DGAP-News: MagForce AG: MagForce AG Publishes Financial Year Results 2014 and Operative Highlights


DGAP-News: MagForce AG / Key word(s): Final Results
MagForce AG: MagForce AG Publishes Financial Year Results 2014 and
Operative Highlights

30.06.2015 / 18:59

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MagForce AG Publishes Financial Year Results 2014 and Operative Highlights

  - Start of clinical post-marketing study with glioblastoma (GBM) patients

  - Installation of further NanoActivator(R) devices at University
    hospitals in Cologne and Frankfurt and start of commercial treatments
    at three renowned clinics in Germany (after period-end)

  - Incorporation of subsidiary MagForce USA, Inc. and successful closing
    of a growth financing round under the lead of Mithril Capital
    Management

  - Pre-Submission with the US FDA for MagForce's NanoTherm(TM) Focal
    Therapy for Intermediate Risk Prostate Cancer and filing of
    Investigational Device Exemption (IDE, after period-end)

  - Successful capital increase for MagForce AG

Berlin, Germany, and Nevada, USA, June 30, 2015 - MagForce AG (Frankfurt,
Entry Standard, XETRA: MF6, ISIN: DE000A0HGQF5), a leading medical device
company in the field of nanomedicine focused on oncology, published today
its financial results for the fiscal year ending on December 31, 2014 and
operative highlights.

Operative Highlights:

Brain Cancer NanoTherm(TM) Therapy at MagForce AG

After establishing two further NanoActivator(R) devices at the University
Hospitals in Münster and Kiel, in addition to the one at University Medical
Center Charité in Berlin at the end of 2013, MagForce treated the first
patient in its resumed Post Marketing Study MF 1001 in the first quarter of
2014. Additional NanoActivator(R) devices became operational in the world
class hospitals in Frankfurt and Cologne during the first half of 2015, and
the installation of the sixth NanoActivator(R) at the University Hospital
at Göttingen is on schedule. This gives MagForce sufficient capacity to
complete enrollment in its Post Marketing Glioblastoma Study as well as to
accomplish its commercial treatment targets through 2017.

Commercial NanoTherm(TM) treatments have restarted in early 2015 and can
now be more broadly performed, as NanoTherm(TM) therapy has CE
certifications for the treatment of all Brain Cancers while the application
of NanoTherm(TM) therapy in the Post Marketing Study is limited to
recurrent Glioblastoma.

 
Prostate Cancer Therapy at MagForce USA, Inc.

Regarding the application of NanoTherm(TM) therapy for the focal treatment
of Prostate Cancer, MagForce's unique technology is viewed as a very
promising complement to current treatment approaches. In November 2014, the
Company filed a Pre-Submission for NanoTherm(TM) therapy in intermediate
risk Prostate Cancer with the FDA's Center for Devices and Radiological
Health. Subsequently, in January 2015, an in-person meeting was held to
discuss the agency's response. During this meeting MagForce received very
constructive feedback on its submission and gained an understanding of the
pathway to market in the USA. Based on this, MagForce USA, Inc. has
recently filed an IDE with the FDA, and is now preparing itself to start
the registration trial, once approved. The study, which is expected to
enroll 120 patients, uses MagForce's NanoTherm(TM) technology to completely
ablate Prostate Cancer lesions. By ablating the lesions, patients should be
able to maintain active surveillance and avoid surgery and other
treatments, with all the well-known side effects like impairment of urinary
and sexual functions.

Corporate Update 

On March 10, 2014, MagForce AG incorporated MagForce USA, Inc., based in
Nevada, USA, as a wholly owned subsidiary. This company will be responsible
for opening up the North American market (USA, Puerto Rico, Mexico, Canada)
for the Company's technologies and products. To strengthen the strategic
focus of MagForce USA, Inc., all shares of MagForce Ventures GmbH were
transferred to MagForce USA, Inc. against the issuance of 5,000,000 shares
on May 15, 2014. In addition, a growth financing round was closed in the
further course of 2014, with total proceeds of USD 15 million and an option
to increase the size of the round to USD 30 million. Mithril Capital
Management, founded by Ajay Royan and Peter Thiel, and MagForce AG are
investors and strategic partners of MagForce USA, Inc. Because of the
previously transferred prostate indication rights to MagForce Ventures
GmbH, the US company is now fully able to start the process of developing
and marketing  NanoTherm(TM) therapy in this indication by itself.

Financial Results and Outlook:

Results of operations, net assets and financial position

MagForce's financial development in the fiscal year 2014 was in line with
the Company's expectations. MagForce came closer to commercialization of
its NanoTherm(TM) therapy and reached additional important milestones. Net
loss was at EUR 1.0 million, so that is EUR 0.6 million below the previous
year. However, excluding in both years the effects of outlicensing
NanoTherm(TM) therapy rights for prostate cancer and brain tumors for the
North America region (2014: EUR 6.9 million; 2013: EUR 5.2 million), net
loss increased by EUR 1.2 million. This was mainly due to higher personnel
costs resulting from an increased average staff number, the enlargement of
the Management Board, and bonus payments in connection with financing
rounds. Other operating expenses were affected by the increase of Investor
Relations activities relating to the financing rounds in 2014, and
associated rises in travel, legal, and consulting costs. Accordingly,
operating expenses developed as forecasted.

Cash outflow from operating activities amounted to EUR 8.7 million,
compared to EUR 6.8 million in the previous year. This increase relates
primarily to higher operating expenses.

Liquidity at the end of 2014 was EUR 9.2 million, so this figure was nearly
unchanged from the previous year (EUR 9.3 million). Overall, our capital
structure has improved significantly in the last few years.

Outlook 2015

Looking forward, MagForce will have completed its target of installing and
operating six NanoActivators(R) in Germany during the third quarter of
2015. This accomplisment will provide an operational clinical NanoTherm(TM)
therapy structure to demonstrate expected medical value of NanoTherm(TM)
therapy for the treatment of brain tumors as well as to continue the Post
Marketing Glioblastom Study in Germany. During the second half of 2015,
MagForce AG will also expand its efforts to establish a reimbursement
structure for commercial NanoTherm(TM) brain cancer therapy in addition to
that of private pay.

With respect to the Company's expansion phase outside Germany, MagForce
USA, Inc. plans to submit an IDE with the FDA for the treatment of brain
cancer with NanoTherm(TM) therapy after the approval has been granted for
its IDE for the NanoTherm(TM) treatment of Intermediate Risk Prostate
Cancer.

Given the roll-out plan and the ongoing clinical study, the Company expects
the net loss for the fiscal year 2015 to be higher than in 2014. This
increase is due to the discontinuation of special measures taken in 2014
from the out-licensing of distribution rights and to increased
commercialization efforts, which can be seen in the context of the
corresponding focus of the Company on key strategic value drivers. However,
management expects revenues from commercial patients to start in 2015.
MagForce treated a limited number of patients during the first half of 2015
but the Company  expect to accelerate this process as 2015 progresses. For
the fiscal year 2015, MagForce AG is forecasting a lower negative operating
cash flow, which is partly due to increased cash revenue from product
sales.

With its liquidity the Company will be able to cover its expenses until
2017.

 
About MagForce AG and MagForce USA, Inc.

MagForce AG, listed in the entry standard of the Frankfurt Stock Exchange
(MF6, ISIN: DE000A0HGQF5), together with its subsidiary MagForce USA, Inc.
is a leading medical device company in the field of nanomedicine focused on
oncology. The Group's proprietary NanoTherm(TM) therapy enables the
targeted treatment of solid tumors through the intratumoral generation of
heat via activation of superparamagnetic nanoparticles. Mithril Capital
Management, a growth-stage technology fund founded by Ajay Royan and Peter
Thiel, along with MagForce AG, are investors and strategic partners in
MagForce USA, Inc.

NanoTherm(TM), NanoPlan(R), and NanoActivator(R) are components of the
therapy and have received EU-wide regulatory approval as medical devices
for the treatment of brain tumors. MagForce, NanoTherm(TM), NanoPlan(R),
and NanoActivator(R) are trademarks of MagForce AG in selected countries.

For more information, please visit: www.magforce.com.  


Disclaimer 

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.



Contact:
Anne Hennecke
MC Services AG
 
T +49 211 529252-22
F +49 211 529252-29
 
Email: anne.hennecke@mc-services.eu



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Language:    English                                               
Company:     MagForce AG                                           
             Max-Planck-Straße 3                                   
             12489 Berlin                                          
             Germany                                               
Phone:       +49 (0)30 308 380 0                                   
Fax:         +49 (0)30 308 380 99                                  
E-mail:      info@magforce.com                                     
Internet:    www.magforce.com                                      
ISIN:        DE000A0HGQF5                                          
WKN:         A0HGQF                                                
Listed:      Regulated Unofficial Market in Berlin, Dusseldorf,    
             Stuttgart; Open Market (Entry Standard) in Frankfurt  
 
 
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