- €50m capital increase in June subscribed by specialized
investors
- Cash horizon to the end of 2017
- Acquisition of IPH2201, anti-NKG2A antibody, and start of
Phase II clinical development
- Expected in 2015:
- Initial efficacy data with lirilumab
- Roll out of Phase II clinical development plan with
IPH2201
- IPH4102 to start clinical trial
Innate Pharma SA (the "Company" - Euronext Paris: FR0010331421 -
IPH), the innate immunity company developing first-in-class
therapeutic antibodies for cancer and inflammatory diseases,
reports today its consolidated financial results for the year ended
December 31, 2014. The consolidated financial statements are
attached to this press release.
Hervé Brailly, Chief Executive Officer of Innate
Pharma, commented: "2014 has been a big year for Innate Pharma. We
have strengthened and advanced our pipeline with the acquisition of
IPH2201 and the start of the first Phase II trial with this novel
checkpoint inhibitor. With our most advanced program, lirilumab, we
have completed the enrolment of the Phase II AML trial EffiKIR and
our partner Bristol-Myers Squibb has expanded its clinical program
to hematologic malignancies. Lastly, IPH4102 has received orphan
drug designation in Europe and is on track to start a Phase I
clinical trial in 2015.
From the corporate perspective, we have raised
€50m to finance the Phase II program of IPH2201 and therefore
maintain a comfortable cash horizon to the end of 2017. We have
reinforced our team, notably in the clinical organization with
Pierre Dodion joining us as CMO in September, and our staff count
increased from 84 to 99.
2015 will be a key year with initial read-out of
lirilumab clinical trials, roll-out of IPH2201 Phase II trials
and the start of clinical trials with IPH4102".
A conference call will be held today at 2:30pm
(CET)
- Dial in number: +33 (0)1 70 77 09 39 -
A replay will be available during three months
after the conference call.
Dial in number: +33 (0)1 72 00 15 01 Access
number: 292312#.
Financial highlights for 2014 :
Financial results are marked by a strengthening
of the cash position to €69.2 million. This translates into a cash
horizon to the end of 2017 in a context of increased R&D
expenses related to the expansion of the clinical portfolio and
notably the requirements of the Phase II clinical development of
IPH2201.
The key elements of these results are as
follows:
- Cash and cash equivalents as at December 31, 2014, amounting to
€69.2 million (€41.3 million as at December 31, 2013),
following a capital increase of €50 million in June 2014;
- Financial debt of €4.2 million (€4.8 million as at December 31,
2013);
- Revenue and other income in the amount of €7.6 million (€16.7
million in 2013), primarily from existing collaboration agreements
and research tax credit;
- Revenue from collaboration and licensing agreements of €0.9
million in 2014 (€12.5 million in 2013) corresponds to the
recognition of the upfront payment of €24.9 million received in
July 2011 for the licensing deal with Bristol-Myers Squibb. This
upfront payment is recognized in turnover during the expected
period of duration of the program ongoing at the date of the
signing, which is nearly completed.
- Operating expenses of €27.6 million (€19.4 million in 2013), of
which more than 80% is in research and development;
- As a result of these changes in revenues and expenses, the
operating loss amounted to €19.6 million (€2.9 million in
2013).
The table below summarizes the IFRS consolidated
financial statements for the twelve-months period ended December
31, 2014, with a comparison to the same period in 2013:
|
Year ended December 31 |
In thousands of euros (IFRS) |
2014 |
2013 |
|
|
|
Revenue
from collaboration and licensing agreements |
907 |
12,469 |
Government
financing for research expenditures |
6,715 |
4,182 |
Revenue
and other income |
7,623 |
16,652 |
Research
and development expenses |
(22,671) |
(15,131) |
General and
administrative expenses |
(4,918) |
(4,313) |
Net
operating expenses |
(27,589) |
(19,444) |
Operating income (loss) |
(19,966) |
(2,793) |
Financial income / (expense), net |
508 |
146 |
Profit /
(loss) of dilution |
(19) |
179 |
Share of
profit (loss) of associates and joint ventures |
(170) |
(424) |
Net
income (loss) |
(19,647) |
(2,892) |
The consolidated annual IFRS financial
statements as at December 31, 2014 as well as the management
discussion on these results are presented in the appendix at the
end of this document. Pipeline update:
Lirilumab (anti-KIR antibody), partnered with
Bristol-Myers Squibb:
During the second half of 2014, the clinical
development plan of lirilumab continued and two new trials were
initiated by Bristol-Myers Squibb during the third quarter.
- EffiKIR (double-blind placebo-controlled randomized Phase II
trial of lirilumab as maintenance treatment in elderly patients
with Acute Myeloid Leukemia in first complete remission - study
IPH2102-201) :
In September, the Data and Safety Monitoring
Board ("DSMB") completed its third assessment of the EffiKIR study
and recommended continuation of the trial as planned. The DSMB
meets every six months and the next assessment will take place in
March 2015. Results of EffiKIR on the primary efficacy endpoint,
Leukemia-Free Survival, are expected by the end of 2015. No interim
analysis is planned.
- Phase I trials testing lirilumab in combination in selected
solid tumors :
In December, new patient enrollment in the Phase
I trial testing the combination of lirilumab and ipilimumab in
selected solid tumors was closed. There were no safety issues
leading to this decision and patients still under treatment or in
active follow-up will continue as planned in the study
protocol.
The enrollment in the Phase I clinical trial
testing the combination of the two investigational checkpoint
inhibitors lirilumab and nivolumab is almost completed.
- Phase I trials testing lirilumab in combination in
hematological malignancies:
In October, two new Phase I trials testing
lirilumab in combination in hematological malignancies started. The
first one tests the tolerance and safety of lirilumab in
combination with elotuzumab in patients with Multiple Myeloma. The
second one tests the combination of lirilumab with nivolumab in
some hematological cancers. These new trials initiated by
Bristol-Myers Squibb are the first ones to test a combination of
lirilumab in onco-hematology.
In December 2014, two posters showing prelinical
data supporting the rationale for the Phase I trial testing the
combination of lirilumab and elotuzumab were presented at the ASH
Annual Meeting.
IPH2201, anti-NKG2A antibody:
In December 2014, a first patient was treated in
the first Phase II trial of IPH2201, opened at the Charité
Comprehensive Cancer Center in Berlin, Germany. This trial tests
IPH2201 as a single agent in a pre-operative setting of squamous
cell carcinoma of the oral cavity, a tumor type representative of
the larger group of squamous cell cancer of the head and neck.
Innate Pharma intends to start other Phase II
trials with IPH2201 in 2015. Three indications have been
prioritized - Head and Neck Cancer, Chronic Lymphocytic Leukemia
and Ovarian Cancer. IPH2201 will be tested as a single agent or in
combination with other agents.
IPH4102 (anti-KIR3DL2 antibody):
During the second half of 2014, IND-enabling
studies for IPH4102 were completed. In August 2014, IPH4102 was
granted orphan drug designation for the treatment of CTCL by the
European commission. A peer-reviewed scientific article describing
IPH4102 and results of preclinical efficacy studies was published
in Cancer Research in November 2014. IPH4102 is expected to enter a
Phase I clinical trial in 2015.
IPH4102 is a first-in-class cytotoxic antibody
developed in some types of KIR3DL2-expressing cancers, such as the
Sezary Syndrome ("SS") and Transformed Mycosis Fungoides ("TMF"),
which are aggressive forms of cutaneous T-cell lymphomas.
IPH43 (anti-MICA antibody):
Innate Pharma progressed in the validation of
MICA as a target in oncology. Antibodies were humanized and lead
candidates have been characterized in order to select the best
development candidate.
IPH43 is a program to develop a first-in-class
anti-MICA therapeutic antibody in oncology. MICA is a highly
polymorphic ligand of the NK cell activating receptor NKG2D. It is
specifically expressed on several highly prevalent solid tumors
including breast, colorectal and lung.
Antibody-drug conjugate technology:
In October 2014, new preclinical data showing
the interest of Innate Pharma's proprietary site-specific
conjugation technology (« BTG-ADC ») were presented at
the « World ADC Summit ».
Corporate update:
Nomination:
In September 2014, Innate Pharma appointed
Pierre Dodion as Chief Medical Officer and member of the Executive
committee. In his most recent roles, Pierre Dodion was Senior Vice
President Corporate Development and Operations of ARIAD
Pharmaceuticals (2010-2013) and Associate Partner at Alacrita LLC
(2014). He replaces Marcel Rozencweig who became President of
Innate Pharma Inc., Innate's fully-owned US subsidiary. Marcel
Rozencweig will represent the Company in its interaction with US
stakeholders and remains a member of the Executive committee of
Innate Pharma.
In December 2014, Mr. Karsten Munk Knudsen,
Senior Vice President, Corporate Finance, became the new
representative of Novo Nordisk A/S on the Innate Pharma Supervisory
board.
Share information:
In December 2014, Innate Pharma became a
component of the SBF 120 Index, which comprises 120 French quoted
companies meeting pre-defined capitalization, free float and
liquidity criteria.
About Innate Pharma:
Innate Pharma S.A. is a biopharmaceutical
company discovering and developing first-in-class therapeutic
antibodies for the treatment of cancer and inflammatory
diseases.
Its innovative approach has translated into
major alliances with leaders in the biopharmaceutical industry such
as Bristol-Myers Squibb and Novo Nordisk A/S.
The Company has two clinical-stage programs in
immuno-oncology, a new therapeutic field that is changing cancer
treatment by enhancing the capability of the body's own immune
cells to recognize and kill cancer cells. Innate Pharma's science
also has potential in chronic inflammatory diseases.
Listed on Euronext-Paris, Innate Pharma is based
in Marseille, France, and had 99 employees as at December 31,
2014.
Learn more about Innate Pharma at
www.innate-pharma.com.
Practical Information about Innate Pharma
shares:
ISIN
code Ticker code |
FR0010331421 IPH |
Disclaimer:
This press release contains certain
forward-looking statements. Although the company believes its
expectations are based on reasonable assumptions, these
forward-looking statements are subject to numerous risks and
uncertainties, which could cause actual results to differ
materially from those anticipated. For a discussion of risks and
uncertainties which could cause the company's actual results,
financial condition, performance or achievements to differ from
those contained in the forward-looking statements, please refer to
the Risk Factors ("Facteurs de Risque") section of the Document de
Reference prospectus filed with the AMF, which is available on the
AMF website (http://www.amf-france.org) or on Innate Pharma's
website.
This press release and the information contained
herein do not constitute an offer to sell or a solicitation of an
offer to buy or subscribe to shares in Innate Pharma in any
country.
For additional information, please
contact:
Innate Pharma |
ATCG
Press |
Laure-Hélène Mercier Director,
Investor Relations |
Judith
Aziza, Mob.:+33 (0)6 70 07 77 51 Marielle Bricman, Mob.:+33 (0)6 26
94 18 53 |
Tel.: +33 (0)4 30 30 30 87 |
|
investors@innate-pharma.com |
presse@atcg-partners.com |
APPENDIX
Innate Pharma SA
Consolidated financial statements as at
December 31, 2014
The following consolidated balance sheet, income
statement and statement of cash flows are prepared in accordance
with International Financial Reporting Standards.
The audit procedures on the consolidated
financial statements have been performed. The auditors' report will
be issued after the finalization of the required procedures
relating to the filing of the annual report ('Document de
Référence'). The consolidated financial statements were approved by
the Company's Executive board on February 17, 2015. These
statements were reviewed by the Company's Supervisory board on
February 17, 2015 and will be submitted for approval to the
Shareholders' General Meeting on April 27, 2015.
Innate Pharma's financial annual report,
included in the reference document, will be available in the second
quarter of 2015.
Balance Sheet (in thousands of euros)
|
At December 31, |
|
2014 |
2013 |
Assets |
|
|
|
Current Assets |
|
|
|
Cash and cash equivalents |
64,286 |
38,360 |
|
Current financial instruments |
4,952 |
2,989 |
|
Current receivables |
10,075 |
8,002 |
|
Total current assets |
79,314 |
49,350 |
|
|
|
|
|
Non-current assets |
|
|
|
Intangible assets |
5,362 |
- |
|
Tangible assets |
5,931 |
6,258 |
|
Associates and joint ventures |
- |
272 |
|
Other non-current assets |
84 |
2 |
|
Total non-current
assets |
11,377 |
6,532 |
|
|
|
|
|
Total assets |
90,690 |
55,882 |
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities |
|
|
|
Trade payables |
10,322 |
8,665 |
|
Financial liabilities |
453 |
613 |
|
Provisions |
- |
- |
|
Total current
liabilities |
10,775 |
9,278 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
Financial liabilities |
3,753 |
4,206 |
|
Defined benefit obligations |
1,094 |
789 |
|
Other non current liabilities |
441 |
1,324 |
|
Total non-current
liabilities |
5,289 |
6,319 |
|
|
|
|
|
Shareholders' equity |
|
|
|
Capital and
reserves attributable to equity holders of the Company |
|
|
Share capital |
2,648 |
2,287 |
|
Share premium |
181,746 |
128,000 |
|
Retained earnings |
(89,881) |
(87,072) |
|
Net income (loss) |
(19,647) |
(2,892) |
|
Other reserves |
(241) |
(38) |
|
Total capital and reserves
attributable to equity holders of the Company |
74,626 |
40,286 |
|
|
|
|
|
Total liabilities and
equity |
90,690 |
55,882 |
|
Income Statement (in thousands of
euros)
|
Year
ended December 31, |
|
2014 |
2013 |
|
|
|
|
|
Revenue
from collaboration and licensing agreements |
907 |
12,469 |
|
Government
financing for research expenditures |
6,715 |
4,182 |
|
Revenue and other
income |
7,623 |
16,652 |
|
Cost of supplies and consumable
materials |
(1,693) |
(1,453) |
|
Intellectual property
expenses |
(511) |
(309) |
|
Other purchases and external
expenses |
(14,432) |
(9,219) |
|
Employee benefits other than
share-based compensation |
(7,915) |
(6,946) |
|
Share-based compensation |
(377) |
(325) |
|
Depreciation and amortization |
(2,344) |
(880) |
|
Other expenses |
(317) |
(312) |
|
Net operating expenses |
(27,589) |
(19,444) |
|
Operating income
(loss) |
(19,966) |
(2,793) |
|
Financial income |
917 |
533 |
|
Financial expenses |
(409) |
(387) |
|
Net gain on dilution |
(19) |
179 |
|
Share of profit (loss) of
associates and joint ventures |
(170) |
(424) |
|
Net
income (loss) before tax |
(19,647) |
(2,892) |
|
Income tax
expense |
- |
- |
|
Net
income (loss) |
(19,647) |
(2,892) |
|
|
|
|
|
Net
income (loss) per share attributable to equity holders of the
Company: |
|
|
|
Weighted average number of shares
(in thousands): |
50,152 |
38,703 |
|
(in € per share) |
|
|
|
-
Basic |
(0.39) |
(0.07) |
|
-
Diluted |
(0.39) |
(0.07) |
|
Statement of cash flows (in thousands
of euros)
|
Year
ended December 31, |
|
2014 |
2013 |
|
Net income (loss) |
(19,647) |
(2,892) |
|
Depreciation and amortization |
2,344 |
880 |
|
Provisions for charges and defined
benefit obligations |
118 |
102 |
|
Reversal of provisions |
154 |
- |
|
Share-based compensation |
377 |
325 |
|
Share of profit (loss) of
associates and joint ventures |
170 |
424 |
|
Net gain / (loss) dilution |
19 |
(179) |
|
Debt write-off |
- |
79 |
|
(Gains) / losses on disposal of
fixed assets |
2 |
3 |
|
Gains on assets and other
financial assets |
(541) |
(438) |
|
Net paid interests |
165 |
144 |
|
Other |
5 |
- |
|
Operating cash flow before
changing in working capital |
(16,834) |
(1,552) |
|
Current receivables and
prepayments |
(2,074) |
379 |
|
Deferred revenue |
(883) |
(4,273) |
|
Trade payables |
1,657 |
(5,521) |
|
Net cash generated from / (used
in) operating activities |
(18,134) |
(10,967) |
|
Acquisition of property and
equipment |
(2,343) |
(433) |
|
Disposals of non-current
assets |
- |
116 |
|
Purchase of current financial
instruments |
(1,963) |
(2,996) |
|
Disposal of current financial
instruments |
- |
2,038 |
|
Variance of the intercompany
account with the associate |
(60) |
(120) |
|
Gains on assets and other
financial assets |
541 |
438 |
|
Net cash generated from / (used
in) investing activities |
(3,823) |
(958) |
|
Proceeds from the exercise /
subscription of equity instrument |
1,015 |
423 |
|
Capital increase |
47,785 |
18 394 |
|
Increase in financial
liabilities |
- |
1,500 |
|
Repayment of financial
liabilities |
(613) |
(1,186) |
|
Net paid interests |
(165) |
(144) |
|
Transactions on treasury
shares |
(70) |
151 |
|
Net cash generated from / (used
in) financing activities |
47,950 |
19,677 |
|
Effect of the exchange rate
changes |
(68) |
23 |
|
Net increase / (decrease) in
cash and cash equivalents |
25,926 |
7,776 |
|
Cash and cash equivalents at
the beginning of the year |
38,360 |
30,584 |
|
Cash
and cash equivalents at the end of the year |
64,286 |
38,360 |
|
Management discussion on annual results for
2014:
Revenue and other income
Revenue and other income result from government
financing for research expenditure and collaboration and licensing
agreements. The Company's revenue and other income were
16.7 million euros and 7.6 million euros for the fiscal years
ended December 31, 2013 and 2014, respectively, from the following
sources:
|
Year ended December 31 |
In thousand euros |
2014 |
2013 |
Revenue
from collaboration and licensing agreements |
907 |
12,469 |
Government financing for research expenditures |
6,715 |
4,182 |
Revenue and other income |
7,623 |
16,652 |
Revenue from collaboration and licensing
agreements
Revenue from collaboration and licensing
agreements respectively amounted to 12.5 and 0.9 million euros
for the fiscal years ended on December 31, 2013 and 2014. These
revenues result from the licensing agreement signed with
Bristol-Myers Squibb in July 2011.
Following the licensing agreement signed with
Bristol-Myers Squibb for the development and commercialization of
the drug candidate IPH2102 (lirilumab), the Company received an
upfront payment of 24.9 million euros (35.3 million US dollars).
This upfront payment, which is non-refundable and non-creditable,
is recognized in turnover during the expected period of duration of
the clinical program in course at the date of the contract. The
amount that is not yet recognized as turnover is booked as deferred
revenue in the balance sheet (1.3 million euros). In addition to
this upfront payment, the Company invoices Bristol-Myers Squibb for
certain expenses relating to the licensed program.
The decrease in the turnover in 2014 mainly
reflects the fact that the work contemplated initially within the
upfront is largely completed.
Government financing for research
expenditures
The table below details government financing for
research expenditure for the fiscal years ended December 31, 2013
and 2014:
|
Year ended December 31 |
In thousands of euros |
2014 |
2013 |
Research
tax credit |
6,510 |
4,182 |
French
and foreign public grants |
205 |
- |
Government financing for research expenditures |
6,715 |
4,182 |
The calculation of the research tax credit is
based on 30% of the amount of eligible expenses for the fiscal
year.
The table below shows the amount of R&D
expenses (net of grants) eligible for the fiscal years ended
December 31, 2013 and 2014:
|
Year ended December 31 |
In thousands of euros |
2014 |
2013 |
|
|
|
R&D
expenses eligible for the research tax credit |
21,568 |
13,756 |
Grants
received, net |
- |
(66) |
Net
expenses eligible for the research tax credit |
21,568 |
13,690 |
When research tax credit is not deductible from
taxes payable by the Company, it is usually reimbursed by the
French government during the fourth fiscal year following the
period for which it was booked in the income statement. Since 2010,
companies classified as small and medium sized ("SMEs") according
to the European Union criterias are eligible for an early
reimbursement of the research tax credit. Innate Pharma qualifies
for early reimbursement of the research tax credit and received the
2013 amount in July 2014.
Since 2008, repayable grants received are
deducted from the basis of calculation of the research tax credit.
These amounted to 66 thousand euros in 2013 and there were none in
2014. In parallel, the Company conducts studies outside of the
European Union, notably in the USA, and these research expenses are
not eligible for the research tax credit calculation.
For the 2014 fiscal year, the Company booked a
grant amounting to 0.2 million euros in its income statement, as
opposed to repayable loans which are recognized as debt and thus
only impact the balance sheet.
Operating expenses by business
function
The table below gives a breakdown of net
operating expenses by business function for the fiscal years ended
December 31, 2013 and 2014:
|
Year ended December 31 |
In thousands of euros |
2014 |
2013 |
Research
and development expenses |
(22,671) |
(15,131) |
General
and administrative expenses |
(4,918) |
(4,313) |
Net
operating expenses |
(27,589) |
(19,444) |
Research and development expenses include the
cost of employees assigned to research and development operations,
product manufacturing costs, subcontracting costs as well as costs
of materials (reagents and other consumables) and pharmaceutical
products.
Research and development expenses amounted to
15.1 million euros and 22.7 million euros for the fiscal years
ended on December 31, 2013 and 2014, respectively representing 78%
and 82% of net operating expenses. The increase in research and
development expenses between 2013 and 2014 results from several
factors. These notably include an increase of subcontracting costs
relating to the development and the progress of the portfolios of
pre-clinical and clinical programs, an increase in the amortization
costs relating to the recognition of the rights of anti-NKG2A as an
intangible asset and the staff growth.
General and administrative expenses include
expenses for employees not directly working on research and
development, as well as the expenses necessary for the management
of the business and its development. General and administrative
expenses were 4.3 and 4.9 million euros for the fiscal years ended
on December 31, 2013 and 2014, respectively representing 22% and
18% of the net operating expenses. This increase mainly results
from the growth in staff costs, including share-based payments.
Operating expenses by nature
The table below gives a breakdown of net
operating expenses by nature of expenses for the fiscal years ended
December 31, 2013 and 2014:
|
Year ended December 31 |
In thousands of euros |
2014 |
2013 |
Cost of
supplies and consumable materials |
(1,693) |
(1,453) |
Intellectual property expenses |
(511) |
(309) |
Other
purchases and external expenses |
(14,432) |
(9,219) |
Employee
benefit other than share-based compensation |
(7,915) |
(6,946) |
Share-based compensation |
(377) |
(325) |
Depreciation and amortization |
(2,344) |
(880) |
Other
income and (expenses), net |
(317) |
(312) |
Net
operating expenses |
(27,589) |
(19,444) |
Cost of supplies and consumable materials
The cost of supplies and consumable materials
amounted to 1.5 million euros and 1.7 million euros for the fiscal
years ending on December 31, 2013 and 2014. The increase in this
line item between the two fiscal years results from the growth in
purchases used in the Company's laboratories.
Intellectual property expenses
Intellectual property expenses amounted to 0.3
million euros and 0.5 million euros for the fiscal years ending on
December 31, 2013 and 2014.
These expenses include the cost of filing and
protecting patents (including patents that were acquired from third
parties and where the agreements specified that Innate Pharma is
responsible for the relevant costs) as well as the costs for
obtaining an option or license for intellectual property. In
accordance with IAS 38, considering the degree of maturity of the
Company and the uncertainty that exists as to the outcome of its
research and development projects, intellectual property expenses
are recorded in expenses.
Other purchases and external expenses
Other purchases and external expenses amounted
to 9.2 million euros and 14.4 million euros during the fiscal years
ending ended on December 31, 2013 and 2014, broken down as
follows:
|
Year ended December 31, |
In thousands of euros |
2014 |
2013 |
Sub-contracting |
(9,883) |
(5,817) |
Travel
and conference costs |
(1,157) |
(794) |
Non-scientific consultancy |
(904) |
(694) |
Leases,
maintenance and utility |
(900) |
(854) |
Scientific consultancy and services |
(860) |
(454) |
Marketing, communication and public relations |
(314) |
(283) |
Attendance fees |
(183) |
(150) |
Others |
(231) |
(173) |
Other
purchases and external expenses |
(14,432) |
(9,219) |
Sub-contracting expenses involve discovery
research costs (financing of research conducted externally,
particularly academic research, antibody humanization technologies,
manufacturing process development, etc.), pre-clinical development
(pilot manufacturing, tolerance and pharmacology studies, etc.) and
clinical costs (clinical trial management, etc.) outsourced to
third parties. The increase in these costs mainly results from the
growth and progress of the portfolio of preclinical and clinical
programs.
Travel and conference costs mainly include
expenses for employees travelling and attending conferences,
particularly scientific, medical, business development and
financial conferences. The rise of the line item between 2013 and
2014 results from both the greater number of employees travelling
given both the expansion in staff numbers and the development of
our activities in the United States.
Non-scientific consultancy expenses are mostly
fees paid to audit firms, to our certified public accountant for
his assistance in accounting, tax and employee matters, to our
lawyers, to business strategy or development consultants and
recruitment fees. The increase in these expenses between 2013 and
2014 mainly results from recruitment fees and the outsourcing of
the reception role in our premises.
Leases, maintenance and utility costs are mainly
maintenance costs for laboratory equipment and the building.
Scientific consultancy and services consist of
costs related to external consultants assisting in the research and
development of our products. It also covers fees paid to members of
our Scientific Advisory Board. The increase in these costs between
2013 and 2014 is mostly explained by the recruitment of some staff
members as consultants, notably Dr. Pierre Dodion who acted as a
consultant before his appointment as Chief Medical Officer of the
Group.
Employee benefits other than share-based
compensation
Employee benefit expenses other than share-based
compensation came to 6.9 million euros and 7.9 million euros for
the fiscal years ended on December 31, 2013 and 2014.
This includes salaries and social benefit costs.
On average, Innate Pharma had 83 employees during the fiscal year
ended on December 31, 2013 and 91 employees during the fiscal year
ended on December 31, 2014.
The proportion of total staff, excluding
Executive committee members, allocated to research and development
operations was respectively 76% and 78% for the fiscal years ended
on December 31, 2013 and 2014.
The average amount of staff costs per employee
was 84 and 87 thousand euros for fiscal years ended on December 31,
2013 and 2014.
Share-based compensation
Share-based compensation amounted 0.3 and 0.4
million for the fiscal years 2013 and 2014.
In accordance with IFRS 2, these costs
correspond to the fair value of the equity instruments allocated to
directors and employees. The costs recognized in 2013 and 2014
result from the issuance during the fiscal year of warrants
for shares not including a condition requiring presence. As a
consequence, the fair value of these instruments were not deferred
but have been recognized as expenses in the income statement for
the 2013 and 2014 fiscal year.
Depreciation and amortization Depreciation and
amortization amounted 0.9 and 2.3 million euros for the fiscal
years ended December 31, 2013 and 2014 respectively. This variance
results from the amortization of the intangible asset relating to
anti-NKG2A purchased in February 2014. The relating amortization
expense amounts to 1.6 million euro for the fiscal year 2014.
Other income and expenses, net
Other income and expenses amounted 0.3 million
euros for the fiscal years ended on December 31, 2013 and 2014.
They mainly included certain indirect taxes, as well as exceptional
income and expenses.
Net financial income
The net financial income amounted respectively
to 0.1 million euros and 0.5 million euros for the fiscal years
ended on December 31, 2013 and 2014.
The Company's cash investment policy favours the
absence of risk on principal and, wherever possible, guaranteed
minimum performance.
The balance of cash, cash equivalents and
financial instruments was 41.3 million euros and 69.2 million
euros for the fiscal years ended on December 31, 2013 and 2014.
This improvement in cash position mainly results from the capital
increase carried out in June 2014 for a net amount of 47.8 million
euros (50.0 million euros, gross).
Net gain (loss) on dilution
As a consequence of the acquisition of an equity
interest in Platine Pharma Services SAS by the company Indicia
Biotechnology SA in July 2013, the Group recognized a net gain on
dilution for an amount of 0.2 million euros.
Share of profit (loss) in associate and
joint-venture
This amount represents the share of the Group of
the loss of the company Platine Pharma Services SAS for the first
half of the fiscal year 2014. Following the entry in the capital of
the company Advanced Bioscience Laboratories Inc., Platine Pharma
Services SAS is not consolidated anymore.
Income tax expense
Because of the accumulated losses reported this
year and over the past fiscal years, there is no income tax
expense. No deferred tax asset has been recorded as there is a
minimal likelihood of recovery.
In accordance with IFRS, the research tax credit
is classified as an 'Other revenue' and not in the line 'Income tax
expense'.
Net income/(loss) per share
The net loss per authorized and issued share
came to 0.07 euros and 0.39 euros for the fiscal years ended
December 31, 2013 and 2014.
Balance sheet items:
Since its incorporation in 1999, the Company has
been primarily financed from revenue from its licensing activities,
by issuing new securities, and by government financing for research
expenditure and repayable advances (Oséo, now BPI).
Financial debt amounted to 4.2 million euros as
of December 31, 2014.
Cash, cash equivalents and current financial
instruments amounted to 69.2 million euros as of December 31, 2014,
compared with 41.3 million euros as of December 31, 2013.
At December 31, 2014, trade payables include the
part of the upfront payment received from Bristol-Myers Squibb
which will be recognized in revenue in 2015. Other non-current
liabilities include the part of this upfront payment which will be
recognized later on.
Post balance sheet events:
None
Risk factors:
Risk factors affecting the Company are presented
in Chapter 5 of the latest "Document de Référence" submitted to the
French stock-market regulator, the "Autorité des Marchés
Financiers" on April 7, 2014.
Annual financial report for 2014 and "Reference
Document":
The Company intends to file its 2014 annual
financial report as well as its "Reference Document" for the year
so that these documents are made public in the second quarter of
2015.
Annual report 2014 IPH
http://hugin.info/155662/R/1895482/672185.pdf
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