Medigene before the out of: 16 million euros loss and impending bankruptcy!

Medigene before the out of: 16 million euros loss and impending bankruptcy!

medigene, a biotech company based in Martinsried near Munich, plans to open insolvency proceedings because the company assumes over debt. The application for bankruptcy is to be submitted to the responsible district court at short notice. According to a recent evaluation of the assets, Medigene expects an expected insolvency as early as May 2025. This precarity is the result of limited progress in research and development, combined with financial difficulties, which have been tightened by unusual milestone payments and unfulfilled contract income. In the past, the company has increased rights to important products, including the genital wart ointment and sold the eligard cancer.

medigene recently recorded sales of 6 million euros, but this is in stark contrast to a loss of over 16 million euros. In addition, the company has lost more than half of its share capital, which in accordance with § 92 AktG represents a competitive signal and could result in potential consequences of liability for the board. Recently, the company was criticized by analysts for its persistence in relation to forecasts for 2024, while confidence in the strategic orientation has dropped noticeably.

economic challenges for Medigene

The liquidity range of Medigene was shortened by a correction to May 2025, which is two months earlier than originally announced. This is part of a more comprehensive problem that affects many biotech companies in Germany. The industry is currently struggling with difficult financing conditions and a high dependence on external partners. Medigene is only an example of the fragility of the sector, which has been suffering from structural problems for years, especially in the area of T-cell immune therapies.

As part of the strategic realignment, cost reductions and job cuts were announced in November 2024. These measures have become necessary because the company's share price has recently deteriorated. While the total turnover of the biotech industry was 12.7 billion euros in 2023, this represents a minus 51 percent compared to the previous year, in particular due to the declining demand for covid-19 vaccines.

look at the industry as a whole

The difficulties that Medigene experiences reflect larger trends within the biotech industry in Germany. The current market shows that Biotech startups collected only 203 million euros to risk capital in 2023, a decline of 29 percent compared to the previous year. The total recordings in the industry, on the other hand, rose to 1.1 billion euros, which is an increase of 17 percent, but is still below the values of 2020 and 2021.

The lack of early phase financing is worrying because only 18 investment rounds with an average transaction volume of 11 million euros took place. While the biotech industry is struggling with challenges as a whole, it is increasingly influenced by factors such as the emerging artificial intelligence, which is considered the key factor for future developments in the development of new therapies.