(AOF) – Inventiva announces cash flow of 31.2 million euros as of June 30, 2023, compared to 86.7 million euros as of December 31, 2022. The biotech specializing in the treatment of non-alcoholic steatohepatitis (NASH) specifies that the disbursement of the second tranche of 25 million euros from the European Investment Bank would make it possible to extend its financial visibility “until the start of the third quarter of 2024”. The half-year net loss reached 55.26 million euros compared to 29.46 million a year ago, for a turnover falling from 67,000 euros to 1.9 million.
“We started the second half of this year with two major financial milestones,” declares Frédéric Cren, CEO and co-founder of Inventiva, referring to “obtaining financing of around 36 million euros from “existing and new investors and the exclusive licensing agreement entered into with Hepalys Pharma, Inc. to develop and commercialize lanifibranor for the treatment of NASH in Japan and South Korea.” “We therefore approach the months to come with great optimism.”
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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.