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 Comment

Empfehlung: BUY

Kursziel: 14.30 Euro

Letzte Ratingänderung:

Analyst: Cosmin Filker

At the life-science company MagForce AG interesting directors' dealings can

be observed. CEO Dr. Ben Lipps published a number of insider purchases in

the past few weeks. Since August 2016, he purchased 55,100 additional

shares, distributed over six trades. This makes the CEO one of the most

active insider traders in Germany and sends a signal of confidence

regarding the future development of the company to the markets. Several

scientific studies show that insider trades from executive or non-executive

directors give a fundamental indication of the future development of the

company and the share price. Hence, we take the insider purchases as an

opportunity to conduct a comprehensive analysis of the MagForce AG.

MagForce AG is active in the field of nanomedicine and focuses on cancer

therapy. The company already received European approval for its fully

functional medical product to treat brain tumours, but the technology could

also be used to treat other solid tumours. Furthermore, MagForce aims to

receive approval for the treatment of prostate cancer in the USA. The

application for a clinical study has already been submitted to the FDA.

The medical need in Europe for the treatment of glioblastoma (malignant

brain tumour) is quite high. EU-wide there are over 20,000 patients that

suffer from aggressive brain tumour diseases. Only little progress has been

made over the past 20 years to treat glioblastoma and the survival rates

are still very low. Also, the market potential for the treatment of

prostate cancer is significantly larger due to the higher number of cases.

In the USA alone, there are about 200,000 people suffering from prostate

cancer.

In the past reporting periods MagForce AG focused on the commercialization

of the NanoTherm(R)-treatment. In this regard, three additional

NanoActivator(R) devices have been installed and these can be utilized for

commercial treatment as well as for conducting post-marketing follow-up

studies. Since the 30th June 2016 a total of six clinics in Germany are

equipped with a NanoActivator(R), from which four offer the commercial

treatment of brain cancer.

To increase the number of commercial treatments, the question of how costs

are reimbursed still needs to be answered. In addition to the self-payers

and the reimbursement through foundations, there is also an advanced

reimbursement process planned for Germany that could also be expanded to

other countries. Furthermore, MagForce AG conducts a post-marketing study

involving key opinion leaders in the area of oncology. The involvement of

these key opinion leaders and their familiarization with the innovative

treatment should increase the acceptance of MagForce's technology. Also,

additional installed units in other European countries are expected to

increase the number of commercial treatments.

Moreover, MagForce further pushes the USA approval for the treatment of

prostate cancer. The subsidiary MagForce USA, Inc. already submitted an

application to the FDA to conduct a clinical study in mid-2015. The

proposed study, which will enrol up to 120 patients, should demonstrate

that NanoTherm(R) therapy can focally ablate cancer lesions for patients

who have Gleason Score 7 prostate cancer and are under active surveillance.

The commercialisation in Europe (glioblastoma) in combination with the

commercial treatment in the USA (prostate cancer) could lead to significant

sales and earnings, which in turn would have a positive effect on the share

price.

Hence, in our opinion the valuation level of the current share price is

quite low. The insider purchases of CEO Dr. Ben Lipps also send positive

signals to the market. The target price of 14.30 EUR offers a great upside

potential and therefore we give the rating BUY. Simultaneously, we include

the MagForce share in our insider index 'GBC Insider Focus Index' (ISIN:

DE000SLA2JE2).

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/14409.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

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