(BFM Bourse) – The outsourced research activity (CRO) boosted the Burgundian firm’s turnover to more than 30 million euros, while its order book grew even faster than invoicing. In 2022, Oncodesign therefore intends to continue its growth while pursuing its structuring into three entities that are better valued on the stock market, distinguishing the biotech activity in the strict sense.
“We are not some kind of five-legged sheep! Through its three business units (services, biotech and artificial intelligence), Oncodesign develops innovation platforms allowing real therapeutic progress. Developing these different approaches, while being able to Integrating with the technologies or molecules of our partners is a real factor of success”, asserts the founder. In 2021, the Dijon-based company once again stood out from the great mass of listed biotechnology companies, by its ability to generate strong growth in revenue. But its share price has lagged behind, investors having difficulty valuing the hybrid model of the company which works on the one hand for laboratories (via its services division) and on the other hand for its account (biotech division). CEO Philippe Genne therefore intends to further improve its readability.
Despite the health crisis, the company continued to grow, reaching a record level of turnover, 31.3 million euros, up 22% over one year (all revenues, including credit research tax, but now without the subsidy for the takeover of the François-Hyafil research site in Villebon-sur-Yvette granted in 2016 by GSK for four years, amounts to 36.1 million euros).
It was the “service” business unit that drove this growth with a 30% jump in turnover invoiced to third parties (mainly for so-called Drug Discovery services) to 27.5 million euros. In addition, with several multi-year contracts with renowned biotechs, the amount of orders signed last year grew even faster: +39% to 36 million euros, which allows “to start 2022 with very good prospects and a stock of more than 20 million euros”, underlines the leader. “Already growing by +34% to 26 million euros in 2020, the order book demonstrates a strong and lasting trend in the development of our service activity”, he adds. Therefore, Oncodesign confirms its ambition to reach the milestone of 50 million euros by 2023, supplemented by external growth, for this BU alone.
Entry into the clinical phase of two drug candidates
The turnover of the biotech division reached 3.7 million euros last year, compared to 4.4 million in 2020, composed of a new milestone payment from Servier for the development of inhibitors of the LRRK2 kinase in Parkinson’s disease (bringing the sums received for this project from Servier to more than 13.5 million euros) and initial research costs from the Korean company TiumBio, for the identification, chemical synthesis and optimization of molecules from Oncodesign’s Nanocyclix discovery platform.
TiumBio has an exclusive option to acquire the worldwide rights to develop and commercialize drug candidates discovered after their evaluation, which could potentially be lifted next year (amounts cannot be disclosed at this stage). The year 2022 will be marked by the entry into the clinical phase of the first two drug candidates (LRRK2 and RIPK2 inhibitors) resulting from proprietary research.
Still in the technological structuring phase, the newly created “artificial intelligence” BU has set up its commercial offer, which could lead to the signing of at least one partnership this year.
Towards a subsidiary of the BUs
“2021 was a pivotal year for Oncodesign, the company managed to maintain its revenues at €36.1 million, thus compensating for the planned stoppage of the payment of the annual subsidy of €8 million from GSK and we can anticipate a balanced net result Our cash position at more than 25 million euros is supported by the strong growth of our service activity and the receipt of the Servier milestone of 2 million euros in September 2021. available cash gives the group the means to finance the research programs of the biotech BU (ODS-101 and new systemic radiotherapy approach), and to carry out its external growth policy for the service BU”, indicated the Chief Financial Officer. , Arnaud Lafforgue.
For his part, Philippe Genne indicated to BFM Bourse that he wanted to go further in the organization of the group, possibly as far as the subsidiarization of the BUs to address each subsidiary to the right investors. “We are fully aware that our model has held back some investors from the start because they find it difficult to understand the vectors of value creation for each activity. explained the CEO.
Guillaume Bayre – ©2022 BFM Bourse
Are you following this action?
Receive all the information about ONCODESIGN in real time: