DEINOVE (Alternext Paris: ALDEI) announces its 2015 interim results.
- 19% reduction in interim net loss thanks to good control of operating expenses and the absence of exceptional items for the period
- Net financial position of +€1.8m on 30/06/15 (vs +€2.2m on 31/12/14), reinforced with reception of €1.7m between 01/07/15 and 31/08/15 resulting in a net financial position of +€2.2 m at the end of August
- Collection of €1.7m in R&D Tax Credit in September 2015
- Sustained R&D activity with milestones reached in the two flagship programs of the Company, and the launch of the new Muconic acid platform
- New technology and business partnerships with POS and Tyton Bioenergy, expanding the potential market opportunities for Deinotechnologies
- Patent protection activity in continuous progression including granting of a 1st patent in China
Net result for H1 2015 is a loss of €3,170k compared to a loss of €3,920k over the same period last year. This result reflects both good control of operating expenses of the Company in a context of strong growth of the research programs, and a positive base effect, as the Company recorded in H1 2014 non-recurring expenses of €784k on a capital increase project cancelled in early July 2014. Non-recurring items, which showed a loss of €802k in H1 2014, are limited to a loss of €7k.
The Company has continued to develop its two major research programs, DEINOL and DEINOCHEM, recording significant progress notably materialized by reaching milestones. The activities have expanded, for example with the launch of the Muconic acid production platform and the downstream development of carotenoids in partnership with the Canadian company POS. Investment has continued in development and automation of the metabolic engineering platform and in that of the fermentative capacity. In this context, operating expenses, up by 7%, are controlled.
The net cash position amounted to +€1.8m on 30 June 2015 compared to +€2.2m on 31 December 2014, and was strengthened in the summer by the reception of €1.7m (Bpifrance milestone payment and issue of shares via the guaranteed equity line funding implemented with Kepler Cheuvreux). To that, one must add the collection of €1.7m R&D Tax Credit in September. The Company therefore expects to be able to finance its activities beyond the third quarter of 2016.
"Our interim results are completely in line with what we expected", said Emmanuel PETIOT, CEO of DEINOVE. "While our R&D activities are increasingly sustained, particularly in the context of the need to strengthen our platform and new areas of development and partnerships recently announced, we keep, thanks to wise choices, control of our costs and therefore, our future".