Planegg/Martinsried - Medigene AG (Medigene, FSE: MDG1, Prime Standard), a clinical stage immuno-oncology company focusing on the development of T cell immunotherapies, received a milestone payment of USD2 m within its partnership with Cytovant Sciences HK Limited, a biopharmaceutical company founded by Roivant Sciences (Roivant/Cytovant), due to an achieved preclinical development goal. Medigene entered into several licensing and collaboration agreements with Roivant/Cytovant since 2019, covering, amongst others, various T cell receptor projects for Asia including China, Hong Kong, Macau, Taiwan, South Korea and Japan.
The received milestone payment as well as reduced research and development expenses, which are now better estimated towards the year end, reflect cost-saving measures achieved as part of the strategic focus on solid tumors in 2020, and enable Medigene to improve its financial guidance for the fiscal year 2021, as first published with the Annual Report 2020.
The forecast for total revenues will be increased from previously EUR 7-9 m to a range of EUR 10-11 m and the forecast for research and development costs is reduced from previously EUR 14-20 m to a range of EUR 11-12 m. As a result, the forecast for the expected EBITDA loss improves to EUR 7-9 m (previously EUR 10-17 m). Based on the current planning, the Company remains financed into the first quarter of 2023.
Axel Malkomes, Chief Financial Officer and Chief Business Development Officer at Medigene: "We are proud to have delivered yet another excellent receptor candidate to a partner thanks to our proprietary high-throughput T cell receptor discovery and characterization platform. With the milestone payment as well as the strategic focus and operational streamlining of the past months, we also expect to succeed in significantly improving the financial result for fiscal year 2021.
Based on our years of intensive research, we remain convinced that our T-cell-based therapies for the treatment of solid tumors represent the most promising opportunity for Medigene, scientifically, clinically and commercially."
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Medigene AG (FSE: MDG1, ISIN DE000A1X3W00, Prime Standard) is a publicly listed biotechnology company headquartered in Planegg/Martinsried near Munich, Germany. With its scientific expertise, Medigene is working on the development of innovative immunotherapies to enhance T cell activity against solid cancers in fields of high unmet medical need. Medigene's pipeline includes preclinical as well as clinical programs in development.
Medigene's strategy is to develop its own therapies towards clinical proof-of-concept. In addition, the Company offers selected partners the opportunity to discover and develop therapies on the basis of its proprietary technology platforms. In return for such partnerships, Medigene expects to receive upfront and milestone payments as well as research and development funding and royalties on future product sales.
For more information, please visit https://www.medigene.com
About Medigene's TCR-Ts
T cells are at the center of Medigene's therapeutic approaches. With the aid of Medigene's immunotherapies the patient's own defense mechanisms are activated, and T cells harnessed in the battle against cancer. Medigene's therapies arm the patient's own T cells with tumor-specific T cell receptors (TCRs). The resulting TCR-Ts should thereby be able to detect and efficiently kill cancer cells.
This approach to immunotherapy aims to overcome the patient's tolerance to cancer cells and tumor-induced immunosuppression by activating the patient's T cells outside the body, genetically modifying them with tumor-specific TCRs and finally multiplying them. In this way, large numbers of specific T cells are made available to patients to fight the cancer within a short period of time.
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. This trademark may be owned or licensed in select locations only.
Dr. Anna Niedl
Phone: +49 89 2000 3333 01
Sandya von der Weid
Phone: +41 78 680 05 38