(Boursier.com) — Phaxiam Therapeutics fell by 3.5% to 2.85 euros this Wednesday, while the group recorded 25 million euros in operating expenses during the year 2023. They decreased by 8.8 ME (-26%) compared to the previous year.
This drop is due to the reduction in ‘R&D’ expenses of the former Erytech, mainly linked to the closure of Princeton’s activities and the end of clinical development activities, while the development activities of the former Pherecydes were included in the income statement from the 2nd half of 2023. In total, R&D expenses were reduced by 9 ME (-45%) compared to the previous year. Phaxiam’s general expenses for the year 2023 are stable compared to the previous year (+0.2 ME, or +1%), including non-recurring expenses linked to the merger operation and integration activities .
The net loss for the year 2023 amounted to 23.5 ME (0.2 ME for the year 2022), which benefited from the net proceeds of 24.4 ME from the sale of the Princeton factory. in April 2022.
As of December 31, 2023, Phaxiam had cash and cash equivalents of 10.5 ME (approximately $11.6 M), compared to 38.8 ME as of December 31, 2022. The decrease of 28.3 ME in the level of cash during the year 2023 is the result of a net cash consumption of 24.3 ME in operating and investing activities and of 3.7 ME in financing activities, mainly linked to the start of the PGE loan repayment, in 2023, while the variation of the US dollar against the euro resulted in a negative exchange rate impact of 0.3 ME.
The company estimates that its current cash position will finance its ongoing programs and planned operating expenses until September 2024.
The recent delisting from Nasdaq significantly reduces cash burn and allows Phaxiam Therapeutics to focus its financial resources on key stages of its development and value creation. The company remains listed on Euronext Paris, its main listing market, and intends to continue its communication in accordance with French regulations applicable to financial markets. Portzamparc remains favorable to the file but with a target price adjusted from 11.2 to 5.7 euros to take into account future financing needs…
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