AGENNIX AG

EANS-News: AGENNIX AG /

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Financial Figures/Balance Sheet/6-month report

Heidelberg (euro adhoc) - Agennix AG Reports Financial Results for
                              Second Quarter and First Six Months of 2010

Planegg/Munich (Germany), Princeton, NJ  and  Houston,  TX,  August   5,  2010  - Agennix AG (Frankfurt Stock Exchange: AGX)  today   announced  financial  results for the second quarter and first six months ended June 30, 2010.

Agennix AG was formed by the business combination of  Agennix   Incorporated  and GPC Biotech AG, which became effective on November 5, 2009,  and  in  which  GPC Biotech AG was identified as the acquirer for accounting purposes.  Accordingly, the comparative historical financial information of Agennix AG is  that  of  GPC Biotech AG for the respective comparative periods.

First six months of 2010 compared to first six months of 2009 The Company recognized revenue of EUR 0 and EUR  0.1  million  for  the   six months ended June 30, 2010 and 2009, respectively. Revenue for   the  six  months  ended June  30,  2009,  was  attributable  to  the services  agreement  with Agennix Incorporated prior to the effectiveness of the business combination.

Research and development (R&D) expenses for the six months ended June 30,  2010, increased 364% to EUR 11.6 million compared to EUR 2.5 million for the  same period in 2009. The increase in R&D expenses was primarily due  to  increased clinical trial costs related to both of the Company´s Phase 3 trials  with talactoferrin (FORTIS-M and FORTIS-C) as a result of the inclusion of  Agennix Incorporated´s operations for the first six months of 2010 and a credit  to compensation  cost of EUR (1.5) million that was recognized for the first six months  of  2009  as  a result of the forfeiture of convertible bonds and stock options, which  did  not occur in 2010.

Despite the inclusion of Agennix Incorporated´s operations for  the   six  months ended June 30, 2010, administrative expenses decreased   31%  to  EUR  4.4 million compared  to  EUR  6.4  million  for  the   same  period  in  2009. Included    in administrative expenses as of June 30, 2009, were approximately EUR  3.0  million in one-time merger related costs (banking fees, legal services, audit and  other related services) and a credit to compensation cost of  EUR  (1.8)   million  as  a result of the forfeiture of convertible bonds and stock options. There  were  no such charges or credits in the six months ended June 30, 2010.

Net loss for the six months ended  June  30,  2010,  decreased  4%   to  EUR (8.2) million compared to EUR (8.5) million for the same period in 2009.

Basic and diluted loss per share was EUR (0.42) for the six months ended June 30, 2010, compared to EUR (1.15) for the same period in 2009.  The  per  share amounts for 2009 have been retrospectively adjusted to  reflect  the  effect  of the 5 to 1 merger exchange ratio related to the merger of GPC  Biotech  AG  into Agennix AG.

Second quarter of 2010 compared to second quarter of 2009 Revenues for the three months ended June 30, 2010 were EUR 0  compared  to   EUR 0.1 million for the same period in 2009. R&D expenses increased 371% for the second quarter of 2010 to EUR 6.6 million compared to EUR 1.4 million for the same  period in 2009. Administrative expenses for the second quarter of 2010 decreased 4%  to EUR 2.3 million compared to EUR 2.4 million for the same quarter in 2009.  Net loss for the second quarter of 2010 was EUR (3.9) million compared to EUR (4.2)  million for the second quarter of 2009. Basic and diluted loss per share  was EUR  (0.19) and EUR (0.57) for the second quarter of 2010 and 2009, respectively.

Quarter over quarter results:  second quarter 2010  compared  to   first  quarter 2010 The Company did not recognize any revenue in the first  or  second  quarter  of 2010. R&D expenses increased 32% to EUR 6.6 million  for  the  second  quarter of 2010, compared to EUR 5.0 million in the first quarter  of  2010.  Administrative expenses for the second quarter of 2010 increased 10% to EUR 2.3 million   compared to EUR 2.1 million for the previous quarter.  The Company´s net loss was  EUR  (3.9) million for the second quarter of 2010, compared to EUR  (4.3)  million  for  the previous quarter.  Basic and diluted loss per share was EUR (0.19) for the  second quarter of 2010 compared to EUR (0.23) for the previous quarter. 

Cash position As of June 30, 2010, cash, cash equivalents and restricted cash  totaled  EUR 4.0 million (December 31, 2009: EUR 11.5 million). Net cash burn for  the  six months ended June 30, 2010, was EUR 17.5 million (June 30, 2009:  EUR  11.4 million).  The increase in net  cash  burn  is  primarily  due  to  the inclusion   of  Agennix Incorporated´s operations for  the  first  six  months of 2010  and  increased clinical trials costs due to the progression of both of the  Company´s  Phase  3 trials with talactoferrin. Net cash burn is derived by adding net cash  used  in operating  activities   and  purchases  of  property, equipment  and  intangible assets. The figures used to  calculate  net  cash burn  are  contained  in  the Company´s interim consolidated cash flow statement for the respective periods.

Following the end of the second quarter, in July  2010,  the  Company announced that it had entered into an  agreement  with  one  of  its major  shareholders, dievini Hopp BioTech holding GmbH & Co.  KG,   pursuant  to  which  dievini  Hopp BioTech provided a EUR 15.0 million loan to Agennix.  The loan bears  an interest rate of 6% per annum, is unsecured and  is  repayable  on  thirty  days  advance notice, but not before October 15, 2010.

"We continue to make good progress in advancing our business," said Torsten Hombeck, Ph.D., Chief Financial Officer. "We have decided on a development path for talactoferrin in severe sepsis that should enable us to initiate a Phase 3 trial in early 2011.  We also are pleased with the solid enrollment of patients in our Phase 3 FORTIS-M trial with talactoferrin in non-small cell lung cancer, keeping us on track with our anticipated timeline to see topline data from the trial in late 2011."

Financial guidance The Company updated its financial guidance as follows:

Management expects no substantial cash generating revenues for the remainder  of 2010 or for 2011. This guidance does not consider cash revenue  from  potential partnering of the Company´s product candidates due to  the  uncertainty  of  the timing of such events.

For the remainder of  2010  and  2011,  the  Company  expects  R&D   expenses  to significantly increase compared to 2009 due to an expected  steady  increase  in clinical trial-related costs as the Company´s Phase 3 trials in  non-small  cell lung cancer with talactoferrin progress.  In  addition,  the  Company  plans  to initiate a Phase 3 program with talactoferrin in severe sepsis in early 2011.

Administrative expenses are expected to decrease in 2010  compared   to  2009  as the one-time costs associated with the merger that were incurred  in  2009  will not occur in the following years.

Management believes that, including the EUR 15 million loan from dievini Hopp BioTech, the Company currently has sufficient cash to fund its operations into the fourth quarter of 2010. The Company is pursuing both dilutive and non- dilutive sources of additional funding.

Appointment of interim CEO extended to end of 2010 The Company also today reported that the appointment of  Friedrich  von  Bohlen, Ph.D. as interim Chief Executive Officer has been extended to December 31, 2010 to provide additional time for a permanent CEO to be  put  in   place.    Dr.  von Bohlen´s appointment was previously scheduled to expire on August 5, 2010.

Conference call scheduled As previously announced, the Company has scheduled a conference  call  to  which participants may listen via live webcast, accessible  through  the  Agennix  Web site at www.agennix.com or via telephone. A replay will  be  available  via   the Web site following the  live  event.  The  call,  which  will  be conducted  in English, will be held on August 5 at 15:00 CET/9:00 AM EST. The dial-in  numbers for the call are as follows:

Participants from Europe:   0049 (0)69 71044 5598
                                            0044 (0)20 3003 2666
Participants from the U.S.: 1-646-843-4608

Please dial in 10 minutes before the beginning of the meeting.

About Agennix Agennix AG is a publicly listed biopharmaceutical company  that  is  focused  on the development of novel therapies that  have  the  potential  to  substantially improve the length and quality of life of critically ill patients  in  areas  of major unmet medical need. The Company´s most advanced program is  talactoferrin, an oral therapy that has  demonstrated  activity  in  randomized,   double-blind, placebo-controlled Phase 2 studies in non-small cell lung cancer, as well as  in severe sepsis. Talactoferrin is currently in Phase 3  clinical  trials  in  non- small cell lung cancer, and Agennix plans to develop this  program  further  for the treatment of severe sepsis. Other clinical development programs include RGB- 286638, a multi-targeted kinase inhibitor in Phase 1 testing; the oral platinum- based compound  satraplatin;  and  a  topical  gel   form  of  talactoferrin  for diabetic foot ulcers. Agennix´s registered seat is in Heidelberg,  Germany.  The Company has three sites of operation: Planegg/Munich,  Germany;  Princeton,  New Jersey and Houston, Texas. For additional information, please visit the   Agennix Web site at www.agennix.com.

This press  release  contains  forward-looking  statements,  which   express  the current beliefs and expectations of the  management  of Agennix  AG,  including statements about the Company´s future  cash   position  and  the  status  of  its clinical development programs for talactoferrin. Such statements  are  based  on current expectations and are subject to risks and uncertainties, many  of  which are beyond the  control  of  the  Company,  that  could  cause  future   results, performance  or  achievements  to  differ  significantly     from    the    results, performance  or  achievements  expressed  or   implied  by  such  forward-looking statements. There can be no guarantee that the Company will  move  talactoferrin forward in development for severe sepsis in a timely manner, if at all, or  that talactoferrin will ultimately be  approved  for  sale  in  any   country.  Actual results  could  differ  materially  depending  on  a number  of  factors,    and management cautions investors not  to   place  undue  reliance  on  the  forward- looking statements contained in this press release.  Forward-looking  statements speak only as of the date on which they  are  made  and  Agennix   undertakes  no obligation to update these forward-looking statements, even if  new  information becomes available in the future.

For the full management report and condensed consolidated financial statements and accompanying notes for the second quarter and first six months ended June 30, 2010, please see the Investor Relations section of the Agennix website at http://www.agennix.com/index.php?op tion=com_content&view=article&id=122&Itemid=7 7&lang=en.

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ots Originaltext: AGENNIX AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Agennix AG
Investor Relations & Corporate Communications
Phone: +49 (0)89 8565 2693
ir@agennix.com

In the U.S.: Laurie Doyle
Director, Investor Relations & Corporate Communications
Phone: +1 609 524 5884
laurie.doyle@agennix.com

Additional media contact for Europe:

MC Services AG
Raimund Gabriel
Phone: +49 (0)89 210 228 0
raimund.gabriel@mc-services.eu

Additional investor contact for Europe:

Trout International LLC
Lauren Williams, Vice President
Phone: +44 207 936 9325
lwilliams@troutgroup.com

Branche: Pharmaceuticals
ISIN:      DE000A1A6XX4
WKN:        A1A6XX
Index:    CDAX, Prime All Share, Technology All Share
Börsen:  Frankfurt / regulated dealing/prime standard
              Berlin / free trade
              Hamburg / free trade
              Düsseldorf / free trade
              Hannover / free trade
              München / free trade



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