MediGene AG Announces Financial Results for 2005 and Forecast for 2006
* Total revenues increased by 50% to 19.7 million €
* Loss on EBIT basis reduced by 22% to 11.5 million €
* Cash position at the end of 2005: 37.6 million €
* Forecast for 2006: 50% revenue growth and plan to break-even
Martinsried/Munich - San Diego, February 13, 2006. Today the German-American biotechnology company MediGene AG (Frankfurt, TecDAX) announced preliminary financial results for 2005: revenues increased from 13.1 million € to 19.7 million € due to an increase in sales of MediGene’s first drug on the market*, and the conclusion of a license agreement with Glaxo Group Ltd.
With expenses remaining at the prior-year level, operating loss on the EBIT basis was reduced by 22% from 14.7million € to 11.5 million €. In the annual financial statements the Company depreciated the value of QLT shares held by MediGene. During the year the QLT stock price declined by more than 50 %, and closed at 5.38 € at the end of the year (2004: 11.81 €). The corresponding write-off led to an extraordinary impact on our net results of 1,5 million €. Accordingly, the net loss including extraordinary write-off amounts to 12.0 million €, compared to 12.7 million € in the previous year. Before write-off, the net loss for the year is 10.5 million €, which is within MediGene’s financial guidance for 2005.
Cash burn from operating activities was reduced by 14% during the reporting period, and amounted to 10.4 million €. Correspondingly, the cash position at closing date was 37.6 million €.
For 2006, MediGene expects revenues totaling approximately 30 million €, and a break-even result on EBIT basis. In this guidance, the Company assumes increasing sales of its first drug on the market*, based on a complete European rollout, as well as the regulatory approval of Polyphenon® E** Ointment in the USA before the end of 2006. Corresponding to forecasted revenues and results, cash at year end is estimated to be at 37 million €.
Alexander Dexne, Chief Financial Officer of MediGene AG, comments: “2005 was a very successful financial year for MediGene. We increased revenues, improved operating performance, and further reduced the cash burn. In 2006 we aim for another increase in revenues by 50%, as well as a further significant improvement of our operating income. Increasing revenues from the sales of MediGene’s first drug on the market*, and first-time proceeds from the commercialization of Polyphenon® E** will be the basis for this increase.”
This press release contains forward-looking statements that involve risks and uncertainties. The forward-looking statements contained herein represent the judgment of MediGene as of the date of this release. These forward-looking statements are no guarantees for future performance, and the forward-looking events discussed in this press release may not occur. MediGene disclaims any intent or obligation to update any of these forward-looking statements. MediGeneTM is a trademark of MediGene AG, Polyphenon® E is a trademark of Mitsui Norin, Eligard® is a trademark of QLT USA, Inc.
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* For legal reasons, product name and indication are not mentioned in the internet (German Law on Drug Advertising)
** temporary name while under development
MediGene AG is a publicly quoted (Frankfurt: TecDAX), German-American biotechnology company located in Martinsried, Germany and San Diego, USA. MediGene is the first German biotech company with a drug on the market. The NDA for a second drug, Polyphenon® E Ointment, has been submitted. In addition, MediGene has several oncological drug candidates undergoing clinical development, and possesses innovative platform technologies for drug development. MediGene’s core competence lies in research into and development of novel approaches for the treatment of various cancer and tumor diseases.
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