- Increase in revenue with reduced operating costs
- Veregen® in-market sales growth of 48 %
- Financial guidance 2013 improved
- Press and analysts conference call with webcast today, 9 August 2013, 10:30 a.m. (CEST)
Martinsried/Munich, 9 August 2013. In the first six months of 2013, Medigene AG (MDG, Frankfurt, Prime Standard) reported an increase in revenue with reduced operating costs.
Revenue from royalties for Veregen® increased by 46% to EUR 1.2 million (6M 2012: EUR 0.8 million) due to a significant growth of in-market sales (+48%). Medigene's revenue increased by 13% to EUR 1.9 million in the first six months of 2013 (6M 2012: EUR 1.7 million) whereas total revenue amounted to EUR 3.2 million compared to EUR 3.3 million in the first six months of 2012. Excluding a one-time effect in the previous year (compensation payment of EUR 0.4 million), total revenue in the first six months of 2013 increased by 10%.
Medigene's EBITDA result of EUR -4.3 million (6M 2012: EUR 0.8 million) was in line with the company's forecast, with reduced operating expenses of EUR 7.1 million (6M 2012: EUR 7.5 million). Excluding the preceding year's one-time effects (a EUR 5 million milestone payment from discontinued operations and a compensation payment of EUR 0.4 million), Medigene's EBITDA result improved by 6% compared to last year's reporting period.
The net result for the first six months of 2013 amounted to EUR -5.7 million (6M 2012: EUR 2.2 million). The preceding year's result was positively influenced by the above-mentioned one-time effects and by the revaluation of an investment totaling EUR 2.2 million which was posted for the first six months of 2012.
Cash and cash equivalents at reporting date 30 June 2013 totalled EUR 15.0 million. Medigene expects cash reach to be secured at least until early 2015.
Highlights of the first six months of 2013
- Revenue from royalties for Veregen® increased by 46%; further market launches, approvals, and marketing partnerships
- Global partnership agreement for EndoTAG®-1 concluded; phase III clinical trial funded
- SynCore gained as strategic core investor
Peter Llewellyn-Davies, Chief Financial Officer of Medigene AG, comments: "In addition to the positive development of revenue and costs in the first six months of the year, we also achieved an important milestone in our portfolio strategy. With the global partnership agreement for EndoTAG®-1 with SynCore, we have financed the phase III development of this late-stage program and have gained a strategic core investor for Medigene. Furthermore, we have made significant progress with several market launches, approvals, and marketing partnership agreements for Veregen®. As a result we have improved our financial guidance; we continue to pursue our development projects and are focussing on activities to potentially expand our drug pipeline in order to achieve sustainable value creation."
Financial guidance 2013
Medigene improves the financial guidance for 2013. The company expects total revenue to increase to EUR 8 - 9 million (previous forecast: EUR 7 - 8 million), and a loss on an EBITDA basis of EUR 8 - 10 million (previous forecast: EUR 9 - 11 million). The projected total revenue includes Veregen® revenue, income from the partnership for EndoTAG®-1 with SynCore, and non-cash income from the Eligard® deal concluded in 2012. Based on current business planning and the respective scenarios, Medigene's management expects its cash reach to be secured at least until the beginning of 2015.
Consolidated income statement (abbreviated)
|In EUR k||6M 2013||6M 2012||Change|
|thereof Veregen® royalties||1,243||849||46%|
|thereof Veregen® revenue from supply chain||554||225||146%|
|thereof Veregen® milestone payments||80||580||-86%|
|Other operating income||1,331||1,642||-19%|
|Total revenue before one-time effect||3,208||2,906||10%|
|Cost of sales||-827||-414||100%|
|Selling, general, and administrative expenses||-3,604||-3,856||-7%|
|Research and development expenses||-3,446||-3,635||-5%|
|Income from revaluation of an investment||0||2,186||-|
|Net result for the period||-5,656||2,223||-|
|EBITDA before one-time effects||-4,290||-4,574||-6%|
The detailed 6-Months Report 2013 is available at www.medigene.com/reports
Press and analysts' conference call:
A press and analysts conference call (in English) will be held today at 10:30 a.m. CEST and will be webcast live. Please access the synchronized presentation slides and a recording via Medigene's website, www.medigene.com.
Medigene AG is a publicly listed (Frankfurt: MDG, prime standard) biotechnology company headquartered near Munich, Germany. Medigene focuses on clinical research and development of novel drugs against cancer and autoimmune diseases. Medigene is the first German biotech company to have revenues from marketed products, which are distributed by partner companies. It has two drug candidates in clinical trials, EndoTAG®-1 and RhuDex®; and is developing an innovative vaccine technology.
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®, EndoTAG®, RhuDex® and Veregen® are registered trademarks of Medigene AG. Eligard® is a trademark of Tolmar Therapeutics, Inc. Polyphenon E® is a trademark of Mitsui Norin Co., Ltd. These trademarks may be owned or licensed in select locations only.
Julia Hofmann, Claudia Burmester
Investor & Public Relations
Tel.: +49 - 89 - 20 00 33 - 33 01
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