- Revenue and operating income maintained at €38.3 million
(-3%)
- 2020 Group revenue of €25.5 million, down slightly (- 5%) after
the exceptional growth of 34% recorded in 2019
- The Service BU’s contribution to Group revenue remained stable
at €21.1 million, offering good prospects for 2021 with a sharp
increase in the order book (+36%)
- Biotech BU recurring revenue of €3.4 million, up 20%; over €1
million in milestone payments in 2020
- Solid cash position of €28.8m, including €15.9m in
State-Guaranteed Loan financing
- Finalization of the structuring of the Group into three
Business Units
Regulatory News:
ONCODESIGN (Paris:ALONC) (ALONC – FR0011766229), a
biopharmaceutical group specialized in precision medicine,
announces that its 2020 operating revenue has held up at €38.1
million and it is anticipating an operating profit for the second
year in a row, despite the global public health and economic
crisis.
Philippe Genne, Chairman, Chief Executive Officer and Founder
of Oncodesign, says: “2020 was a year that put the spotlight on
the pivotal role of the health sector and the need to invest in new
healthcare technologies in this sector. Global pharmaceutical
research successfully rallied round to meet the very tough
challenge of delivering therapeutic solutions that are effective
against the COVID-19 virus in barely a year. Public health took
precedence over the economy and, having met the challenge, the
pharmaceutical industry is now in phase with its primary mission
again. Within this international context of extreme and persistent
focus, Oncodesign has shown resilience and ingenuity to stay on
course, as illustrated by us maintaining our operating revenue at
38 million euros (-3%) following the exceptional performance
recorded in 2019. Group revenue was €25.5 million (-5%), still
driven by our Service activity whose contribution was €21.1
million, with at the same time a high level of investment in our
flagship RIPK2 and MNK1,2 projects.
Oncodesign was able to rapidly reposition itself and deploy a
COVID-19 service offer in just a few months to meet the needs of
its clients, enabling us to sign over €3 million in orders with
this new offer and achieve €1.5 million in revenue over the final
part of the year. This partly offset the general slowdown observed
in our other therapeutic fields, and especially the lengthening of
decision-making times that weighed on our Service and Biotech
activities.
We also welcome the progress made by our LRKK2 program, which
reached a new milestone at the start of the year and which will
continue in 2021. Servier laboratories have thus confirmed their
interest in this program and are planning to continue their
collaboration with our teams over the coming months. Lastly, we are
seeing growing interest from pharmas in our ODS-101 drug candidate
as the results of the ongoing development phases come in, IND being
scheduled for mid-2021.
The public health crisis associated with COVID-19 has slowed our
ability to achieve our growth targets set in 2020, but everything
is in place for us to meet our targets in 2023. More than ever, I
would like to thank our teams for their commitment, their tenacity,
their creativity and their ability to adapt and continue making
progress, as well as the trust and commitment of our
shareholders”.
Arnaud Lafforgue, Oncodesign’s Chief Financial Officer,
adds: “Within the context of an unprecedented year in 2020, we were
able to maintain our revenue and profitability. These results
strengthen our confidence in Oncodesign’s ability to reach all its
objectives, i.e. grow Service revenue to €50 million by 2023 with
EBITDA of between 15% and 20%, take 3 drug candidates to the
clinical phase and develop Artificial Intelligence BU revenue.
Furthermore, our record cash position of €28.8 million (including
€15.9 million in State-Guaranteed Loans) allows us to face the
future with confidence”.
Oncodesign group - Key figures
€ millions Consolidated data,
unaudited
2020
2019
Change
Service BU external revenue
21.13
21.08
+ 0.2%
Biotech BU revenue
4.40
5.84
- 25%
Biotech BU recurring revenue
3.40
2.84
+ 20%
Biotech BU Up-Front/Milestone revenue
1.00
3.00
- 67%
Total revenue
25.53
26.92
- 5%
Other revenue and operating income(1)
12.79
12.60
+ 2%
Total revenue and operating
income
38.32
39.52
- 3%
Cash position (at December 31)
28.80
10.51
+ 174%
(1) including the subsidy received from
GSK every January for the previous year. The final GSK subsidy
payment was in January 2020.
Group revenue totaled €25.5 million in 2020, illustrating the
good resistance of the economic model deployed by Oncodesign, which
limited the decrease to 5% despite the previous year’s exceptional
growth of 34%.
Service BU External Revenue of €21.1
million in 2020, stable compared with 2019
Oncodesign Service BU – Breakdown in
revenue
€ millions Consolidated data,
unaudited
2020
Change H1-H2
2019
Change H1-H2
Change 2019-20
H1
H2
Total
H1
H2
Total
External revenue
9.03
12.10
21.13
+ 34%
10.10
10.98
21.08
+9%
=
Internal revenue(1)
4.97
3.13
8.10
- 37%
3.66
3.66
7.32
=
+ 11%
Total revenue
14.00
15.23
29.23
+ 9%
13.76
14.64
28.40
+ 6%
+ 3%
(1) Internal revenue is canceled in the
presentation of consolidated accounts
In 2020, the Service BU revenue recorded with external clients
came to €21.1 million, stable compared with 2019. When internal
revenue (corresponding to services provided by the Service BU to
the Biotech BU) is added, total Service BU revenue was €29.2
million.
The persisting crisis is notably creating a polarization problem
for the pharmaceutical industry regarding the treatment of COVID,
resulting in significant delays in the decision-making process that
is affecting our Service revenue, as well as that of our Biotech
BU.
In the first half of the year, the Service BU’s External revenue
totaled €9 million and was impacted by the emergence of the public
health crisis leading to global paralysis over the first months and
in particular the cancellation of scientific conferences, forums
and meetings with clients, as well as a status quo or postponement
regarding the signing of new business. During the second half of
the year, on the contrary, this External Service revenue recorded
strong growth to €12 million, +34% compared with the first half of
the 2020 and +10% compared with the second half of 2019. This
increase in activity for our clients (External revenue) led to a
decrease in Internal revenue (for the Biotech BU). The putting in
place of digital set-ups to maintain contact with our clients
(videoconferences, webinars, etc.), the business continuity plan
executed by the Company to keep our laboratories open without
interruption and the implementation – in record time – of a new
Service offer relating to COVID-19, combined with industrialists’
requirements, allowed us to reverse the trend and maintain our
level of revenue during the global health crisis. The Company thus
generated revenue of €1.5 million from its COVID-19 offer in IDMIT1
infrastructures in partnership with the CEA.
Service order book: €26 million, +36%
The order book grew sharply by +36%, with €26 million of orders
booked in 2020 versus €19 million in 2019. The second half of the
year alone enabled us to book €15 million in new orders, a record
for Oncodesign.
€ millions
2020
2019
Change
France and Southern Europe
8.2
9.8
- 16%
North America
4.1
2.5
+ 66%
Northern Europe
1.0
1.4
- 27%
Central Europe
7.1
2.8
+ 154%
Asia (Japan & South Korea)
5.4
2.6
+ 108%
Oceania
0.1
ns
na
Total
25.9
19.1
+ 36%
The geographical split in our order book has shifted, with
substantial diversification in the geographical origin of our
clients: in particular the major trends already observed in Asia
and North America. Japan and South Korea thus accounted for 21% of
the total order book in 2020, with €5.4 million in new orders
booked, double the previous year’s figure. North America is
continuing to grow and accounted for €4 million of orders in 2020
compared with €2.5 million in 2019 (+66%), or 15% of total orders
in 2020. This internationalization, as well as illustrating the
growing recognition enjoyed by Oncodesign, represents an important
guarantee of a reduction in risks during a crisis by making us less
dependent on a specific geographical region.
Part of this commercial performance was due to the COVID-19
offer, which alone accounted for €3 million in new orders in 2020,
the vast majority with new clients.
We are also continuing to deploy our strategy of developing new
offers: INPACT and DRIVE, strategic multiyear service partnerships
incorporating all or part of the Drug Discovery know-how of our
technological platforms in oncology, inflammatory disorders and
infectious diseases. These multiyear contracts guarantee visibility
on our laboratories’ medium- to long-term activity (12 to 18
months). We are starting 2021 with close to €13 million in revenue
to realize, up 52% on the same period last year.
The DRIVE SM offer was launched in mid-2020 and suffered from
the global context and the lack of visibility. A number of clients
expressed their interest in 2020 and a first contract has been
signed since the start of 2021. The international consortium it is
based on is ramping up on a commercial level.
Biotech BU recurring revenue up
20%
The Biotech BU’s recurring revenue relates to research work on
the LRRK2 program in partnership with Servier. It totaled €3.4
million in 2020 versus €2.8 million in 2019, an increase of 20%.
This growth was primarily due to the “full-year” effect of the
partnership in 2020 – it having begun in March 2019 – but also to
an acceleration in the program on the initiative of Servier.
However, revenue associated with up-front/milestone payments,
non-recurrent by their very nature, was down in 2020, with a single
milestone payment of €1 million received in February 2020.
Other revenue and operating income
steady at €12.8 million
Other revenue and operating income totaled €12.8 million, +2%
compared with 2019. The final payment, in January 2020, of the GSK
subsidy, following the agreement to take over the Les Ulis site,
was €7.9 million. We have seen a decrease in Research Tax Credit to
€3.2 million (-6%), inherent to the eligibility of our projects for
this tax credit and the distribution between our French and foreign
clients. On the other hand, we recorded an increase in other
revenue (capitalized production, day-to-day running income,
transfers of expenses and provision reversals) to €1.7 million,
+31%.
Cash position at a record high at
December 31, 2020
Oncodesign’s cash position has reached a record high of €28.8
million, a figure that includes €15.9 million in State-Guaranteed
Loans granted in September 2020.
Excluding this State-Guaranteed Loan financing, the Company’s
cash position would be €12.9 million at December 31, 2020 versus
€10.5 million at December 31, 2019. This level of cash should be
read taking into account the fact that Oncodesign had regularized
all deadline postponements and deferrals that had been authorized
by the Government during the year.
About ONCODESIGN: www.oncodesign.com
Founded 25 years ago by Dr. Philippe Genne, the Company’s CEO
and Chairman, Oncodesign is a biopharmaceutical company dedicated
to precision medicine. With its unique experience acquired by
working with more than 800 clients, including the world’s largest
pharmaceutical companies, along with its comprehensive
technological platform combining state-of-the-art medicinal
chemistry, pharmacology, regulated bioanalysis, medical imaging and
Artificial Intelligence, Oncodesign is able to predict and
identify, at a very early stage, each molecule's therapeutic
usefulness and potential to become an effective drug. Applied to
kinase inhibitors, which represent a market estimated at over $65
billion by 2027 and accounting for almost 25% of the pharmaceutical
industry’s R&D expenditure, Oncodesign’s technology has already
enabled the targeting of several promising molecules with
substantial therapeutic potential, in oncology and elsewhere, along
with partnerships with pharmaceutical groups such as Servier.
Oncodesign is based in Dijon, France, in the heart of the town’s
university and hospital hub, and within the Paris-Saclay cluster.
Oncodesign has 233 employees and subsidiaries in Canada and the
USA.
Disclaimer
This press release contains certain forward - looking statements
and estimates concerning the Company’s financial condition,
operating results, strategy, projects and future performance and
the markets in which it operates. Such forward-looking statements
and estimates may be identified by words such as “anticipate,”
“believe,” “can,” “could,” “estimate,” “expect,” “intend,” “is
designed to,” “may,” “might,” “plan,” “potential,” “predict,”
“objective,” “should,” or the negative of these and similar
expressions. They incorporate all topics that are not historical
facts. Forward looking statements, forecasts and estimates are
based on management’s current assumptions and assessment of risks,
uncertainties and other factors, known and unknown, which were
deemed to be reasonable at the time they were made but which may
turn out to be incorrect. Events and outcomes are difficult to
predict and depend on factors beyond the Company’s control.
Consequently, the actual results, financial condition, performances
and/or achievements of the Company or of the industry may turn out
to differ materially from the future results, performances or
achievements expressed or implied by these statements, forecasts
and estimates. Owing to these uncertainties, no representation is
made as to the correctness or fairness of these forward-looking
statements, forecasts and estimates. Furthermore, forward-looking
statements, forecasts and estimates speak only as of the date on
which they are made, and the Company undertakes no obligation to
update or revise any of them, whether as a result of new
information, future events or otherwise, except as required by
law.
1 Infectious Disease Models and Innovative Therapies
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Oncodesign Philippe Genne Chairman and CEO Tel. : +33
(0)3 80 78 82 60 investisseurs@oncodesign.com
NewCap Investor Relations Mathilde Bohin /
Louis-Victor Delouvrier Tel. : +33 (0)1 44 71 94 95
oncodesign@newcap.eu
NewCap Media Relations Arthur Rouillé Tel. : +33 (0)1 44
71 00 15 oncodesign@newcap.eu