MagForce AG : MagForce Publishes Financial Results and Operative Highlights
MagForce AG / MagForce Publishes Financial Results and Operative Highlights
for 2012 . Ad hoc announcement according to § 15 WpHG. Processed and
transmitted by Thomson Reuters ONE. The issuer is solely responsible for the
content of this announcement.
*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
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 €4,127thousand 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 €689thousand (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
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
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.
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MagForce_Press Release_June 27, 2013
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