MagForce

DB: MF6

€131.3m market cap

€4.52 last close

MagForce has a European approved nanotechnology-based therapy to treat brain cancer. Nanoparticles are injected into the tumour and activated by an external magnetic field, producing heat and thermally destroying or sensitising the tumour.

Investment summary

MagForce has announced it has completed treatment of the first 10-patient cohort in the pivotal prostate cancer study required by the US FDA for approval. Importantly, it has reported that the procedure for instilling its NanoTherm particles has now been standardised and the study can enrol up to 110 additional patients to establish efficacy in thermally ablating prostate cancer lesions. Management has reported initial findings from this first cohort that indicate treatment side effects have been minimal and in line with that of biopsies; achieving a tolerable treatment will be key to attaining both approval and reimbursement. We still anticipate US approval and launch in Q420 but highlight both prudent trial execution and punctual commercial roll-out are essential in achieving this goal. We retain our financial forecasts and valuation of MagForce at €261.5m or €9.5/share.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 0.7 (8.8) (9.5) (36.0) N/A N/A
2018A 0.1 (7.1) (8.7) (32.8) N/A N/A
2019E 0.7 (9.6) (10.5) (38.7) N/A N/A
2020E 2.9 (5.3) (6.6) (23.7) N/A N/A
Last updated on 13/09/2019
Industry outlook

MagForce’s NanoTherm therapy is designed to directly target cancerous tissue while sparing surrounding healthy tissue. Magnetic nanoparticles are directly instilled into a tumour or a resection cavity and activated by specialist equipment (NanoActivator). This can either thermally ablate tumours or sensitise them to other treatments (chemotherapy or radiotherapy).

Last updated on 13/09/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (€m) 20.2
Forecast gearing ratio (%) 160
Price performance
%
1m
3m
12m
Actual 4.1 8.0 (24.0)
Relative* (1.9) 5.4 (26.5)
52-week high/low €7.0/€4.1
*% relative to local index
Key management
Ben Lipps Chairman & CEO
Christian von Volkmann CFO
Barbara von Frankenberg VP Communications & Investor Relations

Content on MagForce