Monday, March 23, 2015

Home equity Medicare genes with new technology finally on track? –

MediGene has a very checkered past behind and brought its investors since the IPO in June 2000, one thing:

 Losses, losses, losses, both in business operations as well as for the price of the stock. Adjusted grit paper has crashed from a high of about 500 euros to a low of 2.94 euros. The losses for investors who have joined in 2000, so that is comparable to that of solar stock investors.

 Almost exactly five years ago, appeared in Business Week, an article about the background.

 There was a change in management board, but the dilemma nothing changed. It went downhill. Since the fall of 2011 after all was the price decline of the share to be stopped. Over more than three years, the share with no clear trend between three and six euro hovered – until this Monday, 3/16.

 Since Medicare genes jumped at once to a marked increase in trading volume without requiring a direct cause had been identified. From Tuesday to Friday of the course then literally exploded to more than nine Euros.
 The sudden interest may be related to the completed in January 2014 acquisition of small Berlin-based company Trianta. Trianta, which now operates under Medicare genes immunotherapies has three highly innovative and complementary immunotherapy platforms.

 The most advanced is the dendritic cell vaccines. Dendritic cells are to be processed in a position to take up antigens and thus present them on the cell surface that antigen-specific T cells are activated and stimulated to divide and maturation.
 On March 6, MediGene was granted by the European Patent Office for a patent, which relates to the process for the production of mature dendritic cells, which was developed by Trianta with employees. These so-called DC vaccines are currently being tested already in clinical trials of phase 2 (for prostate cancer) and 1/2 against acute myeloid leukemia (AML). The company plans beyond your own clinical trial in AML. The immunotherapy moved this segment of Medicare genes for the first time in the focus.

 At 16:03 said. then followed a scientific article in the prestigious journal “Nature Biotechnology” to T-cell receptors with “optimal cancer antigen-affinity”. These publication dates back in part to Trianta research. It deals with the modification of the patient’s own lymphocytes (some of the white blood cells) that can fight the tumor cells of the patient. More details about this are available in this article.
 In between, the company had on 11/03. already reported better-than-expected financial results in 2014. Revenue climbed 82 percent to 13.8 million euros. At the same time, the EBITDA loss was reduced by 75 percent to 2.1 million euros.
 The plan was only an increase in total revenues by 20 to 30 percent and an EBITDA loss 4 – 6 million euros. The main reason for the better result was a milestone payment for the drug candidate EndoTAG-1 against pancreatic cancer.

 Things got really exciting but was reported on Wednesday as a new 6.3 percent stake in the US investment bank Morgan Stanley to Medicare genes. The suspicion is that Morgan Stanley has acquired its investment on behalf of a client. The question is whether the investment is increased on the stock market even further. The trading volume of the stock exploded in any case really last. On Friday, nearly a million pieces alone were traded on Xetra. That is a multiple of the usual volume.
 But not enough Martinsried on Thursday announced the presentation of clinical data to DC vaccines at the AACR conference in Philadelphia, which runs from 18 to 22 April. AACR stands for American Association for Cancer Research. The clinical data, which will be presented here were collected in ongoing studies at the Institute of Cellular Therapy at the University Hospital, Oslo.

 Meanwhile, the US investor community has become aware of Medicare genes. As is known, biotech stocks in the United States in general and immunotherapy shares in particular are hot right now as never before.

 The high flyers are Kite Pharma (US shortcuts KITE) and Juno Therapeutics (JUNO) with market capitalization of 2.7 and 4 billion US dollars. This focus on so-called chimeric antigen receptor (CAR-T), which may also activate antigen-specific T cells.

 In this article on the US site Seeking Alpha, the author draws on the disadvantages and difficulties of the CAR-T method and explains why the MediGene method could be superior.
 Of course, the comparison with the kite and Juno limps because they have not only by the very recent IPOs in the cash float (eg JUNO with cash reserves of 474 million US dollars), but also already own candidates in clinical development.
 However, the author also refers to smaller players like Ziopharm with similar level of development, after the recent gains more than 10 times the market capitalization of Medicare genes on the scale bring (1.6 billion US dollars).

 It is also interesting that the market capitalization of the French Cellectis, whose technology most likely with the Medicare genes is apparently comparable, has increased since the announcement of an IPO in the USA of 300 million euros to one billion euros:


 Of course, the potential of MediGene T-cell receptors is difficult to estimate platform as a non-medical or impossible. But the fact is that some of the most renowned German biotech researchers were involved in the development and the technology is extremely popular on at the moment.

 The Kursvervierfachung of formycon, the German biosimilars shares, within the last ten months which also shows in the biotech sector with good news flow is possible if a particular technology focusing more attention on the focus of investors.


 Here, the two-year chart:

 Conversely, one must of course also take into account that MediGene paid on 27 January 2014 Trianta just four million euros in shares, plus a further maximum of almost six million euros in cash or shares certain milestones are reached. The rate doubling since the beginning of March increased the market value at the same time by a whopping 60 million euros.

 This means that the short term, a lot of imagination is already priced and Morgan Stanley has probably acquired his shares in the range of 5.00 euro. To this extent, a more powerful bear market in equities in the short term would be no surprise. In late trading in Frankfurt stock already comes back to below 8.00 euros.


 MediGene is a high-risk investment that is best suitable as speculative portfolio mix. However, there are some indications that the stock will remain in the coming weeks and months, the focus of investors. In particular, the involvement of Morgan Stanley is exciting because it could result in the entry of a US investor by itself.

 Courageous investors can build up a position if the stock should come back to the area of ​​2014er highs at around 7.30 euros.

 Note duty under Section 34b of the German Securities Trading Act: The investment report editors is invested at the time of the making of the article in Publik MediGene shares. Consequently there can be a conflict of interest. The information contained in this article is not an invitation to buy or sell securities.

Armin Brack is editor of investment reports. Free sign up below: The above text reflects the opinion of the columnist. The GmbH assumes no responsibility for its accuracy and disclaims any recourse.


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