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: 11.00 Euro

Kursziel auf Sicht von: 31/12/2021

Letzte Ratingänderung:

Analyst: Cosmin Filker, Marcel Goldmann

Significant treatment revenues generated for the first time, roll-out in

Europe and Germany to be continued; Approval for prostate treatment

expected in 2021

In the first six months of 2020, MagForce AG treated a significant number

of glioblastoma patients for the first time. By treating 11 patients in

Germany and six patients in Poland, the company garnered treatment revenues

of EUR 0.38 million (previous year: EUR 0.03 million). Although the revenue

level is still low, which with an EBIT of EUR -3.42 million (previous year:

EUR -3.61 million) means an unchanged negative earnings level, the first

half of 2020 could mark the beginning of a high growth dynamic in the

number of treatments. The basis for this has been laid by the expansion

strategy implemented in previous reporting periods. In April 2019, the

first NanoActivator device was installed in Poland, a region from which

MagForce AG had received an above-average number of enquiries. Another

treatment device was also installed in Germany in Zwickau, at the

Paracelsus Clinic. From November 2020, the Hufeland Clinic in Mühlhausen

will be the third location in Germany.

Parallel to the technology roll-out in Poland and Germany, MagForce AG has

successfully continued a clinical study for approval for the treatment of

prostate cancer in the USA. After successfully completing patient

recruitment for the first stage of the study in August 2019, MagForce AG

received approval from the FDA for the second stage in April 2020. In the

first stage, only minimal treatment-related side effects were observed. The

multi-stage, single-arm study is currently being conducted due to COVID-19

only at a MagForce-owned treatment centre in the USA. Since MagForce AG has

established a streamlined procedure in which the treatment of a patient can

be completed within one day, an accelerated study duration can be assumed.

The treatments of the next and final stage will then take place in three

MagForce-owned treatment centres. We expect approval in the second half of

2021 and the first significant sales revenues from the 2022 financial year

onwards.

Under the agreement with the European Investment Bank (EIB) and the agreed

convertible bond program with Yorkville, MagForce AG can raise a

substantial amount of capital. Of the agreed EIB volume of EUR35 million,

EUR13 million had been drawn down as of the balance sheet date. As of June

30, 2020, convertible bonds amounting to EUR2.5 million had been issued

under the Yorkville agreement, which has a total volume of EUR15 million.

We expect the growth momentum in commercial glioblastoma treatment to

continue, with strong revenue growth from 2022 onwards in prostate cancer

patients. In 2022, we expect the EBITDA break-even point to be reached, and

from 2023 onwards, we also expect to break even at the level of after-tax

earnings.

As part of the DCF valuation model, we have determined a fair value per

share of EUR11.00 (previously: EUR13.50). The reduction in the price target

is due, on the one hand, to the time lag in sales revenues in both

indication areas. On the other hand, we have adopted a somewhat more

conservative approach to medium-to-long-term sales expectations and assume

a lower growth dynamic. We continue to assign the BUY rating.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/21826.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. 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

Date and time of completion of the study: 12.11.2020 (08:35 am)

Date and time of first distribution of the study: 12.11.2020 (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.