The cut-off date for Medigene was the end of 2021 – until this date the liquid funds should last. Now the company is putting the brakes on costs and restructuring, probably also to have more time for financing measures. The costs are to be reduced: All future preclinical research and development activities will be concentrated on the development of functionally improved TCR-T cells for the treatment of solid tumors, Medigene announced on Tuesday. This focus is “the most promising commercial business opportunity for Medigene’s differentiated technologies,” according to the company. Above all, this has consequences for Medigene employees; the number of employees is to be reduced by a quarter.
The MDG1011 project, which is in the first clinical trial phase in the treatment of patients with acute myeloid leukemia and myelodysplastic syndrome, is also affected. Depending on the results of the study, Medigene wants to get a partner on board for the project from the next clinical study phase – who would then also have to bring money for the rights. Delays in the clinical trial put additional strain on the company. The third dose cohort should actually be completed by the end of the year. That can no longer be achieved. “This timeframe is now expected to extend into the first quarter of 2021, as feasibility challenges have arisen in the treatment of these cancer patients who suffer from a very advanced and highly aggressive haematological disease,” said Medigene. However, the company from Planegg / Martinsried does not reveal what specific problems exist.
As a consequence of the measures, the liquid funds should now extend into the third quarter of 2022. Medigene expects the restructuring to total one million euros in 2020 and 2021. While the company continues to expect total income of between EUR 7 million and EUR 9 million in 2020, the costs and loss due to the restructuring should be smaller than expected. The biotech company now expects research and development costs between EUR 22 million and EUR 26 million and an EBITDA loss between EUR 17 million and EUR 24 million in 2020. Previously, up to 29 million euros in research and development costs and up to 27 million euros in EBITDA loss should be incurred.