dpa-AFX Compact

Original-Research: MagForce AG (von GBC AG): BUY

13.07.2022
um 10:02 Uhr

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Original-Research: MagForce AG - von GBC AG

Einstufung von GBC AG zu MagForce AG

Unternehmen: MagForce AG
ISIN: DE000A0HGQF5

Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: 9.15 EUR
Kursziel auf Sicht von: 31.12.2023
Letzte Ratingänderung:
Analyst: Cosmin Filker, Marcel Goldmann

- Stage 2b of the trial for approval in the USA is currently ongoing
- Billing code by the American Medical Association is available
- Break-even expected from 2024

In the past financial year 2021, MagForce AG continued or resumed the
planned European roll-out for the treatment of malignant brain tumours
(glioblastoma). The four NanoActivator devices currently installed in
Germany and Poland are to be supplemented by a further site in Spain. In
September 2021, an agreement was signed in this regard with the Spanish
clinic Complejo Hospitalario Integral Privado (CHIP). Once all approvals
have been obtained, the first commercial treatments are to take place in
Spain from the second half of the current financial year 2022.

In the past financial year 2021, the treatment of glioblastoma in the four
active treatment centres was also affected by the pandemic-related closure
measures. The resulting decline in patient enquiries led to a decrease in
sales revenue to EUR 0.35 million (previous year: EUR 0.62 million). Due to
the unchanged low level of revenues, the earnings picture remains negative.
EBIT amounted to EUR -6.74 million (previous year's adjusted EBIT: EUR
-6.93 million).

Another relevant step towards market approval was achieved in the
indication area of prostate cancer. After the successful completion of the
penultimate stage 2a of the pivotal study had been announced at the
beginning of 2021, the final study protocol was submitted by the FDA in
December 2021. This enabled the company to start the final stage of the
pivotal US trial-stage 2b. In stage 2b, which is now underway, the results
of the previous stage are to be confirmed in up to 100 patients. The trial
is currently being conducted at MagForce's own centres in San Antonio,
Seattle and Sarasota. Another important step for approval in the USA is the
approval of the American Medical Association (AMA) billing code obtained in
April 2022. This will provide the basis for Medicare to cover the costs of
the clinical trial and for price negotiations with payers after successful
approval.

Reimbursement approval for study patients has been granted and CPT codes
for commercial patients are also in place. This means that MagForce will be
reimbursed already whilst treating patients in the study. This guarantees
the smooth reimbursement transition from the study to commercial
treatments.

MagForce expects FDA filing for approval in the USA at the turn of
2022/2023. As the current study is being conducted at MagForce's own
centres, a seamless transition to commercialisation can be assumed. For the
current financial year 2022, however, we are assuming very low treatment
revenues for prostate cancer treatment, which are related to the cost
coverage of the clinical trial by Medicare. Only in the coming financial
years should the very high revenue potential of this indication area become
visible. In the indication area of glioblastoma, we assume a further
expansion of the treatment centres and a corresponding increase in the
number of treatments in the coming financial years. This should also take
place against the background of the expected abolition of the corona
restrictions.

Within the framework of our forecast model, MagForce AG should be able to
break even at all earnings levels from the 2024 financial year onwards. On
this basis, we have a target price of EUR9.15 within the framework of our
DCF valuation model and we continue to assign a BUY rating.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/24589.pdf

Kontakt für Rückfragen
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung
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Date and time of completion of the study: 12.07.2022 (4:16 pm)
Date and time of the first disclosure of the study: 13.07.2022 (10:00 am)

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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MAGFORCE AG

WKN A0HGQF ISIN DE000A0HGQF5