Oncodesign Announces a 33% Revenue Increase in 2019 and the Achievement of Financial Breakeven One Year Ahead of Schedule - Seite 2

Service sales: €20.9 million, reflecting organic growth of 10%

This performance, reflecting another impressive increase in the organic contribution with a CAGR of 16% over the 2017-19 period, was supported by the strategic service agreements sealed with partners such as Galderma, Erytech Pharma, EISAI and Ipsen in oncology.

The North American business (United States and Canada) recorded a 12% increase in its 2019 sales to €2.5 million. This advance illustrates the region’s pivotal role for the Service business and justifies its expansion over the coming years.

The group is working on new IDDS contracts that will soon be complemented by technologies brought in by business partners and the recruitment of specialized Business Developers to complete the existing team, particularly in North America. This new offer should help to accelerate the business as of the next financial year.

Partnership sales: €5.8 million following the LRRK2 kinase inhibitor research agreement sealed with Servier

The partnership with Servier began in March 2019 and already generated €5.8 million in sales over the year, consisting of a €3 million up-front payment received on signature and €2.8 million to cover the corresponding research costs. Following the completion of the Imakinib project, negotiations are underway with the new partner with a view to resuming clinical development of the mutated EGFR radiotracer this year. Under the agreement with Bristol-Myers Squibb (BMS), the development of the program based on the Nanocyclix platform continues internally. The MNK1/2 and ALK2 programs are still ongoing.

Strong cash position at December 31, 2019 despite continuous R&D investments

Cash available stood at €7 million at December 31, 2019 excluding the 2018 research tax credit. By comparison, cash available stood at €6.8 million at December 31, 2018 excluding the research tax credit.

After factoring in the €3.6 million research tax credit payable in respect of 2018, cash available totaled €10.5 million at December 31, 2019.¹

The Group maintains a good level of cash despite its sustained investments in R&D, which represent approximately 30% of sales. In addition, in late January 2020, Oncodesign’s cash position will be strengthened by the final subsidy payment of €7.92 million due from GSK.

Implementation of the new independent Business Unit organization

Oncodesign reviewed its organization structure into independent Business Units owing to the growth in the Service business and the emergence of a more mature product portfolio, including drug candidates under proprietary and partnership programs.