2016 interim results: Stability of net loss | Strategic refocusing on carotenoids and antibiotics

29.09.2016
  • Cash position: +€10.4 M at June 30, 2016 compared to +€12.4 M at December 31, 2015

  • Stability of interim net loss at -€3.1M

  • Strategic decision to focus the Company's activities on high value-added applications in human health (antibiotics), nutrition and cosmetic (carotenoids particularly) 

  • Strengthening of DEINOCHEM program, continuation of AVRIL et FLINT HILLS RESOURCES collaborations, suspension of DEINOL program

  • Expansion of antibiotics project, in relation to The United Nations and the World Health Organization appeal on September 21, 2016  about the need for new antibiotics, and mainly DEINOBIOTICS identification of new classes of antibiotics produced by DEINOVE’s strain library. Selection of a first chemical family whose efficacy and pharmacological properties are currently being evaluated

  • Decision to convert DEINOBIOTICS into a wholly owned subsidiary (currently 49% held by DEINOVE)

Montpellier, September 29, 2016 – DEINOVE (Alternext Paris: ALDEI), a biotech company that discovers, develops and produces high value-added compounds from rare bacteria, including Deinococcus bacteria, released its interim results for 2016. Meeting on September 27, the Board of Directors approved the accounts and decided on a strategic refocus of its activities on high value-added markets of carotenoids (nutrition and cosmetics) and antibiotics (human health), with notably the conversion of DEINOBIOTICS' activities (created in 2012, specialized in research & development of novel antibiotics, and currently a minority subsidiary of DEINOVE) into a wholly owned subsidiary through DEINOBIOTICS shareholders’ contributions in kind to DEINOVE.

Since 2009, DEINOVE leads research on the discovery of new antibiotics thanks to its bacterial platform. The global antibiotics resistance issue, solemnly stated on September 21 by the UN and the WHO announcements, should create a favorable new environment for rare biotech companies able to discover new antibiotics. Considering the promising results of its minority subsidiary DEINOBIOTICS (created in 2012, with laboratories in Lille), DEINOVE plans to expand its antibiotics platform in Montpellier and Lille, by converting DEINOBIOTICS into a wholly owned subsidiary. At the same time, due to current unfavorable context for 2nd generation biofuel development (low oil prices, industrial actors’ disengagement in the sector, lack of governments support), and the strong potential of other technologies and products developed by DEINOVE, the Company decided to refocus its resources on high value-added applications of new antibiotics, and carotenoids in nutrition and cosmetics. In addition to consolidating and expanding DEINOBIOTICS' activities, the teams will concentrate their efforts on the DEINOCHEM/carotenoids program, make headway on nutrition projects with AVRIL and FLINT HILLS RESOURCES and foster other partnerships on target markets of health and cosmetics for which DEINOVE has developed a program to identify other compounds of interest within its strain library. DEINOL program allowed a global mastery of the intellectual property, the genetics, the metabolism and the fermentation of Deinococcus, directly benefiting to other projects. Industrial development of biofuel is suspended until a potential change of the biofuels market context.

"New antibiotics discovery answers to a priority global medical need. Few biotech companies can claim discovering new classes of antibiotics. DEINOBIOTICS research on new antibiotics, from DEINOVE’s strain library, enabled identification of a first high-potential lead. DEINOVE's specialty programs, particularly DEINOCHEM program and projects in animal nutrition lead with our partners, are progressing as expected, while the 2nd generation biofuel market is waiting for a rise in oil prices. In this context, we have decided to bring DEINOBIOTICS and DEINOVE's teams together and to focus our efforts on higher value-added programs and those that offer short-term income opportunities, in order to create more value for our partners and shareholders", announce Emmanuel PETIOT, CEO of DEINOVE. He adds: "Our 2nd generation biofuel program has made several advances, including the proof of concept that Deinococcus can be a true innovative chassis for biological production. Incidentally, this will give our new strategy a solid technological footing. We have also built a cutting-edge integrated genetic, metabolic and fermentation engineering platform. We will capitalize on these developments by focusing on applications for which there already is a market; carotenoids, in particular, have many potential health, cosmetic and nutrition applications with high added value".

Dominique LE BELLER, CEO of DEINOBIOTICS, adds: "The discovery of new antibiotics with innovative structures is a global public health issue as cases of resistance to existing antibiotics continue to heighten. Last week, this major medical need for new antibiotics was solemnly highlighted by The UN and the WHO, and governments of 193 countries. Since 2010, no new innovative antibiotic reached the market, and there were only 3 in the preceding 5 years. Microorganisms are the most efficient antibiotics producers of the living world but the discovery of new antibiotics is challenged by the almost exhaustive use of the same bacteria; DEINOVE’s outstanding library of bacteria strains never used for antibiotics discovery, has great potential for accessing new molecules of therapeutic value. We have already identified several promising molecules and a first lead is currently undergoing optimization and advanced preclinical research. The opportunity for non-dilutive financing, pharmaceuticals agreements and value creation is significant. By teaming up with DEINOVE, we gain access to R&D synergy capacities that can accelerate our projects."