(Boursier.com) — Abivax takes 1% to 16.50 euros this Friday, while the biotechnology company presented its 2023 half-year financial results. The operating result is -37.3 million euros as of June 30, 2023 (-11.2 million euros). euros compared to -26 million euros recorded as of June 30, 2022). Revenues in the first half of 2023 from the Research Tax Credit amount to +2.3 million euros, in line with the first half of 2022.
‘R&D’ expenses increase from -17.5 to -32.6 million euros compared to -15.1 million euros recorded as of June 30, 2022. In the first half of 2023, ‘R&D’ expenses were mainly related to the development of obefazimod in inflammatory indications (95% of total R&D expenditure), particularly with regard to the conduct of the ABTECT phase 3 program of obefazimod in ulcerative colitis (UC). The first half of 2022, on the other hand, was mainly devoted to preparing for the launch of the obefazimod phase 3 ABTECT program in RCH.
General and administrative expenses amount to -6.9 million euros as of June 30, 2023 (17% of total operating expenses) compared to -2.2 million euros (8%) as of June 30, 2022. This increase is mainly linked to non-recurring expenses linked to the expansion of the Company as part of the implementation of its new strategy.
As of June 30, 2023, the total number of full-time employees was 34. The majority of new hires are aimed at strengthening Abivax’s presence in the United States.
The net loss amounts to -52.0 million euros as of June 30, 2023, an increase of -30.8 million euros compared to 21.2 million euros as of June 30, 2022.
Cash flow as of June 30, 2023 amounts to +114.4 million euros
The net loss for the six months ended June 30, 2023 includes -€12.9 million of non-cash expenses, related to variations in accounting for the fair value of royalty certificates and derivative liabilities. The net loss for the six months ended June 30, 2022 included €7.2 million of non-cash financial income related to changes in fair value recognition of derivative liabilities. These non-cash items are based on the application of IFRS accounting standards.
Cash flow as of June 30, 2023 amounts to +114.4 million euros, compared to +27 million euros at the end of 2022.
Gross financing of 130 million euros in equity (net amount of 123 million euros) was raised in February 2023 and two additional structured debt agreements (net amount of drawdown of the first tranches of 27 million euros) were signed in August 2023. As of August 2023, Abivax’s available cash flow stands at €118 million (unaudited figures), which should enable the financing of the company’s operations until the end of the second quarter 2024.
Beyond the recent drawings, leveraging an additional €90 million in funding accessible from existing debt financing agreements (subject to certain preconditions being met), Abivax could extend its cash position until fourth quarter 2024.
New strategic preclinical and clinical initiatives as well as the expansion of the Company’s clinical, medical and commercial capabilities require additional financial resources. In August 2023, Abivax announced its intention to conduct a public offering in the United States.
“H1 2023 was very structuring and marks the transition to a pre-commercialization model” comments Portzamparc. “This transition involves massive investments, but the company has shown itself capable of meeting the financing challenge… Verdict: “We reiterate our ‘Strengthen’ recommendation with a target of 17 euros. Note that the start of the program in Crohn’s disease and the evaluation of new indications leave a significant upside potential that we are not integrating at this stage.