Second cash payment due, totaling EUR 15 million
Martinsried/Munich, March 01, 2011. The biotech company MediGene AG (Frankfurt, Prime Standard) today announces that exclusive European rights to the cancer drug Eligard® have been transferred to Astellas Pharma Europe Ltd. (London, UK, "Astellas"), with effect from March 1, 2011. This will trigger a second milestone payment from Astellas to MediGene, amounting to EUR 15 million, as agreed in the July 2010 contract. Further, and per the contract, from March 1, 2011 MediGene will receive a 2% share in Eligard® net European sales. Importantly, all costs to and obligations of MediGene AG associated with the future supply of Eligard® to Astellas have ceased.
According to the contract, MediGene is entitled to a total of EUR 25 million, paid in three tranches. MediGene received the first payment of EUR 5 million upon signing of the contract, and the last payment, also totaling EUR 5 million, will become due upon the transfer of rights to countries outside the EU. This is expected towards the end of 2011 or early in 2012.
According to IFRS 5 and starting with the Annual Report 2010, all future reports of Eligard® revenue and costs will now be stated as being from "discontinued operations". This will change the portrayal of the individual items in financial statements but will have no impact on the EBITDA and annual net result.
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. Eligard® is a 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 drugs on the market which are distributed by partner companies. It has several drug candidates in clinical development and possesses innovative platform technologies. MediGene focuses on clinical research and development of novel drugs with focus on oncology.
Contact MediGene AG
Julia Hofmann, Kerstin Langlotz
Investor & Public Relations
Tel.: +49 - 89 - 85 65 - 33 01
Fax: +49 - 89 - 85 65 - 29 20