Medigene reports results of first six months 2017

Planegg - Growing revenues from core business immunotherapies, clinical trial application for second immunotherapy submitted, financial results in line with guidance

Conference call and webcast (in English) today, August 3, 2017 at 3pm CEST (Frankfurt) / 9am EDT (New York)

Medigene AG (FSE: MDG1, Frankfurt, Prime Standard, TecDAX), a clinical stage immuno-oncology company focusing on the development of T cell immunotherapies for the treatment of cancer, today released its financial results for the first six months of 2017.

Major events since the beginning of 2017:
- Medigene submitted clinical trial application for its first study with proprietary T cell receptor (TCR)-modified T cells, MDG1011 - Final milestone for Trianta acquisition achieved
- Preclinical data on Medigene's first immunotherapy MDG1011 presented at AACR
- Academic partner Oslo University presented additional data on compassionate use for DC vaccines against acute myeloid leukemia (AML) at AACR
- Medigene raised Eur20.7 m gross proceeds through placement of new shares with institutional investors in May

Key figures in the first half of 2017:
- Revenue from core business immunotherapies (bluebird bio partnership) amounts to Eur2,252 k (6M 2016: Eur0 k) - collaboration progressing in line with expectations
- Total revenue of Eur4,915 k (6M 2016: Eur5,470 k); non-recurring gain in previous year from the sale of EndoTAGĀ® rights was largely offset by income from the partnership with bluebird bio
- Cash, cash equivalents and time deposits of Eur59,871 k as of June 30, 2017 (12/31/2016: Eur52,630 k)
- Confirmation of financial guidance 2017

Prof. Dolores Schendel, CEO/CSO at Medigene AG, commented: "We are about to reach a new level in Medigene's corporate development. Through submission of the clinical trial application for our first clinical study with our proprietary TCR immunotherapy we achieved two important goals: We paved the way to enter clinical development with our TCR immunotherapy in addition to our ongoing trial with DC vaccines and we achieved the final milestone of the Trianta acquisition, thus completing Medigene's transformation into a leading T cell immunotherapy company."

Dr. Thomas Taapken, CFO of Medigene AG, adds: "I am happy to report our financial statements, which show continuity according to our plan to transform Medigene into a dedicated immunotherapy company. The successfully completed capital raise in the second quarter of 2017 attracted new institutional investors to Medigene and extended the financial base to fund the next steps in the development of our immunotherapies for cancer. Together with our team and our partners, we are continuously working towards our goal of developing innovative therapies to provide genuine benefits to patients."

Key figures in first half of 2017:

IN EUR K Q2 2017 Q2 2016 6M 2017 6M 2016
UNAUDITED UNAUDITED CHANGE UNAUDITED UNAUDITED CHANGE
Results of operations
Revenue from immunotherapies (bluebird bio cooperation) 1,135 0 - 2,252 0 -
Revenue Veregen 515 761 -32% 1,348 1,385 -3%
Other operating income 657 800 -18% 1,315 4,085 -68%
thereof gain on sale of intangible assets, net (EndoTAG) 0 0 0 2,365
Total revenue 2,306 1,561 48% 4,915 5,47 -10%
Gross profit 2,132 1,103 93% 4,321 4,697 -8%
Selling and general administrative expenses -2,484 -1,701 46% -4,338 -4,013 8%
Research and development expenses -3,824 -2,684 42% -7,436 -5,079 46%
Operating result -4,176 -3,282 27% -7,453 -4,395 70%
Income from the sale of financial assets 0 4,242 0 4,242
Net profit/loss for the period -3,793 986 >-200% -7,47 -401 > 200%
EBITDA -3,876 -3,072 26% -6,896 -4,011 72%
Earnings per share (Eur) -0.18 0.05 >-200% -0.36 -0.02 >200%
Personnel expenses -2,858 -2,084 37% -5,266 -4,536 16%
Cash flows
Net cash used in operating activities -11,559 -8,818 31%
Net cash used in/from investing activities -6,166 10,864
Net cash from/used in financing activities 18,966 -132
Balance sheet data as at June 30, 2017 and December 31, 2016
Cash and cash equivalents and time deposits 59,871 52,63 14%
Total assets 119,823 111,715 7%
Current liabilities 11,273 11,966 -6%
Non-current liabilities 18,191 21,157 -14%
Shareholders' equity 90,359 78,592 15%
Equity ratio (%) 75 70 7%
Employees as at June 30 96 80 20%
FTE as at June 30 90 73 23%
Medigene share as at June 30
Total number of shares outstanding 22,118,612 20,088,260 10%
Share price (XETRA closing price) (Eur) 11.06 6.66 66%

Financial guidance 2017
Medigene confirms its financial guidance for 2017 as published in the 2016 annual report. The forecast reflects Medigene's continued focus on the core business of immunotherapies.
- Revenues: The Company is expecting to generate total revenue of Eur8 - 10 m in 2017. This forecast does not include future milestone payments from the existing R&D partnership with bluebird or revenue from any potential new transactions.
- R&D expenses: Due to the progress of Medigene's clinical development programs in the field of immunotherapies and a further increase in headcount, Medigene is forecasting rising research and development expenses in the amount of Eur16 - 18 m.
- Planned EBITDA loss of Eur16 - 18 m in fiscal year 2017.
- For 2017, Medigene anticipates cash utilization to be Eur23 - 27 m, partly due to non-recurring effects such as investments in laboratory infrastructure. This forecast does not include any cash inflows from possible future milestone payments from the existing R&D partnership with bluebird bio or from potential new transactions.
- Based on its current planning, the Company has sufficient financial resources for well beyond the forecast horizon of two years and up to the time that data from the DC trial and TCR trials become available.

The full version of the half year report 6M-2017 can be downloaded here: www.medigene.com/investors-media/reports-presentations/

Conference call and webcast: A telephone conference (webcast) in English will be held today at 3:00 pm CEST (Munich/Frankfurt) / 9:00 am EDT (New York) and transmitted live in the internet. Access and transmission of the synchronized presentation slides and a recording of the presentation is available on the homepage of Medigene at www.medigene.com/investors-media/reports-presentations/webcasts/

Medigene AG (FSE: MDG1, ISIN DE000A1X3W00, Prime Standard, TecDAX) 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 focuses on the development of personalized T cell-based therapies, with projects currently in preclinical and clinical development.

For more information, please visit www.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. MedigeneĀ® and VeregenĀ® are registered trademarks of Medigene AG. These trademarks 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