Adocia: annual revenue of EUR 5.6 M in 2013

Adocia , a biotechnology company specialized in the development of ‘best-in-class’ medicines from already approved therapeutic molecules, in particular proteins and oncologic drugs, announces today its revenue for the last quarter 2013 and full year end.

Breakdown of the operating revenue

In thousands of euros – IFRS                                   2013      2012       Var. amount     Var. per cent

Licensing revenue                                                   5,636     2,104         + 3,532

Research and collaborative development contracts       (47)     1,892           (1,939)

Revenue (a)                                                        5,588    3,995         + 1,593     +40 per cent

Grants, public funding and tax credit research (b)      3,233     3,241             (8)

Operating income (a)+(b)                                   8,821    7,236        + 1,585    +22 per cent

Revenue for 2013 amounted to EUR 5.6 million compared to almost EUR 4 million in 2012.

This increase in revenue is essentially due to the termination of the licensing contract with Eli Lilly which had two consequences: the anticipated amortization, for EUR 4.7 million, of the remaining non-amortized part of the initial up-front payment received in 2011 (recognized in licensing revenue on the third quarter 2013), and the termination of the research contract which represented the majority of revenue recorded in 2012 for the research and collaborative development contracts.

Since the signature of the agreement covering the development of a new formulation of an ultra-fast acting insulin analog in December 2011, the initial up-front payment of EUR 7.6 million was recognized in revenue on a linear basis throughout the expected duration of the clinical development program, as set-out in the contract.

Public funding for research expenditures is mostly comprised of research tax credit. It represents EUR 3.2 million (the same amount as in 2012).

Detail per quarter

In thousands of euros – IFRS                                2013                                         2012

Q4        Q3     Q2     Q1            Q4        Q3      Q2      Q1

Licensing revenue                                 –         4,683   476     476           476       476     675    476

Research and collaborative

development contracts                          –             –      (47)     –               263       231     637    761

Revenue (a)                                       –        4,683   429   476           739     707   1,312  1,237


Cash position

At the end of 2013, cash and cash equivalents totaled EUR 19.4 million, compared to EUR 30.5 million at the end of 2012, leading to an annual burn rate of almost EUR 11 million, in line with the operating plan of the company.

Intensification of research activity and perspectives

Adocia faced a difficult situation in 2013 with the end of the contract with Eli Lilly regarding the development of the BioChaperone(R) ultra-fast insulin Lispro formulation. However, it had no impact on the company’s strategic plan. Motivated by the positive results obtained during the Phase I clinical trial conducted by Lilly on healthy patients, Adocia launched without delay a new Phase IIa clincial study to establish the ‘proof of concept’ on type 1 diabetic patients. The results of this study are expected in the second quarter of 2014.

Another key element in Adocia’s portfolio relates to the development of a combination of the long-acting Glargine insulin and a fast-acting insulin. As of this quarter, the company should be able to publish the results of the clinical trial launched in mid-November on type 1 diabetic patients and thereby establish the ‘proof of concept’.

Adocia’s clinical development plan for the treatment of foot ulcers for Europe has been established in accordance with the EMA (European Medicines Agency). In India, the dossier submitted in September 2012 to the Indian agency (DCGI) is still awaiting the authorization to start a Phase III clinical study. The DCGI seems to have resumed normal activity and the authorization is expected in the coming weeks.

2013 saw the acquisition of a new nanotechnology, DriveIn(R), that enhances Adocia’s portfolio and provides it with the opportunity to enter the cancer therapies market.

“Adocia is actively pursuing development through its different projects. We believe that the results of these two clinical studies for insulin will be crucial to convince potential partners of the efficacy of these two products that represent markets worth several billion dollars.” said Gerard Soula, CEO of Adocia.

“Rigorous cash management and prioritization of activities meant that the intensification of activities in 2013 (the launch of two clinical studies and acquisition of a new technology) did not incur spending increases when compared to 2012,” said Valerie Danaguezian, CFO of Adocia. “Our cash level of EUR 19.4 million at the end of December 2013 allows us to pursue our business plan, especially the clinical development of our three flagship products.”

Next scheduled events:

March 25, 2014: Publication of 2013 financial statements

March 26, 2014: Presentation meeting to investors, SFAF, Euronext (Paris)

Adocia will participate in:

March 10-12, 2014 : BioEurope in Turin, Italy

April 7-8, 2014 : Small Cap Events in Paris

About Adocia:

To be a global leader for the formulation of therapeutic proteins

Adocia is a biotech company specialized in the development of best-in-class drugs from the innovative formulation of certain already-approved therapeutic proteins. Adocia is specialized in insulin therapy and the treatment of the diabetic foot, one of the main complications of diabetes. Adocia successfully completed two Phases I and II studies on the formulation of a fast-acting human insulin and obtained promising Phase I/II results on a diabetic foot ulcer-healing product. In mid-November Adocia launched a Phase I clinical trial on a unique combination of fast-acting insulin and slow-acting insulin, for an optimal insulin therapy with one single product. Based on its experience and recognized expertise, Adocia has extended its activities to the formulation of monoclonal antibodies, which are gold standard molecules for the treatment of numerous chronic pathologies (oncology, inflammation, etc.). In this field, Adocia is engaged in collaborative programs with two major pharmaceutical companies.

Fight cancer by enhancing oncology treatments targeting

Late in 2013, Adocia acquired an exclusive license on a nanotechnology which improves oncology treatments efficacy by targeting their action to solid tumors. This nanotechnology, called DriveIn(R), is remarkably efficient in carrying active molecules and delivering them within solid tumors. This new platform in nanotechnology is an exceptional opportunity to enter the oncology market by improving the efficacy of already approved treatments. Adocia develops proprietary products based on doxorubicin and docetaxel, two of the most used anti-tumoral treatments, which could greatly benefit from an enhanced intra-cellular delivery. Adocia will also propose the DriveIn technology to pharmaceutical companies to optimize the efficacy of their own proprietary molecules.

‘Innovative medicine for everyone, everywhere’

Through its BioChaperone(R) state-of-the-art technological platform, Adocia intends to enhance the effectiveness and safety of therapeutic proteins and their ease of use for patients, with the aim of making these medicines accessible to the broadest public. Adocia’s therapeutic innovations aim at bringing solutions in a profoundly changing global pharmaceutical and economic context, characterized in particular by the increased prevalence and impact of the targeted pathologies, population growth and ageing, the need to control public health expenditures and increasing demand from emerging countries.

Adocia is listed on the regulated market of Euronext in Paris (ISIN: FR0011184241, mnemo / Reuters / Bloomberg: ADOC, ADOC.PA, ADOC.FP) and its share included in the Next Biotech index.

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