The German-American biotech company MediGene AG has acquired the anti-cancer drug candidates and platform technology from Munich Biotech AG. This further expands MediGene's own drug pipeline, in particular by the drug candidate MBT-0206, which has already gone through several clinical phase I trials in different cancer indications, on a total of more than 120 patients.

Following the completion of further clinical development and marketing authorization, the annual peak sales potential of this product that is based on the therapeutic principle of anti-angiogenesis is estimated at more than 500 million €.

A syndicate of existing Munich Biotech AG (MBT) investors contributes major assets of the insolvent MBT and in addition invests 4 million € to permit further development of the products and technology under the roof of MediGene AG. In return, this syndicate led by Global Life Science, HypoVereinsbank (HVB Life Science) and DEWB, which also includes SET and MPC amongst other investors, will receive MediGene shares amounting to 12.5 million €. After the transaction, the 1.96 million new shares issued from authorized capital for this purpose will correspond to 12.7 per cent share in MediGene AG. The newly issued shares are subject to a 12 months lock-up period, a release from MediGene explained.

Depending on clinical achievements with MBT-0206, MediGene will make milestone payments to the receiver of MBT, starting with clinical phase III. The assets acquired by MediGene include the patents, rights and licenses of the MBT technology and products. To secure the scientific know-how and to guarantee a smooth transfer, MediGene will hire key MBT employees. MediGene will not assume any liabilities of the former Munich Biotech AG, the release added.

Dr. Peter Heinrich, CEO at MediGene AG, comments: "With the acquisition of MBT's assets, we strengthen MediGene's portfolio by adding a promising drug candidate and an outstanding platform technology to develop cutting-edge anti-cancer drugs. The clinical product MBT-0206 ideally suits our oncology portfolio and combines the benefits of an already applied therapy with the opportunities of a true innovation with blockbuster potential. The MBT technology platform complements our existing technology program and offers the long-term chance to replenish MediGene's drug pipeline with new candidates for the treatment of different cancers."