MOLOGEN AG: We have launched our clinical studies

 

·	Important interim goals have been reached for the colorectal and kidney cancer drugs
·	Increase in R&D expenditures due to the start of the phase II study
	with colorectal cancer drug
·	Funding received for the development of DNA-based vaccines
·	Funds from capital increase secure research activities well into the year 2011

 

Berlin, August 12, 2010 – MOLOGEN AG was able to make important progress with its cancer drug in the first half year of 2010: In June, the phase II study to examine the efficacy of the cancer medicine MGN1703 against colorectal cancer was launched. In addition, the phase I/II study for the second drug in MOLOGEN's product pipeline, the kidney cancer therapy MGN1601, was approved. In the area of DNA vaccines, the company has also started on several important research projects. In addition, MOLOGEN was able to successfully conduct a further capital increase in June, which resulted in a capital inflow for the company in the amount of EUR 4.3 million.

 

Business development as planned

As expected, the level of MOLOGEN AG revenues in the first six months of 2010 continued to remain low at EUR 36,000 (previous year: EUR 34,000). In total, the company invested EUR 2.1 million into Research and Development between January and June of 2010 (previous year: EUR 1.5 million). The increase in R&D expenditures is primarily due to clinical development programs - in particular due to the preparations and the start of the clinical phase II study of the cancer drug MGN1703. The deficit in the first six months of 2010 thus increased - as expected - to approximately EUR -3.0 million. On the reporting date, MOLOGEN posted total capital in the amount of EUR 6.4million. The company's equity ratio of 88 percent thus remains on a very high level.

 

Progress with DNA vaccines

Aside from the start of the phase II study for MGN1703 and the approval for a phase I/II study with MGN1601, MOLOGEN has also made further progress in the development of a Leishmaniasis vaccine for humans. Pre-clinical tests are currently being conducted with the newly developed DNA-based vaccine. The project is supported with European Union subsidies for three years, totaling EUR 3.0 million. MOLOGEN will also receive additional funding for the pre-clinical development of a prophylactic as well as therapeutic vaccine against infections with the Hepatitis B virus. The project is supported by the German Federal Ministry of Education and Research as part of the EU's EuroTrans-Bio initiative and is to be completed by the end of 2012.

 

Outlook for 2010

The existing liquid funds of MOLOGEN AG secure the execution of all scheduled activities and clinical studies well into the year 2011. We intend to launch the phase I/II study for the gene therapy against kidney cancer MGN1601 as early as the fourth quarter of 2010. First preliminary results with regard to the goals to be achieved in the phase II study with the colorectal cancer drug MGN1703 will likely be available in the first quarter of 2011.