(AOF) – Medesis Pharma announces that its cash flow as of June 30, 2023 amounts to 139,000 euros, which gives it visibility “until the end of November 2023”. The biotech company posted a net loss of 1.61 million euros in the first half compared to 1.57 million a year ago, without having recorded any turnover. “Contacts are underway for capital contributions at the beginning of December and to move towards the establishment of licensing partnerships,” she announces.
This would involve collecting funding “in particular with regard to the progress of its clinical study on NanoLithium in the treatment of Alzheimer’s disease”.
Medesis Pharma recalls that it “requested and obtained the opening, on September 29, 2023, of a safeguard procedure” with the Montpellier Commercial Court. This procedure “can last up to twelve months” and aims to “provide a framework which makes it possible to overcome the difficulties encountered” in the context of its dispute with Bpifrance.
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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.