ABIVAX (ABVX) H1 2024 earnings summary

Executive summary

• Focus on clinical-stage development of therapeutics for chronic inflammatory diseases, with obefazimod as the lead candidate in phase 3 for ulcerative colitis and phase 2b for Crohn's disease; key clinical milestones are on track, with major readouts expected in 2025 and 2026.

• Cash balance of €222.3M at June 30, 2024, with a projected cash runway into Q4 2025.

• Significant organizational changes in H1 2024, including new board chair, medical, and strategy leadership appointments, and operational expansion in both the U.S. and Europe, increasing headcount to 84 by June 2024.

Financial highlights

• Operating income for H1 2024 was €6.8M, up 202% year-over-year, mainly due to a €4.1M increase in grants from Bpifrance and research tax credits following the termination of two R&D projects.

• Operating expenses rose 120% to €86.8M, driven by a 98% increase in R&D costs (€64.7M), a 165% increase in G&A expenses (€17.9M), and a 2628% increase in marketing expenses (€4.2M), reflecting expanded clinical activity and new equity-based compensation plans.

• Net loss for H1 2024 was €81.6M, up from €52.0M in H1 2023.

• Cash and equivalents at June 30, 2024, were €222.3M, down from €260.0M at year-end 2023.

Outlook and guidance

• Sufficient liquidity to fund operations through the announcement of phase 3 induction results for obefazimod in ulcerative colitis in Q2 2025, with current funds expected to cover operating cash flow requirements into Q4 2025.

• R&D spending expected to remain high due to ongoing phase 3 and phase 2b trials.