London, UK, 25 September 2017

Edison issues outlook on Mologen (MGN)

In the last six months, mixed readouts in the Phase II SCLC trial (IMPULSE) and the Phase Ib/IIa HIV trial (TEACH) weighed on the stock. Full data packages presented in the next 12 months may yet highlight potential in these indications. Our valuation is adjusted to take into account both the current trial data and visibility of the long-term strategy in certain geographical regions. While long-term potential lies in the lefitolimod Phase III mCRC trial (IMPALA, readout expected in 2019), Mologen has additionally signed a binding term sheet with Chinese iPharma, which could provide EUR100m+ in revenues over several years and boost the cash position. We value Mologen at EUR253m.

We now value Mologen at EUR253m (EUR7.36/share) vs EUR252m (EUR7.33/share) previously. Alterations to our model and valuation predominately relate to the development strategy in certain geographical regions, the removal of MG1601 from our valuation and the addition of the iPharma deal. We note that an improved liquidity situation and better visibility on future developments would have a positive effect on our valuation.

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