Adocia (Paris: ADOC) (Euronext Paris: FR0011184241 – ADOC), a clinical-stage biopharmaceutical company focused on diabetes treatment and other metabolic diseases with innovative formulations of proteins and peptides, declared recently 3rd-quarter revenue and net cash position as of September 30, 2k19.
Revenue of EUR 2.00M is mainly because of the licensing agreements signed with Tonghua Dongbao (THDB) at the end of April 2k18, to develop, manufacture, and commercialize BioChaperone® Lispro and BioChaperone® Combo in China and other territories in Asia and the Middle East. In 2k18, the non-refundable upfront payment from Tonghua Dongbao offered for in the contract, in the amount of USD 50.00M, or EUR 41.10M had been partially recognized as revenue (EUR 37.10M).
In the 1st-nine months of 2k19, revenue has been recognized upon the provision of research and development services performed by Adocia and related to the transfer and development of the products.
Last year, revenue for the 1st-nine months of 2k18 was influenced by the recognition of the rights to use the patents granted to Tonghua Dongbao, for EUR 33.60M, in addition to a contractual milestone payment from Lilly for which Adocia obtained a favorable arbitration judgment in August 2k18, for USD 11.60M or EUR 10.30M.
- Net cash position
Counting the payment from Lilly of the contractual milestone of USD 11.60M USD 2.60M of interest received in September 2k19, the Company has a cash position of EUR 32.50M as of September 30, 2k19, a contrast to EUR 39.80M as of January 1, 2k19. As of October 14, 2k19, the Company has a cash position of more than EUR 39.00M, after the subscription of EUR 7.50M for the 1st-tranche of the financing agreement with IPF Partners.
Net cash flow for the 1st-nine months of 2k19 is EUR 7.30M. Apart From USD 14.30M received from Lilly and EUR 4.10M paid in legal fees, net cash flow is EUR 16.20M contrast to EUR 14.70M for a similar duration last year, on a comparable basis. The EUR 1.50M incline is mainly because of fewer research and development costs eligible for the French research tax credit.
Financial debt as of September 30, 2k19 amounts to EUR 8.00M contrast to EUR 7.100M as of December 31, 2k18. Debt mainly consists of a loan secured in 2016 to finance the acquisition and renovation of the building in which the headquarters and the research center of the Company are located in addition to an additional loan of EUR 1.20M contracted in February 2k19 to finance the renovation work on two floors of 450 sqm each dedicated to the analysis department.
As of October 14, 2k19, the financial debt amounts to EUR 15.50M, after the subscription of EUR 7.50M for the 1st-tranche of the financing agreement with IPF Partners.
Main legal, financial and organizational events for the 3rd-quarter 2k19 and the starting of October 2k19:
On legal matters, the 3rd-quarter of 2k19 marked the conclusion of the arbitration procedure initiated by Adocia against Lilly in 2017.
In August 2k18, the American Arbitration Association Tribunal (“the Tribunal”) governing the procedure had ruled in Adocia’s favor regarding its 1st-claim, which related to a contractual milestone payment contested by Lilly, and awarded Adociacccc USD 11.60M, plus interest. The related payment of EUR 14.30M was received on September 30, 2k19.