News

MediGene Reports Profit for the First Three Months of 2011

Analyst conference call & webcast at 2.30 pm (CEST) today

 

  • Increase in revenue (from continued and discontinued operations) to EUR 27.9 million (Q1 2010: EUR 12.0 million)  

  • Positive EBITDA result of EUR 19.2 million (Q1 2010: EUR -2.4 million)  

  • Net profit of EUR 17.0 million (Q1 2010: EUR -2.3 million) 

  • Cash and cash equivalents of EUR 18.8 million as at closing date March 31, 2011 (December 31, 2010: EUR 4.8 million) 

 

Martinsried/Munich, May 13, 2011. The biotech company MediGene AG (Frankfurt, Prime Standard) generated revenue (from continued and discontinued operations) totaling EUR 27.9 million in the first three months of fiscal year 2011 (Q1 2010: EUR 12.0 million). This revenue mainly consists of product sales from the commercialization of Eligard® and Veregen® as well as milestone payments of EUR 20 million resulting from the transfer of Eligard® EU rights to Astellas. MediGene reports a positive EBITDA result totaling EUR 19.2 million (Q1 2010: EUR -2.4 million). The net profit for the period was EUR 17.0 million (Q1 2010: EUR -2.3 million). Cash and cash equivalents at the end of the reporting period amounted to EUR 18.8 million. The financial statements were prepared pursuant to IFRS (International Financial Reporting Standards).

 

Major events during the first three months of 2011:

 

  • Conclusion of additional partnership agreements for the commercialization of Veregen®: 

  • Laboratories Expanscience for France,  

  • Meditrina for Romania and Bulgaria,  

  • Pierre Fabre for Mexico, Central America, Venezuela, and Colombia, 

  • Will-Pharma for the Benelux countries  

 

  • Veregen® granted market approval in Spain  

 

  • Eligard® rights for EU countries transfered to Astellas  

 

Arnd Christ, Chief Financial Officer of MediGene AG commented: "With the figures reported today, we have started 2011 successfully and are beginning to benefit from last year's strategic measures. We will continue to work on the strengthening of our drug pipeline, both internally and via strategic measures, in order to facilitate future growth".  

 

Key figures first three months of 2011:


In EUR thousandQ1 2011Q1 2010Change
Product sales 380729-48%
        thereof Veregen® product sales28017659%
Other operating income26813>200%
Total revenue 648742-13%
Cost of sales-80-6327%
Gross profit568679-16%
Selling, general, and administrative expenses-1,644-1,964-16%
Research and development expenses-2,029-4,080-50%
Operating result from continued operations-3,105-5,365-42%
Result from continued operations-3,466-6,033-43%
Product sales from discontinued operations27,29611,277142%
Result from discontinued operations before tax20,0903,698>200%
Net result for the period 16,985-2,335>-200%
EBITDA19,211-2,436>-200%

 

Result first quarter of 2011:

 

Total revenue and other operating income:
In the first three months of 2011, MediGene posted total revenue from continued operations totaling EUR 0.6 million (Q1 2010: EUR 0.7 million). They were generated from product sales of Veregen® in the USA, Germany, and Austria, which increased by 59 % to EUR 0.3 million (Q1 2010: EUR 0.2 million) and from milestone payments for Veregen®. Starting March 1, 2011, MediGene's 2% participation in Eligard® net sales has been recorded as other operating income.

 

Product sales from discontinued operations amounted to EUR 27.3 million (Q1 2010: EUR 11.3 million). This increase results mainly from two milestone payments totaling EUR 20 million which MediGene received within the framework of the sale of the Eligard® rights in July 2010 (EUR 5 million) and in March 2011 (EUR 15 million), and which were recorded affecting net income. This item also includes product sales generated through the end of February 2011, as well as royalties on European sales of Eligard®.

 

EBITDA and net result
In the first three months of 2011, MediGene realized a positive EBITDA result of EUR 19.2 million compared to EUR -2.4 million in last year's reporting period. The net profit amounted to EUR 17.0 million (Q1 2010: EUR -2.3 million). This significant improvement is due mainly to increased revenue. However, operating expenses were also significantly reduced compared to last year's reporting period.

 

Cash and cash equivalents and average monthly cash flow from operating activities  
Cash and cash equivalents as at closing date March 31, 2011 totaled EUR 18.8 million (December 31, 2010: EUR 4.8 million). Early in March 2011, MediGene received a EUR 15 million payment made by Astellas for the sale of the marketing rights to the cancer drug Eligard®.

 

In the first three months of 2011, the average monthly net cash inflow rate from operating activities amounted to EUR 4.8 million (Q1 2010: EUR -2.0 million). Adjusted by the one-time effects of the milestone payments received from Astellas, the average monthly operating cash burn rate was EUR -0.2 million in the reporting period.

 

Financial forecast 2011:

 

MediGene confirms its forecast for fiscal year 2011. Based on its present product portfolio, MediGene expects a positive EBITDA result of EUR 10 to 16 million. This result includes non-recurring special effects in the form of milestone payments totaling EUR 20 to 25 million for Eligard®, which will also contribute to the revenue guidance (from continued and discontinued operations) of EUR 32 to 38 million.

 

Analyst conference call:

 

An analyst conference call in English will take place today at 2.30 p.m. (CEST), and will be webcast live. The webcast and synchronized presentation slides can be accessed at www.medigene.com. A recording of the live presentation will also be available thereafter.

 

The full 3 Months Report 2011 is available at www.medigene.com/media-investors/reports-presentations/.  

 

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 registered trademark of Tolmar Therapeutics, Inc. These trademarks may be owned or licensed in select locations only.

 

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MediGene AG is a publicly listed (Frankfurt: MDG, prime standard) biotechnology company headquartered in Martinsried/Munich, Germany. MediGene is the first German biotech company to have revenues from marketed products. It has various drug candidates in clinical development and possesses innovative platform technologies. MediGene focuses on clinical research and development of novel drugs against cancer and autoimmune diseases.

 

 

Contact MediGene AG

 

Julia Hofmann
(analysts, institutional investors, press)

 

Kerstin Langlotz
(retail investors, press)

 

Tel.: +49 - 89 - 85 65 - 33 01
Fax: +49 - 89 - 85 65 - 29 20
Email: investor@medigene.com