DNAprint Genomics (DNAG)

[mingwan0]

Transcript of a video from July 2004:

http://www.invest-in-germany.de/en/advantages/videos/print.php?cat=10910120341546050061

Taking the Leap: Biotechnology Companies Go Public

Germany has few bio-tech companies that develop their own medicines. Most can't -- they don't have the money. It costs an average of 800 million euros and several years to develop a medication to the point where it can be marketed. The industry has financial problems. Most of the available money goes to a select few.

But after a long slump, now the first bio-tech firms want to go public. Biofrontera, whose products include painkillers, is planning to do this in the long-term. But first it had to find financially strong partners that can pay for years of research. The company managed to succeed at the last minute. Biofrontera's CEO predicts that many bio-tech companies will disappear from the market before the end of the year, but he is confident his own firm will survive. Marc Grünberg took a look at the industry.

The contents of some boxes could be worth millions – especially if they contain tablets and are brought to market. Stefan Weber, Chief Financial Officer at Biofrontera knows a lot about tablets in boxes: "This is our big hope--200 Million euros of potential turnover. We invested a six-digit figure up to Phase 2A and we'll invest another double-digit figure in the millions to bring it to market. That's why we are looking for new capital. Chances are we will market it ourselves in Germany and parts of Europe and that we'll have a partner in the US. This is the great hope of the German Biotech industry."

The medicine is designed to treat Urticaria - known more commonly as Hives.

If Biofrontera CFO Stefan Weber is able to find investors to pay for the next series of testing--the company believes it would soon be able to complete development of the medication to treat the skin ailment.

Many other German Biotech firms have also made it this far--only to collapse before they can market their products. It's not easy to find investors for Biotechnology companies these days. Many are on the brink of bankruptcy. Stefan Weber: "Some won't make it. By the end of the year I don't think we'll have the 350 to 360 companies we have now. There is going to be some consolidation but in the end the branch will be better off for it."

Weber is convinced that HIS company will be one of the survivors. Right now he's working hard to excite potential investors about the new medication. But attracting capital is no easy job.

Stefan Weber: "We basically have to get an investor immediately sold on the idea. If you can't do it you're out. At the moment investors have a large selection of investment options. That means if you can't convince them in a one-and a half hour presentation--they're gone."

Weber's constantly trying to drum up new cash. But now he's got one--an investor willing to bite--someone willing to put up money for the further development of his company's medication.

The confirmation comes via fax. Stefan Weber: "This is it. This is a letter of intent for an investment in the millions--from our lead investor. And that is money that we urgently need to bring our medication to market. I'm really happy I can't tell you how much--thanks."

In a month or two the company will be able to launch an extensive series of tests. They're putting off the celebrations. Stefan Weber: "We'll pop the corks once we have the contracts signed and the money is transferred."
If it happens--Biofrontera would be the second German Biotech company to bring a medication to market.