MagForce Announces Financial Results 2011Marketwire
BERLIN -- (Marketwire) -- 07/02/12 --Laying significant foundations for marketing the NanoThermtherapyCompleted installation of first treatment center at Charit in Berlin,GermanyEstablishing network of medical key opinion leadersInitial development cooperation with Mayo Clinic, USA, and distributionpartnerships with DELRUS and Tek Grup (after the end of the reportingperiod) Corporate restructuring program to significantly reduce operatingexpensesSecured financing till mid-2013
MagForce AG (Frankfurt, XETRA: MF6), a leading medical device company inthe field of nanomedicine with a focus on oncology, announced today thefinancial results for the fiscal year 2011 ending December 31, 2011.
Dr. Andreas Jordan commented: "2011 was a year full of major challenges forMagForce. The chosen route to market NanoTherm therapy turned out to beless successful than initially expected. We have therefore redefined ourstrategy and started to lay the foundations for medical communityacceptance and the future commercialization of NanoTherm therapy inorder to further develop the company. A new trial, which is expected tostart in early 2013, will validate the benefits of NanoTherm therapy.Building confidence among leading medical experts and possible strategicpartners in the therapeutic potential of our technology is of majorimportance.Together with strategic and distribution partners, the Companywill pursue further international approvals. In spring 2012, we have beenreporting first progress in this regard."
After realizing the likely failure of its earlier marketing strategy,MagForce corrected the route to market for the NanoTherm therapy in adetermined way. The resulting tasks will now be systematically handled by anew management team in accordance with the redefined clinical andcommercial strategy. MagForce has introduced the necessary steps forestablishing an extensive network of medical key opinion leaders inoncology and involving them in the further development of the technology.By convincing the leading neuro-surgeons, neuro-oncologists andradiotherapists it is expected to increase the acceptance of MagForce'stechnology. Additionally, the course for new scientific and commercialcollaborations, the first of which were signed mid-2012, has already begun.
Results of Operations, Net Assets, and Financial Position
During the reporting period 2011, the first sales of NanoTherm therapyin the amount of TEUR 41 (previous year TEUR 0) were achieved. Net loss forthe year of TEUR 8,588 (previous year TEUR 7,447) incurred during thereporting period was mainly due to increased operating expenses of TEUR7,022 (previous year TEUR 6,464). The increase in operating expensesprimarily resulted from an increase in personnel costs. This increase wasmostly reversed in the second half of 2011.
The net loss was offset by income from capital increases. In 2011, theequity capital of the Company was increased from TEUR 3,917 to TEUR 4,127by issuing new shares in return for cash contributions. Furthermore,subordination agreements were concluded with the major shareholders for theloans granted by them in the amount of TEUR 15.171. The Company alsoreceived new loans from its principal shareholder Nanostart for financingits operational activities.
Cash flow from operating activities decreased to TEUR -4,537, (previousyear TEUR -5,353). Cash flow from investing activities was TEUR -1,258(previous year TEUR -876), and cash flow from financing activities was TEUR4,816 (previous year TEUR 6,488). As of the balance sheet date, December31, 2012, the Company had available liquid assets totalling TEUR 14.
MagForce continues to be over-indebted as a result of the net loss for thefiscal year. However, the Company has been able to prepare a positiveforecast for the successful continuation of its business. In terms ofcapitalization, MagForce laid the necessary foundations to secure thefinancing until mid-2013. The Company's major shareholder continues to backMagForce, unreservedly.
In line with the new strategy, the Company is focusing its operationalactivities on further validation of its technology and joint marketing withstrategic partners and distributors in 2012. In cooperation with medicalkey opinion leaders, MagForce has designed a trial protocol for patientsdiagnosed with glioblastoma in order to provide further evidence for thebenefits of NanoTherm therapy. The preparation for this study isexpected to be completed in the second half this year. This trial willsupplement the previous studies, which led to the approval of NanoThermtherapy, and will take into account the guidelines and requirements for thedevelopment of therapeutics that will complement the approval ofNanoTherm therapy as a medical device. In 2012, the Company expects aslight loss reduction compared to the previous year due to therestructuring program initiated in 2011 and planned cost-cuttingactivities. Not included in this assumption is a licencing agreement with astrategic partner, as expected under the new strategy.
To finance its operational activities, the Company plans further capitalmeasures in 2012. In the first half of 2012 a total of TEUR 4,450 wasraised.
About MagForce AG
MagForce AG is a leading medical technology company in the field ofnanomedicine in oncology. The Company's proprietary, NanoTherm therapy,enables the targeted treatment of solid tumors through the intratumoralgeneration of heat via activation of magnetic nanoparticles. NanoTherm,NanoPlan, and NanoActivator are components of the therapy and havereceived EU-wide regulatory approval as medical devices for the treatmentof brain tumors. MagForce, NanoTherm, NanoPlan, and NanoActivator aretrademarks of MagForce AG in select countries. For more information, pleasevisit www.magforce.com.
About NanoTherm Therapy
The NanoTherm therapy is a new approach for the local treatment of solidtumors. The principle of the method is the direct introduction of magneticnanoparticles into a tumor and their subsequent heating in an alternatingmagnetic field. The water soluble nanoparticles are extremely small(approximately 15 nanometers in diameter), and contain an iron oxide corewith an aminosilane coating. The particles are activated by a magneticfield that changes its polarity 100,000 times per second and heat isproduced. Depending on the duration of treatment and the achievedintratumoral temperatures, the tumor cells are either directly destroyed(thermal ablation) or sensitized for concomitant chemo or radiotherapy(hyperthermia). With this new procedure, it is possible to combat the tumorfrom the inside out, thereby sparing surrounding healthy tissue. Thenanoparticles remain in place at the treatment area, allowing for repeattreatments and the integration of multimodal therapy concepts. NanoThermtherapy has regulatory approval in 27 European countries.
This release may contain forward-looking statements and information whichmay 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 currentexpectations and certain assumptions, which may be subject to a variety ofrisks and uncertainties. The results actually achieved by MagForce AG maysubstantially differ from these forward-looking statements. MagForce AGassumes no obligation to update these forward-looking statements or tocorrect them in case of developments, which differ from those, anticipated.
MagForce_Press Release_Financial Results 2011_July 02, 2012:http://hugin.info/143761/R/1623575/519027.pdf
This announcement is distributed by Thomson Reuters on behalf of ThomsonReuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and otherapplicable laws; and
(ii) they are solely responsible for the content, accuracy and originalityof the information contained therein.
Source: MagForce AG via Thomson Reuters ONE
[HUG#1623575]Contact:Anne HenneckeMC Services AGT +49 89 210228-18F +49 89 210228-88M +49 151 12 555 759Email: Email Contact
Source: MagForce AG