mdg-annual-report-2013

MEDIGENE AG ANNUAL REPORT 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 89(29) Selling expensesExpenses for business development and marketing are reported under selling expenses. These include personnelexpenses, marketing and regulatory costs (incl. FDA fees), consultancy fees, market studies and other services. Sellingexpenses increased to €3,121 k in the reporting period (2012: €2,271 k) due to higher expenses for marketingVeregen ® . These expenses included the one-time payment of €740 k for the termination of the contract with AbbottArzneimittel GmbH for the distribution of Veregen ® in Germany. In return, Medigene will receive a one-time paymentof €650 k in early 2014 from Taurus Pharma GmbH, its new marketing partner for Veregen ® in Germany, which will bereported in 2014. No further selling activities relating to products were conducted in the reporting period.SELLING EXPENSESIN € K 2013 2012 CHANGEPersonnel expenses 1,186 1,135 4%One-time payment for the termination of the Abbott contract 740 0 ‒Marketing/regulatory fees 636 612 4%Consultancy fees/market surveys 223 112 99%Office rent and utilities 164 164 0%Depreciation 2 1 100%Other 170 247 -31%Total 3,121 2,271 37%(30) General and administrative expensesIn the reporting period, administrative expenses were down compared with the previous year to €5,152 k (2012:€5,638 k). This was mainly due to the higher one-time expenses incurred in the previous year in connection with theEligard ® transaction.GENERAL AND ADMINISTRATIVE EXPENSESIN € K 2013 2012 CHANGEPersonnel expenses 2,386 2,497 -4%Consultancy fees 1,687 1,946 -13%Office rent and utilities 316 351 -10%Depreciation 137 115 19%Other 626 729 -14%Total 5,152 5,638 -9%(31) Research and development expensesExpenses for research and development decreased to €6,605 k in the reporting period (2012: €7,399 k) following theplanned lower expenses for preclinical studies and clinical trials. The major share of R&D expenses was attributableto services for preclinical and clinical development, production, personnel expenses and consultancy fees. The R&Dcosts incurred for EndoTAG ® -1 will be reimbursed by partner SynCore and stated under other operating income asincome from R&D funding received from partners.The cost of services totalling €1,906 k (2012: €2,473 k) comprises the following items: Implementation of clinicaltrials amounting to €168 k (2012: €1,041 k), production services of €678 k (2012: €511 k), preclinical developmentservices of €880 k (2012: €679 k) and approval costs of €180 k (2012: €242 k).