Medigene AG (FSE: MDG1, Prime Standard, SDAX) today publishes preliminary financial results for the financial year 2018.
Martinsried/Munich (pta/05.03.2019/15:12) - Revenue from core business of immunotherapies increased by 22%
- FREP decision on the 2016 annual financial statements leads to a reduction of non-cash revenue from non-core business (other operating income) of EUR 2.5 m in 2018 compared to guidance
- EBITDA result in line with forecast
- Cash and cash equivalents higher than expected
MediGene AG (FSE: MDG1, Prime Standard, SDAX) today publishes preliminary financial results for the financial year 2018.
In the financial year 2018, Medigene increased its revenue from the core business of immunotherapies by 22% to approx. EUR 6.0 m (2017: EUR 4.9 m). The Company’s total revenues amounted to EUR 7.8 m in 2018 (2017: EUR 8.9 m). The deviation from the Company’s guidance of total revenue (EUR 9.5-10.5 m) is attributable to a decision of the German Financial Reporting Enforcement Panel (FREP) on the annual financial statements for 2016, relating to the royalty sale of Eligard® in 2012, leading to a revenue decrease of the non-core business (“Other operating income”) by EUR 2.5 m for 2018. As this reduced part of the revenue was not cash-effective in 2018, the Company will not lose any cash funds due to the correction.
At approx. EUR 17.1 m (2017: EUR 14.9 m), research and development expenses were lower than expected in 2018 (forecast: EUR 19-21 m), in particular due to shifts of costs into the financial year 2019.
Because of the aforementioned effects, the EBITDA loss of EUR 16.3 m (2017: EUR 14.6 m) is within the scope of the Company’s guidance (EUR 16-18 m).
The lower than expected expenses in 2018 led to lower cash consumption (excluding cash inflows from a capital increase) totaling EUR 10.3 m (forecast: EUR 12-14 m). Cash and cash equivalents (liquid assets and time deposits) amounted to EUR 71.4 m at the end of the year (2017: EUR 51.7 m).
Medigene will publish the final and detailed financial report 2018 as planned on March 27, 2019.
Background of the FREP decision:
In a random audit of the consolidated financial statements as of December 31, 2016, the FREP found that Medigene had not recognized a gain on sale from the transfer of a variable license claim for Medigene’s former drug Eligard® for a fixed purchase price in 2012 and had instead recorded it as a liability. As a result, the current liabilities and non-current liabilities are overstated in the consolidated balance sheet as of December 31, 2016 by EUR 1.5 m and EUR 9.4 m respectively and the shareholder’s equity disclosed in the consolidated balance sheet was understated by EUR 10.9 m. The aforementioned liabilities correspond to the license claims assigned in 2012, which were realized on a pro rata basis in an amount of EUR 2.5 m per year as other operating income over the Eligard® patent term of approximately ten years without cash effect. As a result of the FREP finding, the other operating income as of December 31, 2016 will be realized in full with retrospective effect in the consolidated financial statements for 2018, as a result of which equity will be increased by EUR 10.9 m and the corresponding liabilities will be completely reversed. Consequently, no other operating income associated with Eligard® will be realized in 2017 and 2018 and thereafter.
Medigene AG (FSE: MDG1, ISIN DE000A1X3W00, Prime Standard, SDAX) is a publicly listed biotechnology company headquartered in Martinsried near Munich, Germany. The company is developing highly innovative immunotherapies to target various forms and stages of cancer. Medigene concentrates on the development of personalized T cell-based therapies with the focus on T cell receptor-modified T cells (TCR-Ts) and has projects currently in preclinical and clinical development.
For more information, please visit http://medigene.com
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 forward-looking statements made herein. Medigene is not bound to update any of these forward-looking statements. Medigene® is a registered trademark of Medigene AG. This trademark may be owned or licensed in select locations only.
Contact Medigene AG
Julia Hofmann, Dr. Robert Mayer
Tel.: +49 - 89 - 20 00 33 - 33 01
email: investor@medigene.com
