Focus on most important value drivers in the short-term
Experienced senior executives added to the management board
Core functions will be centralized in Munich
Million Euro cost savings expected from resturcturing measures
Berlin, Germany, October 1, 2012 - MagForce AG (Frankfurt, XETRA: MF6), a leading medical device company in the field of nanomedicine with a focus on oncology, today announced additions to the management board and further measures to enforce commercialization of NanoTherm therapy. Thus, focussing on establishing the NanoTherm therapy in the oncology market as well as on its commercialization for near-term value generation.
In the short to mid term, MagForce will dedicate its financial resources to the post marketing trial in glioblastoma, which is expected to start in early 2013 and is supposed to make a significant contribution to its strategic set up. Simultaneously, the Company will also focus on the commercialization of its NanoTherm therapy with its distribution partners including DELRUS and TekGrup, development partners such as the Mayo Clinic for gastro-intestinal cancer and the Department of Urology at Duesseldorf University for prostate cancer, as well as the production of nanoparticles.
In line with this strategy, the Company`s core functions, including clinical and business development, medical affairs plus legal & IP will be concentrated at the MagForce site in Munich where these teams are already located. Production of nanoparticles, NanoActivators(TM), software engineering as well as the finance department will remain at the Company`s registered office in Berlin. All early research activities will be reduced to a minimum and will be outsourced as deemed neccessary.
In this respect experienced senior executives are added to the management board. Prof Dr Hoda Tawfik, currently VP Clinical Development and Medical Affairs, will be appointed COO. Christian von Volkmann, currently acting CFO, will assume the position of CFO, both effective immediately. They will jointly lead the Company as co-CEOs going forward. The founder and long-term Board member DrAndreas Jordan will step down from the management board of MagForce to pursue new projects, but will continue to serve the Company as an advisor.
Along with these measures the headcount of MagForce will be reduced from 27 to 12. These measures are meant to annually save the Company a seven digit Euro amount.
"With this restructuring MagForce is completing a period of important strategic refocus. In the short-term, we have to concentrate all our efforts and financial resources on the development of strategic partnerships as well as on establishing NanoTherm therapy in the area of oncology. Thus, concentrating on the post-marketing clinical study planned at different sites in Germany, which is critical to achieving acceptance of our NanoTherm therapy in the German medical community. We are encouraged about the progress we are making and need to ensure that we translate this momentum into commercial success," commented Prof Dr Hoda Tawfik, COO of MagForce AG.
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MagForce to radically enforce market set up strategy with new management team