DGAP-News: MagForce AG Publishes Financial Results for the Year 2015 and Operative Highlights


DGAP-News: MagForce AG / Key word(s): Final Results
MagForce AG Publishes Financial Results for the Year 2015 and Operative
Highlights

30.06.2016 / 23:00
The issuer is solely responsible for the content of this announcement.

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MagForce AG Publishes Financial Results for the Year 2015 and Operative
Highlights

  - Installation of further NanoActivator(R) devices at University
    hospitals in Cologne and Frankfurt and start of commercial treatments
    of brain tumors at renowned clinics in Germany

  - Vivantes Friedrichshain, Department of Neurosurgery, has initiated
    commercial NanoTherm(TM) treatments for brain cancer in collaboration
    with Charité - Univeritätsmedizin Berlin

  - The first clinical US NanoActivator(R) was successfully installed in
    Seattle, Washington, near the University of Washington Medical Center,
    and is currently utilized for pre-clinical registration studies

Berlin, Germany, and Nevada, USA, June 30, 2016 - 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 as of and for the year ended December 31, 2015 as
well as operative highlights.

Operative Highlights:

Brain Cancer NanoTherm(TM) Therapy at MagForce AG

In Germany, MagForce AG installed three additional NanoActivator(R) devices
and qualified two of these for treatment of brain tumors during 2015, so
MagForce started into the year 2016 with six NanoActivator(R) clinics in
Germany participating in the Post Marketing Study. Four of these
NanoActivator(R) clinics are also providing the commercial NanoTherm(TM)
treatment of brain tumors patients.

In April 2016, Vivantes Friedrichshain, Berlin, Department of Neurosurgery,
has initiated commercial NanoTherm(TM) treatments for brain cancer in
collaboration with Charité - Universitätsmedizin Berlin, Clinic for
Radiation Therapy, which is also participating in the ongoing Post-
Marketing Study. Vivantes Friedrichshain offers NanoTherm(TM) therapy to
commercial patients in Berlin in conjunction with their excellent working
relationship with the Clinic for Radiation Therapy of the Charité -
Universitätsmedizin Berlin. This cooperation between the Charité and
Vivantes will provide the opportunity for patients from outside Germany to
obtain this NanoTherm(TM) therapy in Berlin, which is strategically close
to Eastern European countries.



Prostate Cancer Therapy at MagForce USA, Inc.

In the U.S., MagForce USA, Inc. has filed an Investigational Device
Exemption (IDE) with the USA Food and Drug Administration (FDA) for
NanoTherm(TM) therapy to treat Intermediate Risk Prostate Cancer and
MagForce is working with the FDA to update preclinical studies, which were
conducted approximately ten years ago, to current US regulatory standards.
These preclinical studies are underway with interim results clearly
supporting the earlier European data. Significant progress was made toward
adapting NanoTherm(TM) therapy as a focal treatment for prostate cancer.
MagForce's NanoTherm(TM) therapy for the focal treatment of prostate cancer
is viewed as a very promising complement to current treatment approaches.

The purpose of the proposed Focal Thermal Ablation Registration study that
will enroll up to 120 men is to demonstrate that NanoTherm(TM) can ablate
cancer lesions for patients who have Gleason Score 7 prostate cancer and
are under active surveillance. By ablating the lesions, patients will be
able to maintain active surveillance and avoid surgery and other treatments
all with well-known side effects like impairment of urinary and sexual
functions. It is expected that the registration clinical trial will prove
that NanoTherm(TM) therapy can fulfill the desired outcome in the focal
treatment of prostate cancer.

During 2015, MagForce successfully installed the first clinical
NanoActivator(R) in Seattle, Washington, near the University of Washington
Medical Center. It is operational and is being utilized for pre-clinical
studies and will be utilized for the Focal Thermal Ablation Registration
Study for prostate cancer. This NanoActivator(R) is similar in design to
the NanoActivator(R) devices operating at university hospitals in Germany.
However, the USA NanoActivator(R) has been modified to apply NanoTherm(TM)
therapy for the treatment of prostate cancer in addition to the treatment
of brain tumors.

Financial Results and Outlook:

Results of operations, net assets and financial position

MagForce's financial development in the fiscal year 2015 was in line with
the Company's expectations. MagForce started commercialization of its
NanoTherm(TM) therapy and reached additional important milestones.

Net loss was at EUR 1.5 million, so that is EUR 0.5 million above the
previous year (2014: EUR 1.0 million). Adjusted for the effect of out-
licensing of U.S. rights to develop and commercialize NanoTherm(TM) therapy
net loss for the year decreased by EUR 3.3 million from EUR 7.9 million in
2014 to EUR 4.6 million in 2015. The decrease of the net loss adjusted for
the out-licensing effects is due to the sale of four NanoActivator(R)
devices to MagForce USA, Inc., first commerical treatments of patiens with
the NanoTherm(TM) therapy and reduced operating costs. The out-licensing of
development and commercialization rights resulted in other operating income
of EUR 3.0 million in 2015 (2014: EUR 6.9 million). Despite a slight
increase of the average number of employees, personnel costs have been
reduced by EUR 0.3 million to EUR 2.7 million (2014: EUR 3.0 million).
Personnel expenses amounting to EUR 0.6 million (2014: EUR 0.3 million)
were charged to subsidiaries. Other operating expenses decreased by EUR 1.5
million to EUR 3.2 million (2014: EUR 4.7 million) and thus developed as
forecast.

Sales revenues 2015 amounted to EUR 2.6 million (2014: nil) and include
revenues from the sale of four NanoActivator(R) devices to MagForce USA,
Inc. (EUR 2.4 million) as well as commercial treatment of patients with the
NanoTherm(TM) therapy (EUR 0.2 million).

Cash outflow from operating activities amounted to EUR 5.1 million,
compared to EUR 8.7 million in the previous year.

Liquid funds of the Company include cash, cash equivalents as well as short
term loans and amount to EUR 4.5 million (December 31, 2014: EUR 11.2
million). MagForce's liquidity has developed as expected by management and
therefore is in line with the forecast at the end of 2015. No capital
measures have been executed in 2015. The Company started commercialization
and reached further important milestones in this regard.

To enforce the USA market entry, MagForce AG and MagForce USA, Inc. have
enforced the ambulatory prostate NanoActivator(R) chair development.
MedTech Engineering, a 100% MagForce AG subsidiary, has established an
accelerated development program starting July 1, 2016. To facilitate this
development time schedule, MagForce AG was granted a credit line of USD 2.5
million by MagForce USA, Inc.

To provide the USA based subsidiary with resources for an accelerated
launch of the Prostate Focal NanoTherm(TM) therapy after the NanoTherm(TM)
therapy is cleared for sale, Lipps & Associates, LLC has provided a USD 3.0
million line of credit for MagForce USA, Inc.

Outlook 2016

Looking forward, MagForce will focus on the start of the registration study
of NanoTherm(TM) therapy for the treatment of prostate cancer in the USA
through its subsidiary MagForce USA, Inc. Further, MagForce will continue
the development of the commercialization of NanoTherm(TM) therapy for the
treatment of brain tumors in Germany and its neighbor countries, which
started in 2015, and will start to develop an ambulatory NanoActivator(R)
device for prostate cancer.

For the financial year 2016 the Company expects a thorough increase in
revenues from the treatment of patients with NanoTherm(TM) therapy compared
to last year. A more economical enterprise resource planning will result in
further reduced operating costs. Adjusted for the special effects of the
out-licensing transaction in 2015 that reduced the net loss by EUR 3.0
million, the Company expects a markable reduction of the net loss for the
fiscal year 2016.

By intensifying cooperations with local and international patient
organizations, MagForce aims to further establish NanoTherm(TM) therapy and
to increase the number of patient inquiries. Furthermore new ways of
reimbursement in Germany and selected countries will be established to make
NanoTherm(TM) therapy available to as many patients as possible. Also, the
Company plans to enhance its presence on appropriate events and its
collaboration with foreign patient organizations. Those measurements are
expected to generate sustainable sales.

With its liquidity and current plans, the Company will be able to cover its
operating expenses through 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, and
NanoActivator(R)  are trademarks of MagForce AG in selected countries.

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

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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:
   
Barbara von Frankenberg
Vice President
Communications & Investor Relations

T +49-30-308380-77
E-Mail: bfrankenberg@magforce.com     


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30.06.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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  
 
 
   End of News    DGAP News Service  
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476391 30.06.2016