Edison Investment Research - Mologen AG (MGN) MOLOGEN - IMPALA readout ends monotherapy strategy

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Edison Investment Research

Sean Conroy

MOLOGEN - IMPALA readout ends monotherapy strategy

MOLOGEN has announced that its pivotal Phase III IMPALA trial testing lefitolimod as a maintenance therapy in patients with metastatic colorectal cancer (mCRC) has missed its primary endpoint of overall survival (OS). As a result, we have removed from our valuation lefitolimodâ€™s prospects as a monotherapy in mCRC and small cell lung cancer (SCLC) (previously 72% of our valuation). MOLOGEN will focus on the development of lefitolimod and EnanDIM in combination with other therapies. Announced restructuring measures should reduce monthly cash burn to â‚¬0.8m from the current rate of â‚¬1.4m. We note gross cash as of 30 June 2019 was â‚¬6.0m, which should enable funding into Q419. We value MOLOGEN at â‚¬50.4m (â‚¬4.1/share) vs â‚¬169m (â‚¬18.2/share) previously.

11/11/2019 63 EN

Underlying

Mologen AG

Mologen is a biotechnology company researching and developing deoxyribonucleic acid (DNA)-based drugs for diseases that require a high degree of medical treatment. Co.'s activities concentrate on creating new and improving existing immunological drugs and therapies to combat cancer and developing vaccines for the prevention and treatment of serious infectious diseases in humans, as well as animals. Two core areas of Co.'s operations are the treatment of cancer and infectious diseases. Co. developed and patented two technologies that allow for the use of DNA as a therapeutic treatment against diseases that were previously incurable or treatable to an unsatisfactory degree.

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DE0006637200 Germany

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Sean Conroy

Other Reports on these Companies

Edison Investment Research

MOLOGEN - IMPALA readout ends monotherapy strategy

MOLOGEN has announced that its pivotal Phase III IMPALA trial testing lefitolimod as a maintenance therapy in patients with metastatic colorectal cancer (mCRC) has missed its primary endpoint of overall survival (OS). As a result, we have removed from our valuation lefitolimodâ€™s prospects as a monotherapy in mCRC and small cell lung cancer (SCLC) (previously 72% of our valuation). MOLOGEN will focus on the development of lefitolimod and EnanDIM in combination with other therapies. Recently announced restructuring measures should reduce monthly cash burn to â‚¬0.8m from the current rate of â‚...

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Mologen has announced that it has terminated negotiations with Oncologie and will retain rights to lefitolimod. With the lefitolimod IMPALA Phase III readout now expected in H219, focus will likely shift to securing a partner for lefitolimod once data are available from this pivotal trial. We have updated our valuation to reflect the termination of Oncologie negotiations. We now forecast that lefitolimod will be out-licensed post the IMPALA trial and assume similar deal terms to those Oncologie presented. We value Mologen at â‚¬169m (â‚¬18.2/share).

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MOLOGEN - IMPALA readout ends monotherapy strategy

MOLOGEN - IMPALA readout ends monotherapy strategy

Mologen - Retaining lefitolimod's value

Biodexa Pharmaceuticals - In a period of transition

Norcros - Sale of Johnson Tiles UK agreed

Henderson Far East Income - Repositioning to raise total returns

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