• Cash position of €24.5 million as of June 30, 2021, providing financial visibility until the end of 2022 and enabling the Company to accelerate its development and its portfolio
  • Preparing an ambitious clinical plan for AsiDNA™, with implementation to be initiated in the fall of 2021

Regulatory News:

Onxeo S.A. (Euronext Growth Paris: ALONX, Nasdaq First North: ONXEO), « Onxeo », a clinical-stage biotechnology company specializing in the development of innovative drugs targeting tumor DNA Damage response (DDR) in oncology, today announced its consolidated half-yearly financial results to June 30, 2021 and provides an update on its activities.

Judith Greciet, Chief Executive Officer of Onxeo, said: “Building upon the advances achieved in 2020, the first half of 2021 was marked by the strengthening of our financial resources and the furtherance of several preclinical and clinical programs, in particular those aimed at AsiDNA™.

With regard to AsiDNA™, the data obtained during the first half of the year confirm the exceptional properties of this drug candidate and will give rise to a wider range of clinical prospects.

AsiDNA™’s highly novel mechanism of action hijacking DNA repair functions is the basis of its novel antitumor properties, such as the ability to fight tumor resistance to several important classes of targeted therapies1, to induce a deficiency of the HR repair pathway, necessary for PARPi to be fully effective2, to increase the efficacy of reference treatments such as chemotherapy3. Other properties such as action on tumor metabolism and antitumor immune response are also under investigation.

Over the past few weeks, we have assembled a Scientific Advisory Committee composed of eminent members of the international medical and scientific community in the fields of DDR, resistance to treatment and, more generally, drug development in oncology. The appointment of Dr. Shefali Agarwal, a global clinical development expert, as Chairwoman of our Board of Directors, is also a strong signal of a new strategic focus in the Company's development.

With their support and expert advice, we are currently revisiting the opportunities and priorities for the development of AsiDNA™, with the aim of implementing, starting this fall, an ambitious global clinical plan that will aim to maximize its worth by targeting the indications and combinations creating the most value.

In the meantime, the REVOCAN study of AsiDNA™ in combination with PARP inhibitors is continuing under the guidance of its sponsor, Gustave Roussy, and the AsiDNA™ Children study, sponsored by the Institut Curie to evaluate AsiDNA™ in combination with radiotherapy in recurrent high-grade glioma (HGG) in children, is also expected to begin this year.

In addition, we have secured Onxeo's financial visibility until the end of 2022, notably through a rights issue widely supported by our shareholders, and in particular by our core shareholders, Invus and Financière de la Montagne.

Lastly, the first half of 2021 has still been largely subject to the uncertainties of the global pandemic, and I would like to warmly thank the Onxeo teams, our partners and our shareholders for their involvement and unfailing support, which will enable us to approach the major strategic steps that will be taken in the next 18 months with confidence and self-assurance.“

FINANCIAL RESULTS FOR THE FIRST HALF OF 2021

Consolidated income statement (IFRS)

In thousands of euros

30/06/2021

30/06/2020

Revenues, including:

Recurring revenues

Non-recurring revenues

589

0

589

1,082

1,076

6

Operating expenses

(5,367)

(2,390)

(5,067)

(1,916)

Other current operating income

33

34

Current operating income

(4,745)

(3,951)

Other non-current operating income and expenses

198

10,040

Share of profit (loss) of companies accounted for by the equity method

-

-

Operating profit after equity method income (loss)

(4,547)

6,089

Financial result

(238)

(224)

Pre-tax income

(4,785)

5,065

Income tax

15

(823)

Net income

(4,770)

5,042

Consolidated revenues for the period ended June 30, 2021, amounted to 0.6 million euros and consisted exclusively of contractual licensing fees for a non-strategic product, whereas revenues for the first half of 2020, amounting to 1.1 million euros, corresponded to revenues from the commercialization of Beleodaq, which have been recognized in the Group's accounts until the date of signature of the licensing agreement with Acrotech Biopharma in April 2020.

Operating expenses increased slightly as a result of the evolution of R&D expenses, which went from 1.9 million euros at June 30, 2020 to 2.4 million euros at June 30, 2021, in line with the progress of AsiDNA™ and OX401 programs.

The strong variation in other non-current operating income and expenses, which went from a net amount of 10 million euros in the first half of 2020 to a net amount of 0.2 million, is due to the recognition in 2020 of the effects of the license agreement with Acrotech Biopharma, and notably

- an income of 5,7 million euros in net proceeds from the transaction,

- an expense of 2,8 million euros corresponding to the net book value of the R&D assets related to Beleodaq,

- an income of 7,1 million euros corresponding to the amount of royalties, evaluated by management, that the group expected to receive after the date of signature of the agreement and through which it will repay the balance of the SWK loan.

The financial result at June 30, 2021, is a loss of 0.2 million euro, mainly due to the cost of the bond loan with SWK Holdings.

As a result of the changes in business activity reflected by the income and expense items described above, the net result for the six months ended June 30, 2021, is a loss of 4.8 million euros, compared with a profit of 5 million euros for the first half of 2020.

CASH AND CASH EQUIVALENTS AT JUNE 30, 2021

The Group's cash position on June 30, 2021, was 24.5 million euros, compared with 14.5 million euros at December 31, 2020. The change in cash and cash equivalents is mainly due to the financing implemented during the first half of the year, State-backed loans and a capital increase, which provided Onxeo with net proceeds of 14.4 million euros and enabled it to meet operating expenses of 5.4 million euros.

The cash available on June 30, 2021, provides Onxeo with visibility until at least the end of 2022.

HIGHLIGHTS OF THE 1ST HALF-YEAR 2021, RECENT DEVELOPMENTS AND OUTLOOK

CORPORATE & GOVERNANCE

- On January 28, 2021, the Company announced that it had obtained non-dilutive financing of 5 million euros in the form of State Guaranteed Loans.

- On March 10, 2021, the Company announced the launch of a capital increase with preferential subscription rights for shareholders in France and Denmark, based on the seventeenth and twentieth resolutions adopted by the extraordinary shareholders' meeting of June 19, 2020.

- On April 12, 2021, the Company announced the success of this capital increase, with a subscription rate of approximately 104.8%, corresponding to 13,677,125 New Shares, of which 7,565,328 were requested on an unrestricted basis, fully allocated through the exercise of the extension clause. The gross amount of the capital increase, including issue premium, amounts to 9,710,758.75 euros. At the end of the capital increase, the Company's share capital amounted to 22,998,733.75 euros, divided into 91,994,935 shares with a nominal value of 0.25 euro each.

- On May 27, 2021, Onxeo announced the formation of a Scientific Advisory Committee composed of leading scientific and clinical experts in the fields of DNA Damage Response, immunology and oncology drug development. This committee will advise and guide the Company in advancing its PlatON™ platform and developing innovative therapies that address unmet medical needs and improve the outlook for cancer patients.

- On June 10, 2021, the General Meeting of Shareholders renewed the term of office of Walter Thomas Hofstaetter as Director for three years and ratified the appointment of two new Directors: Mr. Julien Miara, representing Invus, and Dr. Shefali Agarwal, an independent Director. Jean-Pierre Bizzari, an independent member of the Board of Directors, has resigned from his position for personal reasons at the end of June 2021.

- On July 29, 2021, the Company announced the appointment of Dr. Shefali Agarwal as Chairperson of the Board of Directors, replacing Ms. Danièle Guyot-Caparros, who remains an independent member of the Board and Chairperson of the Audit committee (please refer to the press release published today).

To date, the Board of Directors is thus composed of 7 members, 3 men and 4 women, including 4 independent members.

AsiDNA™

- In February 2021, Onxeo entered into a clinical research agreement with Institut Curie, France's leading cancer center, to conduct a Phase 1b/2 study to evaluate the effect of AsiDNA™ in combination with radiotherapy in children with recurrent high-grade glioma (HGG) eligible for re-irradiation. This study is supported by a grant from the European Fight Kids Cancer program and is being conducted as part of the European Innovative Therapies for Children with Cancer (ITCC) consortium. The Institut Curie, as sponsor of the study, will submit the request for authorization to the health authorities and ethics committees, with the aim of initiating this study in 2021.

- Onxeo completed the DRIIV-1b study of AsiDNA™ in combination with reference chemotherapies (carboplatin and paclitaxel) in patients with advanced solid tumors during the first half of 2021. The very favorable safety profile of AsiDNA™ was confirmed and significantly longer control times were observed than with previous treatment lines. These results were published in the scientific journal Oncology & Cancer Case Reports in March 2021.

- The Company presented new preclinical data at the American Association for Cancer Research (AACR) meeting in April 2021 showing that acquired resistance to KRASG12C inhibitors (a new class of targeted therapies), evolves from persistent drug-tolerant cells vulnerable to AsiDNA™.

- The REVOCAN study evaluating the combination of AsiDNA™ with PARP inhibitors (PARPi) in relapsed ovarian cancer also continued in the first half of 2021. Results from Part 1b of the study, which will focus on the safety of this combination, are now expected from Gustave Roussy, the sponsor, in the second half of 2021.

- In addition, Onxeo has continued its active policy of industrial protection of its compounds and their applications and announced in June 2021 the authorization of a new patent in the United States that extends the protection of AsiDNA™ associated with PARP inhibitors. This new patent protects both AsiDNA™ in combination with any PARP inhibitor, and a method of treating cancers with a so-called "HR proficient" genetic profile with this combination. This patent is based on preclinical data showing that AsiDNA™ is able, through its novel mechanism of action, to interfere with DNA repair pathways, including the homologous recombination (HR) pathway. AsiDNA™ thus produces a "HR-deficient" background, which is necessary for PARPi to be fully effective, regardless of the initial genetic background of the tumor.

The work undertaken with our experts, especially those of our newly formed Scientific Advisory Committee, to establish an ambitious and robust clinical plan for AsiDNA™ will of course rely on these programs to determine the new directions of its development, which will be implemented from the fall of 2021.

As part of the acceleration of the development of AsiDNA™, the Company could also file an IND application to extend its clinical program to the United States.

OX400

Based on Onxeo's decoy agonist technology, OX400 compounds are positioned as potent PARP agonists, acting on both the DNA damage response and the activation of the immune response.

New preclinical results presented at the American Association for Cancer Research (AACR) meeting in April 2021 showed that by specifically trapping and hyper-activating PARP, OX400 compounds have the potential to modulate the immune response and deplete tumor cell metabolism. Ongoing in-vitro and in-vivo studies of OX400 compounds aim to validate their action, alone and in combination with immunotherapies, and to optimize their efficacy profile. These translational studies will help optimize the entry into the clinic, which could occur within 12 to 18 months.

COVID-19 PANDEMIC CONTEXT

To date, the Company considers that it has experienced only a limited impact from the health crisis and has limited exposure to risks on its operations due to the Covid-19 epidemic. The impact has mainly been a slowdown in the pace of recruitment for the REVOCAN study, leading to a delay in obtaining the first results.

However, Onxeo does not exclude that a resumption of containment measures could affect the smooth running of its subcontracted activities, in particular the conduct of clinical trials, and thus lead to delays in the development of its products and a greater consumption of cash. In addition, the effect of this epidemic on the global economy and financial markets could impact the Company's ability to obtain financing in the capital markets and, consequently, the conduct of its business. The Company has put in place appropriate measures to protect its employees and to ensure the continuity of its operations and will adapt these measures as circumstances require.

The 2021 half-year financial report is available on the Company's website.

About Onxeo

Onxeo (Euronext Paris, NASDAQ Copenhagen: ONXEO) is a clinical-stage biotechnology company developing innovative oncology drugs targeting tumor DNA-binding functions through unique mechanisms of action in the sought-after field of DNA Damage Response (DDR). The Company is focused on bringing early-stage first-in-class or disruptive compounds from translational research to clinical proof-of-concept, a value-creating inflection point appealing to potential partners.

platON™ is Onxeo’s chemistry platform of oligonucleotides acting as decoy agonists, which generates new innovative compounds and broaden the Company’s product pipeline.

AsiDNA™, the first compound from platON™, is a first-in-class, highly differentiated clinical stage candidate in the field of DNA Damage Response (DDR). Its decoy and agonist mechanism acting upstream of multiple DDR pathways results in distinctive antitumoral properties, notably the ability to prevent or abrogate tumor resistance to targeted therapies such as PARP inhibitors and a strong synergy with tumor DNA-damaging agents such as radio/chemotherapy. AsiDNA™ is currently in combination clinical studies in hard-to-treat solid tumors.

OX401 is a new drug candidate from platON™, optimized to be a potent PARP agonist acting on both the DNA Damage Response and the activation of immune response, without inducing resistance. OX401 is undergoing preclinical proof-of-concept studies, alone and in combination with immunotherapies.

For more information, please visit www.onxeo.com.

Forward looking statements

This communication expressly or implicitly contains certain forward-looking statements concerning Onxeo and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of Onxeo to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Onxeo is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise. For a discussion of risks and uncertainties which could cause actual results, financial condition, performance or achievements of Onxeo to differ from those contained in the forward-looking statements, please refer to the risk factors described in the most recent Company’s registration document or in any other periodic financial report and in any other press release, which are available free of charge on the websites of the Company Group (www.onxeo.com) and/or the AMF (www.amf-france.org).

APPENDIX

INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT JUNE 30, 2021

Consolidated balance sheet

ASSETS (in thousands €)

6/30/2021

12/31/2020

 

 

 

Non-current assets

 

 

Intangible assets

20,532

20,534

Tangible assets

58

83

Rights of use

2,334

2,479

Other financial fixed assets

224

233

Total non-current assets

23,148

23,329

 

 

 

Current assets

 

 

Trade receivables and related accounts

5,959

6,654

Other receivables

2,501

2,000

Cash and cash equivalents

24,462

14,523

Total current assets

32,922

23,177

 

 

 

TOTAL ASSETS

56,070

46,506

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY (in thousands of €)

6/30/2021

12/31/2020

Shareholders' equity

 

 

Capital

22,999

19,579

Less: treasury shares

-188

-182

Share premium

24,588

18,577

Reserves

-8,792

-10,027

Earnings

-4,770

1,089

Total shareholders’ equity

33,837

29,036

 

 

 

Non-current liabilities

 

 

Provisions

1,719

1,640

Deferred tax liability

393

415

Non-current financial debts

6,727

4,278

Other non-current liabilities

4,831

5,089

Total non-current liabilities

13,670

11,423

 

 

 

Current liabilities

 

 

Short-term borrowings and financial debts

3,812

1,979

Trade payables and related accounts

3,220

2,762

Other current liabilities

1,531

1,306

Total current liabilities

8,563

6,047

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

56,070

46,506

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of €

6/30/2021

6/30/2020

 

 

 

Recurring revenues from licensing agreements

 

1,076

Non-recurring revenues from licensing agreements

589

6

Total revenues

589

1,082

Purchases

-194

-188

Personnel expenses

-2,128

-2,026

External expenses

-2,298

-2,228

Taxes and duties

-75

-95

Net depreciation, amortization and provisions

-421

-327

Other current operating expenses

-251

-202

Operating expenses

-5,367

-5,067

Other current operating income

33

34

Current operating income

-4,745

-3,951

Other non-current operating income

332

12,857

Other non-current operating expenses

-134

-2,817

Share of income from equity affiliates

 

 

Operating result after share of income from equity affiliates

-4,547

6,089

Net cost of financial debt

-381

-515

Other financial income

291

316

Other financial expenses

-148

-25

Financial income/loss

-238

-224

Income before tax

-4,785

1,560

Income tax expense

15

-823

- of which deferred tax

 

-565

Consolidated net income/loss

-4,770

5,042

Earnings per share

-0.06

0.08

Diluted earnings per share

-0.06

0.08

In thousands of €

6/30/2021

6/30/2020

Result for the period

-4,770

5,042

Currency translation adjustments

23

-8

Other items recyclable as a result

23

-8

Actuarial gains and losses

50

17

Other items not recyclable as a result

50

17

Other comprehensive income for the period, net of tax

73

9

Total comprehensive income for the period

-4,697

5,051

Total comprehensive income attributable to:

- owners of the parent company

- minority interests

 

-4,697

 

5,051

Statement of changes in consolidated shareholders' equity

 

 

 

 

Change in reserves and earnings

 

In thousands of €

Capital

Treasury shares

Share premium

Translation reserves

Gains and losses recognized in equity

Consolidated reserves and earnings

Total Differences

TOTAL

Shareholders' equity as of 1/1/2019

13,344

-97

41,824

-109

-97

-9,462

-9,669

45,402

Total comprehensive income for the period

 

 

 

75

-54

-33,728

-33,707

-33,707

Capital increase

1,986

 

3,100

 

 

 

0

5,086

Treasury shares

 

-92

 

 

 

-71

-71

-163

Other movements

 

 

 

 

 

138

138

138

Share-based payments

 

 

 

 

 

441

441

441

Shareholders' equity as of 12/31/2019

15,329

-189

44,924

-34

-151

-42,682

-42,868

17,197

Total comprehensive income for the period

 

 

 

-8

17

5,042

5,051

5,051

Capital increase

4,250

 

6,186

 

 

 

 

10,436

Treasury shares

 

39

 

 

 

 

 

39

Other movements

 

 

-32,577

 

 

32,772

32,772

195

Share-based payments

 

 

 

 

 

18

18

18

Shareholders' equity as of 6/30/2020

19,579

-150

18,533

-42

-134

-4,850

-5,026

32,936

Total comprehensive income for the period

 

 

 

-63

-39

-3953

-4055

-4055

Capital increase

 

 

44

 

 

188

188

232

Treasury shares

 

-32

 

 

 

89

89

56

Other movements

 

 

 

14

 

-210

-195

-195

Share-based payments

 

 

 

 

 

61

61

61

Shareholders' equity at 12/31/2020

19,579

-182

18,577

-91

-173

-8,674

-8,938

29,036

Total comprehensive income for the period

 

 

 

23

50

-4,770

-4,697

-4,697

Capital increase

3,419

 

6,011

 

 

 

 

9,430

Treasury shares

 

-6

 

 

 

-2

-2

-8

Other movements

 

 

 

 

 

 

 

 

Share-based payments

 

 

 

 

 

75

75

75

Shareholders' equity as of 6/30/2021

22,999

-188

24,588

-68

-123

-13,371

-13,562

33,837

Consolidated statement of net cash flows

In thousands of €

Note

6/30/2021

12/31/2020

6/30/2020

Consolidated net result

 

-4,770

1,089

5,042

+/- Net depreciation, amortization and provisions (excluding those related to current assets)

4, 5, 9.1

438

-8,215

-9,149

-/+ Unrealized gains and losses related to changes in fair value

 

-148

-290

9

+/- Calculated income and expenses related to stock options and similar instruments

8.4

75

79

18

-/+ Other calculated income and expenses

 

 

 

 

-/+ Capital gains and losses on disposals

 

 

57

57

-/+ Dilution gains and losses

 

 

 

 

+/- Share of profit/(loss) of equity affiliates

 

 

 

 

+/- Other items with no impact on cash

 

114

 

 

Cash flow from operations after cost of net financial debt and taxes

 

4,291

-7,280

-4,023

+ Cost of gross financial debt

12

385

959

515

+/- Tax expense (including deferred taxes)

 

-15

757

823

Cash flow from operations before cost of net financial debt and tax

 

-3,921

-5,564

-2,685

- Taxes paid

 

 

 

 

+/- Change in operating working capital requirements (including employee benefit liabilities)

 

634

886

1,459

NET CASH FLOW FROM OPERATING ACTIVITIES

 

-3,289

-4,678

-1,226

- Disbursements related to acquisitions of property, plant and equipment and intangible assets

 

-8

-119

-109

+ Proceeds from disposals of property, plant and equipment and intangible assets

 

 

6,116

6,116

- Disbursements related to acquisitions of financial assets (non-consolidated investments)

 

 

 

 

+ Proceeds from disposals of financial assets (non-consolidated investments)

 

9

4

4

+/- Impact of changes in perimeter

 

 

14

14

+ Dividends received (equity affiliates, non-consolidated investments)

 

 

 

 

+/- Change in loans and advances granted

 

 

 

 

+ Investment grants received

 

 

 

 

+/- Other cash flows from investment activities

 

 

 

 

NET CASH FLOW FROM INVESTMENT ACTIVITIES

 

1

6,015

6,025

+ Amounts received from shareholders in connection with capital increases

 

 

 

 

. Paid by the shareholders of the parent company

8.1

9,428

10,568

10,436

. Paid by minority shareholders of consolidated companies

 

 

 

 

+ Amounts received upon exercise of stock options

 

 

 

 

-/+ Net purchases and resales of treasury shares

8.2

-6

8

97

+ Proceeds from new borrowings

 

5,000

 

 

- Repayment of loans (including finance leases)

9.3, 10.1

-1,199

-3,094

-1,422

Of which repayment of rights of use (IFRS16)

 

-244

-475

-226

+/- Other cash flows from financing activities

 

3

-1

2

NET CASH FLOW FROM FINANCING ACTIVITIES

 

13,226

7,481

9,113

+/- Impact of changes in foreign exchange rates

 

1

-3

-1

CHANGE IN NET CASH AND CASH EQUIVALENTS

 

9,939

8,815

13,911

INITIAL CASH POSITION

 

14,523

5,708

5,708

FINAL CASH POSITION

 

24,462

14,523

19,619

1 Data presented at AACR 2020 et 2021 2 Press release on June 9, 2021 3 Long Stabilization and Disease Control with AsiDNA™, a first-in-class DNA Repair Inhibitor in Combination with Carboplatin Oncology & Cancer Case Reports 2021, Vol.07, Issue 2, 001-007 – Dr Nuria Kotecki – March 2021

Onxeo Valerie Leroy, Investor Relations investors@onxeo.com +33 1 45 58 76 00 Media Relations Nicolas Merigeau NewCap onxeo@newcap.eu +33 1 44 71 94 98 Investor Relations / Strategic Communication Dušan Orešanský / Emmanuel Huynh NewCap onxeo@newcap.eu +33 1 44 71 94 92 Certified Adviser for Nasdaq First North Kapital Partner www.kapitalpartner.dk info@kapitalpartner.dk +45 89 88 78 46