(Boursier.com) — The 2023-2024 half-year accounts of MedinCell show revenues of 8.2 ME (+6.1% compared to the first half of the previous year) including 7 ME in turnover. This revenue comes from the payment of a milestone of 3.6 ME for the marketing authorization by the American FDA of UZEDY, services provided within the framework of the company’s collaborations, royalties received from Teva on the first sales of UZEDY (0.64 ME for the period May – September 2023) and CMB for the supply of copolymers.
Operating expenses decreased by 12% compared to the same period of the previous year. This is mainly due to the reduction in R&D expenses, which represent 65% of operational expenses. This is the consequence, on the one hand, of the reorganization of teams and the optimization of internal skills, and on the other hand, of the nature of the subcontracted activities, which differ from the previous year.
Marketing and sales expenses increased by almost 8% compared to the same period of the previous year, notably due to the promotional campaign launched after the approval of UZEDY. General expenses increased by 37% over the period, mainly due to the increase in salaries and bonuses of members of the Management Board, the increase in legal costs and accounting fees as well as the deployment of the investor strategy. in the USA. The operating result improved to around -9 ME, as did the net result to -8.2 ME for the half-year ending at the end of September.
As of September 30, 2023, MedinCell had cash and cash equivalents of €26.8 million, including €15 million in non-risky current financial assets. Regarding the first royalties calculated on the net sales of UZEDY made by Teva, MedinCell anticipates a gradual growth in the amount of these royalties over the coming years, until this first product reaches its peak of sales. Additionally, MedinCell is still eligible to receive up to $105 million in commercial milestones related to UZEDY.
In its basic forecast scenario, MedinCell says it is fully able to respect the financial commitments made contractually with the EIB in the next twelve months in terms of the forecast cash flow level. This time horizon could increase significantly with the signing of new licensing agreements currently under discussion. The rate of increase in sales of UZEDY, which depends in particular on Teva’s commercial strategy, as well as the date of possible approval of mdc-TJK and its marketing, could also have a significant impact on the financial visibility of the company.
“The receipt of commercial revenues will sustainably transform MedinCell, especially since the first prescription trends for UZEDY, as well as the feedback from professionals and patients, are very promising. Other good news, revenues from UZEDY should quickly be supplemented by those of mdc-TJK, whose phase 3 results are now expected from 2024. In view of these elements, our objective is to achieve operational profitability as soon as possible and to generate additional income with new partnerships to expand our cash flow visibility until this horizon”, explains the Chairman of the Management Board of MedinCell, Christophe Douat.