Nanostart-Holding MagForce AG Announces Company Restructuring and Revised Corporate Strategy for 2012

Posted: Published on March 26th, 2012

This post was added by Dr Simmons

FRANKFURT & BERLIN, Germany--(BUSINESS WIRE)--

Nanostart(OTCQX:NASRF.PK - News)-holding MagForce AG (Frankfurt, XETRA: MF6), a leading medical technology company focusing on nanomedicine in oncology announced today the companys restructuring and revised corporate strategy for 2012. The company reduced its headcount from 52 employees (year-end 2011) to 30 (April 1, 2012) and expects a significant reduction in company expenses in 2012 as compared to 2011. The implemented cost reductions will enable the company to work more effectively and concentrate on clinical development activities to support the market introduction of NanoTherm therapy.

MagForce has revised its corporate strategy to put more emphasis on clinical development and its synergies with Marketing and Sales. The company has received EU approval for its technology, NanoTherm therapy, for the treatment of brain tumors. Product revenues in 2011 were lower than expected due to the lack of involvement among leading medical experts in the development of the therapy. MagForce is now working closely with these key opinion leaders who have agreed to participate in a post-approval multi-center study to validate the novel technology in the medical community and gain first-hand experience.

Our successful capital increase earlier this month along with reductions in expenditures will allow us to initiate both a glioblastoma post-market authorization study along with a study in prostate carcinoma this year. These upcoming trials, conducted in centers throughout Germany, will lay the foundation for wider acceptance of the therapy and expanded commercial use, said Dr. Andreas Jordan, Management Board and founder of MagForce. In addition, we are in discussion with international companies and investors for strategic partnerships to share in the development costs and support international market approvals, including for the US market.

I am delighted to be working closely with leading European key opinion leaders who are pleased to support us in the further development of NanoTherm therapy and participate in Magforce clinical studies, said Prof. Dr. Hoda Tawfik, VP Clinical Development and Medical Affairs. Within the multi-center studies, we expect to place two to three new NanoActivator therapy systems in strategic centers before the end of this year.

In 2012, MagForce is pursuing international partnerships, specifically in the US, and plans to initiate discussions with the FDA. Furthermore, the company is in discussion with strategic investors who were not able to participate in recently announced fully-subscribed capital increase, but are interested in future investment opportunities with the company.

About Nanostart:

Nanostart AG (OTCQX: NASRF.PK - News) headquartered in the German financial capital of Frankfurt, is a leading nanotechnology investment company, with portfolio companies spanning the globe from Silicon Valley to Singapore. The company provides venture capital financing for nanotechnology companies in various growth phases with a focus on innovation-driven industries of the future such as cleantech, life sciences and IT/electronics. Through its subsidiary Nanostart Asia and the venture capital fund in Singapore, Nanostart is proud to be the investment partner of the Singaporean government.

About MagForce:

MagForce AG (XETRA: MF6.DE - News) is a leading medical technology company focusing on nanomedicine in oncology. The companys proprietary procedure, NanoTherm therapy, enables the targeted treatment of solid tumors through the intratumoral generation of heat via activation of magnetic nanoparticles. NanoTherm, NanoPlan, and NanoActivator are components of the therapy and have received EU-wide regulatory approval as medical devices for the treatment of brain tumors. MagForce, NanoTherm, NanoPlan and NanoActivator are trademarks of MagForce AG in selected countries. For more information, please visit http://www.magforce.com.

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Nanostart-Holding MagForce AG Announces Company Restructuring and Revised Corporate Strategy for 2012

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