DGAP-Adhoc

MOLOGEN completes portfolio review: shift from research to product- and market-oriented company

MOLOGEN AG / Key word(s): Strategic Company Decision

09.06.2016 11:28

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Ad-hoc notification according to § 15 WpHG

MOLOGEN completes portfolio review: shift from research to product- and
market-oriented company

Berlin, 09 June 2016 - Today, the Executive Board of MOLOGEN AG (ISIN
DE0006637200/WKN 663720), with the consent of the supervisory board,
decided to implement a strategy program to concentrate its business
activities on the further development and commercialisation of its main
product, i.e. lefitolimod (MGN1703) including the successor molecule
EnanDIM(R). In future, the main focus of the company will be (i) on
continuing the four clinical studies on lefitolimod (MGN1703) concerning
the indications colorectal cancer, small-cell lung cancer and HIV as well
as (ii) on an upcoming combination study on the immunotherapy Yervoy(R)
(ipilimumab) in patients with advanced solid tumours. In order to prepare
the production of large quantities of the compound lefitolimod (MGN1703) to
meet potential market demands, MOLOGEN AG plans to outsource its production
activities to a specialist contract manufacturer which is still to be
chosen.

In contrast, MOLOGEN AG will shelve any further development of the compound
MGN1601, a cell-based therapeutic vaccine against renal cancer, for the
time being. In addition and depending on market conditions, the company
plans to partly or completely dispose of the MIDGE(R) platform technology,
which has been specially developed for the treatment of infectious
diseases, including the early phase product candidates MGN1331, a compound
against leishmaniasis, MGN1333, a compound against hepatitis B and MGN1404,
a compound against malignant melanoma. In the course of this concentration
on more market orientated products, which have overcome the status of basic
research already, MOLOGEN AG envisages further adjustments to the business
organisation. Thus, research activities previously carried out within the
company will mostly be discontinued. Further development will be performed
by research service providers and in the context of cooperations. These
measures of concentration will reduce the staff of MOLOGEN by approximately
a quarter.

The implementation of the new structure is expected to be completed by the
end of 2016. The measures will not have a material impact on the financial