EANS-News: SYGNIS Pharma AG / SYGNIS reports financial results for fiscal year 2011/2012

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annual report/annual result

Heidelberg (euro adhoc) - SYGNIS reports financial results for fiscal
year 2011/2012 * Completion of EUR6.2million capital increase *
Acquisition of an outstanding loan of EUR8.0 million * Net loss of
EUR17.4 million * Impairment loss of EUR20.2 million * Financing
secured until March 2013 * Strategic realignment successfully
initiated

Heidelberg, July 25, 2012 - SYGNIS Pharma AG (Frankfurt: LIOK; ISIN
DE000A1E9B74; Prime Standard); today reported results for the fiscal
year 2011/2012 ending on March 31, 2012. In the past twelve months,
focus of the business operations was on the clinical development of
its drug candidate AX200 for the treatment of acute stroke and
further development of the pre-clinical KIBRA project. Additionally,
SYGNIS examined options to extend its pipeline, possibly with
strategic partnerships or business transactions. Following the
negative AXIS 2 results and termination of the development project
AX200 these activities were intensified. In this context, SYGNIS has
signed a binding term sheet with GENETRIX, after period end, to
combine SYGNIS with GENETRIX's subsidiary X-Pol Biotech S.L. X-Pol
Biotech is active in the field of DNA sequencing. The goal is to
further develop and market X-Pol Biotech's DNA sequencing
technologies and products.

Peter Willinger, Chief Financial Officer, comments: "The fiscal year
2011/2012 was characterized by the completion of the AXIS 2 trial in
December 2011. Data published did not show sufficient efficacy of
AX200 in the treatment of stroke patients. Since this ruled out the
commercialization of AX200, we had to completely write off the
project. At the same time, we explored different opportunities for a
strategic realignment of the Company and were able to announce a
first success in July. After the planned merger with X-Pol Biotech,
SYGNIS will continue to operate in the biotech sector, but with a new
focus, a lower risk profile and the opportunity to generate revenues
already in the short term."

Net loss in fiscal 2011/2012 amounted to -EUR17.4 million (2010/11:
-EUR12.4 million). This further decline in net loss resulted mainly
from an impairment loss of goodwill and other intangible assets of
EUR20.2 million in connection with the discontinuation of the AX200
project. This was partially offset by income from the purchase of an
outstanding loan. With effect as of March 31, 2012, SYGNIS had
purchased the claims combined with the loan amounting to EUR8.0
million for a price of EUR1.00 from BASF SE and thus realized gains
of EUR8.0 million.

R&D expenditure was down by EUR3.9 million to EUR6.6 million
(2010/11: EUR10.5million). The decrease in R&D expenses mainly
resulted from a higher level of investment in the AXIS 2 trial in the
previous year and reduced personnel expenditure due to restructuring
measures executed in the previous year.

Results from available-for-sale financial investments increased to
EUR0.8 million (2010/11: -EUR0.1 million). This was mainly due to
realized gains from the sale of shares in Noema Life S.p.A.

Income taxes include income of EUR2.0 million due to the reversal of
deferred tax liabilities (2010/11: EUR0.3 million). Impairment losses
on intangible assets, following termination of the AX200 project, led
to a reduction of corresponding deferred tax liabilities.

Cash outflow from operating activities was up from EUR8.3 million in
the previous year to EUR8.7 million. Though other operating expenses
were reduced in the reporting period, a part of the expenditure of
the previous year only affected liquidity in fiscal year 2011/2012.
Cash flow from investing activities was positive and amounted to
EUR2.4 million (2010/11: EUR0.9 million), mainly caused by the sale
of securities. Due to the capital increase, cash flow from financing
activities increased to EUR6.1 million (2010/11: EUR0.0million).

Cash and cash equivalents including available-for-sale securities
were EUR4.2 million (2010/11: EUR6.8 million) as at March 31, 2012.
Long-term debt was reduced from EUR10.8 million to EUR0.6 million as
a result of the loan acquired from BASF SE and the reduction of
deferred tax liabilities. Short-term debt was also down, decreasing
from EUR3.8 million to EUR2.2 million.

Compared to the previous year, the balance sheet total was down from
EUR32.3 million to EUR8.6 million, primarily due to the impairment
losses of intangible assets. As a result of the net loss for the
year, equity was down to EUR5.7 million (2010/11: EUR17.7million).
Equity ratio was 66%, accordingly (2010/11: 55%).

Outlook For the current financial year 2012/2013 emphasis is being
placed on securing sufficient funding and the further implementation
of the strategic realignment through the proposed merger with X-Pol
Biotech. With this merger and the marketing of existing products and
technologies, SYGNIS expects to generate initial revenues.

For the KIBRA project SYGNIS is looking for a pharma partner. The
Company has therefore started a systematic partnering process and is
in ongoing discussions with potential partners for the project.
However, should the Company not succeed in winning a partner for
KIBRA, the management will have to reconsider the future of this
project.

The Company's available financial assets as of March 31, 2012 secure
the liquidity of SYGNIS until approximately March 2013. This
estimation does not include revenues that may result from potential
research co-operations for the KIBRA project. To further finance its
business activities, the Company will have to rely on further funding
from March 2013 on.

Key financial figures for the fiscal year 2011/2012 ended March 31,
2012 and corresponding figures (IFRS)

Numbers in EURmillion

2011/12 2010/11
Revenues 0.4 0.2
Total expenses 28.5 13.0
EBIT -28.2 -12.8
Net results for the period -17.4 -12.4
Other intangible assets 2.3 20.8
Liquidity at year-end 4.2 6.8
Equity (equity ratio in %) 5.7(66) 17.7(55)
Long-term financial liabilities 0.0 8.0
Operating Cash Flow -8.7 -8.3

For further information please contact:

SYGNIS Pharma AG
Peter Willinger
Chief Financial Officer
SYGNIS Pharma AG

Tel.: +49 6221 454 836
E-mail: peter.willinger@sygnis.de

About SYGNIS Pharma AG: www.sygnis.de SYGNIS Pharma AG (Heidelberg,
Germany) is currently a specialty drug development company, focusing
on innovative treatments for underserved human diseases. Early in
2012 the company decided to discontinue its Phase II lead program
AX200 in stroke. While the company continued research activities in
the field of cognitive disorders, it started at the same time a
systematic M&A process, to add new operational assets and activities
to SYGNIS Pharma AG. SYGNIS Pharma AG is listed in the Prime Standard
of the Frankfurt Stock Exchange under the ticker: LIOK; and ISIN:
DE000A1E9B74.

### Disclaimer This publication is intended for information only and
constitutes neither an offer to sell nor an invitation to buy
securities. Some statements included in this press release, relating
neither to proven financial results nor other historical data, should
be viewed as forward-looking, i.e. not definite. Such statements are
mainly predictions of future results, trends, plans or goals. These
statements should not be considered to be total guarantees since
given their very nature they are subject to known and unknown risks
and imponderability and can be affected by other factors as a
consequence of which the actual results, plans and goals of SYGNIS
Pharma AG may deviate greatly from the established conclusions or
implied predictions contained in such statements. SYGNIS does not
undertake to publicly update or revise these statements in the light
of new information or future results or for any other reason. ###

Further inquiry note:
Michael Wolf
Telefon: +49 (6221) 454 - 6
E-Mail: Michael.Wolf@sygnis.de

end of announcement euro adhoc
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company: SYGNIS Pharma AG
Im Neuenheimer Feld 515
D-69120 Heidelberg
phone: +49 (0)6221 454-6
FAX: +49 (0)6221 454-777
mail: contact@sygnis.de
WWW: http://www.sygnis.de
sector: Biotechnology
ISIN: DE000A1E9B74
indexes: CDAX, Prime All Share
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English