Oncodesign: an analyst adjusts after the announcements















(Boursier.com) — Oncodesign rose by 0.8% to 9.25 euros this Friday, while the group’s 2021 turnover stood at 31.3 ME, an increase of +23% compared to 2020 driven by the growth in turnover. revenue of the Service BU, which increased by +31% to 27.6 ME and by Biotech revenue which amounted to 3.7 ME, including in particular the 2 ME of the milestone obtained for the selection of the drug candidate LRRK2.
Other income and operating income represent 4.9 ME compared to 13 ME in 2020 with the grant of 8 ME from GSK, mainly consisting of the Research Tax Credit (4 ME in 2021, i.e. 1 ME more than in 2020 thanks to the increase in North American and Asian customers in the turnover of the Service BU).

Investments in ‘Research and Development’ represent 7.4 ME in 2021, compared to 10.8 ME in 2020. These expenses are related to the development of our drug candidate ODS-101, mainly for the regulatory development stages which prepare the entry in phase I healthy volunteers in 2022. This work has been largely outsourced to specialized service providers.

The sharp increase in turnover and the control of all expenses made it possible to achieve an operating result of – 0.9 ME, down by 2.4 ME compared to 2020, “which proves the strong dynamic to largely compensate for the end of the GSK subsidy of 8 ME”, welcomes the group. As a result, the net result stands at -0.3 ME. Available cash as of December 31, 2021 amounted to €25 million.

Portzamparc speaks of a “year of transition, the main difficulty of which was to compensate for the end of the GSK subsidy by the turnover” (…) “Objective fulfilled for Oncodesign which is progressing towards its target of 50 ME turnover by 2023 for the Service BU, while the Biotech BU should enter the clinical phase for its two programs from 2022”. Verdict: “We raise our price target from 16.5 to 18 euros and confirm our ‘Buy’ recommendation”.


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