(AOF) – Genoway announces a net profit of 1 million euros for the first half, an increase of 406% year-on-year. The biotech specializing in the design of predictive preclinical solutions shows EBITDA growth of 70% to 2.33 million euros for turnover up 20% to 9.33 million euros. It forecasts that this growth should continue in the second half of the year with the aim of exceeding the threshold of 20 million euros in 2023.
“We are particularly proud to have achieved 18 months in advance the profitability objective that we set for ourselves almost 5 years ago by initiating our new strategic plan focused on the development of a range of proprietary catalog models in immuno-oncology”, declares Alexandre Fraichard, Managing Director.
“In 4 years, we have already doubled our turnover and gone from negative EBITDA to an EBITDA margin of 25%, which benefits both from the strong profitability of our Catalog model offering but also the progress made by the Genoway teams in terms of industrial performance.
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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.