Poxel (POXEL) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €1.16 million, up from €0.96 million in H1 2023, mainly from increased royalties on TWYMEEG® sales in Japan.

• Net loss narrowed to €7.26 million in H1 2024 from €26.24 million in H1 2023, reflecting lower R&D and general expenses.

• Cash runway is only sufficient until the end of Q1 2025 due to the non-adoption of key financial delegations at the November 2024 AGM.

• A non-dilutive $50 million royalty monetization deal with OrbiMed was closed in September 2024, used to partially repay debt and fund rare disease programs.

• A new Combined General Meeting is scheduled for February 11, 2025, to seek approval for new financial delegations and extend the cash runway.

Financial highlights

• Royalties from TWYMEEG® sales in Japan reached €1.16 million in H1 2024, up from €0.96 million in H1 2023, primarily from 8% royalties on net sales.

• R&D expenses dropped to €0.5 million from €2.4 million year-over-year, mainly due to the absence of new studies and prior year asset impairment.

• General and administrative expenses decreased to €3.2 million from €4.3 million, reflecting headcount reduction.

• Operating loss improved to €3.7 million from €23.3 million year-over-year.

• Financial expenses increased to €3.5 million, mainly due to interest on debt.

Outlook and guidance

• Strategic focus on rare metabolic diseases, prioritizing ADPKD for PXL770 and advancing clinical partnerships.

• Plans to commercialize Imeglimine outside Japan with new partners.

• Continuity of operations depends on shareholder approval of new financial resolutions at the February 2025 AGM and securing additional funding.

• Cash runway now only extends to end of Q1 2025 unless new financial delegations are approved.

• If resolutions are not adopted, the company may not be able to meet its obligations and continue as a going concern.