MagForce Publishes Financial Results and Operative Highlights for 2012
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MagForce AG /
MagForce Publishes Financial Results and Operative Highlights for 2012
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* Strategic realignment and operative restructuring completed
* Successful capital increase totaling ?33.5 million (after period-end)
* Dr. Ben J. Lipps appointed Chairman of the Management Board as of September
2013 (after period-end)
* Focus on expanding strategic partnerships as well as on establishing and
commercializing the NanoTherm® therapy
* Post-marketing study approval from the Federal Institute for Drugs and
Medical Devices and the Federal Office for Radiation Protection (after
period-end)
Berlin, Germany, June 27, 2013 - MagForce AG (Frankfurt, Xetra: MF6), a leading
medical device company in the area of nanotechnology with a focus on oncology,
published today its financial results and operative highlights for the fiscal
year ending on December 31, 2012.
Christian von Volkmann, CFO and co-CEO of MagForce comments: "For MagForce,
2012 was characterized by the Company's important strategic realignment and
operational restructuring. We concentrated all of our activities and finances on
both expanding our strategic partnerships as well as on establishing the
NanoTherm® therapy in the oncology field and its corresponding post-marketing
study. The most important milestone for MagForce was the capital increase
announced in December 2012 and successfully completed in March 2013, amounting
to ?33.5 million against cash and noncash contributions. Despite the difficult
market environment, the transaction attracted renowned international investors.
This capital increase allows us to lay a solid foundation for the implementation
of our strategy and helps to put our Company on the path to success. We are also
extremely pleased that Dr. Ben J. Lipps, former Chairman of the Management Board
at Fresenius Medical Care AG, will be joining the Management Board of MagForce
as Chairman beginning in September 2013 to support us as we move forward. Both
the overwhelming response of investors to the capital increase and the fact that
we have added Dr. Lipps to our management team only reassured us that our
strategic realignment and operational restructuring were the right decisions."
The highlight of the Company's development in the 2012 reporting period was the
completion of the strategic realignment and operational restructuring of
MagForce AG. Ultimately, MagForce focused on establishing the NanoTherm® therapy
on the oncological market and on commercializing it for value creation in the
short-term. MagForce therefore concentrated on the primary steps needed for
successful marketing. As a result, we built up a network with leading
neurosurgeons and neuro-oncologists and developed a clinical trial plan for a
three-armed, randomized study on glioblastoma patients to underscore the
benefits of the NanoTherm® therapy and facilitate its acceptance among
specialists. In 2012, the study was submitted to the Ethics Commission, the
Federal Institute for Drugs and Medical Devices and the Federal Office for
Radiation Protection and was approved in the first half of 2013.
In accordance with the new strategy, the core segments of the Company, including
Clinical Development, Business Development, Medical Affairs and Legal & IP, were
consolidated to the Munich site. In addition to the Software Development and
Finance departments, the production of nanoparticles and NanoActivators(TM)
remained at the Company's headquarters in Berlin. At the same time, early-stage
research activities were substantially reduced and can be outsourced as needed.
As a result, the Company expects seven-digit annual savings (in euros) in these
areas.
In the short to medium term, MagForce will use the majority of its finances for
the post-marketing study of glioblastoma, which will greatly contribute to the
Company's strategic expansion. MagForce will also focus on establishing the
NanoTherm® therapy on the market with its distribution partners, including
DELRUS and TekGrup, its development partners, such as the Mayo Clinic for
gastro-intestinal tumors and the Department of Urology at Düsseldorf University
for prostate cancer, as well as the production of nanoparticles.
Result of operations, net assets and financial position
Before starting the post-marketing study and in accordance with expectations,
MagForce did not generate any revenues with the NanoTherm® therapy in 2012
(previous year: ?41 thousand). As a result of restructuring measures, operating
expenses were reduced to ?5,846 thousand (previous year: ?7,022 thousand),
mainly due to lower personnel costs. As a result, the Company also generated a
lower net loss for the year with ?5,717 thousand (previous year: ?8,586
thousand). This means that MagForce's performance in 2012, also with regard to
costs, was as forecasted in its report from the previous year.
The net loss was partially offset by cash inflows from capital increases
amounting to ?5,455 thousand in the reporting year. In 2012, the Company's share
capital was successively increased from ?4,127 thousand to ?5,316 thousand by
issuing new shares against cash contributions. As of the reporting date, other
liabilities increased by a total of ?16,081 thousand from the takeover of loan
receivables from Nanostart AG and Venture Tech GmbH by Avalon Capital One GmbH.
Cash flow from operating activities amounted to ?-5,473 thousand (previous year:
?-4,537). Cash flow from investing activities totaled ?-40 thousand (previous
year: ?-1,258 thousand) while the cash flow from financing activities amounted
to ?6,187 thousand (previous year: ?4,816 thousand). As of the reporting date,
December 31, 2012, the Company's cash and cash equivalents amounted to
?689 thousand (previous year: ?14 thousand).
Owing to the net loss, MagForce's balance sheet was indebted as of December
31, 2012. However, the Company announced a capital increase against cash and
noncash contributions in December 2012 and successfully generated ?33.5 million
from its implementation in March 2013. This underscores the trust and confidence
that international investors have in MagForce technology and the MagForce team.
The Company now has adequate capital for achieving its next milestones. The
Company's liquidity totaled ?17.6 million following the capital increase.
Outlook 2013
Due to the early phase of commercialization for its innovative therapy, the
Company cannot be sure whether increasing revenues can be realized in 2013. The
Company expects to generate an increasing net loss from operating activities as
compared to 2012 as part of its roll-out plan. This will mainly be due to the
start of the clinical post-marketing study and preparations for market entry in
additional countries. This corresponds to the objectives of the series of
measures passed in 2012, the related restructuring of the Company and the focus
on strategically important value drivers.
The Company expects an increased negative cash flow from operating activities in
the fiscal year 2013, which is largely due to the reduction of liabilities and
financing of measures in connection with establishing the NanoTherm® therapy.
Cash flow from financing activities will be clearly positive due to the capital
increase from March 2013, despite the repayment of all loan liabilities
amounting to ?15.9 million.
About MagForce AG
MagForce AG is a leading medical device company in the field of nanomedicine in
oncology. The Company's proprietary, NanoTherm(®) therapy, enables the targeted
treatment of solid tumors through the intratumoral generation of heat via
activation of superparamagnetic nanoparticles. NanoTherm(®), NanoPlan(®), and
NanoActivator(TM) are components of the therapy and have received EU-wide
regulatory approval as medical devices for the treatment of brain tumors.
MagForce, NanoTherm(®), NanoPlan(®), and NanoActivator(TM) are trademarks of
MagForce AG in selected countries. For more information, please visit
www.magforce.com.
Disclaimer
This release may contain forward-looking statements and information which may be
identified by formulations using terms such as "expects", "aims", "anticipates",
"intends", "plans", "believes", "seeks", "estimates" or "will". Such forward-
looking statements are based on our current expectations and certain
assumptions, which may be subject to a variety of risks and uncertainties. The
results actually achieved by MagForce AG may substantially differ from these
forward-looking statements. MagForce AG assumes no obligation to update these
forward-looking statements or to correct them in case of developments, which
differ from those, anticipated.
Contact:
Anne Hennecke
MC Services AG
T +49 89 210228-18
F +49 89 210228-88
M +49 151 12 555 759
Email: anne.hennecke(at)mc-services.eu
MagForce_Press Release_June 27, 2013:
http://hugin.info/143761/R/1712357/568253.pdf
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Source: MagForce AG via Thomson Reuters ONE
[HUG#1712357]
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Datum: 27.06.2013 - 08:01 Uhr
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News-ID 273783
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