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

Original-Research: MagForce AG - von GBC AG

Einstufung von GBC AG zu MagForce AG

Unternehmen: MagForce AG

ISIN: DE000A0HGQF5

Anlass der Studie: Research Report (Initial Coverage)

Empfehlung: BUY

Kursziel: 13.20 EUR

Kursziel auf Sicht von: End FY 2015

Letzte Ratingänderung:

Analyst: Cosmin Filker, Felix Gode

First patients are commercially treated with the MagForce-Technology;

Approval in the US is associated with high sales and earnings potential

The NanoTherm(R) therapy, developed by MagForce AG, has been approved in

Europe for the treatment of brain tumours since 2010. With the anticipated

clinical developments in prostate cancer in the USA, the company intends to

acquire subsequent approval in the USA for treatment of this illness and

therefore to cover indications featuring a significantly higher number of

cases, and therefore entailing a higher sales and earnings potential.

Furthermore, commercialisation for the treatment of brain tumours is to be

established in Europe.

In NanoTherm(R) therapy, a dispersion of super-paramagnetic nanoparticles

with an iron-oxide core is inserted into the tumour. An alternating

magnetic field is created via the Nano-Activator(R) developed by MagForce

AG, which activates the nanoparticles and therefore creates temperatures of

up to 80 C. Depending on the temperature level and treatment duration, this

thermotherapy results in the complete destruction of the tumour cells or in

sensitisation for concomitant treatment (radiation/chemotherapy) without

damaging the surrounding tissue. Especially in the two indications of brain

tumours and prostate cancer, the standard treatment methods currently

applied (surgery, radiation, chemotherapy) are associated with significant

side effects. In contrast, the NanoTherm(R) therapy displays a high safety

profile and its high degree of efficacy was proven in prior approval

studies. An extension to the treatment of further solid tumours is a likely

scenario.

Both indications, i.e. glioblastoma and prostate cancer, indicate a high

market potential, whereby a significantly higher number of cases were

reported for prostate cancer. This is based on an increasingly ageing

population in the regions targeted by MagForce AG, i.e. Europe and the USA,

with a disproportionately high risk of cancer-related diseases. Even with a

low market coverage, the large population is reason enough for MagForce AG

to expect significant sales and savings potential. Due to his extensive

network in the Life Sciences sector, the Chairman of the Board, Dr Ben J.

Lipps, would prove to be an important success factor.

Based on our corporate strategy, we established three significant revenue

streams in cancer treatment: Brain tumours in Europe; glioblastoma in the

USA and prostate cancer in the USA. Taking into consideration the fact that

the NanoTherm(R) technology is classified as a medical device, a faster and

more cost-effective approval procedure may be a possibility, especially in

Europe. Several corporate measures (note: the extremely well-known

technology investor Peter Thiel joined the American subsidiary MagForce

USA, Inc. as an investor) formed the financial basis for the approval

studies. Simultaneously, commercial treatment of the first patients

commenced in Germany, meaning that first sales proceeds were generated in

2015.

Based on our forecasts, we expect an EBIT break-even in the 2017 financial

year, which in turn allowed us to determine a fair value of EUR13.20 per

share within the framework of the DCF model.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/12923.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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

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