Original-Research: MagForce AG (von GBC AG)

Original-Research: MagForce AG - von GBC AG

Einstufung von GBC AG zu MagForce AG

Unternehmen: MagForce AG

Anlass der Studie: Research Report (Anno)
Empfehlung: Buy
Kursziel: 11.00 EUR
Kursziel auf Sicht von: 31.12.2022
Letzte Ratingänderung: 
Analyst: Cosmin Filker, Marcel Goldmann

- Approval for prostate treatment imminent,
- New treatment devices to be installed in Europe,
- Strong growth and break-even expected from 2022 onwards
Despite pandemic-related restrictions, MagForce AG made further progress in
2020 in the commercialisation of its own technology. For the already-
approved treatment of malignant brain tumours in Europe, the company had
achieved a significant increase in treatment numbers before the start of
the corona pandemic, but this could not be continued over the course of the
year. Nevertheless, commercial treatments increased to a new record of EUR
0.53 million (PY: EUR 0.09 million), but could have been significantly
higher. As expected, the company continued to report a negative EBIT of EUR
-6.96 million (previous year: EUR -6.20 million), adjusted for other
operating income.
This development also reflects the continuation of the roll-out strategy.
In 2020, for example, two NanoActivator devices were put into operation at
the Paracelsus Clinic in Zwickau and at the Hufeland Clinic in Mühlhausen.
The planned installation in Spain and Italy, two countries particularly
affected by Covid-19, was delayed due to the pandemic. However, a treatment
site is to be opened at a partner clinic in Spain before the end of 2021.
In addition, the company is in advanced negotiations with potential
partners in Austria, Germany and Italy, so that glioblastoma treatments can
be carried out at eight locations in Europe from 2022.
MagForce AG has also made further progress in the approval of the
technology for the treatment of prostate cancer in the USA. In 2020, Study
Phase 2a, also with a streamlined study protocol, was successfully started
and completed at the beginning of 2021. In the ten patients included in
Study Phase 2a, only the expected minimal side effects were observed in the
streamlined treatment procedure, thus confirming the known very good safety
and tolerability profile.
Building on this success, patients are currently being recruited for the
final Phase 2b trial, in which up to 100 men will be treated. The trial
will be conducted at all three currently available MagForce sites in the
US, which will also ensure that the corresponding treatment centres are
operational directly after approval. According to the company, this final
phase of the trial is expected to be completed before the end of the second
half of 2021, with commercialisation starting in mid-2022. In addition, the
company plans to treat prostate patients in the USA within the framework of
its own so-called 'Focal Treatment Centres', which will be operated by its
own specialist staff. This would mean that the entire treatment value chain
would be covered by MagForce AG, which would be associated with
significantly higher and more sustainable revenue potential than the sale
of treatment devices.
In our forecasts, we have assumed a visible increase in sales and earnings
from the coming financial year 2022 on. Both an increase in commercial
glioblastoma treatments and the start of prostate treatments are depicted
here. According to our estimates, MagForce AG should thus be able to break
even at all operational levels.
Within the framework of our DCF valuation model, we have determined an
unchanged target price of EUR 11.00 (previously: EUR 11.00). On the one
hand, the roll-over effect of the model results in an increase in the
target price. However, this is offset by an increase in the weighted
average cost of capital (WACC), which has had a balancing effect on the
model result overall. We continue to assign the BUY rating.

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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: 
Date and time of completion of the study: 19.07.2021 (3:18 pm)
Date and time of the first disclosure of the study: 20.07.2021 (10:00 am)

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