• Cash position of €9.3 million, and net loss down 1% to €6.3 million

  • Strategic focus on high value-added applications in the healthcare, nutrition, and cosmetics fields

  • The operational and legal reorganisation has been completed, via acquiring full control of DEINOBIOTICS, and the reorganisation of the Board of Directors.

Montpellier, France, 30 March 2017 (8:00 pm CEST) – DEINOVE (Alternext Paris: ALDEI), a biotechnology company that discovers, develops, and produces high-value added compounds from rare bacteria, including Deinococcus bacteria, announced today that its Board of Directors had reviewed and approved the 2016 annual financial statements. Furthermore, the Board has convened the General Meeting on 16 May 2017.

The net loss in 2016 was €6,279k, compared with a loss of €6,356k in the previous year. Income for the year increased, thanks to the completion of various milestones in the R&D programmes, and to the progress of the collaborative projects, while operating expenses remained unchanged.

The net cash position amounted to +€9.3 million at 31 December 2016, compared with +€12.4 million at 31 December 2015. DEINOVE received €3.4m in milestone payments from Bpifrance and ADEME (the French Environment and Energy Management Agency) during the 2016 financial year, as well as a total of €1.6m in R&D Tax Credit (CIR) for 2015. The Company also raised €0.8m via the equity line funding arranged with Kepler Cheuvreux in December 2014. DEINOVE believes that it has the necessary cash resources to guarantee its financing until the end of the 1st quarter of 2018, without resorting to Tranches 3 and 4 of the equity line funding.

The strategic decision to focus the Company's business activities on higher value-added applications in the healthcare, nutrition, and cosmetics sectors was reflected in two major operating changes:

  • The merger of R&D operations between DEINOVE and its subsidiary DEINOBIOTICS aimed at researching new antibiotics. The teams are now fully operational, while the acquisition of a 100% interest in DEINOBIOTICS was finalised in early 2017. 
  • Meanwhile, the bio-ethanol (biofuel) research programme was suspended, as this commodity product has been negatively affected by the low oil price level.

After assuming the chairmanship in January, I was impressed by the responsiveness and resilience of DEINOVE's teams in 2016, when challenges were redefined, operations reorganised, employees reassigned and programmes launched, this in less than 6 monthssaid Charles Woler, the Chairman of DEINOVE. “DEINOVE is therefore beginning 2017 with a new look: the operational and legal integration of DEINOBIOTICS has been completed, while the reorganisation of the Board of Directors, where the members’ backgrounds are now much more focused on pharmaceuticals and specialty markets, adds the finishing touch to this change.

Emmanuel Petiot, DEINOVE’s Chief Executive Officer, added: The speed at which synergies between DEINOVE and DEINOBIOTICS have emerged, together with the development of our industrial specialty projects in both the animal nutrition and cosmetics sectors over the past few months, has emphasised the sense of the decision that we took in December last year. Furthermore, this decision has been understood and encouraged by all of our partners. It was in keeping with both the economic environment and a major healthcare need. The threat posed to world health by increasing resistance to antibiotics is such that we are confident in our ability to find financial support for our developments. Our teams are motivated, and focused on achieving fast results. They are already working on discovering new antibiotics that will genuinely make a difference”.