Medigene released today its Q119 results, posting stable revenues at €1.4m and a 28% increase in R&D expenses to €5.5m due to expansion of its clinical activities. EBITDA loss increased by 31% year-on-year to €5m and net loss stood at €5.7m, higher by 36% versus prior year, in line with the company’s expectations.
In April 2019, Medigene entered into a strategic partnership with Cytovant (a biopharmaceutical company launched by Roivant Sciences and Sinovant Sciences) for the research and development of cell therapies in Asia. The company has also sold the remaining rights and stocks of its legacy product Veregen.
Due to the above business transactions, the company has revised its FY19 guidance. Medigene now expects that its sales will reach €10-11m (previous forecast: €5.5-6.5), €5m of which will be generated from the deal with Roivant/Cytovant. However, the positive effect of the deal will be offset by a negative non-cash impact of €4-5m from the disposal of Veregen. Therefore, Medigene still expects an EBITDA loss at €23-28m. Guidance for R&D expenses remains unchanged at €24-29m. At the same time, the company has confirmed its outlook for immunotherapies it released in the FY18 report.
Prof. Dolores Schendel, CEO of Medigene’s CEO, commented that ‘We have had a very productive start to 2019 with progress in our own clinical projects and in the development of partner programs. Patient treatment in our TCR-T study MDG1011 has started, and we anticipate accelerating patient recruitment following the upcoming expansion of the number of clinical centers in this trial’.