Medigene sells remaining rights and inventories of Veregen® to Aresus Pharma

Martinsried/Munich – Medigene AG (FSE: MDG1, Prime Standard) sells its remaining rights to the dermatological drug Veregen® and its complete stock of the corresponding active pharmaceutical ingredient (API) to the pharmaceutical company Aresus Pharma GmbH (“Aresus”), Munich, Germany. In the course of the sale, all existing relevant contracts with distribution partners and external service providers will be transferred from Medigene to Aresus. Medigene had sold the US rights to the drug at the end of 2017 to the US company Fougera Pharmaceuticals Inc. With this sale of its last product from its “non-core business”, Medigene AG completes the transformation into a pure immunotherapy company. Aresus intends to invest in expanding Veregen® into indications and markets.

Medigene will receive up to approximately EUR 7.75 million from Aresus for the remaining Veregen® rights and all existing API stock. Therefrom, Medigene receives EUR 300.000 upfront and the balance within the next ten years as annual revenue-based earn-out payments from 2021 onwards. These expected payments are recognized as receivables and discounted in accordance with International Financial Reporting Standards (IFRS) and due to the measurement method of the receivable at the date of the transaction. Therefore, Medigene’s EBITDA will be affected by a non-cash effective loss between EUR 4 and 5 Mio. In the future, this non-cash effective loss will be compensated by corresponding interest income as the payment period becomes continuously shorter. Medigene will update its financial guidance with respect to revenue and EBITDA with issuing its quarterly statement. The closing of the transaction including the transfer of rights is planned for mid-April 2019.

Veregen® is an ointment for the local treatment of external genital and perianal warts (Condylomata acuminata).

Aresus Pharma GmbH is a new company, that will focus on the further global commercialization and clinical development of Veregen®. The company founders Mr. Sven Schimansky-Wabra and Dr. Francisco Harrison are an experienced team with a sound background in dermatology and clinical research who have an additional company portfolio for the development and commercialization of other semi-solid products as well as a company that specializes in regulatory affairs services.

Contact
Medigene AG
Julia Hofmann, Dr. Robert Mayer
Tel.: +49 – 89 – 20 00 33 – 33 01
email: investor@medigene.com

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emitter: Medigene AG
address: Lochhamer Straße 11, 82152 Planegg
country: Germany
contact person: Julia Hofmann, Head of Public and Investor Relations
phone: +49 89 200033-3301
e-mail: investor@medigene.com
website: www.medigene.de

ISIN(s): DE000A1X3W00 (share)
stock exchanges: regulated market in Frankfurt; free market in Stuttgart, free market in Munich, free market in Hamburg, free market in Dusseldorf, free market in Hannover; open market in Berlin, Tradegate

[ source: http://www.pressetext.com/news/20190408038 ]

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