Vivoryon Therapeutics Reports Financial Results for H1 2019
and Corporate Update
Conference call and webcast in English at 3:00 pm CEST / 09:00 am EST
Successful private placement of EUR 8.2 million
Strategic collaboration with MorphoSys announced in July for the development of QPCTL technology in immuno-oncology
HALLE (SAALE), Germany, 29 August 2019 - Vivoryon Therapeutics AG (Euronext Amsterdam: VVY), today announced its financial results for the first six months of 2019 ending June 30. The full interim report is available on the company website (https://www.vivoryon.com/investors-news/financial-information/).
KEY HIGHLIGHTS
Probiodrug AG and the Alzheimer's Disease Cooperative Study (ADCS) received USD 15 million grant from NIH for US-based Phase 2b trial
Probiodrug raised EUR 8.2 million from investors in successful private placement of new shares
Probiodrug AG became Vivoryon Therapeutics AG
Shareholder's meeting resolved for a capital increase to be implemented before the end of the year 2019
Vivoryon entered into a collaboration with University of Kiel to select candidates from QPCTL inhibitor portfolio
POST PERIOD HIGHLIGHTS
Business development efforts in the first half year 2019 led to the announcement of a strategic collaboration with MorphoSys in July for the development of QPCTL technology in immuno-oncology. Vivoryon entered into an exclusive Option Agreement for an up to EUR 15 million equity commitment.
Comment from Dr. Ulrich Dauer, Chief Executive Officer of Vivoryon Therapeutics:
The last six months stand as a transformative time period for Vivoryon during which the team strategically advanced and repositioned the Company through the achievement of several noteworthy corporate goals including the licensing agreement with MorphoSys for our QPCTL inhibitors in oncology, in addition to the validation of our Alzheimer's Disease program from the NIH. Having collaborated with the management team to redefine our objectives and the most optimal steps to achieve them, we remain well-positioned to reach the next set of corporate and clinical milestones.
Looking back at the first half of 2019, we strengthened three core elements of the Company: our corporate and financial position, the recognition of our potential in oncology and the validation of our approach in Alzheimer's Disease.
Starting with the completion of a successful private placement, we enhanced our financial standing and added a consortium of new strategic investors to our shareholder base. On top of this, we rebranded and redefined our position as a company. Our new name, "Vivoryon Therapeutics AG," highlights our strong commitment to developing a treatment for patients suffering from Alzheimer's Disease and emphasizes the fresh perspectives and momentum we aim to leverage to efficiently advance the Company.
From a pipeline perspective, we have made quantifiable progress in monetizing the opportunity within our approach in immuno-oncology. This was emphasized by our licensing agreement with MorphoSys, which delivered on our promise to combine our unique portfolio of proprietary small molecule QPCTL inhibitors with a leading antibody technology. In addition to this, we also initiated a research collaboration with the University of Kiel to further uncover the therapeutic potential of our QPCTL inhibitors in cellular cancer models.
In regard to our Alzheimer's program, we received the approval of a USD 15 million NIH grant intended for a US Phase 2b trial, further validating our differentiated therapeutic approach to this detrimental neurodegenerative disease. Our lead candidate, PQ912, stands out from other treatments in the field, as it inhibits the production of the pyroglutamated form of abeta, a neuro- and synaptotoxic driver of Alzheimer's initiation and progression. Our aim is to advance the Phase 2b clinical trial in Europe during the first quarter of 2020.
As we enter into the second half of the year, we will continue to finalize preparations for the Alzheimer's clinical trial, explore the potential of our unique proprietary position in cancer and identify additional opportunities within our discovery and development pipeline of small molecule therapeutics. With our near-term objective focused on securing the required financial runway to meet these goals, we look forward to connecting with potential investors and partners in the global biotechnology industry and sharing our revitalized vision of leveraging our versatile scientific approach to advance drug candidates in complex and large medical need indications.
FINANCIAL PERFORMANCE
KEY FIGURES (ACCORDING TO IFRS)
In EUR k, unless otherwise stated Jan. - June 2019 Jan. - June 2018 Jan. - Dec. 2018
Earnings, Financial and Net Assets Position
Operating loss -3,077 -4,133 -7,698
Finance income /loss -15 13 -39
Net loss for the period -3,091 -4,120 -7,737
Equity (end of the reporting period) 5,636 4,848 1,230
Equity ratio (end of the reporting period) (in %) 60.8 67.6 30.4
Balance sheet total (end of the reporting period) 9,269 7,169 4,048
Cash flows from operating activities (cum.) -3,428 -4,092 -6,994
Cash flows from operating activities (monthly average) -571 -682 -583
Cash flows from investing activities -4 471 460
Cash flows from financing activities 7,644 0 0
Personnel
Total number of employees (incl. Board of management) (end of the reporting period) 16 14 14
Vivoryon Therapeutics-Share
Loss per share (basic/diluted) (in EUR) -0.31 -0.50 -0.94
Number of shares issued (end of the reporting period) 12,301 8,208 8,208
Details of the Financial Results (according to IFRS)
Net loss
The operating loss for first half of 2019 was reduced by 26% to EUR 3,077k (H1 2018: EUR 4,133k). This was driven by lower research and development expenses of EUR 1,862k (H1 2018: EUR 2,572k) and lower general and administrative of EUR 1,223k (H1 2018: EUR 1,578k).
Consequently, net loss was reduced to EUR 3,091k (H1 2018: EUR 4,120k).
All results are in line with management expectations.
Cash
Vivoryon Therapeutics held EUR 7,999k in cash and cash equivalents as of June 30, 2019 (Dec 31, 2018: EUR 3,783k).
The cash flow from financing activities in amount of EUR 7,644k resulted from the successful private placement of new shares that raised EUR 8,187k in gross proceeds, which were offset by the associated transaction costs of EUR 523k.