GeNeuro Reports 2019 Half-Year Results and Provides Corporate Update

Regulatory News:

GeNeuro (Paris:GNRO) (Euronext Paris: CH0308403085 – GNRO), a biopharmaceutical company developing new treatments for neurological and autoimmune diseases, such as multiple sclerosis (MS) and type-1 diabetes (T1D), today reported its half-year financial results for the period ending June 30, 2019 and provided a corporate update.

Key Financials

On September 24, 2019, the Board of Directors of GeNeuro reviewed and approved the financial statements for the six-month period ended June 30, 2019. The Statutory Auditors have conducted a review of the condensed consolidated interim financial statements. The half-year financial report in French is available in the Investors section on www.geneuro.com.

“GeNeuro continues to make progress in advancing our clinical development program to bring new treatments for neurological and autoimmune diseases to patients,” said Jesús Martin-Garcia, CEO of GeNeuro. “In particular, we are very excited that temelimab has shown a major impact in relapsing-remitting MS in a large-scale clinical trial on key neuroprotection markers known to be linked to disease progression, without affecting the immune system. We continue to have constructive discussions on partnering our product for the next step of its development in progressive MS without active inflammation as a single agent, or synergistically with existing anti-inflammation MS drugs. Furthermore, results from a six-month extension of the temelimab Phase 2a study in type-1 Diabetes (T1D) open the door to further development in early-onset T1D pediatric patient population. Our cash position provides financial visibility to cover all our currently planned activities.”

“The financial results for the first half of 2019 are wholly in line with our expectations. As we mentioned previously, upon completion of our CHANGE-MS Phase 2b clinical trial in multiple sclerosis last year, the balance of the milestone payments received from our development partner was recognized as income in 2018 and no income was to be recorded in 2019. The completion of this study and of other smaller studies in H1 2019 (a Phase 1 high dose pharmacology study and the six-month extension of our T1D clinical trial) have led to a 65% reduction of our R&D expenses over the same period last year. The open-label extension ANGEL-MS study, which was also completed during H1 2019, helped further control R&D spending as it was fully funded by our development partner. Overall, in spite of a sharp reduction in our operating costs, the absence of income recognition has led to our operating loss increasing to €4.3 million in the first half of 2019 compared to €2.4 million in the same period of last year. Both this loss and the cash burn for H1 2019, down 33% from the same period of last year, are in line with our expectations” said Miguel Payró, Chief Financial Officer at GeNeuro. “We have also continued to tightly control our general and administrative expenses, which have decreased by €0.5 million, or 23%.”