Medigene has sold its remaining rights to and inventories of Veregen, an ointment for the local treatment of external genital and perianal warts. The company will receive up to €7.75m from Aresus Pharma, a German pharmaceutical company. The transaction is expected to be closed by mid-April 2019.
The amount will include an upfront payment of €300k and the remaining balance will be paid within the next ten years in the form of annual revenue-based earn-out payments, starting from 2021. Consequently, Medigene’s EBITDA will be affected by a non-cash loss of €4-5m, which will be compensated in the future by corresponding interest income.
Medigene will announce its updated FY19 sales and EBITDA guidance together with the Q119 results.
Prof. Dolores Schendel, CEO and CSO at Medigene, explained that “Since Medigene’s refocusing on cellular immunotherapy, the skin drug Veregen® no longer fits into our strategic position. This will now allow us to focus fully on the advancement of our immuno-oncological cell therapies”.