MOLOGEN. Our research - for you. Interim Report as of March 31, 2013

Transcription

1 MOLOGEN. Our research - for you Interim Report as of March 31, 2013

2 MOLOGEN AG interim report as of March 31, 2013 Key data 2 KEY DATA of MOLOGEN AG according to IFRS as of March 31, 2013 Statement of financial position In million 3/31/13 12/31/12 Change Cash and cash equivalents % Non-current assets % Current assets % Non-current liabilities % Current liabilities % Shareholders equity % Equity ratio 96% 97% -1% Results of operations In million 1/1/13 to 3/31/13 1/1/12 to 3/31/12 Change Revenue % Personnel costs % EBIT % Profit (loss) for the period % R&D expenses % EPS in (basic) % Cash flow statement In million 1/1/13 to 3/31/13 1/1/12 to 3/31/12 Change Cash flows from operating activities % Cash flows from investing activities % Cash flows from financing activities % 3/31/13 3/31/12 Change Number of employees % MOLOGEN share 3/31/13 3/31/12 Change Outstanding shares 15,412,449 12,459,275 24% Closing price in %

3 MOLOGEN AG interim report as of March 31, 2013 Contents 3 CONTENTS Letter from the Executive Board 4 MOLOGEN share 5 Interim management report for the period from January 1 to March 31, Statement of financial position as of March 31, Statement of comprehensive income for the period from January 1 to March 31, Cash flow statement for the period from January 1 to March 31, Statement of changes in equity as of March 31, Condensed notes to the interim financial statements for the period from January 1 to March 31, Corporate calendar / imprint 26

4 MOLOGEN AG interim report as of March 31, 2013 Letter from the Executive Board 4 Dear shareholders, In the first quarter of the 2013 financial year, MOLOGEN AG s scientific activities focused on finalizing the recent studies on the main product candidates. Final evaluations were prepared for both the IMPACT study performed with MGN1703 and the ASET study with MGN1601, and they are being conducted at the time of publication of this quarterly report. We also devoted our attention to the planning of further clinical development of both product candidates. In addition, we were able to obtain approval for a skin cancer study in cooperation with Charité and the Max Delbrück Centrum in the first quarter of As a result, preparatory measures for this study can be taken here as well. Viewed from an economic perspective, the activities mentioned in the area of research and development led, as expected, to a slight increase in expenses. Because both revenue and, above all, other operating income between January and March 2013 simultaneously turned out to be, as expected, considerably lower than before, MOLOGEN AG closed the quarter at negative 2.2 million euros. The decrease on the income side was caused by the completion of publicly funded research projects, the government grants for which represented a large portion of the recent proceeds. As of March 31, 2013, MOLOGEN AG continued to have solid funding with cash and cash equivalents in the amount of 21.8 million euros. Shortly before the end of the quarter, we were able to inform you, our shareholder, about the successful augmentation of the Executive Board team. We are very pleased that, with our new colleague, Alfredo Zurlo, M.D., we were able to obtain the services of an oncologist with recognized expertise in the areas of drug development and regulation and in the execution of clinical studies for the newly created position of Chief Medical Officer. In the future, Alfredo Zurlo will be responsible for the strategy and design of our clinical development programs and the execution of current and future clinical studies. In the preface to the 2012 annual report, we closed at this place with the words, We are convinced that our joint success will continue in Nothing has changed in this regard after the end of the first quarter, and we look forward to the coming months and to good cooperation with you, our shareholders. Dr. Matthias Schroff Alfredo Zurlo, M.D. Jörg Petraß

5 MOLOGEN AG interim report as of March 31, 2013 MOLOGEN share 5 MOLOGEN share price increased again considerably Overall, the stock markets started the new trading year in a gratifying manner and were thus able to continue the positive trend of the second half of 2012 into the first quarter of The Deutsche Aktienindex DAX (German Stock Index) began the year at 7,689 points and initially increased to 8,074 points, which was close to the record high as of the time. As the first quarter of 2013 progressed, however, the political uncertainties regarding the new elections in Italy and the threat of national bankruptcy in Cyprus encumbered the stock market environment. The DAX improved overall by 1.4%, to 7,795 points, during the first quarter of The MOLOGEN share likewise recorded a successful beginning of the year. After starting at on the first trading day of the new financial year, then dropping at first, but beginning in February, the share price rose sharply and recorded a longstanding record high at during the course of February 13, On the last trading day of the first quarter of 2013, the share price closed at 14.20, which equates to a gain of approximately 20%. The sector index DAXsubsector Biotechnology gained 13.7% during the same period and the German pharmaceutical industry index DAXsector Pharma & Healthcare increased by 10.6%. Thereby both indices were considerably exceeded. MOLOGEN AG currently receives support from five research firms that evaluate the company in regular studies: DZ Bank AG, Edison Investment Research Ltd., First Berlin Equity Research GmbH, Independent Research GmbH and Montega AG. Further information in this regard is available on the MOLOGEN website in the Investor Relations section. Performance of MOLOGEN share in 2013

6 MOLOGEN AG interim report as of March 31, 2013 MOLOGEN share 6 Share information Stock exchange abbreviation MGN ISIN DE Class Bearer shares without par value Market segment Regulated Market (Prime Standard) DAX sector Pharma & Healthcare DAX subsector Biotechnology Trading exchanges XETRA, Frankfurt, Berlin, Düsseldorf, Hamburg, Munich, Stuttgart Designated sponsor DZ Bank AG, Tradegate AG Wertpapierhandelsbank (until April 30, 2013) Key share data XETRA 3 months months 2012 Number of shares outstanding on March, 31 15,412,449 12,459,275 Market capitalization on March 31, (million ) First trading day ( ) Last trading day ( ) High ( ) 14,39 9,30 Low ( ) Average trading volume (shares) 10,105 4,747 Shareholder structure as of March 31, 2013 (estimates)

7 MOLOGEN AG interim report as of March 31, 2013 Interim management report 7 INTERIM MANAGEMENT REPORT for the period from January 1 to March 31, 2013 R&D expenses in the amount of 1.4 million Quarterly loss -2.2 million as expected Solid funding due to cash and cash equivalents in the amount of 21.8 million The first three months of the 2013 financial year were marked by activities to conclude the two clinical studies with MGN1703 and MGN1601 and plans for additional clinical studies with both product candidates. In the cooperation project with Charité Universitätsmedizin Berlin and the Max Delbrück Centrum, the partners have obtained approval for a phase I clinical study with product candidate MGN1404 for skin cancer. At 1.4 million, MOLOGEN s research and development expenses increased slightly compared to the same period of the previous year (January 1 to March 31, 2012).Revenue and, above all, other operating income were considerably lower than in the same period of the previous year. Consequently, at -2.2 million, the loss for the first three months of 2013 was approximately 22% larger than in the first quarter of Due to cash and cash equivalents in the amount of 21.8 million, MOLOGEN continues to have a very solid financial base. Economic environment Overall economic development Gradual cyclical recovery of the global economy Eurozone remains in recession, however Stabilization of German economy A stabilization and recovery of the economy could be observed worldwide during the first quarter of However, the outlooks for 2013 vary considerably by region. While the International Monetary Fund (IMF) expects considerable growth of more than 5% in emerging markets and developing countries, forecasts for the eurozone are considerably worse. The eurozone is expected to remain in recession with an overall decrease in economic performance of 0.3%. The German economy is expected to be able to move against the trend and, according to IMF estimates, achieve slight growth of 0.6%. The IMF also forecasts economic growth for 2013 of 1.9% and 1.6%, respectively, for the USA and Japan. Overall, economic development is still characterized by great uncertainty and large risks this year. In particular, the eurozone has to continue to combat structural problems and high unemployment. The extent to which the budget and spending cuts that took effect in March in the USA will affect further development likewise remains to be seen.

8 MOLOGEN AG interim report as of March 31, 2013 Interim management report 8 Against this backdrop, the central banks in the USA and Europe are keeping interest rates at extremely low levels. In the USA, the prime rate remains unchanged in the range of 0% to 0.25%. In the eurozone, the prime rate remained likewise unchanged in the first quarter, at 0.75%. The European Central Bank reduced the interest rate by another 0.25 percentage points, to 0.5%, at the beginning of May. Development of the pharmaceutical and biotechnology industries Total pharmaceutical sales worldwide will reach approximately US $1.2 trillion in 2016 Growth rate will average 5% per year Oncology remains the best-selling therapeutic area The market research institute IMS Health assumes that annual pharmaceutical expenditures will increase from approximately US$ 960 billion in 2011 to US $1.2 trillion in This corresponds to an average growth rate of approximately 5%. The growth in sales will be driven by emerging markets. With an expected market volume of US$ billion in 2016, oncology will continue to be the best-selling therapeutic area in the world. These numbers are from the forecast published by the institute in July The growth rate is expected to have reached its low point in 2012, at approximately 3-4%, and to regain momentum after that. Furthermore, the analysts of IMS Health expect generic drugs to continue to increase in importance and to make a significant contribution to growth in the coming years. By contrast, sales of patent-protected drugs will not increase significantly, because 13 of the current 20 best-selling brand products will lose their patent protection in the next five years. At the same time, however, the industry has to overcome significant challenges. The key issues are expiring patents, the expansion of generic drug market shares, the budgeting of health expendituresas well as regulatory and technological risks. On the other hand, new, innovative drugs that are better tolerated, utilize new modes of action and are more effective than previous therapy options could make a crucial contribution to the further growth of pharmaceutical companies. This will cause pharmaceutical and biotechnology companies to become further intertwined. Against this backdrop, business prospects for innovative biotechnology companies such as MOLOGEN should continue to be assessed as positive in the long term.

9 MOLOGEN AG interim report as of March 31, 2013 Interim management report 9 Course of business Final evaluations prepared for colorectal cancer and renal cancer studies Plans moving forward for additional clinical studies with MGN1703 and MGN1601 Cooperation with Charité and Max Delbrück Centrum for skin cancer obtains study approval Research and development (R&D) The objective of MOLOGEN is to develop highly innovative drugs for the treatment of cancer and serious infectious diseases based on its own platform technologies. Further research and development progress was made during the first three months of the 2013 financial year. During the reporting period, R&D activities focused on preparations for the final evaluations of the clinical studies with MGN1703 (IMPACT study) and MGN1601 (ASET study). Composition of the product pipeline

10 MOLOGEN AG interim report as of March 31, 2013 Interim management report 10 Oncology - cancer drug MGN1703 Phase II study on colorectal cancer ( IMPACT study) MOLOGEN had conducted a randomized, placebo-controlled, double-blinded, multicenter phase II clinical study to test the efficacy of MGN1703. MGN1703 was utilized as a maintenance therapy after successful first-line therapy for advanced colorectal cancer. The company was able to present the first results of this study during the 2012 financial year. The patients still in the study continued to receive treatment according to the protocol after this initial evaluation. The treatment phase of the study finally ended entirely in February Compassionate use programs (Germany) or named patient programs (Austria) were set up for four patients who were still receiving treatment at this date. All patients who took part in the study continue to be monitored with regard to their overall survival, and this data continues to be collected. Appropriate provisions have been made for the preparation of a final and comprehensive evaluation of the treatment phase of the study. MOLOGEN will present the results at important oncological conventions during the year. Plans are also moving forward for an additional clinical study in the indication of colorectal cancer. MOLOGEN is in dialog with various oncologists and experts in this regard. The plans are scheduled to be finalized after comprehensive analysis of the final evaluation of the IMPACT study. Parallel to this, the company moved forward with out-licensing activities. The objective is to obtain a partner from the pharmaceutical industry for the further development and later commercialization of the product candidate. Lung cancer clinical study During the past financial year, MOLOGEN had submitted an application to conduct a phase II clinical study to the Paul Ehrlich Institute and the responsible ethics commission. The study protocol is currently being revised in view of the results of the final evaluation of the IMPACT study with MGN1703. Oncology - cancer drug MGN1601 Phase I/II study on renal cancer ( ASET study ) MOLOGEN had conducted a phase I/II clinical study ( ASET study ) to test the safety and efficacy of product candidate MGN1601. Actualized data from this study was presented in October A final evaluation is currently being performed. A continuative clinical study is being planned.

11 MOLOGEN AG interim report as of March 31, 2013 Interim management report 11 Infectious diseases The project to conduct preclinical work for hepatitis B vaccine candidate MGN1333, which was supported by the Bundesministerium für Bildung und Forschung([German Federal Ministry of Education and Research) as part of the European Union s EuroTransBio initiative, has been completed. The data collected is currently being evaluated, and a final report is being prepared. Possibilities for further funding for MGN1331, a vaccine candidate against leishmaniasis, are being reviewed. Plans for a phase I clinical study have been moving forward. The LEISHDNAVAX project to conduct preclinical work for product candidate MGN1331 was supported by the European Union as part of the 7th Framework Programme of the EU and was completed according to plan during the 2012 financial year. Cooperations MOLOGEN is cooperating with institutions of Charité Universitätsmedizin Berlin and the Max Delbrück Centrum für Molekulare Medizin (MDC) Berlin-Buch. In the course of the cooperation, a phase I clinical study to test the safety and tolerability of a MIDGE -based cancer immunotherapy (MGN1404) in the treatment of malignant melanoma is scheduled to be conducted under the direction of Charité. The study application submitted during the 2012 financial year was approved by the Paul Ehrlich Institute during the reporting period. R&D expenses The progress in the area of R&D represents an important foundation for the company's further positive development. Activities requiring expenditures and investments in the amount of 1.4 million (same period of the previous year: 1.3 million) were therefore carried out during the first three months of the 2013 fiscal year in accordance with plan. R&D expenses in million 1st quarter st quarter

12 MOLOGEN AG interim report as of March 31, 2013 Interim management report 12 Financial performance and financial position EBIT of -2.2 million (same period of previous year: -1.8 million) Average cash utilized of 0.7 million per month (same period of the previous year: 0.6 million per month) Cash and cash equivalents of 21.8 million (December 31, 2012: 23.8 million) Results of operations As in the first quarter of 2012, MOLOGEN s revenue of 27 thousand for the first quarter of 2013 (same period of the previous year: 32 thousand) was, as expected, at a low level. At 1 thousand, other operating income was considerably lower than in the same period of the previous year ( 91 thousand). This is attributable to the projects supported by subsidies that were carried out during the 2012 financial year and have since been completed. As expected, the loss for the reporting period of 2.2 million was larger than the loss for the same period of the previous year ( 1.8 million). In addition to the decrease in other operating income, the primary factors driving this were R&D activities, which were expanded compared to the first three months of the previous year. Funds used for this purpose increased from 1.3 million in the same period of the previous year to 1.4 million. Personnel expenses also increased, from 0.8 million in the same period of the previous year to 1.0 million. Salary adjustments and one-time payments were key factors in this regard. Other operating expenses likewise increased, from 0.6 million in the same period of the previous year to 0.8 million. In addition to higher administrative costs, increased R&D consulting costs were a significant factor here. Net loss for the reporting period in million 1st quarter st quarter Personnel As in the same period of the previous year, the average number of staff employed in R&D in the first quarter of 2013 was 42. At the end of the first quarter of 2013, MOLOGEN employed a total of 52 persons (including members of the Executive Board and employees on temporary parental leave), which is identical to the number of employees as of March 31, Alfredo Zurlo, M.D. was appointed as a member of the Executive Board and Chief Medical Officer on March 26, He will augment the company s Executive Board effective April 1, Alfredo Zurlo, an oncologist with many years of broad expertise in the pharmaceutical industry, is taking over responsibility for the strategy and design of the clinical development programs and the management of MOLOGEN AG s current and future clinical studies. He has more than 13 years of professional experience in the areas of clinical strategy, clinical drug development, planning of clinical studies and regulatory affairs.

13 MOLOGEN AG interim report as of March 31, 2013 Interim management report 13 Net assets and financial situation Cash and cash equivalents, which totaled 21.8 million as of March 31, 2013 (December 31, 2012: 23.8 million), represent a large portion of assets. Cash and cash equivalents in million Dec 31, Mar 31, A large portion of equity and liabilities is represented by shareholders equity, which was reported in the amount of 22.9 million (December 31, 2012: 24.9 million) and was used in MOLOGEN s business activities. The equity ratio consequently decreased by comparison to December 31, 2012, from 97% to 96%. Equity ratio in % Dec 31, 2012 Mar 31, During the reporting period, MOLOGEN was always in the position of being able to meet its financial obligations. Liquidity development At 2.0 million, cash used in operating activities in the first quarter of 2013 was higher than the 1.7 million of the same period in the previous year and were used primarily for research and development. Cash flows from operating activities in million 1st quarter st quarter Cash flows from investing activities totaled 34 thousand, a considerable decrease from the 2.0 million during the same period of the previous year. This is primarily due to the maturity of a fixed-term deposit during the same period of the previous year. At 11 thousand, cash flows from financing activities were likewise considerably lower than in the same period of the previous year ( 1.8 million). This is primarily due to the funds inflow from a cash capital increase carried out during the same period of the previous year.

14 MOLOGEN AG interim report as of March 31, 2013 Interim management report 14 Cash consumption (including proceeds from revenue and subsidies) averaged 0.7 million per month (same period of the previous year: 0.6 million). Average monthly cash consumption in million 1st quarter st quarter Opportunities and risks MOLOGEN's extraordinary earnings opportunities are offset by the risks typical for the industry. These include technological, financial, regulatory, patent and sales risks. The opportunities and risks arising from MOLOGEN s business model and activities are described in detail in the 2012 annual report (pages 39 and following). The company s risk situation did not change materially in the first quarter of Supplementary report No material developments or events of particular importance occurred after the balance sheet date, March 31, Forecast During the remainder of 2013, MOLOGEN will continue to move forward with the development of the product pipeline and will use a significant portion of the available funds for this purpose. The company will continue to use the objectives formulated in the 2012 annual report, which primarily lie in the area of research and development, as a starting point for the ongoing 2013 financial year. The continuation of the clinical development programs for product candidates MGN1703 and MGN1601 is particularly noteworthy in this regard. The activities and investments that are necessary for this will continue to encumber short-term earnings growth in 2013 and With this in mind, MOLOGEN continues to expect a net annual loss and expects the loss to grow larger for 2013 in particular. In the area of cooperations and partnerships, MOLOGEN is seeking to finalize a licensing agreement for the cancer drug MGN1703 with a partner from the pharmaceutical industry during the ongoing financial year. The successful further development of the product pipeline during the first quarter of 2013 and the good financial environment form the foundation for a positive future development of MOLOGEN. The advances in the clinical development programs planned for 2013 are expected to further increase the value of the product pipeline. MOLOGEN therefore awaits the remainder of the year with confidence.

15 MOLOGEN AG interim report as of March 31, 2013 Statement of financial position 15 IFRS STATEMENT OF FINANCIAL POSITION as of March 31, 2013 EUR 000 3/31/13 12/31/12 ASSETS Non-current assets 1,270 1,328 Property, plant and equipment Intangible assets 1,087 1,147 Other non-current assets 3 3 Current assets 22,524 24,457 Cash and cash equivalents 21,753 23,777 Trade receivables 0 3 Inventories Other current assets Income tax receivables Total 23,794 25,785 EQUITY AND LIABILITIES Non-current liabilities 9 9 Deferred income 9 9 Current liabilities Trade payables Other current liabilities and deferred income Liabilities to banks 3 1 Shareholders equity 22,870 24,894 Issued capital 15,412 15,412 Capital reserves 65,787 65,621 Accumulated deficit -58,329-56,139 Total 23,794 25,875

16 MOLOGEN AG interim report as of March 31, 2013 Statement of comprehensive income 16 IFRS STATEMENT OF COMPREHENSIVE INCOME for the period from January 1 to March 31, 2013 EUR 000 1/1/13 to 3/31/13 1/1/12 to 3/31/12 Revenue Other operating income 1 91 Cost of materials Personnel costs Depreciation and amortization Other operating expenses Profit (loss) from operations -2,197-1,825 Finance costs 0 0 Finance income 7 18 Profit (loss) before taxes -2,190-1,807 Tax income 0 0 Profit / (loss) for the period -2,190-1,807 Loss carried forward -56,139-48,300 Accumulated deficit -58,329-50,107 Basic earnings per share (in ) Diluted earnings per share (in )

17 MOLOGEN AG interim report as of March 31, 2013 Cash flow statement 17 IFRS STATEMENT OF CASH FLOWS for the period from January 1 to March 31, 2013 EUR 000 1/1/13 to 3/31/13 1/1/12 to 3/31/12 Cash flows from operating activities Loss for the period before taxes -2,190-1,807 Depreciation and amortization of intangible assets and property, plant and equipment Other non-cash expenses and income Change in trade receivables, inventories and other assets Change in trade payables and other liabilities 34-7 Net cash used in operating activities -1,979-1,693 Cash flows from investing activities Cash payments to acquire property, plant and equipment Cash payments to acquire intangible assets -5 0 Proceeds from financial investments within cash forecast (fixed-term deposits with a term of more than three months) 0 2,000 Net cash used in investing activities -34 1,996 Cash flows from financing activities Cash proceeds from issuing shares -11 1,787 Net cash used in financing activities -11 1,787 Effect of exchange rate changes on cash 0 1 Total changes in cash and cash equivalents -2,024 2,091 Cash and cash equivalents at the beginning of the period 23,777 5,476 Cash and cash equivalents at the end of the period 21,753 7,567

18 MOLOGEN AG interim report as of March 31, 2013 Statement of changes in equity 18 IFRS STATEMENT OF CHANGES IN EQUITY for the period from January 1 to March 31, 2013 EUR '000, except share data Issued capital Number of ordinary shares Share capital Contributions paid in to implement a capital increase Capital reserves Accumulated deficit Shareholders equity As of 12/31/11 12,459,275 12, ,552-48,300 8,711 Capital increase in exchange for cash contributions 1, ,787 Value of services rendered by employees (according to IFRS 2) Loss for the period -1,807-1,807 As of 3/31/12 12,459,275 12,459 1,913 44,577-50,107 8,842 As of 12/31/12 15,412,449 15, ,621-56,139 24,894 Capital increase in exchange for cash contributions Value of services rendered by employees (according to IFRS 2) Loss for the period -2,190-2,190 As of 3/31/13 15,412,449 15, ,787-58,329 22,870

19 MOLOGEN AG interim report as of March 31, 2013 Notes 19 CONDENSED NOTES for the period from January 1 to March 31, 2013 A. General information on the company Mologen AG (hereinafter: MOLOGEN) is a stock corporation as defined under the law of the Federal Republic of Germany with its headquarters in Berlin (Fabeckstrasse 30, Berlin, Germany). It was founded on January 14, 1998, and is registered in the Berlin-Charlottenburg District Court commercial register under HRB B. The shares of the company are listed on the Regulated Market (Prime Standard) at the Frankfurt Stock Exchange under ISIN DE The objective of the company is the research, development and marketing of products in the area of molecular medicine. This particularly encompasses the research and development of biomolecular vaccines, application-related clinical research for biomolecular tumor therapy, and somatic gene therapy. The main focus of research is the MIDGE and dsllm technologies patented by MOLOGEN. These facilitate the use of DNA as a drug for diseases that were previously untreatable or for which treatment is insufficient. B. General information on the financial statements These condensed, unaudited interim financial statements of MOLOGEN were prepared in accordance with IFRS as of the reporting date, March 31, 2013, as applied in the European Union (EU). They were prepared in accordance with IAS 34 (Interim Financial Reporting) and should be read together with MOLOGEN's audited financial statements as of December 31, 2012, which were prepared in accordance with IFRS as applied in the EU. The accounting and valuation methods were continued unchanged from December 31, No accounting standards that were in effect for the first time or had been changed for the reporting period had any material effect on the interim financial statements of MOLOGEN. The reporting period for these condensed interim financial statements is the period from January 1, 2013 to March 31, 2013.The comparison period for the statement of comprehensive income, cash flow statementand statement of changes in equity is the period from January 1, 2012, to March 31, The functional and presentation currency in the financial statements is the euro ( ). To improve readability, numbers are rounded and stated in thousands of euros (EUR 000), unless otherwise specified. MOLOGEN continues to issue no segment reporting. Please refer to the remarks in the management report for the 2012 financial year for more information.

20 MOLOGEN AG interim report as of March 31, 2013 Notes 20 C. Selected notes to the statement of financial position as of March 31, 2013 Assets Property, plant and equipment / intangible assets Property, plant and equipment in the amount of 29 thousand (2012: 98 thousand) and intangible assets in the amount of 5 thousand (2012: 19 thousand) were acquired during the reporting period. No material disposals took place. No evidence exists that would necessitate an unplanned impairment loss. Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances. Current bank balances yield variable rates of interest. Short-term investments have various maturities of up to three months, which are determined depending on the company's cash needs at the time. They have fixed interest rates. There are no fixed deposits with terms totaling more than three months as of the reporting date. As of the reporting date, cash and cash equivalents totaled 21,753 thousand (12/31/12: 23,777 thousand). This is calculated based on the nominal value of the holdings in euros and the value of an account denominated in a foreign currency as measured at the exchange rate on March 31, Other current assets and income tax receivables EUR 000 3/31/13 12/31/12 Reimbursements from VAT Income tax receivables Other receivables No impairment losses were recorded against other assets during the reporting period or the 2012 financial year. Equity and liabilities Non-current liabilities The amount reported as deferred income of 9 thousand (12/31/12: 9 thousand) relates to government grants for assets.

21 MOLOGEN AG interim report as of March 31, 2013 Notes 21 Current liabilities EUR 000 3/31/13 12/31/12 Trade payables Deposits received for orders Liabilities from income and church tax Liabilities to banks 3 1 Other liabilities Shareholders equity The composition of shareholders equity and the development of its components are presented in the statement of changes in equity. Issued capital MOLOGEN s share capital of 15,412,449, which is divided into 15,412,449 no-par bearer shares, each with a notional share of 1.00 in the share capital, is reported as issued capital. Authorized and conditional capital Information regarding authorized and conditional capital is available in the 2012 annual report. There were no changes during the reporting period. Capital reserves Costs in the amount of 11 thousand (1/1/12-3/31/12: 126 thousand) were incurred during the reporting period due to share capital changes carried out during the previous year. The application of IFRS 2 (Share-based Payment) resulted in additions to capital reserves in the amount of 177 thousand (1/1/12-3/31/12: 151 thousand) during the reporting period. EUR 000 3/31/13 12/31/12 Capital reserves 66,075 66,075 Employee compensation in equity instruments 4,555 4,378 Costs of equity procurement -4,843-4,832 65,787 65,621

22 MOLOGEN AG interim report as of March 31, 2013 Notes 22 D. Selected notes to the statement of comprehensive income for the period from January 1 to March 31, 2013 Other operating income EUR 000 1/1/13 to 3/31/13 1/1/12 to 3/31/12 Proceeds from government grants 0 89 Other Personnel costs EUR 000 1/1/13 to 3/31/13 1/1/12 to 3/31/12 Wages and salaries Social insurance contributions Stock options granted (according to IFRS 2) The increase in personnel costs compared to the same period in the previous year is attributable to salary adjustments and one-time payments and to higher costs in connection with stock options issued. Other operating expenses At 798 thousand, other operating expenses for the first quarter of 2013 were higher than in the same period of the previous year (1/1/12-3/31/12: 626 thousand). The increase is attributable to higher research and development consulting costs and higher administrative costs. Research and development (R&D) The resources available to the company are primarily used directly on research and development projects. Expenses totaled 1.4 million (1/1/12-3/31/12: 1.3 million) in this area. As in the same period of the previous year, no development costs subject to mandatory capitalization according to IAS 38 were incurred. Earnings per share (EPS) Basic earnings per share is calculated by dividing the earnings attributable to the owners of the ordinary shares of the company by the weighted average number of ordinary shares outstanding during the reporting period.

23 MOLOGEN AG interim report as of March 31, 2013 Notes 23 Diluted earnings per share is calculated by dividing the earnings attributable to the owners of the ordinary shares of the company by the weighted average number of ordinary shares outstanding during the reporting period plus the weighted average number of ordinary shares that would arise from the conversion of all dilutive potential ordinary shares into ordinary shares. 1/1/13 to 3/31/13 1/1/12 to 3/31/12 Earnings attributable to the owners of the ordinary shares of the company, in EUR 000-2,190-1,807 Weighted average number of ordinary shares for calculating basic earnings per share, in thousands 15,412 12,459 Dilution effect from the issuance of stock options, in thousands 0 0 Weighted average number of ordinary shares including dilution effect, in thousands 15,412 12,459 basic EPS in diluted EPS in There were no dilution effects from stock options issued in previous years in terms of IAS and following. E. Notes to the cash flow statement The cash flow statement shows how MOLOGEN's cash and cash equivalents changed during the reporting period through cash inflows and outflows. In accordance with IAS 7, distinctions are made between cash flows from operating, investing and financing activities. Income taxes in the amount of 2 thousand (1/1/12-3/31/12: 7 thousand) were paid during the reporting period. MOLOGEN received an income tax refund in the amount of 27 thousand (1/1/12-3/31/12: 10 thousand) during the reporting period. Cash flows from operating activities include cash interest income in the amount of 7 thousand (1/1/12-3/31/12: 19 thousand). No interest was paid during the reporting period (1/1/12-3/31/12: 0 thousand). F. Notes on the employee participation programs The company has set up several share-based employee participation programs. Further comments on the employee participation programs are available in the 2012 annual report (section F of the notes to the IFRS individual annual financial statements). No new stock option program was set up and no stock options were issued to employees during the reporting period.

24 MOLOGEN AG interim report as of March 31, 2013 Notes 24 The following table shows the number, the weighted average exercise price (WAEP) and the development of the stock options during the reporting period. WAEP per stock option in Number of stock options (units) As of January 1, ,118,707 Granted -- 0 Forfeited -- 0 Exercised -- 0 Expired -- 0 As of March 31, ,118,707 Exercisable as of March 31, 2013 (1) ,043 (1) The only factor taken into account in this regard is whether the vesting period of the stock options has already expired. All other contractual terms and conditions, such as the fulfillment of the performance target, are disregarded. The weighted average remaining contractual duration of the stock options outstanding as of March 31, 2013, is 4.60 years. The exercise prices for the stock options outstanding at the end of the reporting period range between 6.95 and G. Notes on the type and management of financial risks Notes on the risks arising from financial instruments and on financial risk management are available in the remarks in section H of the 2012 annual report. No additional risks have been added to those described there. H. Information on affiliated persons On March 26, 2013 Alfredo Zurlo, M.D. was appointed Chief Medical Officer (CMO) and member of the Executive Board of MOLOGEN AG effective from April 1, As of March 31, 2013, neither the composition of MOLOGEN s Management Board and Supervisory Board nor the respective compensation structures had changed compared to December 31, 2012.

25 MOLOGEN AG interim report as of March 31, 2013 Notes 25 Directors dealings The following securities transactions subject to disclosure requirements were reported to the company by management personnel in accordance with Section 15a of the WpHG (Securities Trading Act) during the reporting period: Name, position Date Transaction Number of shares Price in Amount traded in Trading center Dr. Matthias Schroff, Member of the Executive Board Jörg Petraß, Member of the Executive Board 2/1/13 Purchase 2, , XETRA 2/4/13 Purchase 2, , XETRA I. Other information Approval of the condensed interim financial statements The financial statements were approved by the Executive Board and released for publication on May 14, 2013.

26 MOLOGEN AG interim report as of March 31, 2013 Corporate calendar / imprint 26 CORPORATE CALENDAR 2013 March 21, 2013 Publication of the 2012 annual report May 15, 2013 Quarterly report as of March 31, 2013 July 16, Annual General Meeting August 14, 2013 Half-year report as of June 30, 2013 November 11, 2013 Quarterly report as of September 30, 2013 November 11-13, 2013 German Equity Forum Fall 2013 DISCLAIMER This information contains forward-looking statements based on current assumptions and estimates by the company management of MOLOGEN AG. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, and similar formulations. These statements are not to be understood as in any way guaranteeing that these expectations will turn out to be accurate. Future performance and the results actually achieved by MOLOGEN AG depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors, such as the future economic environment and the behavior of competitors and others involved in the marketplace, are outside the control of MOLOGEN AG and cannot be accurately estimated in advance. MOLOGEN neither plans nor undertakes to update any forward-looking statements. IMPRINT Publisher MOLOGEN AG Fabeckstrasse 30 D Berlin Tel.: Fax: info@mologen.com