Medigene wants to do more research in the field of solid tumors. A phase I leukemia study is expected to be completed in the first quarter of 2021; it was previously expected to be completed by the end of 2020. A subsequent phase II study is to be carried out together with a partner.
Since the company will focus more on tumors in the future, the number of employees will be reduced by around 25 percent. This will result in one-time expenses of around 1.0 million euros. In the current year there should be a turnover of 7.0 million euros to 9.0 million euros. The aim is to spend 22.0 million euros to 26.0 million euros (old: 24.0 million euros to 29.0 million euros) on research and development. In 2020, EBITDA should be between -17.0 million euros and -24.0 million euros (old: -19.0 million euros to -27.0 million euros).
Based on the new strategy, Medigene expects the financial resources to last until the third quarter of 2022. Previously, it was financed through to the end of 2021.
The analysts at Independent Research expect Medigene to post a loss per share of EUR 0.88 in the current year (old: EUR -1.02). In 2021, the loss per share is expected to be 1.23 euros (old: -1.00 euros).
As before, the experts are recommending that Medigene keep the papers. The price target drops from EUR 5.50 to EUR 4.40.
Medigene’s shares lose 1.9 percent in the morning to 4.045 euros.