(April 1st, 2023 - March 31st, 2024)
Regulatory News:
Medincell (Paris:MEDCL):
Highlights
Commercial launch by Teva Pharmaceuticals (“Teva”) of UZEDY®
(risperidone) in the U.S., the first product using Medincell BEPO®
technology
- Successful commercial launch and market access negotiations
with U.S. private and public health insurance systems
- Receipt of a €3.6 million milestone payment for U.S. FDA
approval and €1.7 million in royalties received on first net
sales
- Sales ramp-up in line with forecasts: $80 million in revenue
anticipated by Teva in 2024
Acceleration of phase 3 clinical trial of mdc-TJK
(olanzapine, schizophrenia), second antipsychotic developed with
Teva
- End of recruitment in January 2024, 9 months earlier than
originally planned
Post-closing
- Announcement of positive phase 3 efficacy results in May
2024
- No post-injection delirium/sedation syndrome (PDSS) observed
after administration of approximately 80% of the number of
injections required by the FDA, as of May 8, 2024
End of phase 3 clinical trial of mdc-CWM (intraarticular
celecoxib, post-op pain, developed in partnership with AIC)
- Recruitment of 151 patients completed in August 2023
Post-closing
- Encouraging phase 3 results paving the way for future
developments announced in May 2024
Financing
- €23.2 million net received following the capital increase in
May 2023
- €10.0 million corresponding to the final tranche of the
European Investment Bank loan received in August 2023
Christophe Douat, CEO of Medincell: "2023 has been a
transformative year, marked by the FDA approval and successful
commercial launch of UZEDY in the United States by our partner
Teva. The anticipated rise in UZEDY royalties and the expected
revenue from the olanzapine LAI will generate net profit to fuel
Medincell’s sustainable growth. We have entered a new era,
demonstrating our ability to innovate and develop the enabling
technologies to design innovative therapeutic solutions. We are now
excited to welcome new partners, such as AbbVie, with whom we have
recently signed a significant strategic agreement."
Consolidated financial statements for
the year 2023-24
Operating result: €(21.0) million, a 13% improvement vs
previous year
- Revenues and other income: €11.9 million
- Operating expenses: €(32.9) million
Net result: €(25.0) million, a 22% improvement vs previous
year
Cash consumption from operating activities: €11.9 million, a
43% decrease vs previous year
Closing cash position: €19.5 million (of which €5.2
million in the form of non-risky financial assets)
Main post-closing cash-in: €32.5 million (AbbVie initial
payment)
Audit procedures on the Company’s 2024
consolidated accounts were completed. The statutory auditors report
on the 2024 consolidated financial statements will be issued after
the completion of the procedures required for the filing of the
Universal Registration Document with the French Financial Markets
Authority (Autorité des Marchés Financiers or AMF).
Strategic co-development and licensing
agreement with AbbVie (April 2024,
post-closing)
On April 16, 2024, Medincell announced a collaboration with
AbbVie to co-develop and commercialize up to six therapeutic
products across multiple therapeutic areas and indications.
Medincell will use its commercial-stage long-acting injectable
technology platform to formulate innovative therapies. Medincell
will conduct formulation activities and preclinical studies,
including supportive CMC work to advance candidates into clinical
trials. AbbVie will finance and conduct the clinical development
for each program and will be responsible for regulatory approval,
manufacturing, and commercialization.
The first LAI program candidate has been selected and
formulation activities are underway.
Under the terms of the co-development and licensing agreement
covering up to 6 programs, Medincell has received a $35 million
upfront payment and is eligible to receive up to $1.9 billion in
development and commercial milestones ($315 million for each
program). Medincell is also eligible to receive mid-single to
low-double-digit royalties on net sales.
Successful commercial launch of UZEDY® (1-month and 2-month
risperidone, schizophrenia)
UZEDY® is the first product based on Medincell long-acting
injectable technology to reach the commercial stage:
- U.S. market authorization obtained from the U.S. FDA on April
28, 2023
- Commercial launch under the brand name UZEDY® by Teva in the
United States in May 2023
- Teva's comments on the commercial launch:
- Based on the agreements already reached and ongoing
negotiations with US government, private and public health
insurance systems, Teva expects market access to continue to
improve in 2024;
- Feedback from healthcare professionals and patients has been
well-received related to the product's attributes, such as its
subcutaneous injection and pre-filled, ready-to-use syringe;
- Teva forecasts sales of $80 million in 2024, in line with sales
acceleration forecasts.
- Over the past fiscal year, Medincell received €3.6 million in
milestone payments following FDA approval of UZEDY®, as well as the
first royalties of €1.7 million, calculated on Teva net sales in
the U.S.
mdc-TJK (olanzapine, schizophrenia): recruitment finalized 9
months earlier than planned
If approved by the FDA, mdc-TJK would be the first long-acting
injectable olanzapine product with a favorable safety profile,
potentially elevating this product to first-in-class status.
mdc-TJK aims at offering an additional treatment solution for UZEDY
for patients with more severe forms of schizophrenia.
- On November 13, 2023, Teva announced that it had entered into a
financing agreement with Royalty Pharma to accelerate the program's
development.
- Recruitment of the 640 study participants was completed in
January 2024, 9 months earlier than initially planned.
- On May 8, 2024, Medincell and Teva announced positive efficacy
results for the SOLARIS phase 3 trial: meeting its primary endpoint
across all three dosing groups, with mean difference in change in
the Positive and Negative Syndrome Scale (PANSS)1 total score from
baseline to week 8 of -9.71 points, -11.27 points, and -9.71 points
versus placebo for the high, medium, and low dose groups,
respectively. These differences from placebo were clinically
meaningful and statistically significant with adjusted p-values of
<0.001 for each comparison. Key secondary endpoints of CGI-S
(Clinical Global Impressions – schizophrenia) and PSP (Personal and
Social Performance Scale) total score were also statistically
significant after adjusting for multiplicity. No cases of
post-injection delirium/sedation syndrome (PDSS) have been reported
to date, after administration of approximately 80% of the target
injection number requested by FDA.
1 The PANSS is composed of 3
subscales: Positive Scale, Negative Scale, and General
Psychopathology Scale. Each subscale is rated with 1 to 7 points
ranging from absent to extreme. Each of the 30 items is accompanied
by a specific definition as well as detailed anchoring criteria for
all seven rating points. These seven points represent increasing
levels of psychopathology, as follows: 1- absent 2- minimal 3- mild
4- moderate 5- moderate severe 6- severe 7- extreme; the PANSS
overall total score ranges from 30 to 210, with a higher score
indicating greater symptom severity. The primary efficacy endpoint
was measured by change from baseline to week 8 against the PANSS
total score.
- The complete safety database should be available in the second
half of 2024.
mdc-CWM (intra-articular celecoxib, post-operative pain): end
of phase 3 clinical trial and encouraging results paving the way
for future developments
- Recruitment of the 151 participants in the study conducted by
Arthritis Innovation Corporation (AIC) was completed in August
2023.
- The results of the study conducted by AIC were released on May
14, 2024. The study did not meet its primary endpoint of
time-weighted AUC1 of pain intensity over 14 days when comparing
treatment with multimodal analgesia (MMA) alone to MMA concurrent
with a single dose of F14 administered in the knee at the time of
Total Knee Replacement (TKR). The MMA control analgesia that every
patient received was defined by the protocol as standard of care
periarticular infiltration with bupivacaine, oral acetaminophen and
opioid rescue medication.
A numerical improvement favoring F14 was
observed for the primary endpoint. Secondary endpoints of
time-weighted AUC of pain over 3 and 7 days also demonstrated
numerical improvement favoring F14. The safety profile for F14 was
consistent with the prior Phase 2 study, and no new safety signals
were identified, and no SAEs2 were reported as related to F14
treatment.
Substantial improvement was observed for
F14-treated patients for the key secondary endpoint of knee range
of motion (ROM) at 6 weeks, as well as at 3 months (p<0.005 and
p<0.0005 respectively; unadjusted for multiplicity).
Treated-knee effusion (i.e., swelling) showed highly improved
outcomes for the F14-treated patients compared to MMA at 6 weeks
and 3 months (p<0.005 and p<0.05 respectively, unadjusted for
multiplicity). The widely used clinical-performance based measure
of lower extremity function, the Timed-Up-and-Go (TUG) test was
also improved for the F14 group at 6 weeks. Notably, far greater
improvements were observed for the endpoints of time-weighted AUC
of pain, ROM, effusion, and TUG in a sub-group of patients
representing over 70% of the trial population (108/151) who had not
previously undergone TKR in their contralateral (non-study) knee.
This subset analysis was pre-specified in the protocol, but not
alpha-controlled for formal statistical testing. AIC intends to
discuss the results from this trial with regulators and explore
alternative approval pathways for F14 in this sub-group of
patients.
1 Time-weighted Area Under the
Curve (AUC) of pain is a statistical measure used in clinical
trials and pain management studies to quantify the overall
experience of pain over a specified period. It integrates both the
intensity of pain and the duration for which that pain is
experienced.
2 SAE: Severe adverse event
Progressing the preclinical pipeline
- Progress in preclinical activities for two programs to prepare
initial of clinical trials: mdc-WWM (contraception) with support
from the Bill & Melinda Gates Foundation and mdc-STM (malaria)
with support from Unitaid (the international health agency has
granted Medincell an additional envelope of $6 million to advance
the mdc-STM program into clinical phase in April 2024,
post-closing)
- Launch of feasibility studies and formulation activities for
several in-house or partnered programs
- Discontinuation of two preclinical programs for strategic
reasons: mdc-ANG (antipsychotic, developed with Teva) and mdc-GRT
(transplantation, in-house program).
Other Research and Development activities
In parallel with the advancement of the R&D pipeline,
Medincell teams have continued to strengthen the Company's
technological portfolio, to increase its capacity to formulate
innovative treatments with different types of molecules and
different therapeutic objectives.
Selected financial information for fiscal year
2023-2024
Key consolidated figures - IFRS (in
thousands of €)
INCOME STATEMENT
March 31, 2024 12
months
March 31,2023 12
months
Revenues
9 032
9 889
Other income
2 913
3 766
Current operating result
(20 940)
(24 025)
Operating result
(20 977)
(24 046)
Financial result
(3 973)
(7 964)
Net result
(25 038)
(32 010)
CASHFLOW
March 31, 2024
March 31,2023
Net cashflow from operating activities
(11 922)
(21 005)
Net cashflow from investing activities
(613)
1 298
Net cashflow from financing activities
25 528
1 556
BALANCE SHEET
March 31, 2024
March 31,2023
Equity of the consolidated group
(40 824)
(42 294)
Total non-current liabilities
61 304
14 608
Total current liabilities
16 466
57 025
Total non-current assets
9 690
9 772
Of which financial assets and other
non-current assets
1 792
1 460
Total current assets
27 258
19 568
Of which cash and cash equivalents
19 460
6 467
FINANCIAL DEBT
March 31, 2024
March 31,2023
Financial debt, non-current portion
50 541
11 708
Financial debt, current portion
5 518
39 757
Non-current derivative liabilities
5 745
-
Current derivative liabilities
-
3 055
GROSS FINANCIAL DEBT
61 804
54 520
Cash and cash equivalents
19 460
6 467
NET FINANCIAL DEBT
42 344
48 053
Consolidated cash flow statements
(In thousands of euros)
March 31, 2024 12
months
March 31,2023 12
months
A
Net cashflow from operating activities
(11 922)
(21 005)
B
Net cashflow from investing activities
(613)
1 298
C
Net cashflow from financing activities
25 528
1 556
Impact of non-monetary items and foreign
exchange rate changes
-
-
Change in net cash position
12 993
(18 150)
Cash and cash equivalents - opening
balance
6 467
24 617
Cash and cash equivalents - closing
balance
19 460
6 467
A- Net cashflow from operating activities
Cash expenses from operations decreased compared to previous
year, in particular due to lower current operating expenses and the
receipt of the first royalties from UZEDY® net sales.
B- Net cashflow from investing activities
Net cashflow from investing activities was down €1.9m on the
previous year. The latter included the termination of a
capitalization contract in the first quarter of 2023 for 2.6 M€,
which was not repeated in the year ended March 31, 2024. In the
year ended March 31, 2024, net cashflow from investing activities
included the acquisition of laboratory equipment and instruments,
and improvements to the Jacou site for €0.3 million, and the
acquisition of intangible assets relating to intellectual property
for €0.9 million, partially offset by the receipt of €0.5 million
in income from cash interests on investments.
C- Net cashflow from financing activities
The €24 million increase over the previous year relates to
proceeds of €23.2 million from capital raise in May 2023, net of
issuance costs, and the receipt of the last 10 M€ tranche of the
EIB loan in July 2023. The Company continued to repay its
outstanding loans during the fiscal year.
Consolidated income statement
(In thousands of euros)
March 31, 2024 12
months
March 31,2023 12
months
Value
Variance
Variance
%
Revenues
9 032
9 889
(857)
-9%
Other income
2 913
3 766
(853)
-23%
REVENUES AND OTHER INCOME
11 945
13 655
(1 710)
-13%
Research and Development Expenses
(21 076)
(27 925)
6 849
-25%
Sales and Marketing Expenses
(2 639)
(2 588)
(51)
2%
General and Administrative Expenses
(9 170)
(7 167)
(2 003)
28%
TOTAL OPERATING EXPENSES
(32 885)
(37 680)
4 795
-13%
CURRENT OPERATING RESULT
(20 940)
(24 025)
3 085
13%
Other non-current operating income and
expenses
(37)
(21)
(16)
76%
OPERATING INCOME
(20 977)
(24 046)
3 069
13%
Financial interest income
553
41
512
1249%
Cost of gross financial debt
(4 617)
(3 932)
(685)
17%
Change in fair value of financial
liabilities
(53)
(5 206)
5 153
-99%
Other financial expenses
(1)
(57)
56
-98%
Other financial income
145
1 190
(1 045)
-88%
FINANCIAL RESULT
(3 973)
(7 964)
3 991
50%
PROFIT BEFORE TAX
(24 950)
(32 010)
7 060
22%
Income tax (expense)/income
(88)
-
88
N/A
NET RESULT
(25 038)
(32 010)
6 972
22%
- Attributable to Medincell
shareholders
(25 038)
(32 010)
6 972
22%
- Attributable to non-controlling
interests
-
-
-
-
Revenue and other revenue: 11.9 M€
For the year ended March 31, 2024, Company revenues include the
following items:
- Medincell has received a milestone payment of €3.6 million from
Teva following FDA approval of UZEDY®.
- Royalties on net sales from UZEDY® were invoiced to Teva for
€1.7 million, and royalties on intellectual property to the CMB
joint-venture for €0.6 million.
- As part of the collaboration with the Bill & Melinda Gates
Foundation to develop a contraceptive long-acting injectable and an
HIV preventive product, Company revenues amount to €1.8 million for
the 2023-2024 financial year.
- The collaboration with Unitaid to develop a long-acting
injectable product to fight malaria in LMICS (low- and
middle-income countries) generated revenue of €0.6 million.
- Sales from services, including feasibility studies, represented
€0.7 million.
Other income consists mainly of the Research Tax Credit for €2.8
million.
Current operating expenses: €32.9 million
Current operating expenses decreased by €4.8 million (13%)
compared to the previous year.
R&D expenses decreased from €27.9 million in the previous
year to €21.1 million, to represent 64% of the total operating
expenses. Subcontracting expenses relating to CDMOs and CROs
decreased following the end of phase 2 trial of the mdc-TTG program
and because of reduced polymer purchases.
General and administrative expenses increased by €2.0 million
(or 28%) compared to the previous year, due to various fees
(consulting concerning the Research Tax Credit, lawyers, audit,
investors relations in the United States), as well as higher
personnel expenses (notably bonus, profit-sharing and free shares
related expenses).
Net financial result: €(4.0) million
Net financial loss reduced by €4.0 million year-on-year. This
variance is explained by the renegotiation of the EIB loan on
November 22, 2022, which led to an increase in the average debt
after the issue of tranches B and C of the loan, and to a reduction
in the effective interest rate from 16.3% to 13.0% on tranche A, by
the re-evaluation of the variable remuneration due to EIB and by
the change in fair value of the warrants put options attributed to
EIB as of March 31, 2024.
Net financial charge is mainly composed of interest payable on
the EIB loan of €(4.4) million as of March 31, 2024, compared with
€(3.5) million as of March 31, 2023. The change in fair value of
the EIB loan amounted to €(0.1) million and comprises the following
items:
- The change in the estimate of variable remuneration had a
positive impact of €1.5 million on financial income,
- The fair value of the put options on the warrant components of
the EIB loan had a negative €1.5 million impact on financial
charges.
About Medincell
Medincell is a clinical- and commercial-stage biopharmaceutical
licensing company developing long-acting injectable drugs in many
therapeutic areas. Our innovative treatments aim to guarantee
compliance with medical prescriptions, to improve the effectiveness
and accessibility of medicines, and to reduce their environmental
footprint. They combine active pharmaceutical ingredients with our
proprietary BEPO® technology which controls the delivery of a drug
at a therapeutic level for several days, weeks or months from the
subcutaneous or local injection of a simple deposit of a few
millimeters, entirely bioresorbable. The first treatment based on
BEPO® technology, intended for the treatment of schizophrenia, was
approved by the FDA in April 2023, and is now distributed in the
United States by Teva under the name UZEDY® (BEPO® technology is
licensed to Teva under the name SteadyTeq™). We collaborate with
leading pharmaceutical companies and foundations to improve global
health through new treatment options. Based in Montpellier,
Medincell currently employs more than 140 people representing more
than 25 different nationalities.
UZEDY® and SteadyTeq™ are registered trademarks of Teva
Pharmaceuticals.
www.medincell.com
This press release may contain forward-looking statements,
particularly concerning the progress of the Company's clinical
trials. Although the Company considers that its forecasts are based
on reasonable assumptions, any statements other than statements of
historical fact that may be contained in this press release
relating to future events are subject to change without notice, to
factors beyond the Company's control and to the Company's financial
capabilities.
These statements may include, but are not limited to, any
statements beginning with, followed by or including words or
expressions such as "objective", "believe", "expect", "aim",
"intend", "may", "anticipate", "estimate", "plan", "project",
"will", "may", "probably", "should", "could" and other words or
expressions of similar meaning or used in the negative.
Forward-looking statements are subject to inherent risks and
uncertainties beyond the Company's control which may cause actual
results, performance or achievements of the Company to differ
materially from those anticipated or implied by such
statements.
A list and description of such risks, hazards and uncertainties
can be found in the documents filed by the Company with the
Autorité des Marchés Financiers (AMF) pursuant to its regulatory
obligations, including in the Company's document de base,
registered with the AMF on September 4, 2018 under number I.
18-062, as well as in documents and reports to be published
subsequently by the Company. Furthermore, these forward-looking
statements only apply as of the date of this press release. Readers
are cautioned not to place undue reliance on these forward-looking
statements. Except as required by law, the Company undertakes no
obligation to publicly update these forward-looking statements, nor
to update the reasons why actual results may differ materially from
those anticipated in the forward-looking statements, even if new
information becomes available. The Company's updating of one or
more forward-looking statements does not imply that it will or will
not update these or any other forward-looking statements.
This press release is published for information purposes only.
The information contained herein does not constitute an offer to
sell or a solicitation of an offer to buy or subscribe for
securities of the Company in any jurisdiction whatsoever,
particularly in France. Similarly, this press release does not
constitute investment advice and should not be treated as such. It
is not intended to address the investment objectives, financial
situation or specific needs of any particular recipient. It should
not be relied upon as a substitute for the exercise of your own
judgement. All opinions expressed in this document are subject to
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version on businesswire.com: https://www.businesswire.com/news/home/20240609409426/en/
David Heuzé - Head of Corporate and Financial Communications,
and ESG david.heuze@medincell.com / +33 (0)6 83 25 21 86
Grace Kim - Head of US Financial Strategy and IR
grace.kim@medincell.com / +1 (646) 991-4023
Investors Relations France Louis-Victor
Delouvrier/Alban Dufumier medincell@newcap.eu / +33 (0)1 44 71
94 94
Media Relations Nicolas Mérigeau
medincell@newcap.eu / +33 (0)1 44 71 94 94
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