2020 Half-year results:
Stronger financial position and research programs moving forward despite the international context
- Clinical program for the antibiotic candidate DNV3837 continues, with the support of investigators in
the United States - AGIR program (Antibiotics against Resistant Infectious Germs): reaching second key milestone generated the payment of €1.5M by
Bpifrance - Launch of two novel next-generation active substances, including the first extract developed with Hallstar and derived from the fermentation of a
Deinove microorganism - Consolidated net income: -€4.6M compared to -€5.4M in H1 2019
- Group cash position:
- Balance of +€3.2M at
June 30, 2020 compared to +€1.1M atDecember 31, 2019 - €2M to be received in October: loans granted by Bpifrance (R&D innovation loan) and Société Générale (State guaranteed loan)
- Balance of +€3.2M at
At the same time, we continued our efforts to advance the programs, including the DNV3837 clinical trial, which continued recruiting patients with the support of the investigating physicians, despite the health situation in
Now led by Alexis RIDEAU, our team is resolutely pursuing its activities with three clear objectives: strengthen the company’s presence in the pharmaceutical sector, generate revenues through strategic partnerships in the biotechnology sector, excel in project management in order to control all of our expenses and maintain financial flexibility."
SYNTHETIC CONSOLIDATED FINANCIAL DATA
The DEINOVE Group’s consolidated financial statements at
PROFIT AND LOSS ACCOUNT
(in thousands of euros) | |||||
Operating revenues | 596 | 405 | |||
Of which operating grants | 389 | 397 | |||
Operating costs | 5 480 | 6 587 | |||
Of which Research & Development costs | 4 460 | 5 412 | |||
Of which Administrative and General costs | 1 020 | 1 175 | |||
OPERATING PROFIT / LOSS | - 4 884 | - 6 181 | |||
PROFIT / LOSS | - 6 | - 14 | |||
PROFIT / LOSS FROM NON-RECURRING ACTIVITIES | - 34 | - 49 | |||
Income tax and deferred taxes | - 544 | - 1 140 | |||
256 | 256 | ||||
Results from equity affiliates (MEQ) | - | - | |||
CONSOLIDATED GROUP PROFIT / LOSS | - 4 634 | - 5 359 |
(in thousands of euros) | ||
Term deposit | - | - |
Provision for impairment of marketable securities | - | - |
Cash on hand | 3 193 | 1 095 |
ICNE and bank overdrafts | - | - |
CASH & CASH EQUIVALENTS | 3 193 | 1 095 |
OPERATIONAL PROGRESS DURING THE PERIOD AND POST-CLOSING
NEXT-GENERATION ANTIMICROBIALS
DNV3837: Initiation of Phase II clinical trial in Clostridioides difficile infections
The Phase II trial testing the antibiotic candidate DNV3837 in Clostridioides difficile1 gastrointestinal infections (CDIs), enrolled its first patient in January2.
This trial aims to evaluate the efficacy of DNV3837 in a pathological context, in patients with moderate to severe CDI, as well as to consolidate safety and pharmacokinetic data. The trial is multicentric and concentrated in
Post-closing3,
AGIR program:
The challenge for AGIR is to accelerate exploration of the antibiotic activities of multiple strains under various conditions in order to rapidly detect new structures.
The first stage of the program had led to the setting up of a robotic platform for extracting and screening strains. The second stage allowed the screening of an increasing number of strains, the validation of the automated tools developed by
According to the terms of the collaborative research program selected in 2017 by the Investments for the Future program, the results obtained enabled
NEXT-GENERATION ACTIVE INGREDIENTS
New industrial production of Phytoene to supply the market5
In early 2020
Launch of a new active ingredient based on Neurosporene, an exclusive carotenoid6
Neurosporene is a novel carotenoid on the market with exceptional antioxidant properties. It has the particularity of absorbing blue light, responsible for early aging of the skin, including the formation of brown spots. Efficacy studies, particularly clinical studies, have demonstrated its beneficial effect on the health and beauty of the skin.
The introduction of this active ingredient to the market was initiated in
Commercial launch of the new active ingredient co-developed with Hallstar France7
BIOME Oléoactif® is an active ingredient produced from a rare extremophilic bacterium that
The official launch of this active ingredient took place in
The planned partnership with
In
FINANCIAL RESULTS FOR THE FIRST HALF OF 2020
The consolidated financial statements of the
OPERATING REVENUE
The Group recorded €596K in operating revenue over H1, mainly comprising the payment by
For the first half of 2019, operating income amounted to €405K, mainly including the part of the grant corresponding to the first milestone of the AGIR program (€397K).
During the first half of 2020, the Group’s operating expenses reached €5.5M, of which 81% was spent on R&D activities.
When comparing H1 2019 and H1 2020, operating expenses are down 17% (-€1.1M). Subcontracting and external study expenses, which mainly include CRO services related to the DNV3837 clinical study, decreased by 28%, mainly due to the internalization of certain operations. The Rents, Maintenance and Servicing costing item decreased by 31%, as a result of the second quarter rent waiver as part of the Covid-19 support measures. Miscellaneous Expenses (+38% over the period), include €36K of OCA-related costs. Fees increased by +10% due to costs incurred with
Staff expenses decreased by -16%, with 2 FTE less and use of partial activity for the teams based in
net INCOME
The consolidated net loss for the period amounts to €4.6M. It includes a negative financial result of -€6K mainly comprising a gain on securities transactions related to the liquidity contract (+€5K) and financial expenses related to leasing, pre-financing of the R&D Tax Credit and foreign exchange losses (-€ 11K in total).
Income tax includes almost exclusively the R&D Tax Credit. The Group’s receivable for the first half year was estimated at €544K (compared to €1.140K in H1 2019).
The Exceptional Result at
FINANCIAL SITUATION
Financial requirements for the first half of the year mainly concerned operating expenses, for €4.9M (excluding depreciation and amortization), to which were added investments in laboratory equipment (including lease payments) for €0.1M.
Over the same period, the Group received €1.5M in public aid under the AGIR program and €2.1M under the 2019 R&D Tax Credit (via pre-financing by Société Générale Factoring).
Subsequent to closing, the Group was notified of the obtention of €1.0M of R&D Innovation Loan from
IMPACTS OF THE COVID-19 PANDEMIC
The global pandemic of Covid-19 which has developed since the beginning of the year has had the following impacts for
- R&D operations continued during and after the period of containment, thanks to the commitment of the teams, working from home and in the Company’s laboratories, while complying with health constraints.
- Logistical difficulties induced by the period of containment may have caused a slight delay in some programs. However, operations have gradually resumed since then, and no program has been called into question.
- The planned partnership project with Sharon Laboratories was abandoned in view of the many operational and economic uncertainties weighing on the entire industrial sector at the time the final contract could have been signed (March 2020).
- The Phase II clinical trial testing DNV3837 in C. difficile infections (CDI) has been impacted by the extent of the pandemic in
the United States and the strong pressure on hospital services. However, several of the investigative centers have kept recruitment open in light of the high medical need in patients with severe CDI and continue to screen and include patients. - Post-closing,
DEINOVE has secured the approval for benefiting from the financial mechanisms put in place by the French government to support companies. The Company will receive shortly €2M, including €1M of State guaranteed loan and €1M of R&D Innovation Loan.
CORPORATE INFORMATION
BOARD OF DIRECTORS
The Ordinary and Extraordinary Shareholders’ Meeting of
EXECUTIVE COMMITTEE
Dr
With effect from
Mario ALCARAZ joined
SHARE CAPITAL BREAKDOWN
As at
Ownership structure as at
Shareholders | Number of shares | % of holding | Voting rights | % |
Funds managed by | 1 385 637 | 6,40% | 2 549 592 | 10,96% |
Funds managed by | 1 557 414 | 7,20% | 1 557 414 | 6,70% |
Scientific founders | 20 000 | 0,09% | 40 000 | 0,17% |
Management and Administrators | 73 140 | 0,34% | 107 251 | 0,46% |
Free float | 18 606 707 | 85,07% | 19 005 589 | 81,71% |
TOTAL | 21 644 898 | 100,00% | 23 259 846 | 100,00% |
CHANGES IN SHARE CAPITAL
During the first half of 2020, the Board of Directors acknowledged the issue of 500,001 new shares following the exercise of BAA-BIOVERTIS and the issue of 3,114,939 new shares following the conversion of OCAs pursuant to the agreement between the Company and the
A total of 3,614,940 new shares were issued during the first half of 2020, representing a capital increase of €1,445,976. As of
The 2020 half-year financial report will be available at:
http://www.deinove.com/fr/espace-investisseurs/centre-documentation/rapports-financiers
ABOUT
In nearly 15 years, the Company has built a unique collection of over 10,000 bacterial strains and has developed a fully integrated technological platform that brings together the best of biological culture, synthetic biology and micro-biotechnology.
Today,
CONTACTS
Investors Chief Financial and Administrative Officer Phone: +33 (0)4 48 19 01 00 mario.alcaraz@deinove.com Media ALIZE RP - Caroline Carmagnol Phone: +33 (0)6 64 18 99 59 deinove@alizerp.com |
1 Clostridioides difficile is a WHO priority pathogen and one of the first causes of hospital-acquired infections worldwide, according to the
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Attachment
- PR in English
Source:
2020 GlobeNewswire, Inc., source