You should read the following discussion and analysis of our financial condition
and results of operations in conjunction with our unaudited condensed
consolidated financial statements and related notes included in Part 1, Item 1
of this Report and with our audited financial statements and related notes
thereto for the year ended December 31, 2020, included in our Annual Report on
Form 10-K for the year ended December 31, 2020, filed with the Securities and
Exchange Commission on March 17, 2021, or the Annual Report. This discussion and
other parts of this Report contain forward-looking statements that involve risks
and uncertainties, such as statements of our plans, objectives, expectations and
intentions. Our actual results could differ materially from those discussed in
these forward-looking statements. Factors that could cause such differences are
discussed in the section of this Report titled "Special Note Regarding
Forward-Looking Statements" and under "Item 1A. Risk Factors" in the Annual
Report.

Overview



We are a clinical-stage specialty biopharmaceutical company focused on changing
the field of immunotherapy by developing a novel technology platform called
Viaskin. Our therapeutic approach is based on epicutaneous immunotherapy, or
EPITTM, our proprietary method of delivering biologically active compounds to
the immune system through intact skin using Viaskin. We have generated
significant data demonstrating that Viaskin's mechanism of action is novel and
differentiated, as it targets specific antigen-presenting immune cells in the
skin, called Langerhans cells, that capture the antigen and migrate to the lymph
node in order to activate the immune system without passage of the antigen into
the bloodstream, minimizing systemic exposure in the body. We are advancing this
unique technology to treat patients, including infants and children, suffering
from food allergies, for whom safety is paramount, since the introduction of the
offending allergen into their bloodstream can cause severe or life-threatening
allergic reactions, such as anaphylactic shock.

On January 13, 2021, the Company received written responses from the FDA to
questions provided in the Type A meeting request the Company submitted in
October 2020 following the CRL. We believe the FDA feedback provides a
well-defined regulatory path forward. In exchanges with the FDA, we proposed
potential resolutions to two main concerns identified by the FDA in the CRL: the
impact of patch adhesion and the need for patch modifications. The FDA agreed
with our position that a modified Viaskin Peanut patch should not be considered
as a new product entity provided the occlusion chamber of the current Viaskin
Peanut patch and the peanut protein dose of 250 µg (approximately 1/1000 of a
peanut) remains unchanged and performs in the same way it has performed
previously. In order to confirm the consistency of efficacy data between the
existing and modified patches, the FDA has requested an assessment comparing the
uptake of allergen (peanut protein) between the patches in peanut allergic
children ages 4 to 11 years. The FDA also recommended conducting a 6-month,
well-controlled safety and adhesion trial to assess the modified Viaskin Peanut
patch in the intended patient population. We intend to submit the protocols for
the safety and adhesion study and the allergen uptake study to the FDA for
review and comments before initiating the trials. We will address details about
a new human factor, or HF, validation study and additional CMC data in
subsequent interactions with the FDA

During the first quarter of 2021, we received the first set of questions from
the European Medicines Agency, or EMA, regarding the Marketing Authorization
Application, or MAA, for Viaskin Peanut as a treatment for peanut allergy in
children ages 4-11.. The questions were consistent with our expectations and
prefiling conversations with the EMA. We did not receive questions about the
impact of adhesion on efficacy. The EMA's Committee for Medicinal Products for
Human Use will provide a recommendation to the European Commission, or EC, on
whether to grant a marketing authorization when its review of the Viaskin Peanut
MAA is complete.

Critical Accounting Policies and Significant Judgments and Estimates



Our management's discussion and analysis of our financial condition and results
of operations is based on our condensed consolidated financial statements, which
have been prepared in accordance with generally accepted accounting principles
in the United States, or U.S. GAAP. The preparation of these condensed
consolidated financial statements requires us to make estimates and assumptions
that affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the consolidated financial
statements, as well as the revenue, costs and expenses recognized during the
reporting periods. Our estimates are based on our historical experience and on
various other factors that we believe are reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying
value of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different
assumptions or conditions.

There have been no new policies or significant changes to our critical
accounting policies as disclosed in the critical accounting policies described
in the Annual Report. Our significant accounting policies are more fully
described in Note 1 of the Notes to Condensed Consolidated Financial Statements
in Part I, Item 1 of this Report.



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The following table summarizes our results of operations, derived from our condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP and presented in thousands of U.S. Dollars for the three months ended March 31, 2021 and 2020:





                                                                     Three Months Ended
                                                                          March 31,
                                                                    2021            2020
Operating income                                                  $   2,941       $   4,720

Operating expenses
Research and development expenses                                   (22,164 )       (27,532 )
Sales and marketing expenses                                           (729 )        (7,297 )
General and administrative expenses                                  (9,683 )       (11,113 )
Restructuring expenses                                                   -               -

Total Operating expenses                                            (32,575 )       (45,942 )

Financial income                                                        215             309

Income tax                                                              (30 )            -

Net loss                                                          $ (29,449 )     $ (40,913 )

Basic/diluted Net loss per share attributable to shareholders $ (0.54 ) $ (0.79 )

Comparison of the three months ended March 31, 2021 to the three months ended March 31, 2020



Operating Income

We generated operating income of $2.9 million during the three months ended March 31, 2021 compared to $4.7 million during the three months ended March 31, 2020, a decrease of 37.7%. This income was mainly generated from the French research tax credit (crédit d'impôt recherche), or CIR, and by revenue recognized under our collaboration agreement with Nestlé Health Science.





                                 Three Months Ended March 31           % change
                                  2021                2020           2021 vs 2020
     Sales                               -                   -
     Other income                     2,941               4,720              (37.7 )%
     Research tax credit              1,807               2,902              (37.7 )%
     Other operating income           1,133               1,818              (37.6 )%

     Total operating income           2,941               4,720              (37.7 )%



The decrease in operating income is primarily attributable to the decrease of
the CIR, as eligible expenses have declined in correlation with Research and
Development costs.

As of March 31, 2021, we recorded our collaboration contract income based on our
updated measurement of progress of the Phase II clinical trial conducted as part
of the collaboration and license agreement with Nestlé Health Science. The
accrual recorded in the amount of the difference between our current best
estimates of costs yet to be incurred and income yet to be recognized for the
completion of the Phase II clinical has been updated accordingly.

Operating Expense

The following table summarizes our operating expense excluding restructuring incurred during the three months ended March 31, 2021 and 2020:





                                            Three months Ended
                                                 March 31                % change
                                             2021          2020        2021 vs 2020

    Research and development expenses         22,164       27,532              (19.5 )%
    Sales and marketing expenses                 729        7,297              (90.0 )%
    General and administrative expenses        9,683       11,113              (12.9 )%

    Total operating expenses                  32,575       45,942              (29.1 )%





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Operating expenses for the three months ended March 31, 2021 were $32.6 million
compared to $45.9 million for the three months ended March 31, 2020. The
$13.4 million decrease in operating expenses is mainly attributable to a
decrease in personnel expenses directly related to the workforce reduction we
implemented as part of our 2020 global restructuring plan. Personnel expenses
decreased by $9.7 million, or 52%, to $9.0 million during the three months ended
March 31, 2021 from $18.7 million for the three months ended March 31, 2020.
Average headcount decreased 61% between the two periods, from 311 FTEs for the
three months ended March 31, 2020 to and 121 FTEs for the three months ended
March 31, 2021. By function, the personnel expenses, including share-based
payment expenses, decreased as follows:



                                                  Three Months Ended March
                                                            31,                         % change
                                                 2021                2020             2021 vs 2020
Research and development expenses                   4,718               10,204                (53.8 )%
Sales and marketing expenses                          518                4,197                (87.7 )%
General and administrative expenses                 3,766                4,283                (12.1 )%

Total personnel expenses                            9,002               18,684                (51.8 )%



The decrease in other operating expenses was primarily due to the budget
discipline measures taken by DBV. In particular, sales and marketing consulting
fees dropped by 96.8% or $2.6 million, from $2.7 million for the three months
ended March 31, 2020 to $0.1 million for the three months ended March 31, 2021
and general and administrative fees decreased by 43.5% or $1.7 million, from
$4.0 million for the three months ended March 31, 2020 to $2.3 million for the
three months ended March 31, 2021.

As a result of the ongoing COVID-19 pandemic, we also experienced a decrease in other expenses, in particular tradeshows and travel expenses.

Restructuring

We initiated a global restructuring plan in June 2020 to provide operational latitude to progress in the clinical development and regulatory review of investigational Viaskin™ Peanut in the United States and European Union.



We expect full implementation of the restructuring plan to result in a reduction
of more than 200 jobs, resulting in a remaining global team of 90 individuals
dedicated to the pursuit of innovation and scientific development of novel
therapies.

As of March 31, 2021, we had 104 employees. We expect full implementation of the
organization-wide costs reduction measures to be completed by the second half of
2021.

The restructuring costs, which were $23.6 million as of December 31, 2020, were
mainly comprised of payroll expenses, restructuring-related consulting and legal
fees, as well as impairment of facilities and right of use assets following
resizing of facilities.

During the three months ended March 31, 2021, the restructuring liability
evolved as presented below:



                                                            Restructuring
                                                             liabilities
      Restructuring liability - January 1, 2021                      9,387
      Amounts paid                                                  (4,854 )
      Other effect including currency translation effect              (220 )

      Restructuring liability - March 31, 2021                       4,313

      of which current contingencies                                 1,511
      of which other current liabilities                             2,803

They were no restructuring costs for three months ended March 31, 2021 and 2020.





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Financial income

Our financial income was $0.2 million for the three months ended March 31, 2021 and 2020. This item mainly includes foreign exchange income.

Net loss



Net loss was $29.4 million for the three months ended March 31, 2021, compared
to $40.9 million for the three months ended March 31, 2020. Net loss per share
(based on the weighted average number of shares outstanding over the period) was
$0.54 and $0.79 for three months ended March 31, 2021 and 2020, respectively.

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