Medigene AG Extends Cash Runway to July 2025 After Successful Capital Raise

May 14, 2024. Medigene AG, an immuno-oncology platform company specializing in the discovery and development of T cell immunotherapies for solid tumors, has announced a significant extension of its financial runway, now extending to July 2025. This development follows a successful capital raise, which fortified the company's financial position and allowed it to amend its financial guidance for 2024.

Selwyn Ho, CEO of Medigene AG, expressed satisfaction with the outcome of the capital raise, emphasizing the strengthened financial standing and the extended financial runway. Ho highlighted that the newly acquired funds will be integral in advancing the company's lead program, MDG1015, towards clinical trials. The capital will also bolster Medigene's corporate strategy, reinforce its End-to-End TCR platform capabilities in both autologous and allogeneic cell therapies, and facilitate the expansion of its 3S TCRs into additional off-the-shelf modalities, such as T cell engagers.

On May 8, 2024, Medigene reported the successful completion of a capital raise, garnering approximately EUR 5.9 million in gross proceeds from an oversubscribed funding round. This influx of capital supports the company’s robust financial position and extends its operational runway.

Medigene has maintained its revenue guidance for 2024, expecting revenues to fall between EUR 9 and 11 million. However, the company has adjusted its research and development expenditure forecast, increasing it from the previous range of EUR 11-13 million to EUR 11.5-13.5 million. This adjustment accounts for the additional activities required to facilitate the first patient enrollment for the MDG1015 Phase 1 clinical trial by the end of 2024, contingent upon further financing.

The financial projections for 2024 also account for potential milestone payments from existing partnerships, which are expected to contribute USD 1 million and EUR 2 million, respectively. These projections, however, do not consider potential milestone payments from future or new partnerships or transactions, which are dependent on third parties and cannot be reliably controlled or predicted by Medigene.

Medigene AG continues to focus on developing differentiated T cell therapies aimed at treating solid tumors. The company's End-to-End Platform encompasses multiple proprietary technologies that enable the creation of optimal T cell receptors against cancer testis antigens and neoantigens. This platform enhances T cell receptor-engineered T cells to develop top-tier, unique TCR-T therapies, and optimizes the drug product composition for safety, efficacy, and durability. Medigene's leading TCR-T program, MDG1015, remains on track for an IND filing in the third quarter of 2024 and a CTA filing in the fourth quarter of 2024.

In summary, Medigene AG's recent capital raise not only extends its financial runway but also positions the company to advance its key therapeutic programs, particularly MDG1015. The strengthened financial position and extended runway underscore Medigene’s commitment to advancing its innovative T cell therapies for the treatment of solid tumors, ensuring continued progress and strategic execution in the coming years.

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