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

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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
planning of the company. Until final data from the ongoing trial IMPALA is
available, presumably in the second half of 2018, MOLOGEN AG currently
still estimates unaltered financing needs which exceed the existing
liquidity and which have to be covered to complete the IMPALA trial.

The Executive Board will present the strategic program to shareholders at
the annual shareholders’ meeting which is now scheduled for 11 August 2016.
In order to meet the financing needs, it is likely that the shareholders’
meeting will be asked to approve a cash capital increase with subscription
rights.

– End of the ad-hoc notification –

DISCLAIMER
This announcement does not constitute an offer to buy shares or other
securities of MOLOGEN AG and does not replace the prospectus. This
announcement does not contain or constitute an offer of, or the
solicitation of an offer to buy or subscribe for, securities to any person
in the United States of America (the “United States”), Australia, Canada or
Japan or in any jurisdiction. The securities referred to in this
announcement will not be and have not been registered under the U.S.
Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not
be offered or sold in the United States absent registration or an
applicable exemption from registration requirements under the U.S.
Securities Act. There will be no public offer of the securities in the
United States. Subject to certain exceptions, the securities referred to in
this announcement may not be offered or sold in Australia, Canada or Japan,
or to, or for the account or benefit of, any national, resident or citizen
of Australia, Canada or Japan. The offer and sale of the securities
referred to in this announcement has not been and will not be registered
under the U.S. Securities Act or under the applicable securities laws of
Australia, Canada or Japan. There will be no public offer of the securities
in the United States.

Contact
Claudia Nickolaus
Head of Investor Relations & Corporate Communications
Tel: +49 – 30 – 84 17 88 – 38
Fax: +49 – 30 – 84 17 88 – 50
investor@mologen.com

Note about risk for future predictions
Certain information in this report contains forward-looking statements or
the corresponding statements with negation or versions deviating from this
or comparable terminology. These are described as forward-looking
statements. In addition, all of the information given here that refers to
planned or future results of business areas, key financial figures,
developments of the financial situation or other financial figures or
statistical data, is to be understood as such forward-looking statements.
The company points out to investors that they should not rely on these
forward-looking statements as predictions about actual future events. The
company is not obligated and refuses to accept any liability for the
forward-looking statements and has no obligation to update such statements
in order to accurately reflect the current situation.

09.06.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap.de

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Language: English
Company: MOLOGEN AG
Fabeckstraße 30
14195 Berlin
Germany
Phone: 030 / 841788-0
Fax: 030 / 841788-50
E-mail: presse@mologen.com
Internet: www.mologen.com
ISIN: DE0006637200
WKN: 663720
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart

End of Announcement DGAP News-Service

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