Employees as at June % FTEs as at June %

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1 MEDIGENE AG QUARTERLY STATEMENT 6M-2018

2 KEY FIGURES OF MEDIGENE IN K Q Q CHANGE 6M M 2017 CHANGE Results of operations Revenue from immunotherapies (bluebird bio cooperation) 1,974 1,135 74% 3,358 2,252 49% Revenue Veregen % 836 1,348-38% Other operating income % 1,306 1,315-1% Total revenue 2,734 2,306 19% 5,500 4,915 12% Gross profit 2,691 2,132 26% 5,081 4,321 18% Selling and general administrative expenses -1,768-2,484-29% -3,402-4,338-22% Research and development expenses -4,350-3,824 14% -8,669-7,436 17% Operating result -3,427-4,176-18% -6,990-7,453-6% Net profit/loss for the period -3,697-3,793-3% -7,247-7,470-3% EBITDA -3,043-3,876-19% -6,231-6,896-10% Earnings per share ( ) % % Personnel expenses -2,771-2,858-3% -5,207-5,266-1% Cash flow Net cash used in operating activities -1,491-11,799-87% Net cash used in investing activities -34,047-5,926 >200% Net cash from financing activities 29,653 18,966 56% Balance sheet data as at June 30, 2018 and December 31, 2017 Cash and cash equivalents and time deposits 80,839 51,724 56% Total assets 138, ,937 24% Current liabilities 9,138 9,808-7% Non-current liabilities 20,109 15,962 26% Shareholders equity 109,390 86, % Equity ratio (%) % Employees as at June % FTEs as at June % Medigene share as at June 30 Total number of shares outstanding 24,554,012 22,118,612 11% Share price (XETRA closing price) ( ) %

3 6-MONTHS REPORT 2018 MEDIGENE AG OF MEDIGENE AG, PLANEGG/MARTINSRIED, FOR THE PERIOD FROM JANUARY 1 TO JUNE 30, 2018 We made substantial progress in the first half of 2018, having initiated our first T cell receptor (TCR) trial, which will include approximately 92 patients with various types of blood cancers. We also significantly expanded our collaboration with bluebird bio, increasing the number of TCR projects from four to six, providing us with an additional one-time payment and significantly increasing R&D funding and potential milestone payments to Medigene. The successful completion of a private placement to new and existing shareholders raising 32.3 million in gross proceeds leaves us well-positioned to drive forward on our broader drug development plans as we transition from recruitment to treatment within our TCR-T trial. Prof. Dolores Schendel, CEO of Medigene AG Content Key figures Major events since the beginning of Pipeline, share 3 Interim group management s discussion and analysis 6M Interim consolidated financial statements 6M Notes to the interim consolidated financial statements 19 Responsibility statement of the members of the governing body 28 Financial calendar/imprint/ Trademarks/Disclaimer 29

4 2 MAJOR EVENTS SINCE THE BEGINNING OF 2018 MEDIGENE AG MAJOR EVENTS SINCE THE BEGINNING OF 2018 Immunotherapies: Medigene starts Phase I/II clinical trial with T cell receptor-modified T cell therapy (TCR-T) MDG1011 and initiated patient recruitment Medigene presented data at the AACR conference on the successful production of dendritic cell (DC) vaccines for the current Phase I/II clinical trial in acute myeloid leukemia (AML) Oslo University presented clinical data at the AACR conference for DC vaccines in prostate cancer investigator-initiated clinical trials (IITs) Medigene strengthened its patent portfolio with a US patent on a tagged TCR and a European patent covering a T cell identification method Company: TCR alliance significantly expanded with bluebird bio with receipt of an additional one-time payment of US$8 m 32.3 m gross proceeds generated from an oversubscribed private placement of new shares Dr. Kai Pinkernell appointed as Chief Medical Officer and Chief Development Officer of the Executive Management Board KEY FIGURES IN THE FIRST HALF OF 2018 Total revenue increased by 12% to 5,500 k (6M 2017: 4,915 k) Revenue from the core business of immunotherapies increased by 49% to 3,358 k (6M 2017: 2,252 k) Research and development expenses increased as planned by 17% to 8,669 k (6M 2017: 7,436 k) mainly due to progress in the clinical development of immunotherapy programs Selling and general administrative expenses decreased by 22% to 3,402 k (6M 2017: 4,338 k) The EBIDTA loss reduced by 10% to 6,231 k (6M 2017: 6,896 k) Net loss for the period reduced by 3% to 7,247 k (6M 2017: 7,470 k) Cash and cash equivalents and time deposits of 80,839 k as at June 30, 2018 (December 31, 2017: 51,724 k) Financial guidance 2018 improved

5 6-MONTHS REPORT 2018 PIPELINE/SHARE 3 MEDIGENE S IMMUNOTHERAPY PIPELINE MEDIGENE S SHARE PRICE PERFORMANCE (January 2, 2018: indexed to 100) Medigene TecDax Nasdaq Biotech OUR SHARES - KEY FIGURES IN 6M M 2017 Opening price at the beginning of the year Closing price at the end of the period 1) Average market capitalization ( m) 2) Average daily trading volume (in shares) 271, ,517 Total number of shares outstanding as at June 30 24,554,012 22,118,612 Earnings per share 3) ) Closing rate; 2) Source: Medigene AG, Oddo Seydler Bank AG; 3) reference: total number of shares outstanding

6 4 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 6M-2018 MEDIGENE AG OF MEDIGENE AG, PLANEGG/MARTINSRIED, FOR THE PERIOD FROM JANUARY 1 TO JUNE 30, 2018 PRELIMINARY NOTES Medigene AG, Planegg/Martinsried (hereinafter referred to as Medigene or the Company ), together with its consolidated subsidiaries (hereinafter referred to as the Group ), is a biotechnology company headquartered in Martinsried near Munich, Germany. The Company develops highly innovative immunotherapies to target various forms and stages of cancer. Medigene concentrates on the development of personalized T cell-based therapies. Corresponding development projects are currently in various stages of clinical and preclinical development. Status of the product portfolio and of research and development activities Core business: Immunotherapies Medigene is developing immunotherapies with three complementary approaches: T cell receptor-modified T cells (TCR-Ts), dendritic cell (DC) vaccines, and T cell-specific monoclonal antibodies (TABs). TCR-modified T cells (TCR-Ts) In March 2018, Medigene announced the start of the Phase I/II clinical trial with TCR-T cell immunotherapy MDG1011 for the treatment of various types of blood cancer. MDG1011 is Medigene s first clinical TCR-T immunotherapy product candidate. Patient enrollment in the first dose cohort of this trial and personalized cell product production began recently. Approximately 92 blood cancer patients with acute myeloid leukemia (AML), myelodysplastic syndrome (MDS) or multiple myeloma (MM) should be included in the trial. Patients are first tested for suitable HLA status and then whether their tumor cells are positive for the expression of the PRAME antigen. Only if these basic requirements are met, among other inclusion criteria, can the respective patient be enrolled into the clinical trial. As a first step, an apheresis is performed to isolate the patient s own T cells. These are then equipped with Medigene s specific PRAME TCR and subsequently expanded. After comprehensive quality testing of the T cell therapy product the patient undergoes a preparative chemotherapy and a one-time infusion of MDG1011. In the early stages of this clinical development, Medigene expects a production time of about six weeks from the beginning of an apheresis process until completion of the cell product. Medigene is in ongoing dialogue with the competent regulatory authority Paul-Ehrlich-Institute (PEI) about the clinical trial protocol. One purpose of the dialogue is to simplify the inclusion of the individual dose cohorts. Currently, it is required that one patient with each of the indications (AML; MDS; MM) is included in a dose cohort of three patients. After implementing the intended change, at least one patient with MM and at least one patient with AML or MDS is required. This would provide greater flexibility and speed for completing a dose cohort.

7 6-MONTHS REPORT 2018 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 5 In February 2018, Medigene announced the grant of a US patent, covering a high affinity T cell receptor with a specific tag. In March 2018 a European patent was granted, which protects Medigene s allo-restricted ex vivo method of identifying T cells. The underlying patent family additionally comprises patents granted in the US and Japan. The two patents expand Medigene s growing patent portfolio in the field of TCR-T immunotherapies. In May 2018, Medigene announced a significant expansion of its successful strategic alliance with bluebird bio Inc. ( bluebird bio ) to identify and develop TCR-Ts. (see p. 7) DC vaccines (DCs) In April 2018, Medigene and researchers from Oslo University Hospital presented a poster on the generation of dendritic cell vaccines for Medigene s ongoing Phase I/II clinical trial with AML patients. The results clearly demonstrate the feasibility and robustness of Medigene s production protocol for clinical grade TLR7/8-polarized fast mature DCs from critically ill and heavily pretreated AML patients, allowing for long-term vaccination of trial subjects in the ongoing trial. Medigene s academic partner, Oslo University Hospital, also presented an update of a Phase I/II investigator initiated trial (IIT) at the annual general meeting of the American Association for Cancer Research (AACR) in April The data shows that adjuvant dendritic cell vaccines in high-risk prostate cancer patients following radical surgery can reduce the incidence of early biochemical relapse. The subset data from the DC vaccines produced utilizing Medigene s DC vaccine technology are encouraging for this patient population with limited curative options. The clinical data was collected at the Department of Cellular Therapy at Oslo University Hospital, Norway, partially utilizing Medigene s DC vaccine technology. Non-core business: Veregen In December 2017, Medigene sold the US-rights for Veregen to Fougera Pharmaceuticals, Inc. ( Fougera ), thereby largely completing the Company s repositioning as a purely immunotherapy company. Medigene remains the owner of the active pharmaceutical ingredient (API) for the product and becomes the exclusive supplier of the API to Fougera. In addition, Veregen is sold in other countries in collaboration with local partners. The search for strategic alternatives for the remaining non-synergistic Veregen business has begun.

8 6 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 6M-2018 MEDIGENE AG CORPORATE DEVELOPMENT Management In April 2018, Medigene announced the appointment of Dr. Kai Pinkernell as Chief Medical Officer (CMO) and Chief Development Officer (CDO) to the Executive Management Board of the Company. Dr. Pinkernell has been with Medigene as Senior Vice President and Chief Medical Officer (CMO) since February The appointment of Kai Pinkernell and the expansion of the Executive Management Board is in line with Medigene s advancement as a clinical stage immuno-oncology company. Expansion of the TCR alliance with bluebird bio On May 14, 2018, Medigene announced a significant expansion of its successful strategic alliance with bluebird bio, a global leader in gene and cell therapies. Under the revised terms of the agreement, the number of target antigen/mhc restriction combinations for the discovery of specific TCR lead candidates by Medigene will be increased from four to six. As part of this contractual expansion, Medigene received an additional upfront payment of US$8 m ( 6.7 m). R&D funding for all work performed by Medigene in this collaboration will grow proportionally to address the broader scope of the collaboration. Following the amendment of this agreement, Medigene also received an additional payment of US$1 m ( 0.8 m) associated with reaching the first collaboration milestone. Enlargement of the Supervisory Board At the Annual General Meeting on May 15, 2018, Dr. Frank Mathias was elected in a supplemental election to extend the Supervisory Board of Medigene to seven members. Placement of new shares with institutional investors On May 24, 2018, the Company announced that it has raised 32.3 m in gross proceeds through a significantly oversubscribed private placement via an accelerated book building transaction. Medigene issued 2,230,000 new shares from authorized capital to institutional investors at a price of per share. The capital increase represents approximately 10% of shares outstanding before the transaction. Additionally, QVT Financial LP, USA, a major shareholder of Medigene, has agreed to sell 1,105,490 existing shares of Medigene as part of share reallocation to institutional investors at the same price of per share as part of a general restructuring across all QVT funds. In addition to the existing institutional investors, Medigene was able to win a new long-term anchor investor from South Korea, Tongyang Networks Co.

9 6-MONTHS REPORT 2018 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 7 RESULTS OF OPERATIONS Total revenue Immunotherapies revenue Veregen revenue Other operating income M M-2018 Total revenue of Medigene increased by 12% to 5,500 k in the first six months of 2018 (6M 2017: 4,915 k) mainly due to significantly higher revenue generated from the core business of immunotherapies. Revenue generated by the cooperation agreed in 2016 and expanded in 2018 with bluebird bio increased by 49% to 3,358 k (6M-2017: 2,252 k) in the first six months of This revenue results from the payment of US$1 m ( 0.8 m) associated with the first collaboration milestone, a pro rata recognition of the upfront payments received in 2016 (US$15 m, equivalent to 13.4 m.) and 2018 (US$8 m, equivalent to 6.7 m.) and the reimbursement of research & development expenses arising from this cooperation during the reporting period. Outside of its core business, Medigene generates revenue from its out licensed drug, Veregen and other operating income. Revenue generated by Medigene from Veregen decreased in the first half of 2018 by 38 % to 836 k (6M 2017: 1,348 k) as a result due to the sale of the US rights at the end of Other operating income in the first half of 2018 amounted to 1,306 k (6M 2017: 1,315 k). This results mainly from the fixed, regular and non-cash income of 1,246 k in association with the agreement with the US investor, Cowen Healthcare Royalty Partners II, L.P., USA ( Cowen ) for a former drug of Medigene, Eligard. Gross profit Gross profit increased by 18% to 5,081 k in the first half of 2018 (6M 2017: 4,321 k) due to higher revenue in the core business.

10 8 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 6M-2018 MEDIGENE AG Selling and general administrative expenses G&A costs Selling costs M M-2018 The selling and general administrative expenses of the Company decreased by 22% to 3,402 k (6M 2017: 4,338 k) in the first six months of 2018, due to lower selling expenses following the sale of the US rights to Veregen as well as the changes in management structure which took place in Research and development expenses M M-2018 Medigene s research and development expenses increased as planned by 17% in the first six months of 2018 to 8,669 k (6M 2017: 7,436 k). The increase in these expenses was due to Medigene s progress in the clinical trials for the immunotherapy programs and the deployment of extra staff in this area.

11 6-MONTHS REPORT 2018 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 9 EBITDA Medigene reduced its EBIDTA loss by 10% in the first six months of 2018 to 6,231 k (6M 2017: 6,896 k). This decrease was achieved despite higher expenses for research and development and was mainly the result of higher revenue in the core business of immunotherapies as well as lower selling and general administrative expenses. Medigene s EBITDA is derived from the net profit/loss for the period and does not include any taxes, financial result (comprising interest income, interest expense and other financial result), foreign exchange gains or losses, and depreciation or amortization. Financial result Net interest expense amounted to -376 k in the reporting period (6M 2017: -1,011 k). This consists of a noncash interest expense of 430 k (6M 2017: 542 k) resulting from the measurement of the financial liability in association with the Cowen agreement. The interest expense in the previous year consisted mainly of a non-cash expense of 574 k which resulted from the fair value remeasurement of the milestone payment to the former shareholders of Medigene Immunotherapies GmbH, which did not occur in the current fiscal year. The other financial result also includes contingent purchase price payments of 249 k received in the first half of 2018 (6M 2017: 240 k) based on sales of Amgen s drug, Imlygic TM due to the agreement concluded with Amgen Inc., USA. Foreign exchange gains/losses The foreign exchange gains/losses result primarily from the non-cash measurement of the financial liability towards Cowen. Due to strengthening US$ in the first half of 2018, the Company recognized foreign exchange losses of 29 k (6M 2017: foreign exchange gains 827 k). Net profit/loss for the first half of 2018 Despite the planned increase in research and development expenses for Medigene s immunotherapies, the net loss after tax decreased in the first half of 2018 by 3% to 7,247 k (6M 2017: 7,470 k) due to higher revenue in the core business of immunotherapies and lower sales and general administrative expenses. Earnings per share Based on the effects described above the loss per share in the first half of 2018 amounted to 0.32 (basic/diluted weighted average number of shares: 22,768,608) compared with a loss per share of 0.36 in the comparative period of the previous year (6M 2017: basic/diluted weighted average number of shares: 20,767,527).

12 10 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 6M-2018 MEDIGENE AG FINANCIAL POSITION Net cash used in operating activities Net cash used in operating activities decreased in the first half of 2018 to 1,491 k (6M 2017: 11,799 k) due to one-off effects such as the payments from bluebird bio amounting to 7.5 m in association with the expansion of the cooperation in The current level of cash used in operating activities is not particularly indicative of future trends as it is significantly impacted by non-recurring payments in partner arrangements and research and development expenses which depend on the project status. Net cash used in investing activities Medigene invested most of the funds received from bluebird bio and from the capital increase carried out in May 2018 in time deposits with first class banks. In this way the Company recognized net cash used in investing activities of 34,047 k (6M 2017: 5,926 k) in the first six months of Net cash from financing activities Medigene recorded net cash from financing activities of 29,653 k (6M 2017: 18,966 k) due to the capital increase conducted in May 2018 which led to gross proceeds of 32.3 m (previous year: 20.7 m). Cash and cash equivalents and time deposits The cash and cash equivalents and time deposits of the Company amounted to 80,839 k as at the end of the reporting period (December 31, 2017: 51,724 k). CHANGE IN CASH AND CASH EQUIVALENTS IN K 6M M 2017 CHANGE Net cash used in/from operating activities 1-1,491-11,799-87% investing activities 1-34,047-5,926 >200% financing activities 29,653 18,966 56% Decrease/increase in cash and cash equivalents -5,885 1,241 Cash and cash equivalents, opening balance 27,724 14,630 90% Cash and cash equivalents, closing balance 21,839 15,871 38% Time deposits as at June 30 59,000 44,000 34% Cash and cash equivalents and time deposits as at June 30 80,839 59,871 35% 1) In the case of the gain on the sale of financial assets, the previous year s figures of 240 k were reclassified to the item Proceeds from sale of financial assets.

13 6-MONTHS REPORT 2018 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 11 NET ASSETS DEVELOPMENT OF ASSETS, SHAREHOLDERS EQUITY AND LIABILITIES 6/30/ /31/2017 CHANGE Assets Property, plant and equipment and intangible assets 38,209 38,409-1% Goodwill 2,212 2,212 - Financial and non-current other assets 6,891 7,974-14% Cash and cash equivalents and short and long-term time deposits 80,839 51,724 56% Inventories and trade accounts receivable 8,071 9, % Current other assets 2,415 2,195 10% Total assets 138, ,937 24% Shareholders equity and liabilities Shareholders equity 109,390 86,167 27% Non-current liabilities 20,109 15,962 26% Current liabilities 9,138 9,808-7% Total shareholders equity and liabilities 138, ,937 24% Cash and cash equivalents and time deposits Cash and cash equivalents and time deposits increased by 56% to 80,839 k (December 31, 2017: 51,724 k) based on the effects described under the financial position. The long-term time deposits have a term of up to two years. Non-current liabilities Within shareholders equity and liabilities, non-current liabilities increased by 26% to 20,109 k as at June 30, 2018 (December 31, 2017: 15,962 k), primarily due to the increase in deferred income relating to an additional upfront payment of US$8 m ( 6.7 m) from bluebird bio in Employees The headcount of 105 as at the reporting date (December 31, 2017: 96) breaks down into 73 employees in research and development, 25 employees in general administration and 7 employees in sales and business development. The number of full-time equivalents (FTEs) increased in the first half of 2018 to 96 (December 31, 2017: 90) due to recruiting of additional employees. Personnel expenses in the reporting period amounted to 5,207 k (6M 2017: 5,266 k). Related parties Detailed information on related parties can be found on page 26 of the notes. Segment information Detailed information on related parties can be found on page 24 of the notes.

14 12 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 6M-2018 MEDIGENE AG Risk report The risks to which the Group is exposed are listed in detail in the risk report within the Group management s discussion and analysis in the 2017 annual report. As at the reporting date of June 30, 2018 there have not been any significant changes to the risks described there. Risk management system Medigene s management addresses the risks facing the Group using a comprehensive risk management system. Please refer to the 2017 Group management s discussion and analysis 2017 for a description of this system.

15 6-MONTHS REPORT 2018 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 13 OPPORTUNITIES AND OUTLOOK Financial guidance 2018 Medigene improves its financial guidance for 2018 as published in the 2017 annual report and beyond the improvement announced in May The Company is expecting to generate total revenue of between m (previous guidance 7,5 9,5 m) in 2018, mainly due to increased revenues from the TCR collaboration with bluebird bio. The expected decrease from 2017 ( 11.4 m) results from the sale of rights to a non-core product (Veregen ) in fiscal year 2017 and the resulting non-recurring net gain in fiscal year 2017 as well as to planned lower revenues of Veregen in the future. Due to lower than estimated clinical trial costs in 2018, the company now expects to spend m (previous guidance m) for research and development in The increase of the R&D cost, compared to last year (2017: 14.9 m) results from the progress of the clinical development programs in the core area of immunotherapies and the start the clinical TCR-T trial in As a result of the improved guidance on revenues and R&D costs, Medigene improves the EBITDA guidance and expects now a lower EBITDA loss of m (previous guidance: m). The increase compared to last year (2017: 12.1 m) is due to the development progress of the immunotherapy programs. Without considering the proceeds from the capital increase conducted in May 2018, Medigene now plans a total cash burn of m for 2018 (previous guidance: m). This forecast does not include potential future milestone payments or cash flows from existing or future partnerships or transactions, as the occurrence of such events and their timing and amount depend to a large extent on external parties and therefore cannot be reliably predicted by Medigene. Based on its current planning, the Company has sufficient financial resources to fund business operations beyond the planning horizon of two years. Outlook for immunotherapies: T cell receptor-modified T cells (TCR-Ts) In the Company s Phase I/II clinical trial for blood cancer types acute myeloid leukemia (AML), myelodysplastic syndrome (MDS) and multiple myeloma (MM), a personalized, single dose of TCR-T therapy MDG1011 should be administered to the first patient in the near future. Medigene expects to conduct the first Phase I study cohort by the end of 2018 and is in ongoing dialogue with the regulatory authorities about the clinical trial protocol to simplify patient enrollment. The Phase I part of the clinical trial involves a dose escalation of MDG1011 with 3-4 dose cohorts (depending on the results). The patients will first be included in the clinical trial sequentially in compliance with requirements imposed by the authorities to ensure patient safety. Phase I focuses on the safety and tolerability of the treatment with MDG1011. In addition to the ongoing MDG1011 clinical trial, Medigene will also work on characterizing new TCR candidates for future clinical trials under the responsibility of Medigene and collecting preclinical data to prepare an application for further clinical TCR-T trials. In addition, Medigene will continue its successful and expanded collaboration with bluebird bio and expects to make further progress on TCR candidate discovery.

16 14 INTERIM GROUP MANAGEMENT S DISCUSSION AND ANALYSIS 6M-2018 MEDIGENE AG In addition to the Company s own development activities, Medigene expects the start of the academic investigator initiated TCR-modified T cell therapy clinical trial under the responsibility of Max-Delbrück-Center and Charité University Hospital in Berlin, Germany. Dendritic cell vaccines (DCs) Medigene will continue the current Phase I/II clinical trial for DC vaccines for the treatment of acute myeloid leukemia (AML) and intends to present preliminary data on certain aspects of the trial at scientific conferences at appropriate times. The final clinical data will be available towards the end of T cell-specific monoclonal antibodies (TABs) The preclinical development of T cell-specific monoclonal antibodies (TABs) will be driven forward with the goal of obtaining proof-of-principle.

17 QUARTERLY STATEMENT 6M-2018 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 15 OF MEDIGENE AG FOR THE PERIODS FROM JANUARY 1 TO JUNE 30, 2018 AND 2017 IN K Q Q M M 2017 Revenue 2,084 1,649 4,194 3,600 Other operating income ,306 1,315 Total revenue 2,734 2,306 5,500 4,915 Cost of sales Gross profit 2,691 2,132 5,081 4,321 Selling expenses ,119 General administrative expenses -1,435-1,843-2,717-3,219 Research and development expenses -4,350-3,824-8,669-7,436 Operating result -3,427-4,176-6,990-7,453 Interest income Interest expense ,147 Foreign exchange gains/losses Other financial result Earnings before tax -3,696-3,792-7,146-7,397 Taxes Net profit/loss for the period -3,697-3,793-7,247-7,470 Basic and diluted loss per share ( ) ,32-0,36 Weighted average number of shares (basic and diluted) 23,221,565 21,383,315 22,768,608 20,767,527 OF MEDIGENE AG FOR THE PERIODS FROM JANUARY 1 TO JUNE 30, 2018 AND 2017 IN K Q Q M M 2017 Net profit/loss for the period -3,697-3,793-7,247-7,470 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Exchange differences from translating foreign operations 1) Other comprehensive income not to be reclassified to profit or loss in subsequent periods: Revaluation of equity instruments measured at fair value through other comprehensive income 1) Other comprehensive income, net of tax Total comprehensive income, net of tax -3,696-4,020-7,183-7,713 1) No income tax effects were incurred.

18 16 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 6M-2018 MEDIGENE AG OF MEDIGENE AG AS AT JUNE 30, 2018 AND DECEMBER 31, 2017 ASSETS IN K 6/30/ /31/2017 A. Non-current assets 4,167 4,329 34,042 34,080 2,212 2,212 5,706 5,696 32, ,185 2,278 Total non-current assets 79,312 48,595 B. Current assets 7,479 7, ,699 2,415 2,195 27,000 24,000 21,839 27,724 Total current assets 59,325 63,342 Total assets 138, ,937 SHAREHOLDERS EQUITY AND LIABILITIES IN K 6/30/ /31/2017 A. Shareholders equity I. Subscribed capital 24,554 22,301 II. Capital reserve 477, ,034 III. Accumulated deficit -396, ,949 IV. Other reserves 3,845 3,781 Total shareholders equity 109,390 86,167 B. Non-current liabilities I. Finance lease liabilities 762 1,049 II. Financial liabilities 5,815 6,523 III. Pension obligations IV. Other financial liabilities V. Contractual liabilities 10,487 5,362 VI. Deferred taxes 2,179 2,179 Total non-current liabilities 20,109 15,962 C. Current liabilities I. Finance lease liabilities II. Trade accounts payable III. Other financial liabilities 3,951 4,829 IV. Contractual liabilities 3,495 3,575 Total current liabilities 9,138 9,808 Total liabilities 29,247 25,770 Total shareholders equity and liabilities 138, ,937

19 6-MONTHS REPORT 2018 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 17 OF MEDIGENE AG FOR THE PERIODS FROM JANUARY 1 TO JUNE 30, 2018 AND 2017 IN K 6M M 2017 Net cash from/used in operating activities Earnings before tax -7,146-7,397 Adjustments: Share-based payments Non-cash other operating income -1,247-1,247 Depreciation and amortization Losses from the disposal of property, plant and equipment 1 21 Gain on the sale of financial assets Interest income Interest expense 488 1,147 Changes in: Inventories Other assets and trade accounts receivable Trade accounts payable Other financial liabilities and deferred income 4,355-4,903 Subtotal -1,466-11,696 Tax paid Interest paid Net cash used in operating activities -1,491-11,799 Net cash from/used in investing activities Purchase of property, plant and equipment ,166 Cash received from the sale of intangible assets 1,000 1,000 Proceeds from sale of financial assets Investments in time deposits -35,000-6,000 Net cash used in investing activities -34,047-5,926 Net cash from/used in financing activities Proceeds from capital increase 32,335 20,727 Cost of share issue -2,257-1,370 Exercise of employee share options Principal repayment for finance lease Net cash from financing activities 29,653 18,966 Decrease/increase in cash and cash equivalents -5,885 1,241 Cash and cash equivalents, opening balance 27,724 14,630 Cash and cash equivalents, closing balance 21,839 15,871 1) In the case of gain on the sale of financial assets, the previous year s figures of 240 k were reclassified to the item Proceeds from sale of financial assets.

20 18 INTERIM CONSOLIDATED FINANCIAL STATEMENTS 6M-2018 MEDIGENE AG OF MEDIGENE AG FOR THE PERIODS FROM JANUARY 1 TO JUNE 30, 2018 AND 2017 IN K NUMBER OF SHARES SUBSCRIBED CAPITAL CAPITAL RESERVES ACCUMULATED DEFICIT EXCHANGE DIFFERENCES FINANCIAL ASSETS TOTAL EQUITY Balance as at 1/1/ ,136,887 20, , , ,954 78,592 Net profit/loss for the period -7,470-7,470 Other comprehensive income Accumulated result -7,713 Share issue 1,964,599 1,965 18,762 20,727 Costs of capital increase -1,370-1,370 Share issue for options exercised by employees 17, Share-based payments Balance as at 6/30/2017 Unaudited 22,118,612 22, , , ,828 90,359 Balance as at 1/1/ ,300,947 22, , , ,782 86,167 Net profit/loss for the period -7,247-7,247 Other comprehensive income Accumulated result -7,183 Share issue 2,230,000 2,230 30,105 32,335 Costs of capital increase -2,256-2,256 Share issue for options exercised by employees 23, Share-based payments Balance as at 6/30/2018 Unaudited 24,554,012 24, , , , ,390

21 6-MONTHS REPORT 2018 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 19 OF MEDIGENE AG, PLANEGG/MARTINSRIED, FOR THE PERIOD FROM JANUARY 1 TO JUNE 30, 2018 A. BUSINESS ACTIVITY AND INFORMATION ON THE COMPANY Medigene AG, Planegg/Martinsried (hereinafter referred to as Medigene or the Company ), together with its consolidated subsidiaries (hereinafter referred to as the Group ), is a biotechnology company headquartered in Martinsried near Munich, Germany. The Company develops highly innovative immunotherapies to target various forms and stages of cancer. Medigene concentrates on the development of personalized T cell-based therapies. Corresponding development projects are currently in various stages of clinical and preclinical development. The Group s main activities are described in section E. Segment reporting of the notes to the interim consolidated financial statements. Medigene AG has been listed since June 2000 (Deutsche Börse: Regulated Market, Prime Standard; TecDAX, German Security Identification Number (WKN) A1X3W0, symbol MDG1, International Securities Identification Number (ISIN) DE000A1X3W00). B. RECOGNITION AND MEASUREMENT POLICIES Basis of preparation of the interim consolidated financial statements As a parent and publicly traded company within the meaning of Article 4 of Regulation (EC) No. 1606/2002, Medigene AG prepares its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU). These unaudited interim consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. The Company s Executive Management Board believes that the interim consolidated financial statements reflect all business transactions required to present the net assets, financial position and results of operations for the periods ended June 30, 2018 and 2017 respectively. The interim consolidated financial statements do not include all the information that is required to prepare annual consolidated financial statements. For this reason, the interim consolidated financial statements should be read in conjunction with the 2017 consolidated financial statements. These interim consolidated financial statements of Medigene AG were authorized for issue by the Executive Management Board on August 2, Changes in recognition, measurement and presentation accounting policies The recognition, measurement and presentation accounting policies used in these interim consolidated financial statements basically correspond to those already applied in the consolidated financial statements for 2017, with the exception of the following new material accounting standards adopted as at January 1, 2018:

22 20 NOTES TO THE INTERM CONSOLIDATED FINANCIAL STATEMENTS 6M-2018 MEDIGENE AG IFRS 15, Revenue from Contracts with Customers IFRS 15, published by the IASB in May 2014 and clarified for certain areas in April 2016, regulates when and in what amount revenue from contracts with customers is recognized. IFRS 15 replaces IAS 11 Construction Contracts and IAS 18 Revenue as well as all related interpretations. The Group adopted the standard as at January 1, 2018 by means of the full retrospective application method, meaning that any transition effects as at January 1, 2017 are accumulated in retained earnings and the comparative period is presented in accordance with the new standards. Despite adjustments to the accounting policies applied, the first-time adoption of IFRS 15 had no significant effect on the consolidated result for the period. The presentation and disclosure requirements of IFRS 15 went well beyond the provisions of the former standard. A disaggregated disclosure of revenue from contracts with customers by category, depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors, can be found in section E. Segment reporting in the notes to the consolidated financial statements. IFRS 9, Financial Instruments IFRS 9 published in July 2014 replaces IAS 39 and all earlier versions of IFRS 9. IFRS 9 now defines three instead of four measurement categories for financial assets. In doing so, the categorization is based on the Company s business model on the one hand, and the characteristics of the contractual cash flows of the respective financial asset on the other. The classification of financial liabilities under IFRS 9 remains largely unchanged to the former accounting regulations as defined by IAS 39. The standard has been adopted by the Group retrospectively as at January 1, The first-time adoption of IFRS 9 did not result in any material effect on the consolidated financial statements. However, the following changes were made in the classification of certain financial instruments. Previously, shares in Immunocore Ltd. and financial assets recognized within the framework of pension commitments which do not qualify as plan assets were allocated to the category Available-for-sale financial assets. IFRS 9 has discontinued this category. These equity instruments are not held for trading. Moreover, no impairment loss for these financial instruments was recognized through profit or loss in earlier reporting periods. Therefore, the Company has made an election and allocated these equity instruments to the measurement category At fair value through other comprehensive income. Gains and losses from remeasurement in other comprehensive income are not reclassified to the income statement in subsequent periods. Consequently, this reduces the future volatility of profit or loss. Other reserves for financial assets of 3,797 k (December 31, 2017: 3,782 k) as at June 30, 2018 currently presented in accumulated other comprehensive income will be permanently allocated to retained earnings and will not be recognized through profit or loss should these financial assets be sold. The presentation of profit or loss from the revaluation of these financial instruments is adjusted accordingly in the consolidated statement of comprehensive income. In addition, cash and cash equivalents and time deposits were classified as financial assets carried at amortized cost in accordance with IFRS 9. Nevertheless, this change in classification did not result in any material impact on the financial reporting. All other changes, as a result of first time adoption of IFRS 9, are not relevant and we also do not expect any relevant changes for Group companies In addition to the parent company Medigene AG in Planegg/Martinsried, the Group includes the wholly owned subsidiary Medigene Immunotherapies GmbH, Planegg/Martinsried, since its acquisition in fiscal year 2014, and the wholly owned subsidiary Medigene, Inc., San Diego, California, USA, which was acquired in At the end of the reporting period, the subsidiary Medigene Inc. held 38.21% of the shares in Aettis, Inc.

23 6-MONTHS REPORT 2018 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 21 C. NOTES TO THE INCOME STATEMENT Total revenue Total revenue of Medigene increased by 12% to 5,500 k in the first six months of 2018 (6M 2017: 4,915 k) mainly due to significantly higher revenue generated from the core business of immunotherapies. Revenue generated by the cooperation agreed with the US company bluebird bio, Inc. (bluebird bio) increased by 49% to 3,358 k (6M-2017: 2,252 k) in the first six months of On May 14, 2018, Medigene announced a significant expansion of its strategic research and development alliance with bluebird bio concluded in September Under the revised terms of the agreement, the number of target molecules will be increased from four to six. Following the amendment of this agreement, Medigene received an additional upfront payment of US$8 m ( 6.7 m) and an additional payment of US$1 m ( 0.8 m) associated with reaching the first collaboration milestone. The expansion of the collaboration agreement, which is treated as a contract with customers within the meaning of IFRS 15, is regarded by management as a modification of the original contract and is not accounted for as a separate contract. A cumulative adjustment to the previously recognized revenue from the pro rata realization of the upfront payment was recorded for the performance obligations that were not satisfied or were partially satisfied at the time of the contract modification. The pro rata realization of the original and additional upfront payments is spread evenly over the extended research period up to the end of 2022, which corresponds to the revised estimated term over which the services promised will be provided. In addition, the contract amendment has confirmed that bluebird bio s first collaboration milestone has been reached. The part of the consideration that was allocated to the satisfied performance obligation could now be recognized in full as revenue. Due to significant uncertainties associated with the achievement of contractual milestones, no revenue has been recognized from milestone payments to date, as a significant reversal was not unlikely. Due to the significant uncertainties, no other future contractual milestones are recognized as revenue. The probability of a reversal is reassessed on each balance sheet date. Revenue from variable claims for remuneration for research and development costs (mainly FTE) incurred in the quarter correspond at the end of the quarter to the Company s unconditional claim to consideration. Outside of its core business, Medigene generated revenue from its out licensed drug, Veregen and other operating income from products sold. Revenue generated by Medigene from Veregen decreased slightly as planned in the first half of 2018 by 38% to 836 k (6M 2017: 1,348 k). Veregen is sold and distributed by partner companies. Royalties are only recognized as revenue when sold to final customers by the sales partners based on information they provide and at the contractually agreed license rates. Revenue from product sales will be recognized on delivery of the product or the active ingredient to the customer, since this is the point in time when control of the asset is transferred to the partner company. A disaggregate disclosure of revenue from contracts with customers can be found in section E. Segment reporting of the notes to the interim consolidated financial statements. Other operating income in the first half of 2018 amounted to 1,306 k (6M 2017: 1,315 k). This results mainly from the fixed, regular and non-cash income of 1,246 k in connection with an agreement with the US investor, Cowen Healthcare Royalty Partners II, L.P., USA ( Cowen ) for a former drug of Medigene, Eligard.

24 22 NOTES TO THE INTERM CONSOLIDATED FINANCIAL STATEMENTS 6M-2018 MEDIGENE AG Gross profit Gross profit increased by 18% to 5,081 k in the first half of 2018 (6M 2017: 4,321 k) due to higher revenue in the core business. Selling and general administrative expenses The selling and general administrative expenses of the Company decreased by 22% to 3,402 k (6M 2017: 4,338 k) in the first six months of 2018, due to lower selling expenses following the sale of the US rights to Veregen as well as the changes in management structure which took place in Research and development expenses Medigene s research and development expenses increased as planned by 17% in the first six months of 2018 to 8,669 k (6M 2017: 7,436 k). The increase in these expenses was due to the progress in the clinical trials for the immunotherapy programs and the growth of the team of scientists and laboratory staff in this area. Financial result Net interest expense amounted to -376 k in the reporting period (6M 2017: -1,011 k). This consists of a noncash interest expense of 430 k (6M 2017: 542 k) which resulted from the measurement of the financial liability in association with the Cowen agreement. The interest expense in the previous year consisted mainly of a noncash expense of 574 k which resulted from the fair value remeasurement of the milestone payment to the former shareholders of Medigene Immunotherapies GmbH, which did not occur in the current fiscal year. The other financial result also includes contingent purchase price payments of 249 k received in the first half of 2018 (6M 2017: 240 k) based on sales for Amgen s drug, Imlygic TM due to the agreement concluded with Amgen Inc., USA. Foreign exchange gains/losses The foreign exchange gains/losses result primarily from the non-cash measurement of the financial liability towards Cowen. Due to strengthening US$ in the first half of 2018, the Company recognized foreign exchange losses of 29 k (6M 2017: foreign exchange gains 827 k). D. NOTES TO THE BALANCE SHEET Financial assets Financial assets amounted to 5,706 k as at June 30, 2018 (December 31, 2017: 5,696 k). They consist primarily of the shares in Immunocore Ltd. (32,407 ordinary shares) that were measured at a fair value of 5,500 k as at June 30, 2018 (December 31, 2017: 5,490 k). This fair value is allocated to level 3 of the fair value hierarchy of financial instruments and is based on the recent sale of ordinary shares. As the shares are denominated in pound sterling, they were translated into euro using the closing rate at the end of the period.

25 6-MONTHS REPORT 2018 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 23 Cash and cash equivalents and time deposits Cash and cash equivalents and time deposits increased as at the balance sheet date by 56% to 80,839 k (December 31, 2017: 51,724 k). The long-term time deposits have a term of up to two years. Payments from bluebird bio amounting to 7.5 m led to a decrease in net cash used in operating activities to 1,491 k (6M-2017: 11,799 k) in the first half of Net cash from financing activities of 29,653 k in the reporting period (6M 2017: 18,966 k) was mainly the result of the capital increase conducted in May 2018 which led to gross proceeds of 32.3 m (previous year: 20.7 m). Most of the funds received from these transactions have been invested in time deposits with first class banks. In this way the Company recognized net cash used in investing activities of 34,047 k (6M 2017: 5,926 k) in the first six months of Other assets The Group reports a receivable of 1,809 k from SynCore Biotechnology Co., Ltd. ( SynCore ) as at June 30, 2018 (December 31, 2017: 2,727 k) originating from the transfer of all rights to EndoTAG consisting of a non-current portion of 809 k and a current portion of 1,000 k. The receivable corresponds to the originally agreed amount of 5 m agreed on in the contract dated December 17, 2015, to be paid out in five annual installments. Medigene received the third payment of 1 m in January Subscribed capital Subscribed capital increased by 2,253,065 from 22,300,947 as at December 31, 2017 to 24,554,012 as at June 30, 2018, (of which 9,417 shares have not yet been entered in the Commercial Register). The increase mainly resulted from the issuing of 2,230,000 new shares in the course of a private placement in May 2018 excluding the subscription rights of existing shareholders. This capital increase against cash contribution was entered in the Commercial Register on May 28, In addition, 23,065 new shares were issued in the reporting period to service exercised stock options. Subscribed capital was divided into 24,554,012 non-par registered shares as at June 30, 2018, which were issued and outstanding as at the reporting date. Current liabilities Other current liabilities amounting to 3,951 k (December 31, 2017: 4,829 k) include the short-term share of the liability towards Cowen totaling 1,788 k (December 31, 2017: 1,684 k). In the previous year, this also included the liability to former shareholders of Medigene Immunotherapies GmbH relating to the payment of future milestones amounting to 2,000 k, which was settled in the third quarter of Non-current liabilities Non-current liabilities include, among others, the non-current portion of the liability arising from the agreement with Cowen. This balance sheet item amounts to 5,815 k (December 31, 2017: 6,523 k) as at the balance sheet date and is being amortized over the remaining term of approximately three years. As at the reporting date deferred income totaled 13,982 k (December 31, 2017: 8,937 k) and represents the contractual liabilities within the meaning of IFRS 15 from the upfront payments received in the context of the collaboration with bluebird bio. It consists of the non-current portion of 10,487 k (December 31, 2017: 5,362 k) and the current deferred income of 3,951 k (December 31, 2017: 3,575 k) as at the balance sheet date. An increase in the non-current deferred income resulted from the abovementioned amendment of the agreement and receipt of an additional upfront payment of US$8 m ( 6.7 m).

26 24 NOTES TO THE INTERM CONSOLIDATED FINANCIAL STATEMENTS 6M-2018 MEDIGENE AG E. SEGMENT REPORTING Business units The Group is made up of two main business units, Immunotherapies (core business) and Out licensed products/products sold (non-core business). The segments break down as follows: Development and marketing of immunotherapies (core business) T cell receptor-modified T cell therapy (TCR-Ts) DC vaccines (DCs) T cell-specific monoclonal antibodies (TABs) Out licensed products/products sold (non-core business) Veregen for the treatment of genital warts RhuDex for the treatment of autoimmune diseases The revenue of the individual segments is generated in external business relationships. Transfer prices between the business units and regions are determined on the basis of arm s length conditions. The general administrative expenses are allocated to the individual segments using specific allocation keys which reflect current business activities.