Original-Research: MagForce AG (von GBC AG): BUY

Original-Research: MagForce AG - von GBC AG

Einstufung von GBC AG zu MagForce AG

Unternehmen: MagForce AG
ISIN: DE000A0HGQF5

Anlass der Studie: Research Comment
Empfehlung: BUY
Kursziel: 14.30 Euro
Letzte Ratingänderung:
Analyst: Cosmin Filker

At the life-science company MagForce AG interesting directors' dealings can
be observed. CEO Dr. Ben Lipps published a number of insider purchases in
the past few weeks. Since August 2016, he purchased 55,100 additional
shares, distributed over six trades. This makes the CEO one of the most
active insider traders in Germany and sends a signal of confidence
regarding the future development of the company to the markets. Several
scientific studies show that insider trades from executive or non-executive
directors give a fundamental indication of the future development of the
company and the share price. Hence, we take the insider purchases as an
opportunity to conduct a comprehensive analysis of the MagForce AG.
MagForce AG is active in the field of nanomedicine and focuses on cancer
therapy. The company already received European approval for its fully
functional medical product to treat brain tumours, but the technology could
also be used to treat other solid tumours. Furthermore, MagForce aims to
receive approval for the treatment of prostate cancer in the USA. The
application for a clinical study has already been submitted to the FDA.

The medical need in Europe for the treatment of glioblastoma (malignant
brain tumour) is quite high. EU-wide there are over 20,000 patients that
suffer from aggressive brain tumour diseases. Only little progress has been
made over the past 20 years to treat glioblastoma and the survival rates
are still very low. Also, the market potential for the treatment of
prostate cancer is significantly larger due to the higher number of cases.
In the USA alone, there are about 200,000 people suffering from prostate
cancer.

In the past reporting periods MagForce AG focused on the commercialization
of the NanoTherm(R)-treatment. In this regard, three additional
NanoActivator(R) devices have been installed and these can be utilized for
commercial treatment as well as for conducting post-marketing follow-up
studies. Since the 30th June 2016 a total of six clinics in Germany are
equipped with a NanoActivator(R), from which four offer the commercial
treatment of brain cancer.

To increase the number of commercial treatments, the question of how costs
are reimbursed still needs to be answered. In addition to the self-payers
and the reimbursement through foundations, there is also an advanced
reimbursement process planned for Germany that could also be expanded to
other countries. Furthermore, MagForce AG conducts a post-marketing study
involving key opinion leaders in the area of oncology. The involvement of
these key opinion leaders and their familiarization with the innovative
treatment should increase the acceptance of MagForce's technology. Also,
additional installed units in other European countries are expected to
increase the number of commercial treatments.

Moreover, MagForce further pushes the USA approval for the treatment of
prostate cancer. The subsidiary MagForce USA, Inc. already submitted an
application to the FDA to conduct a clinical study in mid-2015. The
proposed study, which will enrol up to 120 patients, should demonstrate
that NanoTherm(R) therapy can focally ablate cancer lesions for patients
who have Gleason Score 7 prostate cancer and are under active surveillance.
The commercialisation in Europe (glioblastoma) in combination with the
commercial treatment in the USA (prostate cancer) could lead to significant
sales and earnings, which in turn would have a positive effect on the share
price.

Hence, in our opinion the valuation level of the current share price is
quite low. The insider purchases of CEO Dr. Ben Lipps also send positive
signals to the market. The target price of 14.30 EUR offers a great upside
potential and therefore we give the rating BUY. Simultaneously, we include
the MagForce share in our insider index 'GBC Insider Focus Index' (ISIN:
DE000SLA2JE2).

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/14409.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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