Laying significant foundations for marketing the NanoTherm therapy Completed installation of first treatment center at Charit in Berlin, Germany Establishing network of medical key opinion leaders Initial development cooperation with Mayo Clinic, USA, and distribution partnerships with DELRUS and Tek Grup (after the end of the reporting period) Corporate restructuring program to significantly reduce operating expenses Secured financing till mid-2013
Berlin, Germany, July 02, 2012 - MagForce AG (Frankfurt, XETRA: MF6), a leading medical device company in the field of nanomedicine with a focus on oncology, announced today the financial results for the fiscal year 2011 ending December 31, 2011.
Dr. Andreas Jordan commented: "2011 was a year full of major challenges for MagForce. The chosen route to market NanoTherm therapy turned out to be less successful than initially expected. We have therefore redefined our strategy and started to lay the foundations for medical community acceptance and the future commercialization of NanoTherm therapy in order to further develop the company. A new trial, which is expected to start in early 2013, will validate the benefits of NanoTherm therapy. Building confidence among leading medical experts and possible strategic partners in the therapeutic potential of our technology is of major importance.Together with strategic and distribution partners, the Company will pursue further international approvals. In spring 2012, we have been reporting 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 a determined way. The resulting tasks will now be systematically handled by a new management team in accordance with the redefined clinical and commercial strategy. MagForce has introduced the necessary steps for establishing an extensive network of medical key opinion leaders in oncology and involving them in the further development of the technology. By convincing the leading neuro-surgeons, neuro-oncologists and radiotherapists it is expected to increase the acceptance of MagForce`s technology. Additionally, the course for new scientific and commercial collaborations, 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 therapy in the amount of TEUR 41 (previous year TEUR 0) were achieved. Net loss for the year of TEUR 8,588 (previous year TEUR 7,447) incurred during the reporting period was mainly due to increased operating expenses of TEUR 7,022 (previous year TEUR 6,464). The increase in operating expenses primarily resulted from an increase in personnel costs. This increase was mostly reversed in the second half of 2011.
The net loss was offset by income from capital increases. In 2011, the equity capital of the Company was increased from TEUR 3,917 to TEUR 4,127 by issuing new shares in return for cash contributions. Furthermore, subordination agreements were concluded with the major shareholders for the loans granted by them in the amount of TEUR 15.171. The Company also received new loans from its principal shareholder Nanostart for financing its operational activities.
Cash flow from operating activities decreased to TEUR -4,537, (previous year TEUR -5,353). Cash flow from investing activities was TEUR -1,258 (previous year TEUR -876), and cash flow from financing activities was TEUR 4,816 (previous year TEUR 6,488). As of the balance sheet date, December 31, 2012, the Company had available liquid assets totalling TEUR 14.
MagForce continues to be over-indebted as a result of the net loss for the fiscal year. However, the Company has been able to prepare a positive forecast for the successful continuation of its business. In terms of capitalization, MagForce laid the necessary foundations to secure the financing until mid-2013. The Company`s major shareholder continues to back MagForce, unreservedly.
Outlook 2012 In line with the new strategy, the Company is focusing its operational activities on further validation of its technology and joint marketing with strategic partners and distributors in 2012. In cooperation with medical key opinion leaders, MagForce has designed a trial protocol for patients diagnosed with glioblastoma in order to provide further evidence for the benefits of NanoTherm therapy. The preparation for this study is expected to be completed in the second half this year. This trial will supplement the previous studies, which led to the approval of NanoTherm therapy, and will take into account the guidelines and requirements for the development of therapeutics that will complement the approval of NanoTherm therapy as a medical device. In 2012, the Company expects a slight loss reduction compared to the previous year due to the restructuring program initiated in 2011 and planned cost-cutting activities. Not included in this assumption is a licencing agreement with a strategic partner, as expected under the new strategy.
To finance its operational activities, the Company plans further capital measures in 2012. In the first half of 2012 a total of TEUR 4,450 was raised.
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Magforce announces financial results 2011