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

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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 Note

Empfehlung: BUY

Kursziel: 13.90 EUR

Kursziel auf Sicht von: End FY 2017

Letzte Ratingänderung:

Analyst: Cosmin Filker

MagForce AG has used its first published letter to shareholders of 2017 to

announce the introduction and implementation of significant strategic

measures. The main topic is the planned roll-out in Europe, which will

involve MagForce technology being installed in additional treatment centers

in Germany's neighbouring countries. A NanoActivator(R) is currently

installed in six hospitals across Germany, including four hospitals that

cover the commercial treatment of brain tumour patients. Although foreign

patients are able to receive treatment in Germany, the planned roll-out

should enable patients to be treated in their homeland, which is expected

to result in a correspondingly greater number of treatments. On-site

treatment also brings advantages in terms of costs, which is not only

expected to benefit patients, but would in this case also lead to an easier

reimbursement process.

Another important milestone for the forthcoming financial year 2018 will be

reached when approval is granted for MagForce technology to treat prostate

cancer. On the recommendation of the FDA, the foundations for market

approval in the USA were laid in the last financial year with the company

successfully repeating the pre-clinical trial it had already conducted in

Germany. The study demonstrated once again that the nanoparticles are non-

toxic and that they remain in the region of application.

Following the submission of the results at the end of 2016, we still expect

the clinical approval trial to begin within the first six months of 2017.

According to the schedule we have adopted, we should receive market

approval in mid-2018, i.e. around six months later than previously

expected. We have adapted our sales projections in line with this amended

schedule.

In our projections, we have primarily factored an increasing number of

treatments of brain tumour patients in Germany for the current financial

year 2017. According to the company, there has been a recent surge to

around 600 requests per year due to greater awareness of NanoTherm(R)

therapy. On this basis, we are assuming that the number of treatments will

increase over the current financial year. In the forthcoming financial

year, sales revenue is expected to include commercialisation income as part

of prostate cancer treatment in the USA for the first time. We are

expecting small market shares in this field, but this indication is

demonstrating a significantly higher number of cases than for glioblastoma.

Based on the significant expected increase in sales revenue, we expect

EBITDA - the output value for our valuation model - to record a margin of

around 45%, which should mean that any increase in sales is reflected in a

corresponding increase in EBITDA. In the DCF model we have calculated a

fair value per share of EUR13.90 (until now: EUR14.30). Outgoing from the

current share price we continue to assign a BUY rating.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/14905.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,5b,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

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

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-------------------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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