Planegg/Martinsried (pta023/22.09.2020/17:15) - 22. September 2020. The Management of Medigene AG (Medigene, FSE: MDG1, Prime Standard) resolved today with approval of the Supervisory Board on measures to reduce the cash burn and secure the Company's financing into Q3 2022.
Medigene has decided to concentrate all future preclinical research and development activities on developing functionally enhanced TCR-T cells as treatments for solid tumors (MDG10XX), the most significant commercial opportunities for Medigene's technologies. Contingent on results from the Phase I part of its ongoing MDG1011 Phase I/II clinical trial in Acute Myeloid Leukemia (AML) and Myelodysplastic Syndrome (MDS) patients, Medigene has decided to look for a partner for the Phase II part of this clinical trial. Furthermore, Medigene had so far expected the completion of dosing of the third dose cohort in the Phase I dose-escalation part of the MDG1011 trial by end of 2020. This timeline is now likely to be extended into Q1 2021 due to feasibility challenges associated with treating hematological cancer patients with very advanced and highly aggressive disease. Other clinical trials and existing collaborations continue as planned.
This new strategic approach will be implemented with cost-saving measures and a reduction of the number of employees by approx. 25% compared to the headcount published with the half-year results 2020. These measures will be enacted beginning immediately. In this context, the Company expects one-time expenses in the amount of approximately Eur1 m, which will be incurred in the fiscal years 2020 and 2021. The guidance for 2020 regarding total revenues remains unchanged at Eur7-9 m. The guidance for research and development expenses is reduced to the range of Eur22-26 m (previously Eur24-29 m). Consequently, the guidance for the anticipated EBITDA loss improves to the range of Eur17-24 m (previously EBITDA loss of Eur19-27 m). Based on this planning, the Company is financed into Q3 2022 (previously end of 2021).(end)
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