PARIS - Abivax SA (Euronext Paris: FR0012333284 - ABVX), a clinical-stage biotechnology company harnessing the immune system to develop novel treatments for inflammatory diseases, viral diseases and cancer, today announced its 2019 yearly financial results, as of December 31, 2019, and provided an update on progress in its product pipeline.
The financial statements for 2019, approved by the Company's Board of Directors on March 10, 2020, have been audited and the certification report is being prepared by the Company's external auditors.
Prof. Hartmut Ehrlich, M.D., Chief Executive Officer of Abivax said: 'Abivax achieved several exciting clinical and regulatory milestones in 2019 and early 2020, making it a very successful year where we delivered on our long-term development strategy. With the transformative potential of the efficacy results of ABX464 in ulcerative colitis, our lead product candidate made significant clinical progress and is now in mid-stage clinical testing in Europe and Canada, with patient recruitment allowed in the U.S. after a recently granted IND from the FDA. Importantly, we also expanded our clinical pipeline with ABX196 for liver cancer, which is currently in clinical testing in the U.S. At present, we are working to create value and the best outcome for our shareholders by accelerating our ongoing development programs and expanding our funding resources. Partnering continues to be our preferred scenario.'
Didier Blondel, Chief Financial Officer of Abivax, added: 'Even before the recent decline of the stock price due to Covid-19, we believe that the valuation of Abivax did not reflect the potential blockbuster sales and profitability of ABX464. This treatment is expected to be useful across various inflammatory disease indications and simultaneously targets important markets with high unmet medical needs. Our available cash position, including EUR 9.8m at the end of 2019, provides funding for operations through Q2 2020. Thanks to the financing completed so far and to the continued support of our investors, we are in a robust position to weigh our strategic options in order to further optimize shareholder value.'
With regards to the current Covid-19 developments, Abivax is taking necessary measures to limit the impacts on the ongoing clinical study programs and to ensure that patients continue to have access to the study medication. Abivax is closely monitoring the situation and will communicate significant potential changes appropriately.
Excluding items of the liquidity contract (liquidity and own shares) and deposits & guarantees
Operating loss EUR -33.3m (EUR -14.2m compared to EUR -19.1m as of December 31, 2018) mainly reflects the increasing investments in R&D (EUR 13.1m)
Total number of employees at the end of December 2019 was steady at 26
R&D expenses amounted to EUR 29m, mainly due to increasing funding needs of the development of ABX464 in inflammatory indications (81% of the total R&D expenses), as well as investments in the progressive scaling up of the mRNA splicing platform and library of small molecules (12%)
G&A expenses were at EUR 4.3m in 2019 (13% of total operating costs) compared to EUR 4m (20%) in 2018
Revenues, which were comprised mainly of a Research Tax Credit, were at EUR 4.2m in 2019, compared to EUR 3.8m in 2018
The company's cash utilization rate during 2019 was EUR 2.7m per month; Abivax has drawn a EUR 10m second tranche of the Kreos loan agreement in May 2019, and has achieved a EUR12m capital raise with Sofinnova in July 2019, which were allowing a limited EUR -3.2m decrease in cash position during 2019; cash at the end of 2019 was EUR 9.8m, compared to EUR 13.0m at the end of 2018
About Abivax (www.abivax.com)
Abivax is mobilizing the body's natural immune machinery to treat patients with autoimmune diseases, viral infections, and cancer. Abivax is listed on Euronext compartment B (ISIN: FR0012333284 - Mnemo: ABVX).
Contact:
Didier Blondel
Tel: +33 1 53 83 08 41
Email: didier.blondel@abivax.com
DISCLAIMER
This press release contains forward-looking statements, forecasts and estimates with respect to certain of the Company's programs. Although the Company believes that its forward-looking statements, forecasts and estimates are based on assumptions and assessments of known and unknown risks, uncertainties and other factors that have been deemed reasonable, such forward-looking statements, forecasts and estimates are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements, forecasts and estimates. A description of these risks, contingencies and uncertainties can be found in the documents filed by the Company with the French Autorite des Marches Financiers pursuant to its legal obligations including its registration document (Document de Reference). Furthermore, these forward-looking statements, forecasts and estimates are only as of the date of this press release. Readers are cautioned not to place undue reliance on these forward-looking statements. Abivax disclaims any obligation to update these forward-looking statements, forecasts or estimates to reflect any subsequent changes that the Company becomes aware of, except as required by law.
This press release is for information purposes only, and the information contained herein does not constitute either an offer to sell, or the solicitation of an offer to purchase or subscribe securities of the Company in any jurisdiction, in particular in France. Similarly, it does not give and should not be treated as giving investment advice. It has no connection with the investment objectives, financial situation or specific needs of any recipient. It should not be regarded by recipients as a substitute for exercise of their own judgement. All opinions expressed herein are subject to change without notice. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes are required to inform themselves about and to observe any such restrictions.
ABIVAX 
