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Inventiva H1 EPS €(0.94) Up From €(1.31) YoY; Revenue €41K Down From €1.9M YoY
Inventiva S.A -0.67%
Inventiva S.A IVA | 4.46 | -0.67% |
Key financial results for the first half of 2024
| (in thousands of euros) | Six months ended | |||
| June 30, 2024 | June 30, 2023 | |||
| Revenues | 41 | 1,901 | ||
| Other income | 2,693 | 4,721 | ||
| Research and development expenses | (46,822) | (54,062) | ||
| Marketing – business development expenses | (598) | (705) | ||
| General and administrative expenses | (7,701) | (6,812) | ||
| Other operating income (expenses) | 138 | (44) | ||
| Net operating loss | (52,249) | (55,003) | ||
| Net financial income | 3,507 | (273) | ||
| Share of net loss - Equity method | (168) | 0 | ||
| Income tax | (119) | 7 | ||
| Net loss for the period | (49,029) | (55,269) | ||
| Basic/diluted loss per share (euros/share) | (0.94) | (1.31) | ||
| Weighted average number of outstanding shares used for computing basic/diluted loss per share | 51,982,093 | 42,044,796 | ||
The Company did not record any revenues in the first half of 2024, as compared to €1.9 million recorded during the same period in 2023. The revenues recorded by the Company in the first half of 2023 were attributed to a milestone payment by CTTQ, a Sino Biopharm subsidiary, after it received the Investigational New Drug ("IND") approval from the Chinese National Medical Products Administration ("NMPA") in May 2023, allowing the initiation of the clinical development of lanifibranor in MASH/NASH in mainland China.
Other income amounted to €2.7 million for the first half of 2024, as compared to €4.7 million for the first half of 2023, decreased 42.5% mainly driven by the reclassification in 2024 of some R&D expenses reinvoiced to CTTQ that were previously recorded in other income, and to a lesser extent by the slight decrease in research tax credit due to decrease in R&D expenses for the period compared to the first half of 2023.
R&D expenses for the first half of 2024 amounted to €46.8 million, mainly driven by the development of lanifibranor in MASH/NASH and were down 13.4% compared to the €54.1 million for the first half of 2023.
The decrease in R&D expenses over the period is primarily due to the temporary voluntary pause in the recruitment of patients in the NATiV3 Phase III clinical trial of lanifibranor in MASH/NASH ("NATiV3") following the Suspected Unexpected Serious Adverse Reaction ("SUSAR") previously reported in the first quarter of 2024 and, to a lesser extent, due to the completion of the LEGEND Phase IIa combination trial with lanifibranor and empagliflozin in patients with MASH/NASH and type 2 diabetes ("T2D"). R&D expenses are expected to increase in the second half of 2024 following the restart of patient recruitment in NATiV3, as well as the planned clinical development activities and related costs associated with the NATiV3 for the second half of 2024.
Marketing and business development expenses stood at €0.6million for the first half of 2024 compared to €0.7 million for the same period in 2023.
General and administrative expenses (G&A) amounted to €7.7 million in the first half of 2024, compared to €6.8 million in the first half of 2023. Increase by 13% is mainly due to personnel costs and consulting fees.
Net financial income (loss) amounted to €3.5 million in the first half of 2024, compared to (€0.3) million. The income mainly relates to the change in fair value of the warrants issued to the European Investment Bank ("EIB") in connection with the drawdown of two tranches of €25 million under our unsecured loan agreement with EIB (the "Finance Contract"), and is partially offset by an increase in the financial interests borne on those tranches and on the royalty certificates issued in August 2023 (the "2023 Royalty Certificates").
The Company's net loss stood at (€49.0) million as of June 30, 2024, compared to (€55.3) million as of June 30, 2023.
As of June 30, 2024, the Company's cash and cash equivalents stood at €10.1 million, compared to cash and cash equivalents at €26.9 million, short-term deposits1 of €0.01million, and long-term deposits2 of €9.0 million as of December 31, 2023.
Net cash used in operating activities amounted to (€48.3) million in the first half of 2024, compared to (€45.2) million for the same period in 2023 down by 6.8% while the R&D expenses for the first half of 2024 were (€46.8) million, down 13.3% compared to the first half of 2023 (see above) partially offset by a negative working capital variance between both periods.
Net cash generated from investing activities for the first half of 2024 amounted to €8.9 million, compared to (€7.7) million used in the first half of 2023. The change is mostly due to the variation in term deposits between both periods.
Net cash generated from financing activities for the first half of 2024 amounted to €22.6 million, compared to (€2.2) million used in the first half of 2023. The change is due to the second tranche of €25 million drawn in January 2024 under the Finance Contract. As a condition to the drawdown of the second tranche, the Company issued 3,144,654 warrants to the EIB.
Over the first half of 2024, the Company recorded a positive exchange rate effect on cash and cash equivalents of €0.1 million, compared to a negative effect of (€0.4) million for the first half of 2023, due to the evolution of the EUR/USD exchange rate.
