Edison Investment Research Limited: Edison issues outlook on Mologen (MGN)

London, UK, 21 September 2018
Edison issues outlook on Mologen (MGN)
Mologen announced that it has signed term sheets for a global partnership with Oncologie for its lead asset, lefitolimod. The deal is expected to complete in Q119, and in the near term Mologen expects to receive EUR23m from the agreement in a combination of R&D funding, cash payment and bond issues. Sensitivity remains around Oncologie who are an early stage biotech with $16m in seed funding. Mologen announced a capital raise in which it could receive gross proceeds of EUR18m. Focus remains on data from the Phase III IMPALA trial in metastatic colorectal cancer (mCRC), expected in 2020. We value Mologen at EUR188m (EUR16.6/share).
 
We value Mologen at EUR188m (EUR16.6/share) vs EUR243m previously, updated for the Oncologie deal metrics. We note that the reduction in value is driven by a lower royalty rate on net sales compared to our previous assumptions for a deal.

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