(AOF) – Genomic Vision had cash of 14,000 euros as of June 30, 2023, compared to 760,000 euros as of June 30, 2022, and the financial resources available in the short term should only allow it to finance its activities “until end of October 2023.” The company, which develops tools and services dedicated to the analysis and control of genome modifications, is “actively working on several financing and operational structuring options in order to quickly secure the additional financial resources necessary for its continued development.”
The half-year net loss reached 6.4 million euros, compared to 2.56 million a year ago, for a turnover increased from 511,000 to 593,000 euros.
Genomic Vision “anticipates a gradual extension of its financing horizon to 12 months, in several stages”: it first envisages “the realization in the very short term of operations on which it is actively working and which should enable it to strengthen its own funds and thus continue its activities over the financial year. Other complementary initiatives would then allow it to extend its financial horizon “at least until the end of 2024”. On the basis of these elements, “the hypothesis of continuity of operation was retained by the management of the company” even if it is not guaranteed that the anticipated financing will be available.
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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.