Planegg - Medigene AG (MDG1, Frankfurt, Prime Standard, TecDAX) today announced the sale of the US-rights for its drug Veregen® to Fougera Pharmaceuticals, Inc., Melville, New York, USA, the dermatology business entity of Sandoz US, which is part of the Novartis group. Thereby, Medigene essentially monetizes the last remaining product from its previous pipeline before the company's repositioning as an immunotherapy company with clinical programs in development.
Fougera, Medigene's former partner for the distribution and marketing of Veregen® in the US, now acquires the US assets for the drug, including intellectual property, licenses, know-how and the trademark. Medigene remains the owner of the active pharmaceutical ingredient (API) stock for the product and becomes the exclusive supplier of the API to Fougera. The parties agreed on certain minimum purchase obligations, in order to ensure the successful continuation of the US business by Fougera. Furthermore, Fougera will reimburse Medigene for costs associated with the supply of API. Medigene retains all rights for Veregen® outside of the US. Veregen® is a topical treatment of genital warts.
In the first nine months of 2017, Medigene's Veregen® revenue from royalties, product sales and milestone payments from its distribution partners totaled 1.8 m EUR (9M-2016: 2.2 m EUR). In the past, on average over 50% of the annual Veregen® revenue was generated from the US business.
In connection with the sale of the US-rights for Veregen®, Medigene raises its financial guidance for 2017: Now, the company expects revenues of EUR 10.5-11.5 m instead of EUR 8-10 m as previously guided, an EBITDA-loss of EUR 14-15 m instead of EUR 16-18 m, and a cash utilization of EUR 20-22 m instead of EUR 23-27 m. This forecast does not include future milestone payments from the existing R&D partnership with bluebird bio or any payments from potential new transactions.
Besides, financial details of the agreement with Fougera were not disclosed.
Contact Medigene AG
Julia Hofmann, Dr. Robert Mayer
Tel.: +49 - 89 - 20 00 33 - 33 01
emitter: Medigene AG
address: Lochhamer Straße 11, 82152 Planegg
contact person: Julia Hofmann, Head of Public and Investor Relations
phone: +49 89 200033-3301
ISIN(s): DE000A1X3W00 (share)
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