17.11.2011
MagForce AG Shareholders' Letter
Dear Shareholders,
Today we would like to give you an update on the most important developments at MagForce since the beginning of this year. We are pleased to inform you that leading experts have shown a strong interest in NanoTherm® therapy for the treatment of brain tumors and are ready to work with us to gain their own experience with the innovative technology. In addition, we have planned clinical projects in the area of prostate and pancreas cancer with leading national and international experts and institutions. In general, the projects focus on the scientific development of the therapy through studies with experts, which will form the basis for the further success of the therapy in Germany, the EU, and worldwide.
But first things first. In 2010, after more than 20 years of research and development, MagForce received the approval for NanoTherm® therapy for the treatment of brain tumors. In the first treatment step, the treating physician injects nanoparticles into the tumor. Subsequently, the patient is treated in the NanoActivator™, a device that uses a rapidly alternating magnetic field that activates the nanoparticles to produce heat. The first NanoActivator™ is located at the Charité University Hospital in Berlin. We are pleased that state insurance companies have begun to reimburse the therapy.
For a broader acceptance of the MagForce technology by treating physicians, we have now involved leading neurosurgeons, neuro-oncologists and radio-oncologists. These scientific opinion leaders are responsible for creating treatment guidelines for brain tumors, and the larger medical community follows their recommendations.
We have generated a great deal of scientific interest in the therapy and are now in the final planning stages for clinical studies in additional indications. These clinical development projects will be conducted in leading international oncology clinics. Key opinion leaders now want to gain their own experience with the MagForce technology and are eager to participate in a glioblastoma clinical trial conducted at the highest medical standards used in the oncology field. Their participation is a strong vote of confidence and a great achievement for MagForce and will ultimately lead to the use of the therapy in many prestigious clinical centers.
With respect to prostate and pancreatic cancer indications, we are now in discussion with relevant experts and discussions are progressing very well. In Germany, our plans include working together with leading urologists on the clinical development of prostate cancer from the initial "proof of concept" study through approval. For the further development of pancreatic cancer, MagForce is currently setting up a cooperation with one of the most renowned clinics in the United States where medical experts are anxious to be part of a comprehensive development project from preclinical through proof of efficacy.
All these developments have brought the company to a breakthrough that will ultimately enable us to not only penetrate the market for the treatment of brain tumors, but will support us to successfully enter the markets for prostate and pancreatic cancer. These perspectives are exciting not only for the company, its shareholders, and investors, but especially for physicians and their patients, who are in need of new treatment options.
Following the changes announced in October in the MagForce management team, I, Dr. Andreas Jordan, founder of MagForce, am leading the company. Other relevant key positions in the company have been taken over by members of the management team, in particular, Prof. Dr. Hoda Tawfik, Vice President Clinical Development and Medical Affairs, and Ms. Solveig Salomon, Vice President Marketing and Sales, who have also signed this letter. These individuals have decades of experience in the pharmaceutical industry and particularly in the area of oncology. They, along with their teams, have made a decisive contribution to the recent positive developments achieved with the medical experts, which have brought us on a path to move forward.
For the further financing at MagForce, the increasing revenues generated by the commercial treatment of patients do not balance the firm's current expenditures. For the long-term we are evaluating a number of financing possibilities, and for the year 2012, we see the financing basically as secured. Our discussions have yielded positive responses as more and more investors see the potential of our novel technology and recognize the promising developments recently achieved. Also our main shareholder, Nanostart AG, has indicated to us that they are evaluating the expansion of their current position. Moreover, there is also strong interest from strategic investors from abroad.
Dear Shareholders, the goal of MagForce has always been to establish a completely novel therapy for the treatment of solid tumors that would complement existing cancer therapies. The company has come a long way and the road has not always been smooth. Overall, having overcome the challenges of the past, we are now looking to the future with confidence and determination. Thanks to our outstanding innovation, the dedication of our highly motivated staff, and our unique technology, we now have everything on board to be a successful leader in these exciting markets. We thank you for your support, especially in difficult times, and look forward to bringing you exciting news in the near future. We are certain that your patience with the investment in MagForce will be rewarded.
With best regards,
Dr. Andreas Jordan, Founder and Management Board for Research and Development
Prof. Dr. Hoda Tawfik, Vice President Clinical Development and Medical Affairs
Solveig Salomon, Vice President Marketing and Sales
Berlin, November 17, 2011
For questions, please contact:
Stacy Wiedenmann
Director, Investor Relations & Corporate Communications
Magforce Nanotechnologies AG
Max-Dohrn-Str. 8
10589 Berlin
T +49 30 308 380 31
M +49 151 12000 722
email: swiedenmann@magforce.com
www.magforce.com