MediGene AG Announces 6-Months Result and Confirms Forecast for the Year
August 02 2005 - 4:05PM
PR Newswire (US)
* Total revenues of 4.9 million euro (H1-2004: 8.8 million euro) *
Net loss -6.3 million euro (H1-2004: -4.2 million euro) *
Operational cash flow -6.6 million euro (H1-2004: -4.3 Mio. euro) *
Cash position 41.6 million euro (H1-2004: 32.8 million euro) *
First-time adoption from US GAAP to International Financial
Reporting Standards (IFRS) without any noteworthy effect
MARTINSRIED, Germany and MUNICH, Germany and SAN DIEGO, Aug. 3
/PRNewswire-FirstCall/ -- The German-American biotech company
MediGene AG (Frankfurt, Prime Standard: MDG) presents results for
the first six months of 2005 that conform to the company's
expectations, and confirms its forecast for the financial year.
Total revenues in the first six months of the year amounted to
4,942 T euro (H1-2004: 8,830 T euro), and to 1,118 T euro in the
second quarter of 2005 (Q2-2004: 4,920 T euro). These revenues were
generated almost solely by the commercialization of the drug
Eligard(R), and are made up of proceeds from product sales, license
fees and milestone payments received from MediGene's marketing
partner Astellas Pharma Europe Ltd. The increased revenues in the
second quarter and in the first six months of 2004 resulted from
advance and milestone payments due upon conclusion of the marketing
partnership for Eligard(R). Consequently, the gross profit
decreased to 3,666 T euro in the first six months of the year, and
to 214 T euro in the second quarter. Gross profit margin is
determined by milestone payments and the ratio of revenues from
product sales to license payments, and is therefore subject to
substantial fluctuations comparing individual reporting periods.
The increase of general, administrative, and selling expenses to
3,048 T euro (H1-2004: 2,879 T euro), and to 1,634 T euro (Q2-2004:
1,481 T euro), respectively, is mainly due to the first-time
adoption of IFRS, according to which stock options issued to
employees are now recognized as expenses of 171 T euro in the first
six months of 2005. Total R&D expenses increased to 7,558 T
euro (H1-2004: 6,820 T euro), and to 4,260 T euro (Q2-2004: 3,025 T
euro), respectively. This increase was mainly due to the EndoTAG
program acquired in August 2004. Compared to last year's reporting
periods, the net loss increased to -6,326 T euro (H1-2004: -4,195 T
euro), and to -5,378 T euro (Q2-2004: - 2,692 T euro),
respectively, since last year the company received higher milestone
payments for the drug Eligard(R). Outlook: MediGene confirms the
forecast for the year 2005, according to which the company expects
to raise revenues to approximately 20 million euro, and to reduce
the loss below 10 million euro. Major milestones to be reached are
the NDA submission for the Polyphenon(R) E Ointment against genital
warts to the US regulatory authority, the conclusion of a marketing
partnership for the Polyphenon(R) E Ointment, the initiation of a
clinical phase II trial of the drug candidate EndoTAG-1, as well as
the launch of Eligard(R) in other European countries. Alexander
Dexne, MediGene's Chief Financial Officer, comments: "In the second
half of 2005 we expect a significant increase in revenues and a
considerable improvement of our financial result. The launch of
Eligard(R) in other European countries and the conclusion of a
marketing partnership for our Polyphenon(R) E Ointment will form
the basis for this improvement. Although the results obtained in
the trial in the indication actinic keratosis did not meet our
expectations, we assume that the NDA for our Polyphenon(R) E
Ointment will be submitted to the US regulatory authority as
scheduled, and that we will conclude a marketing partnership for
this product." Consolidated Income Statement (Abbreviated) in T
euro Q2-2005 Q2-2004 Change H1-2005 H1-2004 Change Total revenues
1,118 4,920 -77 % 4,942 8,830 -44 % Cost of sales 904 3,225 -72 %
1,276 3,253 -61 % Gross profit 214 1,695 -87 % 3,66 5,577 -34 %
General, administrative, and selling expenses 1,634 1,481 10 %
3,048 2,879 6 % Research and development expenses 4,260 3,025 41 %
7,558 6,820 11 % EBIT -5,680 -2,811 -102 % -6,940 -4,122 -68 % Net
loss from continued operations -5,383 -2,673 -101 % -6,330 -3,895
-63 % Result from discontinued operations 5 -19 126 % 4 -300 101 %
Net loss -5,378 -2,692 -100 % -6,326 -4,195 -51 % The complete
6-Months Report 2005 is available at
http://www.medigene.de/englisch/quartalsberichte.php . This press
release contains forward-looking statements that involve risks and
uncertainties. The forward-looking statements contained herein
represent the judgment of MediGene as of the date of this release.
These forward-looking statements are no guarantees for future
performance, and the forward-looking events discussed in this press
release may not occur. MediGene disclaims any intent or obligation
to update any of these forward-looking statements. MediGeneTM is a
trademark of MediGene AG. MediGene AG is a publicly quoted
(Frankfurt: TecDAX30), German-American biotechnology company
located in Martinsried, Germany and San Diego, USA. MediGene is the
first German biotech company with a drug on the market. The company
has the most mature drug development pipeline in the German biotech
industry with oncological drug candidates undergoing clinical phase
I - III trials (phase III completed). In addition, MediGene
possesses innovative platform technologies with its HSV technology
and the newly acquired EndoTAG technology. MediGene's core
competence lies in research and development of novel approaches for
the treatment of various tumor diseases. Thus MediGene focuses on
indications of high medical need and economic opportunities.
DATASOURCE: MediGene AG CONTACT: Dr. Georg Donges, Public
Relations, +49 - 89 - 85 65 - 3317 or Dr. Michael Nettersheim,
Investor Relations, +49 - 89 - 85 65 - 2946, both of of MediGene AG
Web site: http://www.medigene.de/englisch/quartalsberichte.php
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