- Sevenfold increase in half-yearly commercial invoicing to
5.8 million euros;
- Strong improvement in adjusted EBITDA for the first half of
the year, at -3.1 million euros compared to -7.0 million euros a
year earlier;
- Up to 25 million euros in revenues from new contracts signed
since December 2019, mainly in upfront and milestone payments,
expected over the next 4 years;
- Tens of millions of euros per year in additional licensing
revenues (royalties) could be received from commercial launches of
the co-developed solutions;
- Tripling of commercial invoicing expected in 2020 and
confirmation of the objective of financial breakeven (adjusted
EBITDA) expected in 2021.
Regulatory News:
Voluntis (Paris:VTX) (Euronext Paris, Ticker: VTX - ISIN:
FR0004183960), a leader in digital therapeutics, today announced
its results for the first half of 2020, as approved by the Board of
Directors at its meeting on September 28, 2020, as well as its
commercial and financial outlook.
On this occasion, Pierre Leurent, CEO of Voluntis, stated: "We
are satisfied with these first results since the presentation of
our strategic roadmap last March. While IFRS impacts the reading of
our accounts, the cash vision is promising. The strong increase in
our commercial invoicing, combined with the ongoing adjustment of
our cost base, allows us to significantly improve our adjusted
EBITDA in line with our objectives.
Beyond the half-year accounts, the last nine months have been
the most successful for the company in terms of revenue generation.
The pre-launch revenues booked over the period exceed the
cumulative amounts booked between 2011 and 2019. We are delighted
to see the immediate benefits of our strategic roadmap initiated
earlier this year, and to pave the way for future growth.
While the health crisis may lead to delays in certain programs
by pharmaceutical companies, it has highlighted the importance of
digital health solutions in optimizing healthcare systems and the
patient experience. We remain confident in our ability to achieve
our financial objectives.”
Implementation of the new strategic roadmap and major new
partnership in oncology
In the first half of 2020, Voluntis executed its new strategic
roadmap. This prioritizes the oncology market, offering vast
opportunities to create value through the digital therapeutics
developed by Voluntis, and the conclusion of major partnerships
with leading pharmaceutical companies. This business model allows
the generation of upfront payments and milestone payments in the
short term and, after commercial launch, annual payments
(royalties) linked to the number of patients using the product.
It is in this context that Voluntis has entered into a
collaboration with Bristol-Myers Squibb, announced in March 2020,
to develop digital therapeutic solutions for the management of
cancer patient symptoms and their remote monitoring by healthcare
professionals.
This collaboration follows the one announced in December 2019
with Novartis for the evaluation of Voluntis' digital therapeutic
platform for breast cancer. The goal of the collaboration is to
provide patients with tools to effectively manage their symptoms
and thus improve the patient experience and clinical outcomes.
These collaborations are based on Theraxium Oncology, Voluntis'
platform for digital therapeutics in oncology.
Strong increase in commercial invoicing
Thanks to these major partnerships, commercial invoicing
increased sevenfold between the first half of 2019 and the first
half of 2020 to reach €5.8 million, mainly in the field of
oncology. This favorable trend confirms the successful execution of
the strategy and the value of partnerships to optimize cash flow in
the short and medium term.
At the same time, Voluntis has embarked on an ambitious program
to adapt its organization to its new strategy, both in France and
in the United States: the Group has thus evolved from 113 employees
at the end of 2019, to 85 at the end of June 2020 and 75 to date,
while maintaining innovation capabilities of the digital platforms
that are at the heart of Voluntis' value proposition. These
organizational adjustments will only produce their full economic
impact from the second half of 2020.
Improved results despite the impact of IFRS 15
This favorable evolution is only marginally reflected in the
income statement due to the application of IFRS 15. This standard
requires that the amount of invoices issued in the context of
partnerships be deferred over time. As a result, a very limited
portion of new collaborations has been recognized as revenue so
far, with the balance being recorded in the balance sheet as
prepaid income. Excluding the application of IFRS 15, adjusted
EBITDA is up sharply to -€3.1 million compared to -€7.0 million in
the first half of 2019.
After taking into account IFRS 15, half-year revenues amounted
to €1.9 million compared to €2.0 million in the first half of 2019.
EBITDA (EUR -5.9 million compared to EUR -7.0 million in H1 2019)
and net income (EUR -8.1 million compared to EUR -8.4 million one
year earlier) improved slightly.
Strengthening the financial structure
The increase in cash flow from partnerships and the reduction in
the cost structure made possible by the new roadmap have increased
the company's financial visibility. Voluntis generated positive
free cash flow of €0.9 million, including €3.1 million in research
tax credits (CIR) compared to €1.7 million in the first half of
2019, compared to a cash outflow of €7.4 million over the same
period in 2019.
As of June 30, 2020, Voluntis had available cash of €4.2
million, which was reinforced in September by a €2 million
state-guaranteed loan (PGE).
The company estimates that it will be able to cover its 12-month
financing needs thanks to this level of cash and the implementation
of additional financing or the signature of new partnerships under
discussion. Voluntis also has an OCEANE-BSA program that could be
implemented in the future.
Growth in activity and invoicing expected between 2020 and
2024
At the end of this encouraging first half year, Voluntis
confirms its short- and medium-term financial objectives.
In this context, Voluntis confirms that it is targeting
significant growth in its commercial invoicing in 2020.
Year-to-date invoicing now stands at €8.4 million, three times the
entire 2019 financial year (€2.7 million), thanks to partnership
agreements. In particular, Voluntis announced in July 2020 a global
licensing agreement with Biocon Biologics for Insulia®, the digital
therapeutic developed by Voluntis, which is FDA-approved and
CE-marked for patients with type 2 diabetes treated with
insulin.
As announced, subject to the fulfillment of certain contractual
conditions, the agreements signed since December 2019 could
generate up to €25 million in cumulative commercial invoicing
between 2020 and 2024 (including a significant part of the €8.4
million billed to date in 2020), mainly consisting of upfront and
milestone payments. The commercial launch of co-developed solutions
would make Voluntis eligible to receive additional payments for the
license of its Theraxium platform and proprietary digital
therapeutics. These payments may cumulatively amount to tens of
millions of euros per year, based on negotiated per-patient fees
and projected number of end-users.
This significant acceleration of Voluntis’ commercial bookings
is an illustration of the positive momentum of the digital health
sector, which is particularly notable during the Covid-19 crisis.
Pharmaceutical companies are increasingly turning to digital
therapeutics to support and enhance their product portfolio to
deliver optimal treatment experiences to patients worldwide. These
new solutions also enable remote patient monitoring and the
expansion of at-home treatments.
This revenue growth should enable Voluntis to achieve its
break-even target of a positive adjusted EBITDA in the course of
2021.
Availability of the half-year financial report
The Half-Year Financial Report 2020 is available to the public
today and has been filed with the Autorité des marchés financiers
(AMF). It can be consulted on the company's website.
About Voluntis
Voluntis creates digital therapeutics that empower people with
chronic conditions to self-manage their treatment every day, thus
improving real-world outcomes. Voluntis’ solutions, combining
mobile and web apps, use clinical algorithms to deliver
personalized recommendations to patients and their care teams. For
example, these recommendations are used to adjust treatment dosage,
manage side effects or monitor symptoms. Leveraging its Theraxium
technology platform, Voluntis has designed and operates multiple
digital therapeutics, especially in oncology and diabetes. Voluntis
has long-standing partnerships with leading life science companies.
Based in Cambridge, MA, and Paris, France, Voluntis is a founding
member of the Digital Therapeutics Alliance. For more information,
please visit: www.voluntis.com
Mnemo : VTX - ISIN : FR0004183960
Disclaimer
This press release contains certain forward-looking statements
concerning Voluntis group and its business, including its prospects
and product candidate development. Such forward-looking statements
are based on assumptions that Voluntis considers to be reasonable.
However, there can be no assurance that the estimates contained in
such forward-looking statements will be verified, which estimates
are subject to numerous risks including the risks set forth in the
2019 annual financial report and the 2020 half-year financial
report published by Voluntis respectively on April 30, 2020 and
September 29, 2020 (a copy of which is available on
www.voluntis.com) and to the development of economic conditions,
financial markets and the markets in which Voluntis operates. The
forward-looking statements contained in this press release are also
subject to risks not yet known to Voluntis or not currently
considered material by Voluntis. The occurrence of all or part of
such risks could cause actual results, financial conditions,
performance or achievements of Voluntis to be materially different
from such forward-looking statements. Voluntis expressly declines
any obligation to update such forward-looking statements.
Alternative Performance Indicators:
Commercial invoicing: reflects commercial activity and
the achievement of technical or regulatory milestones during the
period, which are often deferred or spread out in accordance with
IFRS 15.
EBITDA: recurring operating income before depreciation,
amortization and provisions.
Adjusted EBITDA: corresponds to the EBITDA amended with
the variation in prepaid income and deferred charges pursuant to
the application of IFRS 15 (income invoiced for items over which
control has not been transferred, expenses for the execution of
items produced under customer contracts and not yet
transferred).
Consolidated Income Statement
Actuals as of June 30
€m
2020
2019
Revenue
1,9
2,0
Other operating revenue
0,3
0,5
Total operating revenue
2,2
2,5
Personnel expenses
(5,8)
(6,5)
Other operating costs
(2,6)
(2,7)
Depreciation, amortisation & operating
provisions
(1,5)
(1,3)
Operating income
(7,7)
(8,0)
Financial income
(0,4)
(0,5)
Income tax
(0,0)
(0,0)
Net income
(8,1)
(8,4)
EBITDA
(6,1)
(6,6)
Adjusted EBITDA
(3,1)
(7,0)
Consolidated Balance sheet
Actuals as of
€m
30/06/2020
31/12/2019
Assets
Intangible assets
2,5
2,7
Tangible assets
3,0
3,3
Other non-current assets
0,3
0,3
Other fixed assets
0,3
0,4
Non current assets
6,1
6,6
Receivables
0,5
0,5
Other current financial assets
-
-
Other current assets
2,2
5,0
Cash on hand
4,2
5,1
Current assets
6,9
10,6
Total
13,0
17,3
€m
30/06/2020
31/12/2019
Liabilities
Shareholder equity
(6,3)
1,7
Financial debt (non current)
3,1
4,5
LT provisions and other non current
liabilities
5,5
0,9
Non current liabilities
8,6
5,3
Financial debt (current)
3,0
3,2
Payables and other current liabilities
7,6
7,0
Current liabilities
10,7
10,2
Total
13,0
17,3
Actuals as of
Simplified cash flow statement
(€m)
30/06/2020
30/06/2019
Net cash flows from/(used in) operating
activities
1,4
(6,9)
Net cash flows from/(used in) investing
activities
(0,5)
(0,5)
Net cash flows from/(used in) financing
activities
(1,8)
1,9
CASH FLOW VARIANCE
(0,9)
(5,6)
Net foreign exchange difference
0,0
0,0
OPENING CASH BALANCE
5,1
19,8
CLOSING CASH BALANCE
4,2
14,2
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version on businesswire.com: https://www.businesswire.com/news/home/20200929005975/en/
ACTUS Media relations Vivien Ferran vferran@actus.fr +33 (0)1 53 67 36 34
ACTUS Investor relations Jérôme Fabreguettes-Leib
voluntis@actus.fr +33 (0)1 53 67 36
78
Voluntis Directeur Administratif et Financier Guillaume
Floch investisseurs@voluntis.com +33 (0)1 41 38 39 20