- Sales of products and services up 37% to €631
thousand
- 28% decrease in the current operating loss to
€2.4 million
- Additional €1.1 million in financing following
the exercise of warrants by Winance in August
Regulatory News:
Genomic Vision (Paris:GV) (FR0011799907 – GV), a
company specialized in the development of in-vitro diagnostic (IVD)
tests for the early detection of cancers and genetic diseases and
applications for life sciences research (LSR), today announced its
first-half financial results to June 30, 20191.
First-half 2019 results
(in € thousands – IFRS, unaudited)
H1 2019
H1 2018
Revenue from R&D
collaboration with Quest Diagnostics
150
150
Sales of products and services
631
461
Of which: life sciences research (LSR)
502
319
Of which: in-vitro diagnostics (IVD)
129
143
Total revenue from sales
781
611
Other revenue
354
872
Total revenue from activity
1,135
1,484
Net current operating expenses (excluding
share-based payments)
3,491
4,762
Current operating income before
share-based payments2
-2,356
-3,278
Expenses relating to share-based
payments
0
-57
Other operating income and expenses
40
0
Operating loss
-2,316
-3,335
Net loss
-2,314
-3,335
Sales of products and services increased by +37% to €631
thousand in the first half of 2019, notably thanks to the sale of a
FiberVision® platform to the University of Oxford’s laboratories in
the first quarter of the year.
By market, the sales analysis is as follows:
- on the LSR segment: +57% to €502 thousand thanks to the sale of
the FiberVision® platform to the University of Oxford;
- on the IVD segment: -10% to €129 thousand, due to the temporary
slowdown of the FSHD test at Quest Diagnostic, despite a
substantial increase in sales in China via the Company’s partner
AmCare.
Total revenue from sales for the first half of 2019 was
€781 thousand (+28%), including €75 thousand from Quest Diagnostics
corresponding to the distribution throughout the year of license
payments.
Total revenue from activity for the first half of 2019
was €1,135 thousand, once other revenue of €354 thousand
corresponding to tax credits (research tax credit, innovation tax
credit) and the end of the R&D subsidy relating to the H2020
BeyondSeq program are taken into account, down 24% compared with
the first half of 2018.
Net current operating expenses (excluding share-based
payments) decreased by 27% to €3.5 million, and included the
following major items in addition to the cost of sales:
- €1.4 million in R&D expenses, down approximately 23%,
reflecting their good control associated with the refocus on
projects with greater added value. This expenditure is in line with
the continuation of the ongoing clinical trial aimed at developing
an HPV test in in-vitro diagnostics and the targeted development of
new services and tools for the LSR market.
- €0.7 million associated with Sales & Marketing expenses,
whose decrease of approximately 50% reflects the reorganization and
refocusing of Genomic Vision’s sales teams in the first half of
2019.
- €0.9 million in General & Administrative expenses, down 27%
thanks to the restructuring and cost-reduction plan.
The current operating loss before share-based payments
improved by 28%, from -€3.3 million at June 30, 2018 to -€2.4
million at June 30, 2019.
Once other operating expenses and income, which mainly
corresponded to non-recurring costs of €373 thousand associated
with the restructuring decided and provisioned at the end of 2018
and offset by the reversal of provisions, are taken into account,
the operating loss at June 30, 2019 improved by 30% to -€2.3
million.
The net loss was -€2.3 million at June 30, 2019, versus
-€3.3 million at June 30, 2018.
Strengthened financial structure
Genomic Vision had cash and cash equivalents of €0.6 million at
June 30, 2019 compared with €3.2 million at December 31, 2018. This
amount takes into account:
- the reimbursement of the interest-free loan from Quest
Diagnostics in the fall of 2018 for €0.3 million;
- a €1.5 million bridging loan granted by Winance, repaid via a
capital increase through the offsetting of loans subscribed to by
Winance within the framework of the drawdown of the first €1.5
million tranche of the reserved ABSA (shares with equity warrants
attached) issue in April 2019.
Cash burn over the half year was €3.8 million, including the
social restructuring costs provisioned at December 31, 2018 for
€0.4 million.
On July 9, 2019, Genomic Vision carried out a €1 million capital
increase via the issuance of 10,000,000 new shares at a nominal
price of €0.10 within the framework of the second tranche of ABSA
warrants.
In August 2019, Winance exercised the warrants associated with
the first and second tranches of the financing contract, resulting
in a capital increase of €1.1 million.
The Company also has a remaining balance of €2.5 million on this
equity financing line that can be exercised in accordance with the
characteristics indicated in the Prospectus granted visa number
19-122 by the AMF French stock market authority on March 29, 2019,
and notably under the contractual and legal conditions among which
schedule and share price conditions which are described in
paragraph 4.1 of the Prospectus. Furthermore, the Company has an
outstanding CIR 2018 Research Tax Credit of €780 thousand whose
reimbursement has been requested as an SME and should take place
during the final quarter of 2019.
Based on revised sales growth and R&D, Sales & Marketing
and General & Administrative spending hypotheses, as well as on
associated working capital requirement assumptions, Genomic Vision
has the necessary resources to continue its development over the
coming 12 months.
First-half 2019 highlights
Life Sciences Research (LSR)
market
- Acquisition of a FiberVision platform by the University of
Oxford
At the beginning of the year, the UK’s prestigious University of
Oxford acquired a FiberVision platform to study DNA replication in
the context of a rare disease.
- Gene editing quality control
Genomic Vision has continued its participation in the consortium
put together by the National Institute of Standards and Technology
(NIST) to help the FDA (Food and Drug Administration, the US health
authority) assess the requirements and standards to be established
by these regulatory bodies for all stakeholders within the
industry, academia, regulatory agencies and other players involved
in using gene editing. Genomic Vision has developed quality control
tools for gene editing and is working with a number of key
industrial players in this field.
IVD portfolio
- Human papilloma virus (HPV)
The identification of a biomarker that enables the severity and
progression of cervical lesions to be predicted is currently
ongoing thanks to the clinical data obtained from a study carried
out in the Czech Republic.
- Facio Scapulo Humeral muscular Dystrophy (FSHD)
The FSHD test is marketed in Europe, notably by the Timone
hospital in Marseille within the framework of a 5-year multiannual
public market contract to supply the test, and in China through the
intermediary of its distributor, AmCare Genomics Laboratory, with a
substantial development of its activity.
Implementation of the restructuring
decided at the end of 2018
In the first half of 2019, Genomic Vision implemented a
restructuring plan with a 20% reduction in its spending and its
workforce. Within the framework of this restructuring, the Company
is refocusing its activity on the Life Sciences Research industry’s
quality control market with industrial partners and continuing, in
an opportunistic manner, the marketing of diagnostic tests that
have already been or are currently being developed, principally via
partnerships.
This restructuring plan generated non-recurring costs of €373
thousand mostly consisting of severance payments.
Recent events
Governance
The Combined Shareholders’ Meeting of July 8, 2019, on the
second call, approved the renewal of the mandates of Supervisory
Board members Mrs. Isabelle Racamier and Mr. Stéphane Verdood for a
further 6 years. In addition Mrs. Isabelle Racamier’s mandate as
Chairwoman of the Supervisory Board was renewed until the end of
her mandate as a member of that Board.
The Combined Shareholders’ Meeting of July 8, 2019 also
appointed Mr. Florian Schôdel as a new member of the Supervisory
Board for a 6-year mandate. The Supervisory Board henceforth has 6
members, four of them women, in line with the law governing gender
parity within listed companies’ governance bodies.
Research agreement with Sanofi in the
field of gene therapy biomanufacturing
Gene and cell therapy are rapidly emerging as promising
treatments for numerous illnesses such as viral infections,
hereditary disorders and cancer. Multiple techniques are currently
being used and developed to produce recombinant cell lines with the
aim of making biomanufacturing procedures more reliable.
Genomic Vision’s technology represents a promising quality
control tool for the accurate characterization of the stability of
recombinant cell lines compared with conventional methods. New
quality control tools have thus been developed in order to
visualize genetic modifications and verify the clonality of the
cell lines used in biomanufacturing.
Within the framework of the agreement with Sanofi, Genomic
Vision will undertake the genetic characterization of Sanofi cell
lines from the Framingham research centre in Boston,
Massachusetts.
Next financial publication
- Revenue for the 3rd quarter of 2019: Wednesday, October 30,
2019 (before market)
ABOUT GENOMIC VISION
GENOMIC VISION is a company specialized in the development of
diagnostic solutions for the early detection of cancers and serious
genetic diseases and tools for life sciences research. Through the
DNA Molecular Combing, a strong proprietary technology allowing to
identify genetic abnormalities, GENOMIC VISION stimulates the
R&D productivity of the pharmaceutical companies, the leaders
of the diagnostic industry and the research labs. The Company
develops a robust portfolio of diagnostic tests (breast, ovarian
and colorectal cancers, myopathies) and analysis tools (DNA
replication, biomarkers discovery, gene editing quality control).
Based near Paris, in Bagneux, the Company has approximately 30
employees. GENOMIC VISION is a public listed company listed in
compartment C of Euronext’s regulated market in Paris (Euronext: GV
- ISIN: FR0011799907). For further information, please visit
www.genomicvision.com
FORWARD LOOKING STATEMENT
This press release contains implicitly or explicitly certain
forward-looking statements concerning Genomic Vision and its
business. Such forward-looking statements are based on assumptions
that Genomic Vision considers to be reasonable. However, there can
be no assurance that such forward-looking statements will be
verified, which statements are subject to numerous risks, including
the risks set forth in the “Risk Factors” section of the reference
document dated March 28, 2017, available on the web site of Genomic
Vision (www.genomicvision.com) and to the development of economic
conditions, financial markets and the markets in which Genomic
Vision operates. The forward-looking statements contained in this
press release are also subject to risks not yet known to Genomic
Vision or not currently considered material by Genomic Vision. The
occurrence of all or part of such risks could cause actual results,
financial conditions, performance or achievements of Genomic Vision
to be materially different from such forward-looking
statements.
This press release and the information contained herein do not
constitute and should not be construed as an offer or an invitation
to sell or subscribe, or the solicitation of any order or
invitation to purchase or subscribe for Genomic Vision shares in
any country. The distribution of this press release in certain
countries may be a breach of applicable laws. The persons in
possession of this press release must inquire about any local
restrictions and comply with these restrictions.
1 Financial statements were examined by the Supervisory Board on
September 23, 2019 and have been subject to a limited review by the
Company’s auditors. 2 Current operating income before share-based
payments is defined and presented in Note 14, Segment Information,
to the interim IFRS financial statements to June 30, 2019, which
will be available online within the regulatory timeframe.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190923005785/en/
Genomic Vision Aaron Bensimon Co-founder, Chairman &
CEO Tel.: +33 1 49 08 07 50 investisseurs@genomicvision.com
Ulysse Communication Press Relations Bruno Arabian
Tel.: +33 1 42 68 29 70 barabian@ulysse-communication.com
NewCap Investor Relations & Strategic
Communications Tel.: +33 1 44 71 94 94 gv@newcap.eu
Genomic Vision (EU:GV)
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