Martinsried/Munich, August 1, 2008. In the first six months and the second quarter of 2008, the biotech company MediGene AG (Frankfurt, Prime Standard: MDG) generated a significant increase in revenues. Simulataneously the net loss for the period has increased due to special items as well as increased research and development expenses.
Total revenues increased by 11 % to 13.8 million EUR in the first six months of 2008, compared to 12.5 milion EUR in the first six months of 2007. In the second quarter of 2008, revenues increased by 57 % to to 8.8 million EUR (Q2-2007: 5.6 million EUR). Revenues have been generated almost exclusively from the commercialization of the drug EligardÒ in Europe, whereas in the first six months of 2007 milestone payments received also contributed significantly to total revenues. The increase in product sales reflect the still positive development of EligardÒ on the market.
The loss before interest and tax (EBIT) increased by 9 % to 17.1 million EUR in the first six months of 2008, compared to 15.6 million EUR in the first six months of 2007, and to 9.2 million EUR in the second quarter of 2008, compared to 8.2 million EUR in the second quarter of 2007. This increase is widely due to - partially not cash-effective - one-time items totalling approx. 2 million EUR. Another portion of the cost increase is allotted to increased third-party costs for preclinical and clinical development.
As at June 30, 2008, cash and cash equivalents totaled 32.5 million EUR.
Major events since the beginning of 2008:
MediGene obtains very good efficacy data of EndoTAG(TM)-1 in clinical phase II trial in pancreatic cancer Market launch of the six-months product of Eligard® in other European countries Results obtained with EndoTAG(TM)-1 in the indication pancreatic cancer presented at the ASCO congress MediGene obtains positive data of RhuDex® in clinical phase IIa trial MediGene puts phase I trial with new formulation of RhuDex® on hold for the time being European Commission issues marketing authorization for Oracea® for the treatment of rosacea Sale of Oracea® to Galderma represents a step towards focusing the company on oncology/immunology, and strengthens cash position
Forecast 2008:
For 2008, MediGene expects a significant increase in total revenues. These revenues expected will be generated mainly by product sales of Eligard®, and by proceeds from the sale of the European rights to Oracea®. Operational costs will increase compared to the financial year 2007. All in all, however, MediGene expects a decrease in operational loss compared to last year,
Dr. Peter Heinrich, Chief Executive Officer of MediGene AG, comments: “We are happy that we have been able to increase total revenues again, thanks to the positive market development of Eligard®, and that we managed to reduce our monthly cash burn rate. In our promising development project EndoTAG(TM)-1 we have reached an essential breakthrough with the excellent data obtained in the clinical phase II trial. This breakthrough has induced us to focus on the areas of oncology/immunology. The successful sale of our rights to Oracea® represents an important step in this direction.”
The detailed Six-Months Report 2008 of MediGene AG is available on the internet at http://www.medigene.de/deutsch/quartalsberichte.php
This press release contains forward-looking statements representing the opinion of MediGene as of the date of this release. The actual results achieved by MediGene may differ significantly from the statements made herein. MediGene is not bound to update any of these forward-looking statements. MediGene(TM), EndoTAG(TM), and Veregen(TM) are trademarks of MediGene AG, Polyphenon® is a registered trademark of Mitsui Norin Co., Ltd., Oracea® is a registered trademark of CollaGenex Pharmaceuticals Inc., Eligard® is a registered trademark of QLT USA, Inc. These trademarks may be owned or licensed in select locations only.
MediGene AG is a publicly quoted (Frankfurt, Prime Standard: MDG) biotechnology company located in Martinsried/Munich, Germany, with subsidiaries in Oxford, UK and San Diego, USA. MediGene is the first German biotech company to have drugs on the market, which are being distributed by partner companies. Another drug candidate has just received official recommendation for marketing authorization by the EMEA. MediGene has several drug candidates in clinical development. Moreover, the company has projects in research and pre-clinical development and possesses innovative platform technologies. MediGene concentrates on researching and developing novel drugs for the treatment of cancer and autoimmune diseases.
Contact MediGene AG E-mail: investor@medigene.com Fax:++49 - 89 - 85 65 - 2920 Julia Hofmann / Dr. Georg Dönges, Public Relations, Tel.: ++49 - 89 - 85 65 - 3317 Dr. Michael Nettersheim / Dr. Georg Dönges, Investor Relations, Tel.: ++49 - 89 - 85 65 - 2946
