BERLIN--(Marketwire - July 02, 2012) -
- Laying significant foundations for marketing the NanoTherm®
therapy
- Completed installation of first treatment center at Charité in Berlin,
Germany
- Establishing network of medical key opinion leaders
- Initial development cooperation with Mayo Clinic, USA, and distribution
partnerships with DELRUS and Tek Grup (after the end of the reporting
period)
- Corporate restructuring program to significantly reduce operating
expenses
- Secured financing till mid-2013
MagForce AG (Frankfurt, XETRA: MF6), a leading medical device company in
the field of nanomedicine with a focus on oncology, announced today the
financial results for the fiscal year 2011 ending December 31, 2011.
Dr. Andreas Jordan commented: "2011 was a year full of major challenges for
MagForce. The chosen route to market NanoTherm® therapy turned out to be
less successful than initially expected. We have therefore redefined our
strategy and started to lay the foundations for medical community
acceptance and the future commercialization of NanoTherm® therapy in
order to further develop the company. A new trial, which is expected to
start in early 2013, will validate the benefits of NanoTherm® therapy.
Building confidence among leading medical experts and possible strategic
partners in the therapeutic potential of our technology is of major
importance.Together with strategic and distribution partners, the Company
will pursue further international approvals. In spring 2012, we have been
reporting first progress in this regard."
After realizing the likely failure of its earlier marketing strategy,
MagForce corrected the route to market for the NanoTherm® therapy in a
determined way. The resulting tasks will now be systematically handled by a
new management team in accordance with the redefined clinical and
commercial strategy. MagForce has introduced the necessary steps for
establishing an extensive network of medical key opinion leaders in
oncology and involving them in the further development of the technology.
By convincing the leading neuro-surgeons, neuro-oncologists and
radiotherapists it is expected to increase the acceptance of MagForce's
technology. Additionally, the course for new scientific and commercial
collaborations, the first of which were signed mid-2012, has already begun.
Results of Operations, Net Assets, and Financial Position
During the reporting period 2011, the first sales of NanoTherm® therapy
in the amount of TEUR 41 (previous year TEUR 0) were achieved. Net loss for
the year of TEUR 8,588 (previous year TEUR 7,447) incurred during the
reporting period was mainly due to increased operating expenses of TEUR
7,022 (previous year TEUR 6,464). The increase in operating expenses
primarily resulted from an increase in personnel costs. This increase was
mostly reversed in the second half of 2011.
The net loss was offset by income from capital increases. In 2011, the
equity capital of the Company was increased from TEUR 3,917 to TEUR 4,127
by issuing new shares in return for cash contributions. Furthermore,
subordination agreements were concluded with the major shareholders for the
loans granted by them in the amount of TEUR 15.171. The Company also
received new loans from its principal shareholder Nanostart for financing
its operational activities.
Cash flow from operating activities decreased to TEUR -4,537, (previous
year TEUR -5,353). Cash flow from investing activities was TEUR -1,258
(previous year TEUR -876), and cash flow from financing activities was TEUR
4,816 (previous year TEUR 6,488). As of the balance sheet date, December
31, 2012, the Company had available liquid assets totalling TEUR 14.
MagForce continues to be over-indebted as a result of the net loss for the
fiscal year. However, the Company has been able to prepare a positive
forecast for the successful continuation of its business. In terms of
capitalization, MagForce laid the necessary foundations to secure the
financing until mid-2013. The Company's major shareholder continues to back
MagForce, unreservedly.
Outlook 2012
In line with the new strategy, the Company is focusing its operational
activities on further validation of its technology and joint marketing with
strategic partners and distributors in 2012. In cooperation with medical
key opinion leaders, MagForce has designed a trial protocol for patients
diagnosed with glioblastoma in order to provide further evidence for the
benefits of NanoTherm® therapy. The preparation for this study is
expected to be completed in the second half this year. This trial will
supplement the previous studies, which led to the approval of NanoTherm®
therapy, and will take into account the guidelines and requirements for the
development of therapeutics that will complement the approval of
NanoTherm® therapy as a medical device. In 2012, the Company expects a
slight loss reduction compared to the previous year due to the
restructuring program initiated in 2011 and planned cost-cutting
activities. Not included in this assumption is a licencing agreement with a
strategic partner, as expected under the new strategy.
To finance its operational activities, the Company plans further capital
measures in 2012. In the first half of 2012 a total of TEUR 4,450 was
raised.
About MagForce AG
MagForce AG is a leading medical technology company in the field of
nanomedicine in oncology. The Company's proprietary, NanoTherm® therapy,
enables the targeted treatment of solid tumors through the intratumoral
generation of heat via activation of magnetic nanoparticles. NanoTherm®,
NanoPlan®, and NanoActivator™ are components of the therapy and have
received EU-wide regulatory approval as medical devices for the treatment
of brain tumors. MagForce, NanoTherm, NanoPlan, and NanoActivator are
trademarks of MagForce AG in select countries. For more information, please
visit www.magforce.com.
About NanoTherm® Therapy
The NanoTherm® therapy is a new approach for the local treatment of solid
tumors. The principle of the method is the direct introduction of magnetic
nanoparticles into a tumor and their subsequent heating in an alternating
magnetic field. The water soluble nanoparticles are extremely small
(approximately 15 nanometers in diameter), and contain an iron oxide core
with an aminosilane coating. The particles are activated by a magnetic
field that changes its polarity 100,000 times per second and heat is
produced. Depending on the duration of treatment and the achieved
intratumoral temperatures, the tumor cells are either directly destroyed
(thermal ablation) or sensitized for concomitant chemo or radiotherapy
(hyperthermia). With this new procedure, it is possible to combat the tumor
from the inside out, thereby sparing surrounding healthy tissue. The
nanoparticles remain in place at the treatment area, allowing for repeat
treatments and the integration of multimodal therapy concepts. NanoTherm®
therapy has regulatory approval in 27 European countries.
Disclaimer
This release may contain forward-looking statements and information which
may be identified by formulations using terms such as "expects", "aims",
"anticipates", "intends", "plans", "believes", "seeks", "estimates" or
"will". Such forward-looking statements are based on our current
expectations and certain assumptions, which may be subject to a variety of
risks and uncertainties. The results actually achieved by MagForce AG may
substantially differ from these forward-looking statements. MagForce AG
assumes no obligation to update these forward-looking statements or to
correct them in case of developments, which differ from those, anticipated.
MagForce_Press Release_Financial Results 2011_July 02, 2012:
http://hugin.info/143761/R/1623575/519027.pdf
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Source: MagForce AG via Thomson Reuters ONE
[HUG#1623575]
