OSE Immunotherapeutics Reports Full Year 2023 Financial Results and Provides Business Strategy Update

On March 27, 2024 OSE Immunotherapeutics SA (ISIN: FR0012127173; Mnemo: OSE) reported its consolidated annual financial results for 2023 and provided an update on key proprietary clinical and preclinical achievements, on ongoing collaboration and licensing agreements, as well as on the 2024 Company’s outlook (Press release, OSE Immunotherapeutics, MAR 27, 2024, View Source [SID1234641520]).

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Nicolas Poirier, Chief Executive Officer of OSE Immunotherapeutics, commented: "The Company has built today a broad and independent portfolio of five clinical assets, three pharmaceutical partnerships and three research platforms, all with potential key milestones expected in 2024. We have achieved significant steps in 2023 and all of which put in place during this year will help advance our key priorities on our clinical and preclinical stage products in immuno-oncology and inflammation in the coming months. We started 2024 with a major achievement for the Company’s growth as we also reinforced our financial resources with a new license and collaboration agreement with AbbVie valued up to $713 million, including a $48 million upfront payment, in line with our business-model of recurrent and strategic pharmaceutical partnerships. We will advance the Company’s clinical programs and continue investing in our R&D drug discovery engine to identify novel therapeutics for patients with high medical need in inflammation, autoimmune diseases and immuno-oncology.

The conduct of our Tedopi new pivotal Phase 3 clinical program in second-line non-small cell lung cancer, in patients with secondary/acquired resistance, is on track. Two dossiers were filed to the Food & Drug Administration (FDA) end of 2023: a companion test to identify HLA-A2 positive cancer patients eligible (collaboration with the company GenDx) and a clinical protocol. Both dossiers were approved mid-January 2024 and will be filed in Europe in the coming weeks.

Completion of patient enrollment in the Phase 2 trial evaluating Lusvertikimab in ulcerative colitis was recently announced, and we are now eagerly looking forward to the top-line efficacy results after the induction phase and first early assessment after 6 months of therapy expected mid-2024.

The ongoing Phase 1/2 trial with proprietary anti-PD1 OSE-279 in solid tumors has confirmed positive clinical efficacy results with a high anti-tumor response rate in difficult-to-treat patients. These results encourage further clinical development in the future, used in monotherapy in already identified cancer niche indications and to explore combinations with OSE drug candidates, in particular with our neo-epitope cancer vaccine.

The positive interim data analysis from the FIRsT Phase 1/2 study evaluation of anti-CD28 FR104/VEL-101 in renal transplant marks a key advancement in the clinical development towards a Phase 2 trial under preparation by our partner Veloxis Pharmaceuticals.

Two clinical drug-candidates, BI 765063 and BI 770371, from our selective SIRPa myeloid checkpoint technology are being evaluated by Boehringer Ingelheim in combination in cancer patients, in particular in metastatic or recurrent head and neck squamous cell carcinoma (HNSCC) and hepatocellular carcinoma (HCC). Promising results from the first Phase 1 study, with early clinical efficacy data and biomarkers predictive of response and survival, were presented at the 2023 AACR (Free AACR Whitepaper) and ESMO (Free ESMO Whitepaper) conferences.

We also look forward to generating additive value in immunology with our novel ‘pro-resolutive monoclonal antibody’ platform with additional identified GPCR targets, as well as our ‘myeloid checkpoint’ and ‘cytokine’ drug discovery platforms of which the latest updates are steadily selected for presentation at international scientific congresses. In parallel, at early research level, we keep strengthening our first-in-kind platform built at the intersection of Antibody Engineering, Data Science, Artificial Intelligence (AI) and novel RNA Therapeutics technologies to develop next-generation immunotherapy medicines modulating immune cell responses in the field of immuno-inflammation and immuno-oncology.

Looking ahead to 2024, we are excited by several key clinical, preclinical and partnership milestones to advance the Company’s growth path with the involvement of our teams, experts and partners, all fully committed to innovation in service of patients".

Anne-Laure Autret-Cornet, Chief Financial Officer of OSE Immunotherapeutics, adds: "Our business-model is mostly based on recurrent and strategic partnerships with pharmaceutical companies. Thanks to the collaboration and license agreement signed with AbbVie, we strongly reinforced our financial visibility, which will allow us to pursue our investments in our proprietary clinical programs and our innovative R&D engine to increase their intrinsic value and to prepare the next wave of Company’s growth".

2023 FINANCIAL RESULTS

A meeting of the Board of Directors of OSE Immunotherapeutics was held on March 27, 2024. Following the Audit Committee opinion, the Board approved the annual and consolidated financial statements prepared under IFRS on 31 December 2023.

The key figures of the 2023 consolidated annual results are reported below (and presented in the attached tables):

In K€

December 31, 2023

December 31, 2022

Current operating result

(22,980)

(18,392)

Operating result

(22,986)

(18,476)

Net result

(23,221)

(17,760)

Available cash*

18,672

25,620

Consolidated balance sheet

82,054

91,781

As of December 31, 2023, the Company’s available cash totaled €18.7 million, versus €25.6 million as of December 31, 2022.

In 2024, the Company will reinforce its financial position with a $48 million upfront payment as part of the global and exclusive license and collaboration on OSE-230 signed with AbbVie in February 2024 giving a financial visibility until 2026.

In 2023, OSE Immunotherapeutics secured:

– An equity financing line with Vester Finance, set up on April 27, 2023. This financing has triggered at the end of September a capital increase of €11.6 million (without any discount on the share price at the date of signature). To supplement its financial resources and in order to extend its financial visibility until the fourth quarter of 2024, OSE Immunotherapeutics signed on 27 September 2023, an extension to this equity financing line agreement with Vester Finance, at the same conditions2.

This extension, approved by the Board of Directors of September 27, 2023, acting on delegation from the general assembly meeting of shareholders of June 22, 20233, relates to a maximum of 900,000 shares of the Company, representing a maximum of 4,16% of the share capital, that Vester committed to subscribe on its own initiative, over a maximum period of 24 months, subject to certain usual contractual conditions.

Assuming that the totality of this additional line of financing is used in full, a shareholder holding 1.00% of the capital of OSE Immunotherapeutics before its establishment, would see his stake increase to 0.96% of the capital on an undiluted basis4 and 0.96% of the share capital on a diluted basis5.

This transaction does not give rise to the preparation of a prospectus subject to the approval of the "Autorité des Marchés Financiers", based on Article 1 of the Prospectus Regulation granting an exemption when a transaction relates to a dilution less than 20% of the Company’s share capital.

The number of shares issued under this agreement and admitted to trading are communicated monthly on the Company’s website.

– Loans and "PGE Resilience"

The Company obtained the formal agreement on loans for a total amount of €5.3 million with the collective support of "La Région Pays de la Loire", Bpifrance and its banking pool composed by banks CIC, Crédit Mutuel and BNP to finance its strategic R&D programs. Favorable conditions were granted for these loans, with an interest range of 2-4% and reimbursement timelines within 3 to 5 years. Part of these loans is composed by a "PGE Resilience" ("Prêt Garanti par l’État") loan guaranteed by the French State, implemented in the context of the Ukrainian crisis.

2023 Financial results

The audit procedures on the consolidated accounts have been performed. The certification report will be issued after finalization of the procedures required for the purposes of filing the registration document.

The Company recorded a consolidated operating loss of €-23.0 million. Current operating expenses were €25.2 million (versus €36.6 million in 2022) of which 74% related to R&D. R&D expenses amounted to €17.1 million versus €26.9 million in 2022.

APPENDICES

CONSOLIDATED PROFIT & LOSS

P&L IN K€

December 31, 2023

December 31, 2022

Turnover

2,227

18,302

Total Revenues

2,227

18,302

Research and development expenses

(17,158)

(26,893)

Overhead expenses

(6,015)

(6,672)

Expenses related to shares payments

(2,034)

(3,130)

OPERATING PROFIT/LOSS – CURRENT

(22,980)

(18,392)

Other operating expenses

(6)

(84)

OPERATING PROFIT/LOSS

(22,986)

(18,476)

Financial products

2,177

2,079

Financial expenses

(2,412)

(1,624)

PROFIT/LOSS BEFORE TAX

(23,221)

(18,022)

Income Tax

219

263

NET PROFIT/LOSS

(23,003)

(17,760)

Of which consolidated net result attributable to shareholders

(23,003)

(17,760)

Net earnings attributable to shareholders

Weighted average number of shares outstanding

19,562,147

18,527,401

Basic earnings per share

(1.18)

(0.96)

Diluted earnings per share

(1.18)

(0.96)

IN K€

2023

2022

NET RESULT

(23,003)

(17,760)

Amounts to be recycled in the income statement:

Currency conversion difference

(77)

(61)

Amounts not to be recycled in the income statement:

(9)

122

Other comprehensive income in the period

(86)

(61)

GLOBAL PROFIT/LOSS

(23,089)

(17,699)

CONSOLIDATED BALANCE SHEET

ASSETS IN K€

December 31, 2023

December 31, 2022

Acquired R&D costs

46,401

48,784

Tangible assets

464

743

Right-of-use assets

3,606

4,236

Financial assets

910

635

Differed tax assets

195

182

TOTAL NON-CURRENT ASSETS

51 ,576

54,581

Trade receivables

982

403

Other current assets

10,824

11,177

Cash and cash equivalents

18,672

25,620

TOTAL CURRENT ASSETS

30,478

37,200

TOTAL ASSETS

82,054

91,781

EQUITY & LIABILITIES IN K€

December 31, 2023

December 31, 2022

SHAREHOLDERS’ EQUITY

Stated capital

4,330

3,705

Share premium

49,816

38,784

Merger premium

26,827

26,827

Treasury stock

(408)

(549)

Reserves and retained earnings

(34,587)

(18,349)

Consolidated result

(23,003)

(17,760)

TOTAL SHAREHOLDERS’ EQUITY

22,975

32,658

NON-CURRENT DEBTS

Non-current financial liabilities

35,508

37,231

Non-current lease liabilities

3,032

3,586

Non-current deferred tax liabilities

1,311

1,514

Non-current provisions

429

524

TOTAL NON-CURRENT DEBTS

40,280

42,856

CURRENT DEBTS

Current financial liabilities

6,403

3,093

Current lease liabilities

858

883

Trade payables

9,299

8,539

Corporate income tax liabilities

20

21

Social and tax payables

1,867

2,916

Other debts and accruals

351

816

TOTAL CURRENT DEBTS

18,799

16,268

TOTAL LIABILITIES

82,054

91,781

CONSOLIDATED CASH FLOW STATEMENTS

In K€

December 31, 2023

December 31, 2022

CONSOLIDATED RESULT

(23,003)

(17,760)

+/-

Depreciation, amortization and provision expenses

2,574

2,744

+

Amortization on "right-of-use"

846

742

+/-

Shares based payments (1)

1,746

2,728

CASH FLOW BEFORE TAX

(17,838)

(11,545)

+

Financial charges

(657)

(3,066)

Income tax expenses

(219)

(263)

Tax paid

(216)

(236)

+/-

Working capital variation (2)

(835)

(3,142)

CASH FLOW FROM OPERATING ACTIVITIES (A)

(19,764)

(18,252)

Tangible assets increase

(16)

(274)

+/-

Financial assets variation

0

0

+/-

Net variation in rights-of-use

(216)

0

+/-

Loans and advances variation

(275)

300

CASH FLOW FROM INVESTING ACTIVITIES (B)

(507)

26

+

Capital increase (including share premium)

11,357

+/-

Own shares transactions

0

+

Warrant subscription

300

+

Loan subscription

5,023

12,056

Loan repayment

(2,719)

(1,010)

Lease debt repayment (3)

(637)

(785)

Financial charges

CASH FLOW FROM FINANCING ACTIVITIES (C)

13,324

10,267

+/-

Currency translation transactions (D)

CASH VARIATION E = (A + B + C + D)

(6,948)

(7,959)

CASH OPENING BALANCE (F)

25,620

33,579

CASH CLOSING BALANCE (G)

18,672

25,620

DIFFERENCE: E (G-F)

0

(1) Warrants and free shares awards granted in 2023 and valuated for 1,746 K€
(2) Mainly explained by:
– Increase in trade receivable for 578 K€
Decrease in other current assets for 353 K€
– Increase in trade accounts payable for 759K€
– Decrease in social and tax payable for 1,048 K€
– Decrease in other debts for 464 K€
(3) Explained by IFRS16 application, which corresponds to reimbursement of lease debt for 637 K€