• Cash including marketable securities amounted to €18.3 million (€11.1 million Q2 08/09), i.e. € 2.5 million better than planned. With the commitment of the US fund YA Global, SYGNIS secures up to € 10 million through a 3 year Standby Equity Distribution Agreement ("SEDA"). Long term financial liabilities amounted to €8.0 million resulting from a loan which is not due for repayment before 2015.
• As a result of expanded research and development activities, total operating expenses in the second quarter of the fiscal year 2009/2010 increased by €0.2 million to €2.4 million compared to the same period of the last fiscal year, i.e. € 1.1 million less than planned.
• The net loss in the first half of the fiscal year 2009/2010 amounted to € -6.9 million (€ -3.6 million first half 08/09).
• Due to the fall in the market value of the debt securities unrealized exchange rate losses of € 2,6 million have been posted through profit or loss; these unrealized exchange rate losses were recorded under equity in the past without effecting income and do not result in any additional outflow of liquidity.

With the SEDA closed with Yorkville in October, SYGNIS secured up to € 10 million, which SYGNIS has the right to request from Yorkville within the next 3 years.

The phase II efficacy study of SYGNIS’ lead compound AX200 is being advanced and the development of the preclinical projects, in particular regarding KIBRA and the neural stem cell program (NSD), is proceeding during the first half of the fiscal year as planned. SYGNIS is confident that, based on the results achieved so far, the anticipated milestones and project goals will be fulfilled providing a sound basis for further discussions on potential cooperation and licensing opportunities.

With the current financial situation and with regard to the recent commitment from Yorkville to invest up to € 10 million, SYGNIS has a good financial basis for its focused development. For the ongoing fiscal year 2009/2010 SYGNIS expects operational costs and net loss to be lower than originally anticipated. The net loss for the fiscal year 2009/2010 is expected to be within the original expectations due to the recognition of unrealized exchange rate losses of available-for-sale securities through profit or loss.

More information:
SYGNIS Pharma AG
Dr. Franz-Werner Haas
Vice President Operations
Phone: +49 (0) 6221 454 812
E-mail: franz-werner.haas(at)sygnis.de