Medigene AG

Medigene revises collaboration with Mitsui Norin

Public disclosure of inside information according to article 17 MAR

Planegg (pta033/23.03.2017/14:15) - Medigene AG (FWB: MDG1, Prime Standard, TecDAX) today announced a new contractual arrangement with Mitsui Norin Co. Ltd, regarding its drug Veregen®.

Medigene had contracted Mitsui Norin since 2005 for manufacturing and supplying the active pharmaceutical ingredient (API) of Veregen®. Based on new supporting data regarding a longer shelf life of the API, Medigene now estimates that there is a sufficiently high stockpile to market the drug for several years - well beyond the maximum patent term covering the product. For this reason, the current manufacturing and supply agreement has been mutually terminated as of 31 March 2017.

The previous agreement has been replaced by a new license agreement covering the drug master file (DMF) for Veregen®. The DMF, for which Medigene has now acquired an exclusive license from Mitsui Norin, is vital for admission to existing and new potential markets for Veregen®, as well as for future product sales by distribution partners. The term of the license is not limited by the expiration of the patents. In addition, appropriate steps to resume production of the API can be initiated at any time, as needed.

As a part of the arrangement to terminate the existing manufacturing and supply agreement, Medigene has agreed to a one-time payment of USD 1.75 million to Mitsui Norin. This amount is offset by Medigene's annual savings resulting from the elimination of an existing annual minimum purchase requirement. An additional payment to Mitsui Norin for up to USD 0.5 million to reimburse the costs of ending production is also expected in the course of 2017. No further financial details regarding the new license agreement were disclosed.

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emitter: Medigene AG
address: Lochhammer Straße 11, 82152 Planegg
country: Germany
contact person: Julia Hofmann, Head of Public & Investor Relations
phone: [phone]
e-mail: [e-mail]
website: www.medigene.de

ISIN(s): DE000A1X3W00 (share)
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[ source: http://www.pressetext.com/news/20170323033 ]