(AOF) – Abivax announces that its cash flow as of June 30, 2023 amounts to 114.4 million euros compared to 27.0 million euros at the end of 2022. The biotech specialist in immune response in patients suffering from chronic inflammatory diseases specifies that its cash flow of 118 million euros in August should allow the financing of its operations “until the end of the second quarter of 2024”. The group recorded a net loss of 53 million euros in the first half compared to 21.2 million euros a year ago.
“In 2023, we successfully completed an equity financing of 130 million euros, as well as two structured debt agreements totaling 150 million euros, with a net amount of the first tranches of 27 million euros”, declared Didier Blondel, Financial Director of Abivax.
“These resources will primarily be used to advance recruitment in our Abtect Phase 3 clinical program with obefazimod for the treatment of patients with moderately to severely active ulcerative colitis,” it said.
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Biotechs put to the test
These companies are suffering from a much less favorable economic cycle, which is reflected in particular by a drop in venture capital financing of start-ups. These companies are therefore obliged to carry out layoff plans. Added to this is a much more restrictive regulatory framework. First, in the United States, measures linked to the Inflation Reduction Act (IRA) could have a strong impact on the margins of stakeholders. Indeed, from 2026, the federal Medicare program will be able to renegotiate the price of drugs marketed for nine years (chemical) or 13 years (biological), with discounts that could range from 35 to 60% for biotechs. Likewise, in Europe, with the new drug regulations presented in Brussels in April, the duration of patent protection will be reduced if the innovative treatment is not marketed in all member countries within two years.