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DGAP-News: WILEX AG / Key word(s): Strategic Company Decision WILEX AG plans extensive cost-cutting measures

29.01.2014 / 17:01

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PRESS RELEASE

WILEX AG plans extensive cost-cutting measures

- Focus on contract research and ADC technology - Activities on marketing of advanced clinical programmes to continue - All development activities to be scaled back with a significant reduction in the workforce from 51 to 10 employees in Munich - Executive Management Board reduced - Cash reach extended to the second half of 2015 - Publication of annual financial statements postponed to 31 March 2014 at the latest - Conference call on January 30, 2014 at 02:00 pm CET

Munich, Germany, 29 January 2014 - WILEX AG (ISIN DE0006614720 / WL6 / FSE) today resolved to implement extensive cost-cutting measures and focus on contract research and the ADC technology at its subsidiary Heidelberg Pharma. This decision was taken with the approval of the company's Supervisory Board. Clinical development activities will be discontinued stepwise, and the workforce will be reduced by 80% to 10 employees in Munich. Work will continue on the commercial exploitation of the company's advanced clinical programmes. These measures became necessary to extend the company's cash reach. At the moment, WILEX's financing is sufficient to take the company into the third quarter of 2014. With the measures announced today, the cash reach will be extended to at least the second half of 2015.

Despite intensive efforts to obtain project funding and licensing partnerships, WILEX AG has been unable to generate sufficient cash to justify and guarantee maintaining its current scope of business activities. The financing required to start the Phase III trials for RENCAREX(R) and REDECTANE(R) has not been secured.

After the above measures are implemented, a core team will remain in Munich to continue ongoing negotiations on marketing or financing the MESUPRON(R), RENCAREX(R) and REDECTANE(R) projects. Heidelberg Pharma in Ladenburg will continue to develop and market customer-specific contract research operations, and the ADC technology in particular, and thus generate revenue for the Group.

Decreased external costs for research and development, internal savings and lower staff costs will reduce operating expenses in the next months. Cash and cash equivalents as of 30 November 2013 totalled approximately EUR 8.9 million, subject to the annual financial statements audit. Due to the restructuring, the publication of annual financial statements will postponed to 31 March 2014 at the latest.

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PRESS RELEASE: WILEX AG plans extensive cost-cutting measures