mdg-annual-report-2013

MEDIGENE AG ANNUAL REPORT 2013 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 109(55) Major events since the end of the reporting periodThe following major events in corporate development occurred since closing date:Acquisition of Trianta Immunotherapies GmbH and appointment of new Chief Scientific OfficerMedigene announced the acquisition of the Munich-based company Trianta Immunotherapies GmbH on 27 January2014. Trianta, which was spun off from the Helmholtz Centre in Munich, has three highly innovative, complementaryimmunotherapy platforms with programmes in clinical development for the treatment of various types of cancer.Trianta's proprietary platforms will strengthen Medigene's advanced drug pipeline through cutting-edge therapyapproaches. Professor Dolores J. Schendel, Managing Director of Trianta and Head of the Institute for Molecular Immunologyat the Helmholtz Centre in Munich, will join the Executive Board of Medigene as Chief Scientific Officer on1 May 2014, and will be accompanied by her team of 15 immunotherapy specialists from the Helmholtz Centre inMunich.As part of the acquisition, Medigene acquired 100% of Trianta's shares. Trianta's previous shareholders received1,017,811 new Medigene shares worth around €4 m and will receive potential incremental payments in Medigeneshares or in cash up to a maximum total of €5,875 m upon achievement of future milestones. Through the partial useof its authorised capital, Medigene has issued 1,017,811 new shares with a lock-up period of 12 months. This capitalmeasure of €9,872,139.00 has led to an increase in Medigene's share capital of €1,017,811.00 to €10,889,950.00 m.Licence agreement with Falk Pharma for RhuDex ® in hepatology and gastroenterologyOn 18 March 2014, Medigene has signed an exclusive global licence agreement with pharmaceutical company, Dr. FalkPharma GmbH for the development and commercialisation of its drug candidate RhuDex ® for indications in hepatologyand gastroenterology. Falk Pharma will assume responsibility and all costs relating to the clinical development andmarketing of RhuDex ® in these therapeutic areas. Medigene will receive an upfront payment and future milestonepayments from Falk Pharma, plus double-digit royalties on sales of RhuDex ® . Falk Pharma will initially concentrate ondevelopment in primary biliary cirrhosis (PBC). Medigene retains the rights for RhuDex ® in rheumatoid arthritis, psoriasisand other autoimmune diseases.F) CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITYThe consolidated statement of changes in shareholders’ equity for the 2013 and 2012 fiscal years forms a separatepart of the consolidated financial statements.G) NOTES TO THE STATEMENT OF CASH FLOWSThe statement of cash flows shows the origins and application of the cash flows in the 2013 and 2012 fiscal years. Itis therefore of crucial significance for assessing the Company’s financial position.The cash flows from investing and financing activities are each determined on a cash basis. The cash flow from operatingactivities, on the other hand, is derived indirectly on the basis of the net result for the year.Within the scope of non-cash financing activities, no new lease obligations for laboratory and office equipment wereentered into in 2013.