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PRESS RELEASE: HUGIN AD-HOC/MediGene AG:Ad hoc: MediGene announces corporate restructuring and aims to strengthen pipeline

MediGene AG /  / Ad hoc: MediGene announces corporate restructuring and aims to strengthen pipeline processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. 

  * Resource realignment given recent important milestones with EndoTAG(TM)-1
    and Eligard(®)
  * Immediate implementation leads to significant cost reductions
  * Management aims to strengthen pipeline through strategic transaction
  * Supervisory Board to be down-sized 

Martinsried/Munich,  September 29, 2010. MediGene AG (Frankfurt, Prime Standard,
MDG)  today announces  a significant  restructuring of  its business.  Given the
completion  of both the EndoTAG(TM)-1 Phase  2 trial in triple receptor negative
breast cancer and the CMC conversion from freeze-drying to spray drying, as well
as  the  recent  simplification  of  its  Eligard(®) arrangements with Astellas,
MediGene's   management  and  Supervisory  Board  have  taken  the  decision  to
right-size  the business. This  process will begin  immediately and will include
significant personnel and cost reductions. 

Within  the restructuring process, MediGene's total  number of employees will be
reduced  from  107 to  approximately  55, with  the majority of the redundancies
coming  from the teams  involved in the  successful EndoTAG(TM)-1 CMC conversion
process  and in running and analyzing the EndoTAG(TM)-1 clinical trials. Both of
these  have now been  completed. MediGene has  previously announced that it will
take EndoTAG(TM)-1 into Phase III development only in cooperation with a partner
who  will also  bear the  costs, and  the full  data package  for the partnering
process  is now complete and available.  Several potential partner companies are
in the process of conducting due diligence. 

MediGene's  ability to develop and monetize  its portfolio of therapeutic assets
will   remain  unaffected  by  this  restructuring.  Core  competence  teams  in
pre-clinical  development, clinical  trial design  and clinical development will
remain  and business  development efforts  on EndoTAG(TM)-1  and Veregen(®) will
continue. 

In  addition to these restructuring measures,  at the forthcoming Annual General
Meeting  planned for  spring 2011, MediGene's  Supervisory Board  and management
will propose that MediGene's Supervisory Board reduced in order to adjust to the
new company size. 

The  estimated  one-off  restructuring  cost  will  incur in full in 2010 and is
estimated  to be  approximately EUR  1 million, whereas  the cost savings of the
measures announced today are anticipated to be at least EUR 5 million per annum.
With  this lower cost base, a solid  cash-position and the royalty receipts from
both  Eligard(®)  and  Veregen(®),  MediGene  could  become profitable in 2011.
However,  MediGene's intention is  to seek to  grow the business organically and
via strategic transactions. 

This  press release contains forward-looking statements representing the opinion
of  MediGene as  of the  date of  this release.  The actual  results achieved by
MediGene  may  differ  significantly  from  the  forward-looking statements made
herein. MediGene is not bound to update any of these forward-looking statements.
MediGene(®,  )EndoTAG(TM) and Veregen(®)( )are registered trademarks of MediGene
AG.  Eligard(® )is a(  )registered trademark of  Tolmar Therapeutics, Inc. These
trademarks may be owned or licensed in select locations only. 

                                    - ends - 

MediGene  AG is a publicly listed (Frankfurt, Prime Standard: MDG) biotechnology
company  located in Martinsried/Munich, Germany, with subsidiaries in Oxford, UK
and  San Diego, USA. MediGene is the  first German biotech company to have drugs
on  the market which are  distributed by partner companies.  It has several drug
candidates   in   clinical   development   and   possesses  innovative  platform
technologies.  MediGene focuses  on clinical  research and  development of novel
drugs with a focus on oncology. 

Contact MediGene AG 

Email: investor@medigene.com
Fax: ++49 - 89 - 85 65 - 2920
Julia Hofmann, Public Relations, Tel.: ++49 - 89 - 85 65 - 3324
Dr. Georg Dönges, Investor Relations, Tel.: ++49 - 89 - 85 65 - 2946 

[HUG#1447598] 

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MediGene AG
Lochhamer Strasse 11 Martinsried / München Germany 

WKN: 502090;ISIN: DE0005020903;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse; 

This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
    other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
     originality of the information contained therein. 

Source: MediGene AG via Thomson Reuters ONE 

http://www.medigene.com 

(END) Dow Jones Newswires

September 29, 2010 05:35 ET (09:35 GMT)