Advicenne : October 7, 2020 - Interim financial report 2020

A limited company (société anonyme) with a board of directors

with share capital of €1,683,728.80

Registered office: 22, Rue de la Paix - 75002 Paris

Nimes Trade and Companies Register Paris 497 587 089

Interim financial report

Period ended 30 June 2020

1

CONTENTS

I.	INTERIM MANAGEMENT REPORT - PERIOD ENDED 30 JUNE 2020	......4
1.	Description of the Company's business activities .........................................................................	4
2.	Highlights of the first half of 2020..................................................................................................	5
	2.1. Scientific information...............................................................................	5
	2.2. Legal information .....................................................................................	5
	2.3. Financial information ...............................................................................	6
	2.4 Situation in relation to the COVID 19 health crisis ..................................	6
3.	Significant events since the closing of the first half of 2020..........................................................	6
4.	The Company's business activities in the first half of 2020..........................................................	7
The Company's half-year results under IFRS are shown below: .............................................................	7
	4.1. Operating income .....................................................................................	7
	4.2. Operating expenses ..................................................................................	8
	4.3. Financial income and expenses ................................................................	8
5.	Main risks and uncertainties in the 2nd half of 2020 .....................................................................	8
	5.1. Operational risks ......................................................................................	9
	5.2. Risks related to the COVID-19 health crisis ............................................	9
	5.3. Liquidity risk ..........................................................................................	10
6.	Relationships with related parties................................................................................................	11

1. SUMMARY INTERIM CONSOLIDATED FINANCIAL STATEMENTS

	AS AT 30 JUNE 2020..............................................................................................	12
1.	Description of the Company's business activities .......................................................................	12
2.	Highlights .......................................................................................................................................	12
	2.1. Significant events in 2020 ......................................................................	12
	2.2. Subsequent events ..................................................................................	13
	2.3. Situation in relation to the COVID-19 health crisis...............................	13
	2.4. Liquidity Risk.........................................................................................	14
3.	Financial Statements ...............................................................................................................................	15
	3.1. Balance sheet..........................................................................................	15
	3.2. Income statement....................................................................................	16
	3.3. Statement of changes in shareholders' equity.........................................	17
	3.4. Cash flow statement ...............................................................................	18
4.	Main accounting policies and methods..................................................................................................	19
	4.1. Accounting policy ..................................................................................	19
	4.2. Use of estimates and assumptions..........................................................	19
	4.3. Seasonal nature of the business activities...............................................	20

This is a free translation into English of the Interim Financial report 2020 issued in the French language and is provided solely for the convenience of English-speaking readers. In case of discrepancy, the French version prevails.

2

	4.4. Scope of consolidation ...........................................................................	20
5.	Segment reporting ...................................................................................................................................	20
6.	Notes to the balance sheet and income statement.................................................................................	21
	6.1. Notes to the balance sheet ......................................................................	21
	6.2. Notes to the income statement ...............................................................	25

1. STATEMENT OF THE PERSON RESPONSIBLE FOR THE INTERIM

FINANCIAL STATEMENTS................................................................................	28
IV. STATUTORY AUDITOR'S LIMITED REVIEW REPORT.............................	29

This is a free translation into English of the Interim Financial report 2020 issued in the French language and is provided solely for the convenience of English-speaking readers. In case of discrepancy, the French version prevails.

3

1. INTERIM MANAGEMENT REPORT - period ended 30 June 2020

1. Description of the Company's business activities

Advicenne (Euronext: ADVIC - "Advicenne" or the "Company") is a pharmaceutical company specialising in the development and marketing of innovative treatments in Nephrology. Our flagship programme is currently undergoing advanced clinical trials for two kidney diseases, distal renal tubular acidosis (dRTA) and Cystinuria. dRTA is a rare kidney disorder that occurs when the kidneys are unable to effectively remove the build-up of circulating acids in the blood. Cystinuria is another rare kidney disease that induces multiple, large, recurrent kidney stones.

Advicenne intends to develop new medicines based on an innovative formulation to meet medical needs, often serious and unmet, especially in Nephrology.

Advicenne's strategy is to design innovative products and implement clinical, pharmaceutical and regulatory strategies to reach orphan markets with strong demand for which there are no approved treatments in Europe or the United States.

ADV6209, the first product developed by Advicenne, obtained an MA in several European countries in 2018. The product was the subject of an asset disposal contract with Primex Pharmaceuticals AG providing for a minimum of €40 million of revenue over a 7-year period, of which €7 million has already been paid to the Company.

ADV7103, its flagship product, after its positive phase III results for dRTA in Europe, is currently undergoing two pivotal phase III clinical trials, one in the United States for dRTA and the other in Europe for Cystinuria.

At the end of 2019, ADV7103 was granted orphan drug designation by the European Commission for the treatment of Cystinuria, after obtaining the same protection in 2017 for its first indication, dRTA.

ADV7103 is the subject of a centralised European marketing application procedure for dRTA, its first indication, the results of which are expected by early 2021. In the meantime, this product may already be used in some cases for the treatment of dRTA under temporary use authorisations.

At Advicenne, we are also committed to innovating in the areas of formulation and clinical development. Tasteless and easy to administer, our products are marketed in the form of granules or small tablets that offer flexible, personalised dosing to allow doses and treatment regimens to be easily adapted to patients of all ages.

Based in Paris, Nîmes and Grenoble, and now in the United States, Advicenne has been listed on Euronext Paris since 2017 and has been listed on Euronext Brussels since 2019 as a cross-listing.

Dr. André Ulmann, Chief Executive Officer of Advicenne, said: "During the first half of 2020 Advicenne continued the preparation of the next phase of its development, namely the marketing of its flagship product ADV7103 in Europe in its first indication dRTA, scheduled for early 2021.

Despite the health problems, we were also able to establish the first milestones of our organisation in the United States, and to create a subsidiary there. Today we produce the first consolidated financial statements in Advicenne's history.

Based on my clinical and regulatory experience, I asked the teams to take advantage of the interruption imposed by the health crisis to thoroughly review our American study protocol in dRTA and our

This is a free translation into English of the Interim Financial report 2020 issued in the French language and is provided solely for the convenience of English-speaking readers. In case of discrepancy, the French version prevails.

4