KUR-023. Expenses for general and administrative amounted to CHF 11.1 million primarily due to costs associated with the modification of share-based payments in connection with merger (exchange of options of former Kuros Biosurgery Holding for options of Kuros Biosciences) of CHF 6.1 million. Other income was CHF 1.1 million (first half-year 2015: CHF 0) and included proceeds from sublease agreements.

 

The net financial result was CHF 1.0 million (first half-year 2015: CHF –0.4 million). Since the increase of expenses significantly outpaced the growth of revenues and the financial result, Kuros Biosciences reports a net loss of CHF 13.3 million for the first half-year 2016 (first half-year 2015: CHF 1.5 million).

 

Outlook and news flow

Preparations for the submission of KUR-023 to be CE marked are advancing according to plan. The potential approval and commercial launch of the sealant in the European Union is expected in 2017. Kuros Biosciences is planning a second clinical study to support approval of the product in the United States of America. Furthermore, preparations are underway to advance KUR-111 and KUR-113 towards Phase III development after their successful Phase IIb clinical trials.

 

Kuros Biosciences is financed with sufficient cash reserves to launch KUR-023 in the European markets. In addition, funds available will allow Kuros Biosciences to prepare for a pivotal study of its lead orthobiologic product candidate.